How to build wealth in an economy that's rigged against you — Transcript

Full transcript

1. 0:00This graphic shows why the rich get
2. 0:02richer and the poor get poorer. The rich
3. 0:05have improved their lifestyles. They've
4. 0:07improved their standard of living over
5. 0:09the last few years. Whereas the poor
6. 0:12keep having to decrease their lifestyle.
7. 0:14They have to keep making decisions to
8. 0:17cut parts of their life, the parts that
9. 0:19they enjoy in order to be able to pay
10. 0:21for the things that they need to
11. 0:24survive. For example, rent keeps going
12. 0:27up. The cost of food keeps going up. the
13. 0:29cost of gas and transportation keep
14. 0:32going up. What do they cut out in order
15. 0:35to be able to afford those things? They
16. 0:37have to cut out the things that they
17. 0:39enjoy. They have to cut out the
18. 0:40entertainment. They have to cut out the
19. 0:42extracurricular activities for their
20. 0:44kids. Whereas the rich don't have to cut
21. 0:46out anything. The rich own assets which
22. 0:50allow them to basically swim upstream
23. 0:54much more easily than how the poor
24. 0:57choose to swim upstream. The poor are
25. 0:59simply just using their arms. They're
26. 1:01using their body trying to go against
27. 1:03the current. The current is inflation.
28. 1:05The financial system is designed to keep
29. 1:07you poor for as long as possible.
30. 1:09There's always pressure against you to
31. 1:12continue to move, to continue to do
32. 1:14something. If you stop, you immediately
33. 1:17start decaying. Your wealth immediately
34. 1:19starts disappearing. The way that the
35. 1:21poor save is they hold on to dollars.
36. 1:24Dollars can be printed out of thin air.
37. 1:27They don't own assets. They're the
38. 1:29non-asset holders. You can see here
39. 1:31their wealth over the last few years has
40. 1:35decreased significantly because homes
41. 1:38cost 5 to seven times their income. Rent
42. 1:41is up 30% since 2020. They're going to
43. 1:45continue to fall behind. They're always
44. 1:47going to fall behind because you can't
45. 1:50outwork inflation. You can't outwork the
46. 1:53money printer. the money printer can
47. 1:55keep printing more and more money faster
48. 1:58than you can earn it. The reason why
49. 2:00understanding this is so important is
50. 2:02because if you're earning dollars and
51. 2:04then you're saving dollars, you're
52. 2:05putting your life force, your energy,
53. 2:07your time, everything that you've done
54. 2:09in the past, you're putting that into
55. 2:11something that can be printed. It can be
56. 2:13created out of thin air. This means that
57. 2:16anything you want to buy will eventually
58. 2:18become more expensive in terms of the
59. 2:21savings vehicle that you're using
60. 2:23because more and more units of the
61. 2:25saving vehicle that you're using are
62. 2:26constantly being printed. There's no
63. 2:28limit to how many dollars can exist
64. 2:30whereas there is a limit relative to
65. 2:33dollars to everything else. For example,
66. 2:35if you wanted to buy apples, it takes
67. 2:37time to grow apples. You can't
68. 2:39infinitely grow apples at any time. It
69. 2:41takes time. It takes energy. It takes
70. 2:43effort. It takes people actually
71. 2:45planting trees. It takes all of this
72. 2:47work to produce apples. The people at
73. 2:50the bottom, the non-asset holders are
74. 2:52avoiding risk. They don't want to take
75. 2:53risk because they want to protect the
76. 2:55value of their assets. They don't want
77. 2:57to see their portfolio fall because if
78. 3:00their portfolio falls, it makes them
79. 3:02anxious and they don't want to see their
80. 3:04hard-earned wealth disappear. They would
81. 3:07rather keep their money in a bank
82. 3:09account and earn 0.1%, 0.2%, 2% 0.5% in
83. 3:13interest even though inflation is 5% to
84. 3:16avoid the volatility that comes with
85. 3:19owning assets because the nonasset
86. 3:22holders want to avoid volatility.
87. 3:25They're fully relying on their income
88. 3:26from their job to pay for their expenses
89. 3:28and to potentially save for the future.
90. 3:31As the number of dollars in the system
91. 3:33keep rising by 5 7 10 15% per year,
92. 3:39their purchasing power keeps decreasing
93. 3:41because their employer isn't giving them
94. 3:44a raise to account for the number of
95. 3:47dollars in the system increasing.
96. 3:48Meaning that they can no longer pay for
97. 3:50the things that they need to pay for the
98. 3:52people who do own assets on the other
99. 3:54side of this. So, the people who own
100. 3:56homes, the people who can charge rent,
101. 4:00the people who own the S&P 500, their
102. 4:03wealth is up significantly since 2020.
103. 4:06Homes are up 50%. They're down a little
104. 4:08bit from the peak, but they're still up
105. 4:1150% from just 6 years ago, which is
106. 4:14crazy to think about because if you're
107. 4:16paying for a home, you now have to have
108. 4:1850% more as a down payment in order to
109. 4:21afford just being able to get the
110. 4:24mortgage for that house. You're not even
111. 4:27buying the entire home. You're just
112. 4:28giving a deposit in order to be able to
113. 4:31borrow money to buy the house and to
114. 4:33make payments for the next 30 years.
115. 4:35Most of the people who don't want to
116. 4:37invest have only seen charts like this
117. 4:38where either the S&P 500 is going down
118. 4:41or it's going sideways. And they haven't
119. 4:43zoomed out. They haven't looked at the
120. 4:44last 30 years, the last 35 years of the
121. 4:47S&P 500's history. If you, your parents,
122. 4:50your grandparents, whoever was around
123. 4:52back then, had bought $10,000 worth of
124. 4:54the S&P 500 about 30 years ago, you
125. 4:57would now have over $100,000. And that's
126. 5:01just with you buying and holding. You
127. 5:03didn't have to trade in and out. You
128. 5:04didn't have to make any specific
129. 5:05decisions to buy at a certain time. You
130. 5:08just buy and you hold. This is exactly
131. 5:11why the wealthy become wealthier. They
132. 5:13know that over time the S&P 500 will
133. 5:16continue to go up. Whereas the poor who
134. 5:19have tons of cash sitting in their bank
135. 5:21accounts. They have tons of cash that
136. 5:23they haven't made any decisions with.
137. 5:25They're constantly worried that if they
138. 5:26do make a decision, it'll be the wrong
139. 5:28decision and they'll end up losing
140. 5:29money. This is why they stay poor
141. 5:32because as the price of the S&P 500 goes
142. 5:34up,
143. 5:36the value of their dollars is going
144. 5:39down. I think there's a very strong
145. 5:41argument to be made that the S&P 500's
146. 5:44growth is the true inflation rate. So,
147. 5:46if you're just buying the S&P 500,
148. 5:48you're just maintaining your purchasing
149. 5:50power. Over time, we get better at
150. 5:51making things. We develop new
151. 5:53technologies. We do more research and
152. 5:55development. Information passes on from
153. 5:58generation to generation. And yet the
154. 6:00price of everything is going up. Why is
155. 6:03that? Most people have never asked that
156. 6:05question before. It's because the value
157. 6:08of the dollar is falling and it'll
158. 6:10continue to fall forever. So the people
159. 6:13who don't own assets are just doing
160. 6:14everything on their own. They're not
161. 6:16getting any kind of assistance from the
162. 6:18government to build more wealth. Whereas
163. 6:21the rich are getting constant assistance
164. 6:24from the government because the
165. 6:25government's constantly borrowing more
166. 6:26money. Government's constantly getting
167. 6:28the Federal Reserve to print more money.
168. 6:31The government is constantly dumping
169. 6:32more dollars into the system. And
170. 6:34because of that, the price of the S&P
171. 6:36500 and homes just keeps going up. We're
172. 6:38pitted against each other, charging each
173. 6:40other more and more in rent because the
174. 6:43landlords know that their purchasing
175. 6:45power is decreasing. They know that the
176. 6:46price of the house has increased. If
177. 6:48they keep charging the same amount of
178. 6:50rent, then they're losing because the
179. 6:53purchasing power has decreased. The US
180. 6:55government has created more dollars and
181. 6:57dumped them into the system and now
182. 6:59their house is theoretically worth more.
183. 7:02So why shouldn't they increase the rent
184. 7:04on their home? This seems so wrong to
185. 7:06somebody who's an outsider who doesn't
186. 7:08really understand how the system works.
187. 7:10But this is exactly how the system
188. 7:11works. The people who are raising the
189. 7:13rents are financially literate. They
190. 7:15understand that the dollar has lost a
191. 7:17significant amount of its purchasing
192. 7:19power. And that's exactly why they own
193. 7:21assets because if they don't, they're
194. 7:23going to get poorer and poorer over
195. 7:25time. Nobody is coming to save you if
196. 7:27you don't own assets. But if you do own
197. 7:29assets, your government is coming to
198. 7:31save you. If you're poor, your life will
199. 7:33get more and more expensive because you
200. 7:36are working against the current. You're
201. 7:39working against the system. The system
202. 7:41is going to continue to raise your cost
203. 7:44of living and you're going to have to
204. 7:45work more and more. or you're going to
205. 7:46have to give more and more of your
206. 7:48finite time away to the system in order
207. 7:50to earn more dollars to be able to pay
208. 7:52for your expenses. The key here though
209. 7:54is that anyone can go from being a
210. 7:56non-asset owner to an asset owner.
211. 7:58Anyone can go and buy assets. Anyone can
212. 8:00buy the S&P 500. Anyone can buy REITs.
213. 8:03Anybody can buy Bitcoin. Bitcoin is my
214. 8:05asset of choice. I think that Bitcoin
215. 8:07will outperform everything else. But
216. 8:09whatever you do, you have to own assets
217. 8:12because if you don't own assets, you're
218. 8:13going to be part of the bottom 50% who
219. 8:16own nearly nothing. The graphic is
220. 8:19explained at the top here. The economy
221. 8:21is not going up or down. It is doing
222. 8:23both at the same time. The divergence is
223. 8:25driven by one thing, asset ownership.
224. 8:28Top 10% own 93% of all stocks. The
225. 8:31bottom 50% own 1%. Same economy, two
226. 8:35completely different outcomes. The
227. 8:38dollar is just a filter. It's a filter
228. 8:41for how you look at the world. If you
229. 8:43look at everything in terms of dollars
230. 8:44and all you're saving in is dollars,
231. 8:46your life will continue to get more
232. 8:48expensive forever. You have to take
233. 8:50action. You have to get out of dollars
234. 8:51because in terms of dollars, your life
235. 8:53will keep getting more expensive and you
236. 8:55will not be able to afford your cost of
237. 8:57living. You have to move your wealth
238. 8:58into assets that outperform the cost of
239. 9:01living. If you don't, then you're going
240. 9:03to eventually become poorer and poorer
241. 9:05until you can't pay for your cost of
242. 9:07living at all. When you own assets, the
243. 9:09assets do the hard work for you. Most
244. 9:12people are going to be sidelined when
245. 9:13the S&P 500 goes to $10,000 or Bitcoin
246. 9:16goes back to $126,000 or up to 150,
247. 9:20$200, $300,000. Most people are going to
248. 9:22own none of both of those assets because
249. 9:25they're trying to avoid risk. They're
250. 9:28nonasset owners. They're the broke
251. 9:30people in this K-shaped economy. The
252. 9:33people who own assets are free and
253. 9:35clear. They don't have to worry about
254. 9:36whether their employer is going to go
255. 9:38bankrupt. They don't have to worry about
256. 9:39if they get laid off and now they can't
257. 9:41pay for their mortgage and they're about
258. 9:43to go homeless. They know that the S&P
259. 9:45500 will continue to go up forever in
260. 9:48terms of dollars. Their costs are
261. 9:49denominated in terms of dollars. As long
262. 9:51as they hold on to the S&P 500, their
263. 9:53cost of living will decrease in terms of
264. 9:56their portfolio and purchasing power. On
265. 9:58the other hand, the people at the bottom
266. 9:59have overdue bills. They haven't paid
267. 10:01their bills for three months. They're at
268. 10:03risk of having their phone shut off.
269. 10:04They're at risk of having their
270. 10:05utilities shut off because they can't
271. 10:07pay their bills. They're constantly
272. 10:09saving in dollars. They're constantly
273. 10:11spending in dollars. And because they
274. 10:13don't have any assets, they have nothing
275. 10:15working for them to outperform the cost
276. 10:18of living increasing. When you own
277. 10:20assets, your assets do the work for you.
278. 10:23When you don't own assets, you are
279. 10:24working for your portfolio. you are
280. 10:26working to pay for your expenses on your
281. 10:29own and nobody is supporting you.
282. 10:30Nothing is supporting you. But when you
283. 10:32own assets, when you own let's say the
284. 10:34S&P 500, not my asset of choice, but if
285. 10:36you want to own it, go for it. But when
286. 10:38you own the S&P 500, you have the
287. 10:40smartest people in the world working for
288. 10:41you. You have the CEOs, the executives,
289. 10:44the people who control the companies in
290. 10:46the S&P 500 working for you and creating
291. 10:48new strategies to make more money for
292. 10:50you. If you're ready to start taking
293. 10:52care of your finances and you need help
294. 10:53putting together a proper personal
295. 10:55finance and Bitcoin accumulation plan to
296. 10:57reach your financial goals, check the
297. 10:59link in the description below. I'm
298. 11:00running 90-minute financial audits where
299. 11:02I'll take a look at your income, your
300. 11:03expenses, your Bitcoin accumulation
301. 11:06strategy, your asset accumulation
302. 11:07strategy, and by the end of it, you'll
303. 11:09have a one-page written plan of what you
304. 11:11need to do going forward to maximize
305. 11:13your opportunity to become wealthy and
306. 11:15to be doing whatever you want in the
307. 11:18next decade or so. Again, check that out
308. 11:20in the link in the description below. Do
309. 11:23whatever you can to accumulate assets
310. 11:24and be part of the people at the top,
311. 11:26the blue line here. Don't be in the
312. 11:30bottom 50%. Don't follow the lead of the
313. 11:32people who are telling you that
314. 11:33investing is too risky, it's a gamble,
315. 11:36it's not worth it. You don't want to be
316. 11:37part of that group. You're going to hate
317. 11:39yourself for not taking action when you
318. 11:41could