WEBVTT - This Hidden Wealth Engine Can Grow Your Money 5x Faster Than Saving 0:00:00.400 --> 0:00:02.480 What if I told you the way you've been taught 0:00:02.600 --> 0:00:05.640 to save an invest is actually keeping you broke. You know, 0:00:05.840 --> 0:00:08.799 the wealthy don't play by those rules. Instead, they've mastered 0:00:08.840 --> 0:00:12.160 a system that turns every one dollar into five, or 0:00:12.160 --> 0:00:15.640 into ten or even twenty dollars over time. Now, while 0:00:15.760 --> 0:00:19.240 most people let their money sit idle, losing value every second, 0:00:19.440 --> 0:00:22.480 the rich have unlocked a hidden wealth engine. It's a 0:00:22.520 --> 0:00:26.200 system that grows their money exponentially without working harder or 0:00:26.239 --> 0:00:28.600 cutting back. So today I'm going to pull back the 0:00:28.640 --> 0:00:31.400 curtain on this powerful strategy. I'm going to show you 0:00:31.400 --> 0:00:33.760 how to use it to make your money work harder 0:00:33.800 --> 0:00:36.000 than you ever could. And by the end of this video, 0:00:36.080 --> 0:00:39.800 you'll know exactly how to invest one dollar into three, five, 0:00:40.000 --> 0:00:44.480 or even ten investments, turning your dollars into unstoppable wealth. Now, 0:00:44.640 --> 0:00:47.120 my name is Mark Moss. I've built and invested businesses 0:00:47.159 --> 0:00:50.159 through now three Booma Bus markets. I've exited two of 0:00:50.159 --> 0:00:52.600 them for high value exits. I'm a partner at a 0:00:52.680 --> 0:00:55.960 leading venture capital tech fund, and I've coached thousands of 0:00:56.000 --> 0:00:59.160 people on leveraging these exact strategies to build wealth and 0:00:59.160 --> 0:01:04.640 time freedom. So let's go all right, So the wealthy 0:01:04.640 --> 0:01:07.319 are playing a different game. Look, before we get into 0:01:07.360 --> 0:01:10.000 the wealthy game, let's think about what game you're playing. Now. 0:01:10.360 --> 0:01:12.280 You've seen me probably use this graphic before if you 0:01:12.280 --> 0:01:14.920 watch my videos on a regular basis. And the premise 0:01:14.959 --> 0:01:16.760 of this that you have to just grasp this premise 0:01:16.760 --> 0:01:18.480 before we get into the rest of this, is that 0:01:18.800 --> 0:01:20.920 if I came over to your house with a game, 0:01:21.000 --> 0:01:22.479 a board game, let's say, and I said, hey, let's 0:01:22.480 --> 0:01:24.000 play this board game, and you've you've never seen the 0:01:24.000 --> 0:01:26.600 board game, Well, you'd want to know, like, well, what's 0:01:26.640 --> 0:01:28.520 the objective of the game, what's the strategy of the game, 0:01:28.520 --> 0:01:29.640 what are the rules of the game, who are the 0:01:29.640 --> 0:01:31.119 players of the game? Where the mechanics of the game. 0:01:31.160 --> 0:01:33.679 All these things right, you have to figure those out 0:01:33.720 --> 0:01:36.360 before you could play the game. And imagine if I'd 0:01:36.360 --> 0:01:38.720 been playing this video game, Call of Duty or whatever, 0:01:39.360 --> 0:01:41.880 I've been playing this game for years and you've never 0:01:41.920 --> 0:01:44.360 have wouldn't you imagine that I would have some tips 0:01:44.360 --> 0:01:47.200 and tricks and strategies that you wouldn't understand. Okay, so 0:01:47.280 --> 0:01:49.200 keep an open in mind as we go about this. Now, 0:01:49.200 --> 0:01:52.320 First of all, what game are you playing? Because you've 0:01:52.320 --> 0:01:55.240 been told this mantra your whole life of go to school, 0:01:55.240 --> 0:01:58.560 get good grades, get a good job, save for retirement. 0:01:59.040 --> 0:02:01.960 Now it's not that you've been told out your whole life. 0:02:02.520 --> 0:02:06.080 We have some of the most famous money managers, financial 0:02:06.120 --> 0:02:09.680 gurus like Dave Ramsey telling you this stuff, that we 0:02:09.720 --> 0:02:11.959 should do things a certain way. Let's play this first 0:02:11.960 --> 0:02:13.280 clip from Dave Ramsey. 0:02:13.520 --> 0:02:16.600 The debt snowball. You list your debts smallest to largest. 0:02:16.639 --> 0:02:18.840 You pay minimum payments on everything but the little one. 0:02:18.880 --> 0:02:23.919 You attack the little one with a vengeance. Scorched earth lifestyle, 0:02:24.360 --> 0:02:26.959 sell so much stuff the kids think they're next. Take 0:02:27.040 --> 0:02:30.600 sixteen extra jobs. We're getting out of debt. All right. 0:02:30.680 --> 0:02:34.079 So what Dave Ramsey again, probably the number one financial 0:02:34.120 --> 0:02:37.320 guru millions of people, tens of million, millions of people 0:02:37.320 --> 0:02:40.760 are listening to him, is debt is bad. Don't have debt. 0:02:40.880 --> 0:02:43.680 If you have debt, get rid of your debt as 0:02:43.800 --> 0:02:48.320 fast as possible. Okay. Now, look that's not a bad strategy. Okay. 0:02:48.400 --> 0:02:51.760 I call debt like fire. Now, fire is very useful 0:02:51.760 --> 0:02:53.840 and it's very important. I use fire to warm up 0:02:53.840 --> 0:02:56.600 my house, fire to cook my food. But I could 0:02:56.639 --> 0:02:58.720 also burn my house down. Now, kids, shouldn't play with 0:02:58.760 --> 0:03:01.680 fire because they don't know how to manage fire. They 0:03:01.720 --> 0:03:04.120 could burn the house down. But as you grew up 0:03:04.120 --> 0:03:05.679 as to be an adult, you learn how to cook 0:03:05.720 --> 0:03:08.560 with fire and warm your house, warm your water. Now, 0:03:09.160 --> 0:03:11.240 what Dave Ramsey is saying is that he thinks you're 0:03:11.280 --> 0:03:13.440 a baby and you shouldn't play with fire. You shouldn't 0:03:13.440 --> 0:03:16.000 play with debt. But as we grow up, the rich, 0:03:16.080 --> 0:03:18.560 the wealthy, they play a different game. They leverage debt. 0:03:18.600 --> 0:03:20.480 We're going to talk about that in a second. Now, 0:03:20.560 --> 0:03:22.960 let's play this other clip of Dave Ramsey again. This 0:03:23.000 --> 0:03:25.720 is traditional advice that tens of millions of people are following. 0:03:25.800 --> 0:03:26.640 Let's play this clip. 0:03:27.080 --> 0:03:28.880 The best thing I can do is get you to 0:03:28.960 --> 0:03:31.080 save money. If I can get you to do your 0:03:31.160 --> 0:03:33.519 roth iras, get you to do your four to one case, 0:03:33.560 --> 0:03:35.360 get you out of debt so that you can do that, 0:03:35.720 --> 0:03:37.600 Get your emergency fund in place so you don't go 0:03:37.640 --> 0:03:40.240 and cash the stupid thing out once it's going. Keep 0:03:40.280 --> 0:03:43.080 you investing in, investing in investing in investing in investing 0:03:43.080 --> 0:03:45.560 in investing in investing in investing in investing. If I 0:03:45.640 --> 0:03:47.800 can do that for you as your teacher, all. 0:03:47.760 --> 0:03:50.840 Right, So what everyone's favorite wealth guru is saying is 0:03:50.920 --> 0:03:53.600 just save, save, save. If I can tell one person 0:03:53.600 --> 0:03:55.640 one thing, all you have to do is just save, save, 0:03:55.760 --> 0:03:58.440 save forget everything else. Just save, save, save. Not just 0:03:58.440 --> 0:04:00.880 saving your bank account. He's saying to save in either 0:04:00.920 --> 0:04:03.240 an index fund like the S and P five hundred index, 0:04:03.680 --> 0:04:06.560 or into mutual funds. Okay, so let's just take this 0:04:06.680 --> 0:04:09.600 advice one, never use debt number two, save safe, save 0:04:09.760 --> 0:04:12.280 number three, put it into S and P five hundred 0:04:12.560 --> 0:04:16.640 or mutual funds. Why doesn't that work? Well, let me 0:04:16.680 --> 0:04:19.039 show you why it doesn't work. Now. What happens is 0:04:20.160 --> 0:04:23.520 you follow his vice, You work for forty years, you 0:04:23.600 --> 0:04:26.200 save safe, save into your index fund or your mutual fund, 0:04:26.560 --> 0:04:30.320 and on paper, when you look back forty years later 0:04:30.400 --> 0:04:32.320 at your statements, you're like, oh my gosh, I'm rich. 0:04:32.360 --> 0:04:35.839 I started with fifty thousand, now I have two million dollars, 0:04:36.400 --> 0:04:39.520 five million dollars whatever. But I don't feel more rich. 0:04:39.760 --> 0:04:41.839 Why does it feel like my quality of life actually 0:04:41.839 --> 0:04:44.279 went down? And here's why. This is a chart showing 0:04:44.320 --> 0:04:46.240 the S and P five hundred, your index fund, and 0:04:46.279 --> 0:04:48.880 the global liquidity, or basically the amount of money that's 0:04:48.920 --> 0:04:50.840 created in the world. What we can see here is 0:04:50.960 --> 0:04:53.320 the orange line being global equity. The black line is 0:04:53.320 --> 0:04:55.000 the S and P five hundred. And what you can 0:04:55.040 --> 0:04:58.800 see is that the stock market the real estate market 0:04:58.839 --> 0:05:03.800 are basically perfect proxies for inflation. As the money supply grows, 0:05:04.400 --> 0:05:06.000 the S and P five hundred and your home goes 0:05:06.040 --> 0:05:09.200 up in value at about the same rate. So on paper, 0:05:09.680 --> 0:05:11.640 it looks like that, but you've heard the term like 0:05:11.800 --> 0:05:14.840 it's a million dollars, but adjusted for inflation, it's really 0:05:14.920 --> 0:05:17.840 twenty thousand, right, So what happens is it's going up 0:05:17.839 --> 0:05:19.240 with the rate of inflation. Now this is the S 0:05:19.240 --> 0:05:21.440 and P five hundred. Now you're getting the mutual funds 0:05:21.480 --> 0:05:23.640 like the Ramsey talks about, and you're getting eaten in 0:05:23.720 --> 0:05:27.040 live by fees. A lot of times, your advisor, your 0:05:27.120 --> 0:05:30.680 fund administrator might get two thirds of the amount of 0:05:30.680 --> 0:05:34.039 profit in fees and you get what's left over. So 0:05:34.080 --> 0:05:36.560 that's why it doesn't work. Now I want to show 0:05:36.560 --> 0:05:38.520 you one more chart, and we'll talk about what you 0:05:38.560 --> 0:05:40.760 should be doing. But I want to show you another chart, 0:05:40.800 --> 0:05:43.080 and this is the S and P five hundred. Now 0:05:43.080 --> 0:05:45.200 it's adjusted. We can price the S and P five 0:05:45.240 --> 0:05:48.480 hundred dollars or in bitcoin, or in oil or gold, 0:05:48.800 --> 0:05:51.080 or you want it in or oranges or rice. And 0:05:51.120 --> 0:05:53.760 this is priced in the basket of commodities, the CRB. 0:05:54.120 --> 0:05:56.839 It's the biggest to most commonly use basket of commodities 0:05:56.960 --> 0:05:58.919 real things. What we can see is the S and 0:05:58.920 --> 0:06:01.040 P five hundred made a high here in the year 0:06:01.080 --> 0:06:04.560 two thousand and as of today, it's never made a 0:06:04.560 --> 0:06:06.360 new all time high. As a matter of fact, priced 0:06:06.360 --> 0:06:10.080 in real things, commodities, things you need, it's down twenty 0:06:10.160 --> 0:06:13.520 two percent since the year two thousand. That means the 0:06:13.560 --> 0:06:18.240 price of commodities real things, rice, gold, oil, energy, things 0:06:18.680 --> 0:06:21.560 have gone up. You've lost twenty two percent of your 0:06:21.560 --> 0:06:23.640 prisoning power if you sat in the SFP of five 0:06:23.720 --> 0:06:28.119 hundred versus what the cost of things are today. Not good. Now, again, 0:06:28.160 --> 0:06:30.920 the wealthy have their own set of rules they play 0:06:30.960 --> 0:06:32.920 with and they have a hack. And that's what we're 0:06:32.920 --> 0:06:35.919 going to talk about today is the wealth hack. Okay, Now, 0:06:36.040 --> 0:06:39.680 I call this the velocity of wealth. Now, this concept 0:06:39.760 --> 0:06:42.000 is a concept I've taken from one that we use 0:06:42.000 --> 0:06:45.160 in economics, and it's called the velocity of money. So 0:06:45.200 --> 0:06:48.479 when you hear about economists talking about the economy, like 0:06:48.520 --> 0:06:51.600 in the year twenty twenty, during the pandemic, the velocity 0:06:51.640 --> 0:06:54.040 of money slowed down. That's the problem. They want to 0:06:54.080 --> 0:06:56.279 get the velocity back up. So here's the velocity of money. 0:06:56.320 --> 0:06:59.760 From an economic terms, the velocity of money is the 0:07:00.040 --> 0:07:04.600 amount of money going through the GDP. So basically what 0:07:04.600 --> 0:07:07.520 this means is the GDP is the gross domestic product 0:07:07.520 --> 0:07:10.760 of the economy. It measures the economy how much productivity 0:07:10.800 --> 0:07:12.480 or how much wealth is created in the economy. So 0:07:12.680 --> 0:07:15.960 if I give one dollar to the tire repair shop guy, 0:07:16.160 --> 0:07:18.440 and the tire repair shop goes and gives the dollar 0:07:18.480 --> 0:07:21.600 to his supply guy, and the supply guy goes and 0:07:21.600 --> 0:07:24.920 gives the dollar to the taco guy, well that's one, two, 0:07:25.200 --> 0:07:30.240 three dollars of economicivity, three dollars of GDP, but only 0:07:30.640 --> 0:07:33.920 one dollar actually went through that. So it measures how 0:07:33.960 --> 0:07:38.360 fast one dollar moves through an economy. And for economists, again, 0:07:38.800 --> 0:07:41.840 the faster a dollar moves to the economy, the better. Right, 0:07:41.880 --> 0:07:44.640 when we're spending, spending, spending, those dollars are moving really fast, 0:07:44.760 --> 0:07:47.880 that's good. During the pandemic, everybody hoardes, nobody spends, and 0:07:47.920 --> 0:07:51.880 it slows down. That's really bad. So we use that concept, 0:07:52.120 --> 0:07:55.480 but we can adopt it for our own wealth using 0:07:55.520 --> 0:07:57.680 the velocity money. How fast can we get one dollar 0:07:57.880 --> 0:08:01.520 to move through three, five, or ten investment. The slower 0:08:01.720 --> 0:08:04.600 your money moves through your investments, the worse it is. 0:08:04.800 --> 0:08:07.760 Just like in the economy now, the poor they use 0:08:07.800 --> 0:08:10.640 money this way. The poor use money to do one 0:08:10.760 --> 0:08:14.400 Job's what Dave Ramsey's telling you. Never use debt. Just save, 0:08:14.800 --> 0:08:17.880 get one dollar, put it into account and leave it there. 0:08:18.000 --> 0:08:21.000 Your dollar's doing one job. It's sitting in a fund, 0:08:21.200 --> 0:08:23.680 and that's it. That's what the poor do. But the 0:08:23.720 --> 0:08:27.560 wealthy they build wealth engines and they red those up 0:08:27.840 --> 0:08:31.920 so they get their money. They build an engine, and 0:08:31.920 --> 0:08:34.480 they're trying to get their wealth to go faster and 0:08:34.520 --> 0:08:37.960 faster instead of doing the one job. Like Dave Ramsey's 0:08:37.960 --> 0:08:41.160 talking about. All right, so what are these wealth engines? 0:08:41.200 --> 0:08:43.840 And how can you build one? It's really not that 0:08:44.000 --> 0:08:46.440 hard now if you really want to know how I'm 0:08:46.480 --> 0:08:48.480 building these, and you can build out two, three or 0:08:48.520 --> 0:08:51.280 four of these like right away, Like in months, I'm 0:08:51.280 --> 0:08:53.600 going to be doing a three day live event. I'm 0:08:53.600 --> 0:08:56.120 gonna be live in this studio for three full days 0:08:56.360 --> 0:08:59.000 and I'm gonna be teaching you all the good stuff, 0:08:59.040 --> 0:09:02.240 all the best on how to reclaim more of your time, 0:09:02.800 --> 0:09:06.120 how to accelerate your wealth through these wealth assets and 0:09:06.200 --> 0:09:08.959 these engines, and how to keep more of the wealth 0:09:09.000 --> 0:09:11.440 that you create using some of these strategies. If you'd 0:09:11.480 --> 0:09:12.640 like to come check it out. Like I said, I'll 0:09:12.679 --> 0:09:14.360 be going live from this studio. I'm going to teach 0:09:14.600 --> 0:09:16.760 all of this too. I'm not holding anything back. I'm 0:09:16.760 --> 0:09:18.800 going to give it all to you, actual strategies. There's 0:09:18.840 --> 0:09:20.840 a link down below or on the screen right here. 0:09:21.080 --> 0:09:23.240 Check it out the Wealth Accelerator event. If you want 0:09:23.240 --> 0:09:26.840 to accelerate wealth INN twenty twenty four, check out that event. Okay, Now, 0:09:27.080 --> 0:09:29.280 let me give you three different terms that you need 0:09:29.280 --> 0:09:30.839 to know, and then I'm going to actually draw some 0:09:30.840 --> 0:09:32.559 them out for you. I show you some numbers. Okay. 0:09:32.640 --> 0:09:36.360 So number one is leveraging assets. So we need leverage. 0:09:36.440 --> 0:09:38.280 Lever is like if I have a lever long enough, 0:09:38.280 --> 0:09:40.880 I can move the world. Leverage is like fire. It 0:09:40.880 --> 0:09:42.920 can be dangerous, it can do great things, it can 0:09:42.960 --> 0:09:44.960 be bad. So we have to learn about leveraging assets 0:09:45.040 --> 0:09:47.480 number one. Number two we have to learn about arbitrage. 0:09:47.679 --> 0:09:50.040 That means I can get something from one market and 0:09:50.080 --> 0:09:52.440 take it to another market and make more money. I 0:09:52.480 --> 0:09:55.040 can buy something here in the United States, drive it 0:09:55.040 --> 0:09:56.959 down to Mexico and sell it for more money. Buy 0:09:57.000 --> 0:09:59.480 in one market, selling I can buy on Aldi Baba 0:09:59.520 --> 0:10:01.400 and China, and I can sell on Amazon in the 0:10:01.480 --> 0:10:04.280 United States. So we want to learn out arbitrage, and 0:10:04.320 --> 0:10:06.800 then we want to learn how to manage cash flows, 0:10:07.040 --> 0:10:10.920 manage debt, and equity in our investments. So these are 0:10:11.080 --> 0:10:12.880 the terms that we have to learn. Hopefully that makes 0:10:12.920 --> 0:10:14.600 sense to you. Now, let me show you a couple 0:10:14.720 --> 0:10:16.800 examples of how we can do this. So I'm going 0:10:16.880 --> 0:10:18.120 to draw some out and then I'm going to show 0:10:18.120 --> 0:10:21.800 you some actual data. So for example, I have one dollar. 0:10:22.920 --> 0:10:25.080 Now I can take this dollar and I can put 0:10:25.080 --> 0:10:28.040 it into an account that, let's say makes me five 0:10:28.120 --> 0:10:31.640 percent forever. So as long as that dollar sits there, 0:10:31.679 --> 0:10:35.679 it's making me five percent over time. So that dollar 0:10:35.720 --> 0:10:37.920 is now doing one job. I'm making five percent, like 0:10:37.960 --> 0:10:40.640 sitting in a treasury, like in a dividend stock. Okay, 0:10:40.679 --> 0:10:42.960 but what if I wanted to go faster, Well, what 0:10:43.000 --> 0:10:45.800 I could do is I could borrow that money out, 0:10:45.840 --> 0:10:50.120 that one dollar back and to get that dollar back, 0:10:50.160 --> 0:10:52.880 I have to pay interest. So let's say that I 0:10:53.000 --> 0:10:56.640 have to pay five percent interest to borrow the money. 0:10:57.080 --> 0:11:01.240 So I'm making five percent on the dollar. But then 0:11:01.280 --> 0:11:05.360 when I borrow it, I also have to pay five percent. 0:11:05.400 --> 0:11:07.280 And not only do I have to pay five percent interest, 0:11:08.400 --> 0:11:10.960 I also have to pay back the principle of the 0:11:10.960 --> 0:11:15.000 one dollar. But how would that make me any money? Well, 0:11:15.040 --> 0:11:19.360 it's because the interest moves non interrupted and exponential, while 0:11:19.440 --> 0:11:21.959 this moves linear. So that'd be job number one. I'm 0:11:21.960 --> 0:11:24.240 gonna break this map down for you number two. Now 0:11:24.360 --> 0:11:26.839 I have this money I've borrowed out, I can put 0:11:26.920 --> 0:11:29.600 it into another asset. I could put it into a 0:11:29.600 --> 0:11:32.600 piece of real estate that's making me, you know, somewhere 0:11:32.600 --> 0:11:36.559 between eight to fifteen percent. I could put it into 0:11:36.600 --> 0:11:40.720 an asset like bitcoin that's making me sixty percent. I 0:11:40.760 --> 0:11:44.480 could put it into my business where I buy some 0:11:44.600 --> 0:11:47.200 new equipment and that makes me one hundred percent. So 0:11:47.280 --> 0:11:50.800 now I'm making five percent. I've got the money back out, 0:11:51.080 --> 0:11:53.360 and now I'm in another asset making me sixty percent 0:11:53.800 --> 0:11:56.000 or I e. Eight ten one hundred percent? Does that 0:11:56.040 --> 0:11:59.160 make sense? Now I can keep going a small business owner? 0:11:59.240 --> 0:12:02.040 Are you buried in all types of work, keeping you 0:12:02.080 --> 0:12:04.679 from the real thing that makes you money. Well, that's 0:12:04.679 --> 0:12:06.679 where just Works comes in. They're the all in one 0:12:06.720 --> 0:12:10.040 platform that supports small business growth. You can get all 0:12:10.120 --> 0:12:13.320 their tools that help with benefits like payroll and HR 0:12:13.440 --> 0:12:17.480 and compliance with transparent pricing. Now they help you hire 0:12:17.520 --> 0:12:22.200 top talent internationally, internew markets, quickly scale international operations without 0:12:22.200 --> 0:12:25.280 the workload and forevery how do I do it? Question? 0:12:25.440 --> 0:12:27.800 You can reach out to their expert staff from sole 0:12:27.880 --> 0:12:31.760 proprietor or a team of twenty. Just Works empowers all 0:12:31.840 --> 0:12:35.600 kinds of small businesses with real human support. So visit 0:12:35.800 --> 0:12:39.360 justworks dot com slash podcast to join the thousands of 0:12:39.360 --> 0:12:43.280 small businesses that trust just Works to take care of payroll, benefits, 0:12:43.440 --> 0:12:48.200 compliance and more. Again that's Justworks dot com slash podcast. 0:12:49.200 --> 0:12:51.640 So now I put into bitcoin, I borrow it out, 0:12:52.120 --> 0:12:55.600 and then I put it into my business. That business 0:12:55.600 --> 0:12:57.559 now makes me money, and I put it into real estate. 0:12:57.760 --> 0:12:59.720 So we can mix and match and we can stack 0:12:59.760 --> 0:13:02.679 these as. Now, the order in which we stack them 0:13:02.760 --> 0:13:05.480 is very important, because some of them get me better 0:13:05.600 --> 0:13:08.520 tax treatment. Some of them are more liquid, and we'll 0:13:08.520 --> 0:13:10.160 talk about that. But let me show you a couple 0:13:10.320 --> 0:13:14.400 examples so you can understand how the numbers work, because 0:13:14.440 --> 0:13:16.600 I get it like this sounds really weird, So let 0:13:16.640 --> 0:13:19.520 me give you an actual example. So if I were 0:13:19.559 --> 0:13:22.000 to take one dollar and put it in an account 0:13:22.040 --> 0:13:24.520 and earn five percent, Okay, now we're going to use 0:13:24.640 --> 0:13:28.440 fifty thousand. And if I put fifty thousand into account, 0:13:28.520 --> 0:13:32.040 that's earning five percent, but it's compounding, so it's earning 0:13:32.120 --> 0:13:34.440 interest on the interest on the interest of year. And 0:13:34.440 --> 0:13:36.640 I'm gonna let that fifty thousand sit in account for 0:13:36.679 --> 0:13:40.240 only seven years, not that long seven years, that fifty 0:13:40.280 --> 0:13:46.079 thousand turns into sixty seven thousand dollars. Now, as soon 0:13:46.120 --> 0:13:48.040 as I put the fifty thousand in the account, I 0:13:48.200 --> 0:13:51.520 also borrowed the fifty thousand back out, and I'm paying 0:13:51.600 --> 0:13:55.120 five percent and I'm earning five percent. But here's what happens. 0:13:55.160 --> 0:13:57.040 I'm not only am I again paying the interest, I'm 0:13:57.080 --> 0:13:59.760 paying the debt back. So over the same seventy two 0:13:59.800 --> 0:14:03.360 months period, I've now paid the fifty thousand dollars back, 0:14:03.679 --> 0:14:06.360 but it cost me money. So about fifty thousand now 0:14:06.480 --> 0:14:10.080 cost me fifty seven thousand, nine hundred and seventy seven dollars, 0:14:10.200 --> 0:14:12.880 So it cost me seven thousand dollars in interest, plus 0:14:12.920 --> 0:14:15.840 I paid the fifty thousand back and now at the 0:14:15.960 --> 0:14:18.760 end of the seven years, I have a net gain 0:14:19.040 --> 0:14:21.600 of almost ten thousand dollars. As a matter of fact, 0:14:21.640 --> 0:14:25.120 it's nine thousand and twenty seven dollars. So by doing this, 0:14:25.600 --> 0:14:28.840 by if I put fifty thousand in, made five borrowed 0:14:28.880 --> 0:14:31.640 it back out, I came up nine thousand, almost ten 0:14:31.720 --> 0:14:34.680 thousand dollars difference. Now this is a picture that I 0:14:34.680 --> 0:14:37.120 put on Instagram and Twitter just about a week ago. 0:14:37.360 --> 0:14:40.280 This is my daughter. A Happy birthday to my daughter. 0:14:40.320 --> 0:14:41.800 I went and I got her a new car, and 0:14:41.840 --> 0:14:43.680 I had option one. The reason why I put fifty 0:14:43.760 --> 0:14:46.040 thousand is it was a new Bronco and I had 0:14:46.080 --> 0:14:49.080 option one. Should I pay cash for the car? I 0:14:49.120 --> 0:14:51.240 have no debt, I have no interest, like Dave Ramsey 0:14:51.240 --> 0:14:54.600 would recommend. Or I could take the fifty thousand dollars 0:14:55.600 --> 0:14:58.080 and buy something else with it and then instead get 0:14:58.080 --> 0:15:00.480 a loan for the car. So the dealer offered me 0:15:00.520 --> 0:15:02.920 as I said, zero down, four point nine percent interest 0:15:02.960 --> 0:15:06.640 for five years. So why not borrow that and pay 0:15:06.640 --> 0:15:09.400 the interest five percent? This is a real example and 0:15:09.480 --> 0:15:12.360 instead buy an asset that's going up by more than 0:15:12.400 --> 0:15:15.720 five percent, like bitcoin. So that's what we did. I 0:15:15.800 --> 0:15:17.240 went ahead and did that, and let me show you 0:15:17.280 --> 0:15:20.680 some math of how this works, an actual real example 0:15:21.560 --> 0:15:23.800 if we start stacking these. So now I have the 0:15:23.840 --> 0:15:26.520 initial investment of fifty thousand, It goes into an account 0:15:26.520 --> 0:15:31.440 earning five percent. Right now, I borrow the fifty thousand 0:15:31.560 --> 0:15:33.800 back at five percent rate. So now I have the 0:15:33.840 --> 0:15:37.240 fifty thousand back, and then I invest the borrowed fifty 0:15:37.240 --> 0:15:40.240 thousand into Bitcoin. So I'm putting it into Bitcoin assuming 0:15:40.240 --> 0:15:43.120 that it's going to go by fifty percent per year. 0:15:43.160 --> 0:15:45.080 Now it's been going up by sixty percent a year 0:15:45.080 --> 0:15:47.040 over the last four years. It's going to four thousand 0:15:47.080 --> 0:15:48.480 percent a year if I go back further. But just 0:15:48.520 --> 0:15:50.520 the last four years has gone up about sixty percent. 0:15:50.760 --> 0:15:53.440 So let's take it down to fifty percent. So then 0:15:53.480 --> 0:15:55.480 I purchase a fifty thousand dark car with a loan 0:15:55.520 --> 0:15:58.200 at five percent interest rate advertise over the five years. 0:15:58.200 --> 0:16:01.080 So it's what I did, breaking down the math for you. Now, 0:16:01.120 --> 0:16:03.640 the interest rates and investment returns remain constant over this 0:16:03.680 --> 0:16:07.480 investment period. Loan payments are made monthly compound and investment 0:16:07.480 --> 0:16:10.720 returns occur only. So this is what I'm expecting over 0:16:10.760 --> 0:16:13.360 the course of five years and how this works out. 0:16:13.720 --> 0:16:15.560 So what we do now is we have our money 0:16:15.640 --> 0:16:18.520 doing multiple jobs and you can see that our net 0:16:18.600 --> 0:16:24.840 gain is now almost seven hundred thousand dollars. So Option one, 0:16:25.240 --> 0:16:27.040 I could have paid cash for the car. I had 0:16:27.080 --> 0:16:28.440 the cash, I could have done that. That's what Dave 0:16:28.480 --> 0:16:31.360 Ramsey would tell you do. Option two. I put the 0:16:31.360 --> 0:16:34.520 money in, I borrowed it back out. I borrowed the money, 0:16:34.640 --> 0:16:37.000 I put it into another asset. And now we're talking 0:16:37.040 --> 0:16:40.800 a difference of about seven hundred thousand dollars. Let me 0:16:40.840 --> 0:16:44.560 break down how that math works for you. So the 0:16:44.600 --> 0:16:46.880 financial outcomes in this given scenario, the future value of 0:16:46.880 --> 0:16:49.800 account number one. I put the fifty thousand in, I'm 0:16:49.800 --> 0:16:52.200 e running five percent compound, and we'll growthreate over six 0:16:52.240 --> 0:16:55.240 years I pay, I earn that fifty thousand goes into 0:16:55.240 --> 0:16:58.760 sixty seven thousand dollars. The future value of bitcoin investments 0:16:58.760 --> 0:17:01.360 at the fifty percent compound an a growth rate is 0:17:01.360 --> 0:17:04.760 now five hundred and sixty total repayment for the loan 0:17:05.040 --> 0:17:06.840 the fifty k five percent interest because I have to 0:17:06.840 --> 0:17:09.040 pay that money back that I borrowed cost me a 0:17:09.040 --> 0:17:12.000 fifty seven thousand or seven thousand interests. The total repayment 0:17:12.000 --> 0:17:14.640 of loan number two, the car forty K ten percent 0:17:14.680 --> 0:17:17.280 interest to for five years is fifty thousand, but the 0:17:17.320 --> 0:17:21.000 net gain is now over half a million dollars. I 0:17:21.080 --> 0:17:23.840 have to pay the debt back half a million dollars. 0:17:23.880 --> 0:17:26.480 I'm ahead instead of just paying cash for the car. 0:17:27.240 --> 0:17:29.840 Do you see how this works? Now, this is only 0:17:29.840 --> 0:17:33.760 going to two jobs or three jobs, but imagine when 0:17:33.760 --> 0:17:37.119 I go to four jobs, five jobs, six jobs, seven jobs, 0:17:37.320 --> 0:17:40.520 ten jobs. You can see how instead of buying cash 0:17:40.560 --> 0:17:43.159 like Dave Rams said, for a fifty car, now I 0:17:43.160 --> 0:17:46.640 could have six hundred thousand, eight hundred thousand, a million 0:17:46.680 --> 0:17:49.879 dollars very easily. And we haven't even got into the 0:17:49.960 --> 0:17:52.640 tax of benefits of doing this now. Really, this takes 0:17:52.640 --> 0:17:55.760 into a couple things into account. Number one, the law 0:17:55.840 --> 0:17:59.040 of compounding. It's why I can put fifty thousand and 0:17:59.080 --> 0:18:02.760 pay and earn five percent, borrow fifty thousand and pay 0:18:02.800 --> 0:18:06.280 five percent, but still come out ahead because of the compound, 0:18:06.359 --> 0:18:08.280 which means I earn on top of what I earn 0:18:08.359 --> 0:18:09.720 on top of what I earn on top of what 0:18:09.720 --> 0:18:12.720 I earn. It's what Einstein called the eighth wonder of 0:18:12.760 --> 0:18:15.040 the world. He said, those who know what it is 0:18:15.800 --> 0:18:17.800 receive it, and those who don't know what it is 0:18:18.320 --> 0:18:20.160 they pay it. Now you don't want to be paying it, 0:18:20.240 --> 0:18:23.159 so it's nonlinear. Most people think wealth grows like this. 0:18:23.520 --> 0:18:26.840 Instead it's exponential and even better, all of this is 0:18:26.960 --> 0:18:30.040 tax advantage. You see, when I took Dave Ramsey's device 0:18:30.080 --> 0:18:32.000 and paid the fifty thousand for the car, I had 0:18:32.000 --> 0:18:34.080 to pay tax on that money. So in California, I 0:18:34.119 --> 0:18:37.920 needed one hundred thousand dollars pay the tax on fifty thousand, 0:18:37.960 --> 0:18:39.879 and I have fifty thousand left over. But in the 0:18:39.960 --> 0:18:42.719 other example, every time I get the money back, I 0:18:42.760 --> 0:18:46.320 don't have to pay tax. So now my money's growing 0:18:46.359 --> 0:18:49.480 faster and faster and faster. Now I already know what 0:18:49.480 --> 0:18:51.119 you're saying. I can hear the grumbling. You guys are 0:18:51.119 --> 0:18:54.399 already leaving comments before I've even gotten there. But Mark, Mark, 0:18:54.640 --> 0:18:58.160 isn't this super risky? It sounds really risky. I mean, 0:18:58.359 --> 0:19:01.280 what if I can't afford to pay, and what if 0:19:01.359 --> 0:19:03.200 the value of the real estate or the business or 0:19:03.240 --> 0:19:06.800 the bitcoin goes down and what if it sounds really risky, Mark, 0:19:07.160 --> 0:19:10.520 Sure it is risky, but here's what I have to 0:19:10.520 --> 0:19:13.720 say about that. We understand what the risk is, we 0:19:13.960 --> 0:19:16.840 understand the potential risk that could pose to us, and 0:19:16.880 --> 0:19:19.240 then we learn to mitigate those risks. It's what I 0:19:19.280 --> 0:19:23.400 say that the risk is in the investor, not the investment. 0:19:23.560 --> 0:19:25.760