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The 5 Principles Behind the 10 Secrets

Jun 09, 2021
Well guys, welcome, I know the reason why you are here. They have seen the video. Everyone who hasn't seen the video. 10


to achieve financial success. A boy in the back. Can I ask why you are here? There is always one. So this video is 10. Secrets we filmed a couple of years ago and the assignment was for Tom, so I came to Singapore for about five six days before I went on a business trip and the assignment was quite open, it was fine , you represent a young boy. from the UK just come and ask me anything so it's like a format and ask me anything and if we shoot constantly for the next three weeks I'm sure we'll get something useful because you're basically what you know.
the 5 principles behind the 10 secrets
The typical 20-23 year old London guy and there are a lot of questions that I'm sure everyone has always wanted to ask like someone like me and they either come in person and don't have the courage to ask, or they ask them and They answer them. a two-minute answer and it's just not good enough, so we make ourselves available to the public, but it's always very difficult, you know, later on, if you have the tickets to come to the pub, we probably won't have a conversation for more than two minutes because there are so many people, so we're publicly available all the time, but you usually can't spend a lot of time asking questions that you really want to ask, so the idea behind it was to film more than three. weeks, ask me anything.
the 5 principles behind the 10 secrets

More Interesting Facts About,

the 5 principles behind the 10 secrets...

I think we got about 23 or 24 hours of footage of him just asking me questions and talking and we actually edited it down to ten, there were a lot more spots, otherwise it would have been a ridiculously long video and no one. I would have seen it once and it would have been useless, so we shot it in that ask me anything format without having any real idea of ​​what we were going to do and then we found out later when we saw the footage and what it all came down to was those 10


, now the original video to ask me anything, someone has an idea, has an idea in the room, how much do you think it cost me to put it online for free?
the 5 principles behind the 10 secrets
A three-week business trip around the world with Tom. just following who said how much 50k in what currency you're not too far from $65k how long do you think it took to get the money back as a rough estimate for days because as soon as it goes up on youtube it gets 50100k? visits in a couple of weeks and they just had the bank, you just see everyone coming to buy the education and it was actually when, if you know the history of the Institute, it was actually the first time there was a production where they didn't there was nothing to see. to do with Freddie, so obviously it opens up to a whole new audience, you know people who are only interested in finance and financing their own life, but obviously from a trader's perspective you know there are a lot of other people in line, but you can.
the 5 principles behind the 10 secrets
I get a perspective on finance and money from different fields, but this is from a business perspective, so you know we hear this stuff where you know we have basic business


at the Institute, where it's like we're doing a summer seminar in the world. You know that the cost of a seminar should be equivalent to one or two sales of education and no more, but we are public-facing, so you could eliminate all the costs and attend a webinar at home from Singapore and simply not give it a try. the opportunity to come. to a live seminar and a lot of people do it, so why don't we do it?
Why do we spend tens and tens of thousands of thousands of dollars a year on seminars? Now we do 12 seminars every quarter because we consider it our duty. to be public facing, but things like this, the goal was to have the Ask Me Anything format, but also make a timeless classic so that in the year 2065 people will still see it because it's relevant and the reason why it's relevant unfortunately in the Western world it's because the Western world, the next generation in terms of finance, understanding business, understanding money, has just completely lost its way and there needs to be online resources that people can go to. can go to get the basic


behind money.
Business and Finance and then you can go your own way you know everyone has different choices in their life so we come to these 10 look at these 10 secrets and then for the next year or two I'm just looking at the comments that come up below the video and it's It's amazing, from my perspective, to see the comments about how people just don't understand certain things and today what we're going to do is analyze the principles that underpin all those 10 secrets to make them definitive, so I just have done this. once this presentation in Singapore in November at the world conference on wealth creation - about 800 people and it's pretty much the exact same presentation and this is the last time I'm going to do it so it will be recorded and it will be online for a price and this is what underpins all of this, all of those things that you saw in that video, so I'm also answering all the questions in the comments section in this presentation, so what are the five principles?
These are, this is where we are. What we're going to go through today should take us a couple of hours, so the first acceptance of self-determination, freedom, risk, IQ and hierarchy, let's start with acceptance, so I'm landing from the future Singapore. I get in a time machine and go back to the United States. UK, that's what I feel when I come back to the UK. The UK is struggling and the things I'm going to show you now will be a bit controversial but I don't care because I'll get back on a plane and I'll go back to the future the problem isn't mine the problem is yourself or where you are an acceptance supports these three secrets in the video you saw online so respect money but be indifferent towards it, okay?
Do you remember that conversation where I'm sitting on the couch in New York, traveling, getting perspective and achieving the life of my dreams and pursuing an alternative education, except the principle of acceptance is what underpins those three things, so If you remember when I was sitting on that couch, the basic premise of that interview and that was very improvised and so on, we're just in London, New York, like I'm going to turn on the camera, I'm going to ask you a question about money and then I went To the bedroom, I put on a shirt. and then we sat down, that was it and Tom was really worried, he was like, you know, if we sit there and talk for a long time, it's going to be very dry and boring and I don't care. it's all about being blunt and done in a minute to keep lazy and boring people engaged, it's just about getting the real information out there, so if you remember in that interview, the basic premise is that a capitalist system combined with democracy and Liberty, although not perfect, is the most effective system in human history for raising living standards, history has shown, no one can tell any difference, for example, the US Constitution, the rule of law of the Western world that has stood the test of time and has been tested. which is basically the greatest gift ever given to humanity and if you think it's not, you have a problem, you've been brainwashed because the facts are there, if you just look at the last 200 years the numbers are astonishing in terms of percentage. of human beings that have been born in the last 200 years relative to the rest of human history, if you think those systems are the problem, you are the problem, that's the basic principle, okay, combine that with a system based on money and see money as votes so you can do whatever you want with it because you have freedom and you make decisions and that combination has raised living standards exponentially over the last few hundred years and before that what was the world like?
It was simply ruled by autocratic aristocracies and there was no freedom for the poor it was a system of serfdom and top down and power just flowed from top to bottom power is now in the hands of the consumer because you have because money gives you freedom, you can do whatever you want with it and it's a vote and Right now obviously in the Western world it's a very popular kind of political leaning to be against that system, that's great, but if you don't accept that it's the best system that has ever been created in the history of humanity and you spend your life fighting against it.
Unfortunately, you will never get rich, so accepting is simply accepting that it is true. Once you accept that it's true, you really just free yourself up to be able to go and do whatever you want, and if you're the typical millennial that wants to change the situation. world the best way to change the world is to get rich and use your money to change it the system is there for you to do it no one is fighting you the voting system basically gives you the power to choose superior goods and services that is the system monetary and if you provide those superior goods and services, you actually raise the standard of living and humanity and eliminate bad products and bad services so that everyone's life improves, that is the beauty of the capitalist monetary system and, if you remember, in that interview is about barter economies. so money eliminates barter, so again acceptance in principle in this way is just admitting that it's true, like I don't think it's cool or cool, in any sense, denying that capitalism is great.
I think if you don't think that I think you're stupid because the truth is that with, for example, the medical and scientific advances of the last 100 years and all the innovation that happens, if it wasn't there, you literally wouldn't have been born, think about the bigger picture, you literally would. not having been born I think this is a great quote from Milton Friedman if you don't know who that guy is very famous economists now dead but he was practically the grandfather of all monetary theory one of his quotes the record of history is absolutely crystal clear It's clear that So far no alternative way of improving the lot of ordinary people has been discovered that can compare with the productive activities unleashed by a free enterprise system.
Someone disagrees with that. I don't think you were in London 40 50 per cent of the people in London are basically left-wing socialists, so I know they're all in the room now if we're having a beer, we'll be in the pub later, I would completely admit to them that It's not perfect, no one says that. It's perfect nobody says it's perfect but it's better than everything else and we have to start thinking intergenerationally not in the next one or two years what's going to happen why capitalism might not be good in the next one or two years think about it for periods of 25 50 100 years when you start thinking intergenerationally and just accept that it works for the best, you can be part of it and if you want to change the world, be part of it, be successful, you can use your resources to improve it, but first. acceptance, you wouldn't even be here, you wouldn't have been born if it didn't exist, so to be successful in this higher system, as history shows, you must first of all accept it, embrace it and discover its advantages and disadvantages. and successfully operate within it, start trying to think this way: what was the global GDP in 2017, seventy-nine point two trillion US dollars?
Do you have any idea how big it will be in 2018? It will be approximately eighty-one point nine seven trillion in In 2019, it will be eighty-four point eight four trillion and we will continue to increase global GDP. It's been growing three and a half percent for the past six years, but I ask myself this question: What if next year was less than that number, so everyone waits? this number, what if it were lower? Well, who cares? The numbers are ridiculous, the numbers are just monstrous and besides, if you're smart and you know how to make money when GDP is expanding and how to make money when GDP is contracting.
It doesn't matter, it's not really a question of whether it goes up or down, it's just a question of whether you accept that it is the best system and whether you want to participate or not, guess what happens if you choose every day not to participate. Do you think they don't write to you anything? It is a meritocratic system. The real question when you look at that number is twenty-eight eighty-one point nine seven trillion. The real question is how much do you want. If you don't want anything, you won't get anything now, obviously something. People in the world have no choice, but you have the choice.
You got lucky. You can choose to be part of it. You can choose how much you want and when you have it, you can choose what you want to do. and if you want to change the world with it, change the world by simply participating and making a better product or service, you are changing the world anyway, you are raising the standard of living, you are doing your part in the economy and once you accept it . That's what will happen, you will engage positively with the system and you will discover the pros and cons, you will discover what works, what doesn't, what it can do for you and what you can do for it, but if you choose not to participate and you stand there with banners with postersstupid people on signs protesting all the time.
That's you saying: I don't want anything and what is the system going to give you in return? Nothing because it produces nothing. Is it starting to sink in? So that's one of the controversial parts out of the way if you want to have a beer and talk about it later, well one or two beers not too many because you might get into an argument, the third hope, that's the first, that's one of the controversial parts of the road and I'm doing this to try to help, by the way, I'm not here to try to be nasty to you, this is to help you know that I struggled quite a bit in my teens and early 20s and I wasn't one of these people who wanted to change the world but had a little resentment because I came from a background with no money, a city full of crime, poverty and chaos, and I left and then there was a lot of luck. and rich people and I didn't hate them, but there was a feeling all the time of why it might be enough to just be me at the time I fell into that, that's when my life took off once you accept that it's a good system and By the same way, if you start with zero and someone else has a lot and maybe it's third generation wealth, you can't hate them, the only thing you can do is change your own circumstances, don't worry about other people.
It's worrying, remember he was on the plane talking about traveling in the video? Money allows you to have experiences and one of the most important is to travel. The faster you can do it, please do it. Who is a travel addict who travels a lot? Many of you. It's pretty impressive, but I've been pretty much everywhere and I found that it gives you a lot of perspective on other economies, other systems, and which systems work and which don't. Now it's really cool to put on a backpack and go through India and all these places, and you get to know the third world countries in Africa or whatever, and having these experiences is a lot of fun.
You know a lot of people do it when they have a year off. In that situation, you're not really thinking about the country you're in. You're here, you're just trying to experience being out of the country yourself, so traveling is pretty selfish in that sense, you're trying to have a good time and, more importantly, they're naturally realizing how What's going on here. In this country you have this perspective and also when you return to your home country you see things in a very different way because you have seen what works and what works and when you return to your own country you start to see things. that don't work and the things that work, so going back to the other point, the advantages and disadvantages of this system, you start to notice a lot more.
Part of the trip discussion was buying your dream life for cash. Do you remember that? So if you go that way. the world and you decide, okay, this is my heaven, this is where I want to be forever, that's the place where they should buy something for cash, if they have the cash, obviously, they have to wait and figure out how to get it. money to buy it and when you have that, what does it mean? Well, you can operate completely freely because if you come back to the UK and the UK falls apart, what happens? 99.9% of the population is running around fighting trying to tidy up.
Their lives end, what do you do? You get in a car and you go with a hero and on the other side of the world you have the life of your dreams, so when you operate in the UK you have no risk, so when you walk into a meeting and you are negotiating and someone is haggling over a contract or a hug or haggling over a price you don't care, they care, but you don't, because you already have the life of your dreams, so you sit there and you can negotiate, but who really gets you, just tell them what you want and if they don't give you just leave the room and we'll have what happens nine times out of ten you get what you want because in that meeting and in life in general when you're operating in that situation where you have the dream life you don't panic you don't worry you don't have any anxiety you don't show your hand of weakness and the person who is negotiating with you whatever realizes your weakness and since you are non-negotiable, they can't negotiate with us, so that they have no other option, they simply always give in and give you what you want, it gives you a lot of strength, as if you noticed a big difference. after I traveled to five properties around the world for cash and when I came back because I just didn't care, it all came to me.
I didn't go looking, everything seemed to work all the time and there wasn't any real discussion about prices or negotiations it was just that's what I want, if you don't like Heathrow Terminal Five and they always give you what you want because they have no other option , you will make much better decisions and you do not need to take unnecessary and excessive risks, you will never be required to have a lottery mentality, so all the time you are buying lottery tickets in different formats trying to obtain large amounts of advantages because you have nothing , are you trying?
To get excessive amounts of money with excessive amounts of risk, looking to play the lottery all the time, it simply won't be necessary, so in my opinion, it's something you should really aspire to in your life if you can get the life. of your dreams before 3540. years you will do extremely well at 40, 50 and 60 because at that stage for the rest of your life you don't care, you have already won and what happens is that the world comes to you and gives you further. because you are in a much stronger position than others and they want what you have, so they take the risk that you don't, so it all comes down to having this freedom and it was said in the video the 10 secrets of the video freedom.
It's the number one asset you will ever own, so let's go back to this principle acceptance acceptance that the system is superior why because it gives you freedom if you want it if you don't want it well the system won't give you freedom if you don't want it, but if you want it, you will understand. It is very important to understand what freedom really is. They will define it through this presentation, so traveling is what it really means if you have never traveled and seen multiple systems that have failed and multiple systems that have succeeded, you don't really know or really understand the system that you live in, because whether it's successful or not, so if you're just sitting in this system thinking it's bad but you've never traveled to where you know it's bad?
How do you know it's good? You have no perspective. I would advise you to know that when you meet people, one of the first conversations you should have with people is how much they travel in their life. give you an idea of ​​who you are dealing with, whether they are likely to offer you some value, understanding and perspective on the world, if they don't, that relationship will last a very short time because they don't understand anything. There are many people in the world who are looking for alternative education, so if you remember that interview on the street in the 10 secrets, acceptance here in this way is simply accepting that there are some disadvantages in the system and one of them, which is very common in the UK, it's that governments too big when the government gets too big they control the narrative they control the information that is delivered to you and provide inadequate services, especially in education, as if a guy like me could fly from Singapore and hand you in two hours what it should.
Be learning in school from the ages of eleven to eighteen. Why isn't it there? It's a controlled narrative to make you believe certain things. Think about how many teachers you had when you were a child. Can you name one of your teachers when you were a child who ran a multiple school? -successful million dollar company, of course, don't ask yourself these questions about the teachers you had growing up, what percentage of your teachers had successful marriages. I'm Paul, they were divorced and these people are in front of you, impressionable children from classrooms of 20 30 40 children telling them how they should live and think and when, as parents, you leave them and leave them with these people for years, all this, most of these teachers are simply failures and they are teaching you a script called the National Curriculum, so you just have to accept that in many democratic capitalist systems in the Western world there are problems, so as I said almost from the beginning, the systems are not perfect and one of the big problems is they give you a narrative script education and in many countries it is what people think that the distribution of the way people think is so narrow that it is as if they are producing on a conveyor belt of robots is like a The factory just produces robots that think the same way, so this again is acceptance, now we move on to the next step and what you do about it, well you have to look for alternative education, parents are also a problem, so if you're third fourth fifth tenth generation and your parents don't have anything in their bank account, so your third fourth fourth fifth tenth generation in the Western world just think about how long your family has been operating in the Western world and in all the economic booms that have occurred in the last hundred years. and they have zero, well that could be the same as the teacher, right, if they are standing in front of you telling you what you should do with your life, it's a joke because they have nothing.
I've lost, so you're not going to take advice in any game from someone who loses every time they play, so why would you take their advice? Going back to the school teachers, obviously the vast majority work in the public sector, but even if I have attended a private school, it is very, very unlikely that any of these people have had a modicum of success anywhere in their careers. life, so in terms of financial education they can't teach you anything. Obviously, there is another problem in the Western world outside of married children, so the father is not present or single parent families, divorces, it is very high, many, many, these children have not had an example of how to do things, just the basics, the basics, that's all you need and school doesn't fill that. gap, it doesn't even provide that gap that you know in many communities in the Western world and this is kind of like this is a negative government, it's too big in many of these countries, schools are places where you leave your children to hang out being away for seven eight hours because you have something else you have to give and work on, so putting something on the table at the end of the day, school becomes a convenient place to drop off the kids, so acceptance in this sense is simply accepting that that part of the system fails people when it comes to financial and business education because it simply cannot provide that type of education because the people in the system have never done it, neither the teacher nor the parents, so that you have to do it. to physically remove myself from the situation, so what did I do?
I grew up in Liverpool. I think it's like 90 95 percent left-wing, left-wing, very 80s, very, very anti-capitalist, very anti-business, late mass state, a lot of welfare dependency, drugs, crime. you literally get on a train and go, don't hang around, don't fight what's around you, it's there, just accept it, get on the train and go, physically withdraw, so just accept that it exists and seek a better education financial because we're not going to provide it to you, that's one of the flaws in the system, okay, principle number two, self-determination, so this one probably generated the most questions in the comments section after it was posted the video in recent years. is the principle behind the two secrets of rent to own: properly defining assets and liabilities and building and owning your own infrastructure, in terms of financial education and financial understanding, an asset and a liability, understanding what really It is a perceived asset for people. they actually perceive certain things as assets when they're actually liabilities and even after the video came out it's amazing how many people still don't get it because it really is crazy and we use mortgages as the main example okay so let's start with a property I know somewhere on this street is on the market for three million pounds if you get a mortgage do you pay three million pounds for that property?
No, you pay a lot more, so now I'll show you why. It's financially why it's so dumb to have a mortgage that we can actually quantify because the first thing a mortgage takes away from you is your freedom because you have to pay every month and of course I'm going to get to that in a second but If you don't have a mortgage and you pay rent, you have to pay rent every month, well no, you can leave, we'll get to that in a second, so a mortgage takes away your freedom and right from the start.
Before you even sign the document to take the mortgage, you can sit down and determine how much you value your freedom at that moment for the next 25 to 30 years with just a few assumptions, so let's use an example in the United States, everyone knows the difference between a payment and an interest-only mortgage Do we know that most people should know? If you don't know the difference between that, you need helpto pay a mortgage you are paying the principal of the loan while paying the Mortgage interest only, you don't just pay the interest, so in the US it is mainly payments, the vast majority are fine in the UK, now it is It's about 50/50 payments and interest-only mortgages that are outstanding in the economy, but we're going to use an example here, which is the best-case scenario, which is a payment mortgage. well in the US.
So let's say you find a property worth 500 grand and you put down a deposit of 75 grand to purchase the property, so you get a mortgage for four hundred and twenty-five grand, you sign all the papers , it's done, what do you think you own? that house you don't own anything, you have owned it for over 30 years, a liability of 360 payments, that's what you own, if you miss one of those payments the bank keeps the property, so try to collect .I like to think of the image of a young couple who just got married and the husband crosses the threshold with his new bride and they are toasting glasses of champagne celebrating and they think they own their house, they own nothing, they have a loan. and 360 payments, that's what they have, so let's assume an interest rate of 3.75 percent during.
I think this is 30 years, 360 months, so it's monthly payments of 1968 dollars, okay for 30 years, so over the life of the mortgage they are not By paying five hundred thousand for the property, they are paying seven hundred and eight thousand, but let's assume that, you know, the assumption of the Western world is that property increases forever, so let's include that assumption and say okay, after 30 years property will disappear. To be worth a million, what have you done right in that situation? Do you think you did well in that situation? so you have paid for 30 years for seven hundred and eight thousand properties worth a million, so you make a huge net profit 291 for 30 years, but you gave up your freedom in the process all the time, so obviously you made money, that is undeniable, but you gave up your freedom in the process, okay, you were rewarded for giving up your freedom, but this is something that people don't really understand because the questions that arise and that I will also show you about taking a mortgage to rent is that an asset or a liability.
I'll show you that's not true in a second, but people just don't. I don't really understand the opportunity cost of capital because it's $75,000 that you put down to buy the property as a deposit. Okay, if you just accumulate that at 10% a year by doing something else, let's say you invest it in something that you put it in and it earned 10% every year, it accumulates to 1.3 million over 30 years at 10%, so that you have a situation where you are rewarded for giving up your freedom, but all the while you have no freedom for 30 years, you have to earn those payments every month because you don't know anything, you don't own it until the last payment of the 360 of the 360 ​​months, so you have that situation and you do whether it is worth one million two hundred and ninety-one grants or you put it in a box and you earn 10 percent and you earn 1.3 million;
That's the second situation, there is an opportunity cost of capital, so if you think you can really earn 10 percent a year on your money and live within your means, obviously you don't. If we don't go out and spend it all or even spend even more on the house, then the $500k property would have to increase in value by $1.3 million to pay the opportunity cost of not putting it in the box that pays 10%. , so it would have to increase. for that value for 1.3 million for what it would have to be worth at the end of 30 years 1.8 million to pay for the freedom you obtained by not having the mortgage.
Does it make sense so you make a decision, can you have the mortgage? tie up the 75 thousand dollars so now it's tied up and there's nothing you can do about it or you can put it in a box and earn 10% per year and it accumulates so the property has to work with that amount so you basically don't give up to your freedom at the very least, well you have to live somewhere, so let's say you rent for 30 years for 20 times a year, so you live in your well, within your means, you would have spent 600 thousand dollars on rent, so I'll stick with a 708 grant if you use that second situation.
I'm renting correctly, so when you compare the two scenarios, you are richer in 30 years by 708 thousand dollars, even when you are renting and you have your freedom 100% of the time and you have two, so you have no obligations or debts to pay , so basically, when you take out the mortgage, what you're really saying is: I'm willing to give up my freedom on day one for a price of 208 thousand dollars and I know you have 0% freedom for the 30 years because you have to make those monthly payments consecutively and at the end of the 30 years you can look back and say well, what was my reward every year for 30 years? 9 thousand dollars. 9700 if the property is worth a million, so if you want to be smart about it, make a spreadsheet and calculate all your breakeven points and the opportunity cost of capital, time and freedom, maybe let's make a spreadsheet like that and send it. one day so in this scenario if you think you can earn 10% and by the way 10% is easy if you are financially educated and know what you are doing 10% is easy there are so many products in the world . that pay 10% for very little risk, that to me is like an ultra-conservative investment, so if you think you can earn 10% of your 70% of the previous deposit, that's fine and you decide to take the mortgage on the $500,000 property.
You are basically speculating that the property will increase in value by 1.8 million over the next 30 years; that's the assumption you're making now. Real estate speculation is white wealth in the Western world for the last two generations. Why, because populations have been growing but now? There is a major problem: birth rates in the West are plummeting, so think about it if your country's birth rate is two children per family or a little more, the population stays the same for two generations, if one, the population is reduced by half. Do you understand that building? The buildings will still be there, but there are half the number of people, so all these people who think they're going to be, you know, renting property for the next 50 years and just sitting on a beach somewhere with their feet in tall drinking mai.
Tais, while they do this thing they call passive income, I'm trying to think where they actually get this assumption from because you need people to rent your properties, but if the population has it, you'll just be one of those. people ending up with a bunch of properties that are empty and a load of mortgage debt and are in the process of literally having it right now, so it's a huge headwind for GDP growth and property prices in these countries. Do you think it is an accident that What is being seen in the mainstream media in recent years is basically a massive public relations campaign by the governments of the Western world to open the doors to unrestricted immigration.
Why didn't this happen 20 years ago? Because right now? Because they know it's coming. I'm not going to get too political but the EU has very low birth rates and the UK if they get it wrong bragging about it, in my opinion it's the last chance the UK has to fix themselves if they don't use that as a great opportunity to fix it. It's over because, if we look at it from an intergenerational point of view, things need to happen now, in the next 10 to 20 years, and the demographic headwind is a major problem for the Western world and Europe.
In the UK, the UK competes with all these countries and you need bodies, you need babies and you need people to come in, but the right people, the people who will contribute to the economy and create resources, businesses, GDP and jobs, otherwise you do it, it's game over, it will happen in our lifetime if you don't, so back to mortgages, this debunks the idea that you know it's very easy to go to the bank, prove your income, do a self-certified mortgage, get up, buy, rent and simply rent. It's a random thing you no longer own the property the mortgage is a liability the tenant is a liability you are working for the bank not for yourself and you will have to work on that property for 30 years, you know?
These numbers don't even assume that you have all your costs and that you actually have to work, you're not going to be sitting on a beach just collecting rental income, do we have any landlords here? I'm sure we know when was the last time you didn't work on a property for a year, you're always on the phone, you're always talking to lawyers, accountants and estate agents and you're always working, you never stop. it's not passive income, that's a lie, passive is when you sit on your butt, do nothing and the money just comes to you, it's not passive income, if you want genuine passive income in real estate, has anyone Have you ever invested in a real estate investment trust?
Who else is within your reach? You have Reed's, so real estate investment trusts are an asset class that was invented around the 1960s in the United States and there was a small explosion of this asset class in the 1980s in the U.S. and It's been exported everywhere you can buy real estate investment trusts in the United States, Canada, the United Kingdom, all of Europe, Singapore, Hong Kong, Australia, New Zealand, there are literally tens of thousands of them and what are they? Well, there are all different types, except the basic one. The premise is that you own or manage real estate and you're wrapped up in a structure called a REIT, it's fine and it's publicly traded.
You can trade them on the stock market so you can go out right now and buy one and one of them. One of the guys is a residential REIT, a residential portfolio manager or owner, okay, whatever that company makes, they don't pay taxes on it if they are a registered REIT, okay, but there's a problem: they have to pay the 90 percent of the rental income goes to your investors status, so you don't need to own a physical property to own and make money from the property, you can buy a REIT and just get an annual dividend and do nothing if You want to sit on a beach and earn passive income Buy a residential real estate investment trust that pays six to nine percent dividends per year Your landlord by law has to pay you 90 percent of the rental income they collect What do they do? they work what have you done what have you done done, have you provided the capital and what are you doing, you're sitting on the beach drinking mai tais, they handle everything so there's always an opportunity cost and by the way, if the real estate market goes up in value, The REIT's portfolio goes up in value and the REIT's share price goes up, so you are long the stock and you are an investor, so if the property portfolio doubles in value, the REIT will double its value. value, so you don't miss out on any of the benefits by not buying bricks and water, you can also participate in the benefits, but Yuen Li doesn't do anything, so I encourage you to look at REITs and start analyzing the cost of opportunity to own something in bricks. and well water you don't actually come you have a mortgage right you have to pay 30 years I'm saying take the mortgage and then rent it out and have the tenant and have all the nonsense you have to deal with everything done it's a liability it's not an asset no you're making passive income if you make money it's because you've worked for the property for 30 years and you could have been doing something else it's all about opportunity cost so it also supports Please note that this example I just gave is a payment example .
This is the best case scenario. It is assumed that you are actually paying the principal of the debt. 50 percent of the mortgages now in the West our interests only interest so that people take out the debt and simply pay the debt service by paying the interest and never paying the principal is crazy and also think about the interest rates, like this that the example we have used here was 3.75 percent, do you control what you have? there is no control over it at all, your entire financial future depends on the whims of a central bank, so if you have a fixed mortgage for, say, three or four years and you go outside that fixed number and the interest rates are more high, "You are paying a higher mortgage and you didn't choose to do what someone else did, so you don't have any self-determination in that situation, so going back to the beginning, the system is not perfect, you just need to know the advantages. and disadvantages, so if you want to own a property, we operate on a system where you are allowed to own a property if you want, but there are a number of ways to do it, so you can buy with cash, you can take a mortgage, You can decide, actually, you know, what I don't want to participate in, I just want to invest the capital, they buy a REIT, let the owner worry, there are many different ways to do it, doing it with a mortgage is the worst way, it'ssimply the worst way we have.
Nor have we mentioned here the intangible benefits that come from having total freedom because it is also freedom of thought. We'll talk about that a little bit later with the risk of being able to assess the risk properly because if you don't have complete freedom. you can't objectively assess risk, so most people just don't understand these basics about opportunity cost and the options they have in the world in terms of what they can do with their money, so if you just you make some basic assumptions like well, here's my deposit if I just grew that at ten percent a year what is my opportunity cost what do I value my freedom at this moment if I take this mortgage what is my payment if the property is worth this and this and this and this and what is my risk?
What country am I in? Am I in a country that has a birth rate of 1? Well, I'm in a country that has a birth rate of 11.2. Well, that means the population will decline by 40 to 50 percent in the next 3,040 years. because the older generation just dies and then what are you left with a bunch of houses and half the people? So you have to assess your risk properly so that most people just can't see it and obviously there's a huge conflict of interest, it's basically the debt market narrative, okay people, everyone in this room is being sold debt through various media channels as a solution to their problems, it is not a solution to their problem, it is a conflict of interest that they want you to believe that debt is the solution, that is why this myth you take a mortgage and you own a property is continually pushed and perpetuated until it brainwashes people into thinking that they actually own a property and that's just accepted as true, but if you take out a mortgage, you own a property, it's obviously not true, no. you own nothing so rent to own, very very important to the principle of self determination okay, I would encourage everyone in their early life to rent first, just totally maintain your freedom and buy with cash more Go ahead, much later, the life of your dreams continued to maintain your freedom in terms of self-determination true self-determination means that you have complete control of your finances, not another person, so not even a bank, a bank does not decide your financial future, your bank manager doesn't decide your financial future, a central bank doesn't decide your financial future a government doesn't decide your financial future you simply don't have mortgages it's the worst way to buy property it's the worst way or the worst way to expose yourself to ownership of properties and all the problems that come with this is a responsibility, you don't have to worry about it, let the owner worry, so pensions build their own infrastructure.
This is also a very important part of the ten secrets video and again it is based on self-determination, so we discussed how to build your own infrastructure. own pension fund, okay, then have that fund that will pay you an annuity forever. What has everyone in Western wealth been doing for the last 40 or 40 50 years? What has everyone been doing with their pensions? How people in general have retired in the last 40 50 years. They have created a pension fund where they save every month if they have been good, but they have also used the property as a speculative asset to try to earn enough money to be able to retire and live a good life. retirement pensions people don't save enough and people live way beyond their means, but even if they live within their means and save enough, they are outsourcing their pensions to someone else and when we look at the returns on a pension generic passive over the last 3040 years is pathetic, so what tends to happen in the market, the stock markets go up, say, fifteen percent a year, so let's say you have an index of 100 and you start at the 100 point and you have 15 percent compounded annually.
In the end, after five years, 200, that's the level of the index, your money doubles, but what happens in year six if the market goes down 50%? 100 goes to 200 and then when the stock market goes down 50%, you make 50%, what goes up? So it's a 300, your two options for outsourcing and insourcing your pension, if you outsource you'll be back to a hundred sooner. you know, if at the source you have a chance to be at 300, that's what it's come down to over the last 35 45 years, so people who just have these things called long pensions, all they do is put money in every month and because of the market they are the people that go up and then go back to 100 every cycle and they don't save enough so what have they done right?
They have simply made all the wrong decisions. These are the parents and teachers we all have. Get to know and love those who are trying to give you financial and life advice on what to do. They are the people who have done it in the last 35 45 years. People simply don't learn how to invest properly on their own. Basically, they have outsourced. their pension to a third party, so what didn't they do? They did not invest in themselves or build their own infrastructure. This is another thing in the Western world that is at the top of the system provided by public authorities as infrastructure as a solution. to their problems and it's a disadvantage, it hasn't worked, if it works then everyone will retire very rich and have very comfortable lives, but what does everyone in the Western world do when they retire?
They have to sell their property and downsize to a smaller property. to free up cash, free up equity and pay off the mortgage, and then that's not enough and then your kids have to supplement your income, so you want to be the opposite of that, you want to retire and leave your four-bedroom apartment. house when you are 62 you buy a mansion because you are now retired and can afford to buy a mansion, you don't go from your four bedroom property to a one bedroom apartment, but you don't know where the world is going to be when you retire if you are 25 35 Now why do you assume that if you are in trouble you are going to receive some kind of support from the government in the future?
What if it just disappears again? self-determination you are totally at the whim of the public authorities and if they disappear and all the money disappears, all the social assistance disappears, what are you going to do if you lack your pension and you can't even live at a basic level? from living like you can't trust these people you can only trust yourself so build your own infrastructure you know you will get significant investments and savings of course you can make money working for other people and corporations or whatever, but if you want You have explosive and significant money to build your own infrastructure and build your own businesses and you know that you reinvest the profits in investments that last and that generate that return every year, the 10% more return and then it just accumulates and you will give yourself count when you get to certain levels it starts out shallow it gets a little steeper and it takes time and then it just goes exponential so it takes time so you just have to understand the numbers behind compounding and you'll get there faster as you go.
Well, obviously, if you're self-employed and successful in your chosen business, don't assume either, and this goes back to traveling, don't assume that where you live is tax efficient. I will give you an example of a comparison between the UK and Singapore. I live in Singapore and used to live in the UK. I have businesses all over the world and chose to live to move to Singapore, not just for tax reasons. I pay taxes in Singapore. I could have settled somewhere where there are no taxes. There are many countries that offer zero taxes. You can go to Dubai and register a company at the Dubai International Financial Centre.
The D IFC includes all your sales in all your income. all your profits through your company in Dubai and pay zero for 50 years now it's okay if you don't want to live there if you really want to live there what is Matt? The important thing is what deal you get in exchange for Tax that you pay well if you pay nothing in these countries of the world what you find is that in return you get nothing, so go to any of the Caribbean islands where you can establish companies and pay 0 % of taxes. What do you get?
Dirt roads. no schools, no hospitals, just shitty public services, you can't live there, they're just tax havens, so it's different if you really want to move there. So I think Singapore is the best place in the world because it is the best deal in the world. terms of efficient tax structures and lifestyle, then let's say you have a service company and you work for yourself and you have a company in the UK and a company in Singapore and you invoice a 100 client in the UK, which It ends up in your pocket if you have a gross income. 50% margin business if you are the entrepreneur, what ends up in your pocket out of 100 with a 50% gross margin business, anyone can guess who said 55, you have obviously never been self-employed in the UK, who You are self-employed in the UK, what do you think you get? 14 Don't even remotely try 12 because what's happening is you invoice 100, you write your VAT, 20 percent sales tax, if you have a business with a gross margin of 50 percent, you claim 10 dollars, so you you are left with 90.
Well, then you are 45 years old because your gross margin is 50%, then you pay corporate tax 20, so what are you left with 36? You pay, you leave 10% in the business. You can't take out all that 36 if you have a bad one or two months in the next quarter you need to have working capital in your business at all times, so it comes out at 10 all the time, so you have 25 left 26 and then you pay yourself now, let's say you have a higher rate. taxpayer you have a very successful business what is the highest income tax rate in the UK how much is forty five 45 now what is national insurance 13 a four is 11 12 okay I don't know I haven't been here for a while but it hasn't gone well and by the way one of the costs of doing business in the UK is that you actually have to pay the employer's national insurance so whoever you hire the gyu you add you have than writing a check. a jobs tax which is crazy, so you're left with your 25 26, you're a high rate taxpayer, 45% tax plus 12 per cent national insurance, so you're 57, you're left with 12 12 30, that's a good business that is a successful company with a 50% gross margin with a product or service that is sold and the owner is in the highest income tax bracket because he earns a few hundred thousand pounds per year or whatever, what if you're just a normal company? on the high street, like a flower shop, a hairdresser, a nail bar or whatever you go to when you walk down the high street, to make like a hundred thousand dollars a year after tax, you're going to have to hand over millions and millions of pounds is a joke, it's an absolute joke, so let's look at the other option: Singapore - you take the exact same company and simply put all the revenue and profits through Singapore.
What do you prefer in Singapore out of 100? What do you think a 50 is? % gross margin of the business, so it has to be less than 50, what do you think it is? It's low, 40, so essentially what happens is that if you run exactly the same company in Singapore as you do in the UK, 40 years of working in the UK is equivalent to 10 years of working in Singapore, so you can have careers in Singapore and that's equivalent to a career in the UK now, when I lived here it became too much because you wake up every morning and realize that you work from January to First every year until the end of October, paying for everyone everyone else lives, that's basically what you do and that's if you're successful, so if you don't want capital here, okay, make things difficult for people like me, what do we do well?
I don't care, we have money, we just go to Heathrow, it doesn't hurt me because I just leave people, it really hurts, the whole middle class is what supports us, that's how it really hurts, because it empties productive capacity. of the economy and capital leaves, so factor one two for the UK versus Singapore running the exact same company and this is what the UK doesn't realize. The UK is no longer just competing in business, it is also competing in lifestyle, so if you have money you can move anywhere in the world, why would you be in the UK in the first place and run your company from the United Kingdom?
It's just silly, it's really silly, but then you have to live for seven months in the dark and the cold. cold weather on the boat so you spend the year in the dark, in the cold, paying for everyone else to live and this is what the UK doesn't realize and that's why I say breaks, it's probably the last chance for you to fix yourselves "This is because people don't realize that in this economyglobal, if you are not competitive you die and the UK is not only uncompetitive in taxis and in attracting capital to the country and attracting entrepreneurs, as it used to be, but is not anymore. "You don't compete in lifestyle, it's a shitty place to live if you have money and you can't do anything about it.
You know, for example, if you live the best lifestyle, say in west London, and you're a multi-millionaire and you go down the stairs and you get on your roller and you have your great driver, unless you have wings, you don't avoid traffic like there's a certain thing in the weather, no amount of money can get you out of that shit. Of course, you'll still have to experience what everyone else experiences, but everywhere there are so many places in the world and Singapore is just one of them, where if you have the capital and want the lifestyle the UK can.
I can't compete with it, that's why there is so much money. Does anyone know what the balance of Singapore is as a country, such as the assets that the government owns for one trillion dollars in assets and the populations of 5.5 million that produce nothing, have no agriculture? There are no basic products, they do not produce anything, one billion and 5.5 million inhabitants. I mean, this is what you really have to understand, like there's a big world out there and you're getting a deal, a really good deal that I get if you're self-employed and you want to chat about it.
By doing something, I have gone through the entire process and can discuss it with you to know what the Singapore government likes in terms of your business profile and what income, profits and taxes you need to pay for a couple of years. look at you favorably and say yes, we like you to move, come to the country, if you want to talk about it later, we can build your own infrastructure, tax efficient structures, there is nothing negative about wanting to pay less taxes, I have never understood that, no there is nothing. moral about and if it's called effective tax rates, okay, where you add up all the taxes and say what do I really pay, what really goes into my pocket when you have an effective tax rate for an entrepreneur who successfully runs a business with a gross margin of 50 percent of eighty.
Eight percent of the capital is going to leave your country and it has been happening for years; it will simply go somewhere else where capital gets a better return and the rich don't suffer the rich just move the people who suffer or the middle class and the working class okay, let's move on to freedom freedom what is it that sustains these two secrets from the video learning to value your time correctly and getting rid of the smartphone so you remember I was on the London Bridge bridge just looking at these humans walking like zombies to the office and back, and the reality is you know we're over the mortgage example, whatever they think they are hiding. money and save and put it into an asset, but what they are really doing is exchanging their time for nothing in return, that is what they are doing because when they put their card in the ATM at the end of the month, the day before the pay says zero and they look back and say well, how many hours did I work last month? and it could be 200 hours, whatever, like 200 hours for free, so valuing your time is a central tenant of freedom that you need to learn to value your time appropriately whether you work for a company or for someone else, the reality is that you don't You are valuing your time yourself, someone else's is the labor market that is valuing your time and it is what they are willing to pay for your work.
So now you don't have control, that doesn't mean you can't get rich. You know, one of the things I laugh at all the time when you see the comments, people will say, Well, didn't I do that? Didn't you use the job in the city? He's telling people to do what they shouldn't do. This is stupid. Okay, if you understand the amount of money people got paid when they did it, it was five minus ten. times more, so it's very different when you get paid bonuses of two and three million dollars a year when you're in your twenties or mid-20s and now people make in the same position a hundred and fifty and two hundred, it's obviously very different, so that even back then I was valuing my time and I said yes, now it's worth the sacrifice, isn't it because what do you get in return?
What do you get in return? You have the opportunity to pay a mortgage for the rest of your life, which obviously, from what we've learned today, is not an opportunity, you're not, there's no self-determination, there's no freedom, you go to the ATM every month. and it says zero and you've worked hundreds of hours to make it say that and your entire future is basically outsourced. You live in servitude You have multiple bosses You have your corporate boss You have your bank boss You have your pensions boss You have your central banking government boss Everything you do is out of your control and you are on the hamster wheel, so remember this that says the most important business card you'll ever have is the one you keep at the ATM.
The point I was trying to make is that people just focus on all the wrong things. A business card, a title, a job at a company, what it really means, it just means that you're totally out of control and if you don't get paid and it's not worth the effort. sorry and says zero stop doing it do something else How much can you lose from zero zero? It's really that simple because what's happening there means you're valuing your time at zero, which means you're valuing your freedom at zero, your action, you're actually consciously making the decision that I want. to be a slave you wake up every morning and say I want, I want to do this to myself, it's just a crazy smart phone, it will be fun now that we did that interview, by the way, if you ever saw that video I had slept for about two hours and I was very hungover, so I couldn't go into a lot of detail in that interview, but we'll go into more detail here because people always like to comment.
Well, the smartphone can do this, the smartphone can do that, but it's all completely irrelevant. It's okay, it's all about valuing your time. So if you remember the two examples I gave, let's just put a monetary value on your time and assume that you do it. states that you spend a certain amount of time on your smartphone per day on social media chat systems talking to people you don't really know, that doesn't really matter, come on, I was there too, are you yours truly blackberry? I got rid of it on March 20, 2013 with no staff, like when I was in business, I was a slave to that Blackberry, like when I was a professional trader, we had them in 2000, in fact, in the Goldman Sachs training program in New York in 2000, Blackberry was just brand new and it wasn't a cell phone, it was like a little pager with a wheel on the side and our analyst program was the test, it was a test case and they gave them to us all summer long. and every month we had to like them.
Complete forms and reports about our consumer experience. Is it good for business? bah-bah-bah, so I was a slave to that black. We went for a good 13 years and then I quit because I had an epiphany when I was. In Thailand I turned off my phone for a week and found myself sitting on the beach and in bars thinking of amazing ideas and thought, "Okay, if I'm apart for a week and that happens, what if?" I'm offline forever so I tried it for a couple of months and what happened was the first series of videos went online for my business.
Millions of dollars that would never have been made if I were literally a slave to my phone and you would. I never would have made it if I hadn't given up my Blackberry. Giving up your smartphone makes the world a better place. Okay, so let's put it at $100 an hour and you spend an hour a day on the phone. People don't care that you don't really care and, by the way, you don't care about 36 and a half thousand a year. What if you're okay? If you're rich, what if you make a grunt? What if you make a thousand dollars an hour, then you spend an hour, that's three hundred and sixty-five thousand dollars a year, obviously there's a point at which a smartphone, because of its addictive nature and all the ways that people can contact you here, it may not be just you, it's people. bigots and being available because what you are really doing in all these chat systems is telling everyone that I am available for free and that you can abuse my time.
You can contact me 24 hours a day. day whenever you want because I value my time at zero and you value my time at zero, that's what you're telling the whole world, so how do you get rid of that? If you want to break this cycle, you just have to leave. Suddenly you just can't do anything, here there is no such thing as having a smartphone and deleting all the apps, if you delete a smartphone you just get rid of the smartphone, that's fine, so try it for a month or two. I have a Chinese ZTE model that my wife bought the last time she went to China, she bought a bunch of them and we just keep them in the drawer, but in Singapore I don't have a Singapore SIM card.
I have one from the UK. SIM card, because it costs people money to send me a message, so if you have a stupid phone, get yourself, if you can, a SIM card that is outside of Europe because it will cost people two dollars fifty to send you a message and everything. Those people who were in closed systems before constantly bothering you by talking about things that don't matter at all now it costs them two dollars fifty SSN, a message, what do you think is going to happen? You will find out. quickly who these people are. The funniest thing is I still have friends who text me and they text me like 10 in a row because on their phone they think they're chatting with me and they get their phone bill like a month later it's like 180 dollars.
No, they think they are on a chat system, but they send me SMS for $250 per message. What do you think will happen in a few months every time they send you a message? they just say what they want to say in a message, you're telling them, you're basically telling them that if you want to contact me, it costs you, so when you send me a message, it better be good, it better be important, otherwise, that's what it will be like. to cost you, so you're basically telling everyone that my time costs money, so you're valuing your time and all these people just disappear.
I got like I was really extreme in 2014. I bought like one of these phones I couldn't remember what. my mother was, but she only stored 50 numbers, only 50 numbers and when she was in bars and restaurants all over the world and people were like, oh, can we exchange numbers? I was like, okay, I have to tell you something, my phone only stores 50 numbers and me. I'm going to have to make a decision now if you're stronger than the weakest person on my phone and I did that for about a year and you know, people just weren't offended.
I thought, listen, I'm a busy guy, I just have 50 people on my phone and if you're not stronger than the weakest person on my phone you won't understand. Generally speaking, people just weren't offended and said okay, yeah, yeah, well, am I stronger than the weakest? person, your phone doesn't and I just did it to the extreme just to see how it went and the productivity went off the scale because you just don't waste time on it anymore nowadays, like the jet, you know. Younger generations would like to be addicted to smartphones, it is 90% of their daily activity and if you just delete them, you are free.
This is a very, very simple option to do. It's very obvious when you look at it, just the messages you receive. day when 99% of your arguments are completely useless they don't add value to your life they don't make you richer the other person gets involved on the other side they aren't improving your life in any way it doesn't make sense so basically you have to train them your network so you don't waste their time, just show them that you can't contact you for random chats. If they want to do it, it will cost everyone, so on social media you will know if you have a desktop or a laptop. just schedule all the time on a friday and go on your social media and look at your messages and go back to the people and go back to the messages that mean something, if he doesn't mean anything you don't know the person or not.
I don't know them very well, whatever it is, don't reply, it's a complete waste of time, it's just scheduling all the time per week, so just deal with that stuff on your desktop or laptop, you don't need a phone to send those greeting messages and someone calls you. Your phone is off, what is your greeting message? Well, actually it should discourage people from leaving you a message. I have received the same one for four years. I thought maybe almost yes, almost five years and I don't even say my name. Just say hi. I am traveling for business right now and I mean I am in several different international time zones so it might be difficult for me to contact you.
Leave a message and I will try to get back to you within a week. I can't remember the last time someoneHe left a message. Did it have a negative impact on my life? No, I completely deleted the messages. It's about me. It had a positive impact. So all of a sudden, in terms of freedom, it's the only option if you really want it. To do it, if you really want to try it, you can't delete all the apps and have a smartphone, it doesn't make sense because you're basically a recovering heroin addict and you walk around with heroin in your pocket, you won't believe it. how productive you become, you will be able to schedule everything more efficiently, prioritize your social life and your family life will also improve because when you go to bars and restaurants you are the example and you are leading by example, so you know. you go to bars and restaurants and people are just sitting in your group looking at their phone, when you go out you're not doing it and you're sitting there and if everyone is doing it right, that's the person who's being rude, so you lead by example and then they have to give you the time they have to talk to you, they have to put down the phone and then family life too, you know, if you have children who have teenagers. or whatever, if you do it yourself as a parent, you set the example of what is socially acceptable and what is not, and they will get into the good habit of not looking at their phone for no reason during the entire meal when you.
Going out with another family is a very, very bad habit, for me it is socially unacceptable. I'm not going to waste time going out to dinner with people and them staring at their phone all night while I'm there. getting up and leaving the restaurant my time is too expensive so smartphones maybe not as controversial as other things have risk I Q this is also very important principle number four do you remember the conversation I had about risk in the ten secrets, so That? that risk is subjective and not two-dimensional, so it's subjective to your personal situation, so let's look at two people in very different financial situations looking at the same financial risk, so let's say there's a $10,000 bet and you can win.
Your advantage in this bet is 50 thousand dollars in a month so you can get a return of 400%. Think about it like this: a person who saves $10,000 a year will view that risk very differently than someone who earns $2,000 a day. Risk IQ is really important as a driver for getting rich once you start understanding things like this purchasing power purchasing power you've all heard the phrase you need money to make money this is what we're talking about you need purchasing power you need power have purchasing power to assume the risk and calculate it objectively, if you do not have purchasing power you cannot objectively calculate the risk.
I'll give you some statistics, but they are completely true. look them up on Forbes, you know, Forbes, where they measure wealth around the world and they have the list of billionaires. There is also a list of millionaires. Now obviously they can't name every millionaire in the world, but they use a calculation that's different than the one everyone else seems to use, which is called net worth, so the calculation they use is: can you go to the bank now? same and withdraw 1 million dollars in cash now there are only fifteen point five million people in the world who can do that out of a population of seven billion returning to the original point right at the beginning of the presentation of higher systems there are five point five million of those fifteen, five in the United States, then you think the United States is a bad system, it is the best system in the world, you don't want Donald Trump to come visit the United Kingdom, you need to get your head checked, 5.5 million those 15.5 are in the United States, so let's include all illegal immigrants and call the population 350, that's one point five seven percent of the population. 9.5 million exist outside of the US, so let's take away the 350 to seven and leave six point six five billion or so, what's that point point one?
Because 2% of the world's population can go to the bank and withdraw a million in cash, why this difference with net worth? Well, net worth is just paper wealth, it's not liquidity, it's not purchasing power, so if you have a property worth two million and you have a mortgage for one million, are you a millionaire? No, because you're assuming you can trade at the appraised value, it's not real until it's done and your money is tied up in the person in that situation that you're in. calculate your wealth is the net worth, the assets minus the liabilities and that is what it is worth, it is wealth on paper, it is not liquid and the money is immobilized, the value is immobilized, it is not realized, so the person with assets net in that situation is the cash flow fund.
I'm stuck because they have the mortgage, they have to make all these payments every month, they perceive risk very differently than the person in the other scenario, so it's much better to have $1 million in cash than it is to have equity. net 1 million on paper, that to me is just obvious or let's say liquid securities that you can trade very very quickly and get 1 million in cash, in a day at the touch of a button and it generates 10% compounded per year and you We are doing literally nothing to reduce money. It just works for you. Now add to that a business that now only makes 2k a day relative to net worth.
A person who saves 10 thousand per year sees the same risk totally differently, hence this risk of gambling. 10 grand to make 50 grand in a month the guy who has the mortgage and a net worth of a million and his cash flow and saves 10 grand that person sees it as a huge risk the guy who makes 2 of grand per day you simply see it as the cash flow of a week from Monday to Friday go to the office one day play golf the next day go to the office the next day sit on the beach the next day go out with friends the Friday after going to the office and then I won 10 grand.
Anyway, I did 10 races so if I miss it it doesn't matter because I'll be back in 5 days. The other sees it as a big risk and if they lose, they will have to wait another year. Say that so they see that they could end up living in poverty because their cash flow is poor and it's exactly the same risk. Nothing has changed other than your personal situation, so let's go back to the original point. Real-world risk is entirely subjective to your personal situation. circumstances you cannot take advantage of opportunities if your money is tied up and you cannot evaluate the risk objectively you need purchasing power purchasing power gives you freedom and objectivity and, consequently, one of the stupidest things I have seen people do on the trip getting rich is when they make their first million or two million and then they just go and buy real estate for cash with that million or two million and they are literally left with no purchasing power, so they're trying to get to ten or twenty or thirty or fifty and they have to go back to square one again even though they own property so when we talked earlier about buying your dream life for cash you know if you make your first million and your dream life is a million . you have to postpone it you need purchasing power postpone it for another five ten years get to ten fifteen million then buy the life of your dreams for a million don't tie up your money in assets that don't make money you need purchasing power and compounding the last hierarchy, what supports that in terms of a principle?
Well, you will remember in the mainstream media video that we discussed that as it is useless and choosing role models that fit your personal goal. Now, this might be controversial on this slide. These slides are a little unpleasant, but we'll see how the media fares. It has never been useful for making money. What ends in the new cycle is what happened yesterday. Your job as a money maker is to predict the future and make investments. decisions with your own capital, so try to take advantage of that future. If you spend your life consuming mainstream media it is negative for your wealth mindset, it distracts you and this also ties into acceptance as you know it is one of the negative aspects of or one. of the disadvantages of many capitalist systems when you are in the capitalist system there is always media and you see capitalist media why because they get ratings and what ratings they get advertising revenue and what is advertising revenue money and what is money is capitalism like that which is completely hypocritical, it's all ah, and while we're on the point, if you think the BBC is objective, you've been living under a rock for the last 40 years, the BBC is scandalous, it's scandalous that you're basically forced to pay for your Own a TV and the money goes to them and they use that money to basically brainwash you.
It's a shame and it's a force because they fine you if you don't pay it. They can beat you if you don't pay it. a disgrace honestly it's one of the most cancerous infrastructures of western wealth it's terrible and I did a BBC show so believe me I know what goes on behind the scenes I know what goes on behind the scenes and I can't go in detail because he had a contract but the agenda is scandalous it's scandalous we can probably whisper about it at the bar the mainstream media it's not objective it's for the ratings and the structure is for the shock value ante system to get ratings for get advertising dollars, that's the system, so it's totally hypocritical and a waste of time, you have to look for alternative sources now.
I can't sit here and give you a list of alternative sources because it changes all the time, you just have to be smart. Nowadays it is enough to connect to the Internet and consume what provides you with data. One thing is absolutely certain, okay, and this is the principle of hierarchy. Okay, one thing is absolutely certain. If you can't accept the facts, you will never be rich. Look for facts and accept a fact as a fact, don't waste time, the mainstream media will just pollute you, brainwash you, just create massive destruction, just always think in the background what will the global GDP be next year, well, it will be eighty-one. point nine, seven billion dollars, so why is that famous chef telling me why he should eat?
It is only relevant, everything is totally irrelevant if the GDP is going to be 81 points, what will it be 81.9 seven billion in 2018? There is nothing the mainstream media can do about it. How much do you want? That's the question, just look for the alternative media and the facts because you need freedom of thought and objectivity and this filters into all areas of your life, so look for those sources, self-determination, as well as your propaganda driven especially by advertisers and say that the debt market is the inverted narrative that you are being offered something. that is not a solution and to tell you that it is a solution then the opposite of the truth is what a lie, it is not the solution and all these traps are laid everywhere for you and if you are stupid enough to fall into them, good luck, what's up? role models we live in an instant and in the world we came up with that today, the VIP lunch, so in the interview we talked about celebrities, okay, and this is a bit unpleasant, today's youth I don't know. like an old man harping on the youth of today's celebrities in terms of his own goals, they are basically just fake idols and they are commodified and disposable products, who pays for it?, you, the consumer, buy the companies products that they advertise that they get the channels or whatever the channels that get the ratings that have the celebrity once the celebrity is gone once the celebrity doesn't get the ratings that they get rid of, they are totally disposable and therefore way the vast majority of them are not rich, you know, it's like five years from now, where will these people be in ten years? famous celebrities top celebrities have flashes of wealth but they have no idea what to do with it and it always disappears so at best these people are fake idols they are not role models in fact most of them have Absolutely horrible personal lives and the vast majority, at best, when they make a lot of money, they screw it up anyway. somehow they always screw it up somehow and if your goal is to get rich have self determination be your own person live life on your own terms and have freedom you are the opposite of who they really are because what is what happens with them is that they are just using them, pushing them and telling them what to do, they are commodities, they are disposable products, so if you are misinformed in general in terms of information in the world because you are consuming, let's say, the mainstream media. and you constantly take celebrity as your mantra and really believe that a singing voice is the most important thing in the world or mediocre acting talent, you know that someone has the ability to smile with the click of a finger when the camera turns on, if you think that it's really important you need help like you need very serious help it's not important and those people don'tThey should do it when virtue signals are on TV telling everyone how they should live and what they should be doing.
They do it for a reason, they do it to stay relevant, they don't believe any of it, they are just talking and you get sucked in and end up creating and accepting a false idol, so try to stay away from that. especially especially you, the young, the old, the elderly people here today know exactly what I'm talking about because you have seen it in the '60s or '70s, in the '80s and '90s, everything disappeared, it no longer exists and what happened, what is happening. right now in the world of celebrities it will just disappear and it will never be gone it is permanent it is all transitory it is all transitory I mentioned earlier this number of the fifteen point five million people in the world who have the ability to go to the bank and withdraw 1 million dollars in cash, they are your role models if you want to be rich, not necessarily billionaires, these guys don't mention Indians in the interview was how to find these people, these people don't want to be contacted, they don't go on whatsapp and just say yes, anyway anyone can talk to me anytime whenever they want, if they did, they would be abandoning all the principles that made them rich in the first place, plus, you know, if you meet these people and do it somehow. you manage to get their contact information or whatever.
Do you honestly think you're the only person messaging them like they're getting hundreds of messages a week and they don't want to talk to anyone at any point, or if they do, they choose not to? talk to them because they just want a nice life, but you won't believe how many messages I get on LinkedIn a week of business ideas, people asking for money, it's amazing and if they think I'm actually going to respond like I just look at the first one. phrase and whatever the true hierarchy of role models is in this world that we live in today, over 15.5 million people, so if your goal is to get rich, if your goal is not to be rich, then obviously no They are your Ramos.
I hope the true hierarchy of role models in the real world we live in today is the fifteen point five million people you've never heard of because they're all liquid rich and can do whatever they want, they value their time, They value their freedom, they have purchasing power, they know how to analyze risk and in general the vast majority of them are happy, much happier than people who do not have the million dollars in cash. It is a lie to say that they are not sitting with these people and picking their brains. , do you understand how many times I get a message a week saying I'll be stopping by Singapore in a few weeks?
Do you have time for a coffee? No, actually I don't know o o a message starts with I'd like to pick your brain about something, you're kidding right, no, I'm busy, I'm doing things that are important and now that message may be important to them, but it's not important for the person who receives it. like these messages are just it seems ridiculous that anyone expects you to respond to all these people you don't know or haven't heard of, who knows fifteen point five million of them in the world with 5.5 million in the US ., TRUE? They value your time.
We won't be able to sit with him now. It's very, very different to have a role model where you can see someone visibly online or in the media or whatever and you can emulate their habits and behaviors and understand their life story and what they've done to get from where they are. They came to where they are, that's very, very different than having a mentor where you actually sit down with people and they teach you everything they know, that's very, very different if you want people to be your mentors it's probably going to cost them money because sometimes It will cost them a fortune in opportunity costs just to sit with you for a couple of hours, so understand the distinction between a role model and a real mentor and don't forget that we do.
You live in a crazy world where almost all the rich people you see online are actually not that rich now if you can find someone who is and who actually has all the things we've discussed today, the principles, the 10 secrets. and they are rich and they really have time to do it, what are they going to teach you? Well, you know what made them successful, it was doing all the things that we talked about today, so the five principles, acceptance, self-determination, freedom, risk, IQ. hierarchy and they're going to teach it to you, but ultimately they know they can't push you over the line, you have to do it yourself, so what do they do?
They teach you all the principles, they teach you all the good habits and secrets. that you need to have, they have those 10 secrets that we saw in the video, they have the five principles behind them, they will teach you all that, but in the end they know that at some point they will have to let you go and you either swim or you sink and that is the beauty of the system in the one we live in is available if you want it if you don't want it you get zero if you want it you have a chance and rock the good role models and the good ones He mentors those fifteen point five million people who exist and who you have never heard of talk.
They'll teach you that, but they know that at the end of the day you have to do it and that you can make the world a better place just by creating a great product. type of great service that surpasses all others you can change the world by living in the tops of the system you cannot change the world if you choose to live outside of it and complaining about it all day for the rest of your life is thus self-destructive, so that these five principles lead to everything, they support everything in those 10 secrets, it is a financial success in the video now, if you want to enter the Institute and you want to receive education in the stock market, the foreign exchange market and the options market, what we make. mentoring programs too, I don't do many of them anymore, we have mentors all over the world, guys who have worked in the markets for years, those guys will do the best job I can do in terms of advising you, that's why you hire them , they hire them on the principle that they are as good, if not better, than me and I just run the company and if you really want to get Mentors intensely, we do a holiday program in Thailand and the next ones, but we The next one in which you can participate is in October.
In fact, I'm going next week from... Islands for the next for ten days, so you spend ten days with us and we teach you intensely how to make money in the financial sector. market and then you also have twelve weeks later on the phone and then we have to stick to that principle, we show you how to do it, but then you have to go out and do it yourself otherwise you'll never do it so guys. five, those are the five principles that underpin the ten secrets. I'll be at the bar. I hope you enjoyed the content and thank you for coming.

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