Only Rich People MAKE MONEY Like This | How To Make More Money Best Education Page #Online Earning

Let's face it we all want to make more money but we are often told that it

takes money to make money which in my opinion is only half true the reality is

that money is a resource just like your time and energy and while you may not

have the money it requires to supplement your current income it doesn't mean you

can't acquire it so how do you get the money you need to start multiplying your

income simple you borrow it and in this video I will share with you four ways

you can make money with debt and if you're new to the channel then hit the

subscribe button below for more life-changing content now the idea of

using debt to make money may sound like an odd concept and if that's the case

don't worry because I too used to think this way you see most people are taught

that debt is bad or evil and that the best thing you can do for your finances

is to rid yourself of all debt of course the people saying this aren't totally

wrong as certain types of debt will hinder your ability to improve your

financial state however other forms of debt can make you richer than you ever

imagined the truth is that poor people generally use that in unproductive ways

whereas the rich have learned that with that comes leverage which can be a

powerful tool in making money so first let's review how both groups of people

use debt and they get into four proven ways that that can make you money when

it comes to the poor they generally use that to buy liabilities like a car or a

brand-new TV even the things they consider to be investments like their

homes are bought using debt now if you still believe that a home as an asset

then I'd post the following question to you is your home making you money or

costing you money the definition of an asset is something that puts money into

your pocket and a liability is something that costs you money which in the case

of housing repairs and maintenance makes your primary residence a liability in

broader terms the poor use debt to acquire depreciable assets which are

things that generally lose value over time and this habit keeps most people

financially enslaved to debt for most of their lives this is why 78% of Americans

are living paycheck to paycheck they see items they want spend the money and then

struggle for years to pay the interest in debt balance they built up due to

their irrational spending the rich on the other hand avoid this debt trap

altogether but focusing their time and energy on leveraging good forms of death

they focus their attention acquiring income generating assets by

using other people's money whether that's a banks money investors or even

family and friends so how exactly do the rich use this borrowed money well here

are four ways you can use that to make you rich method number one stock market

investing in the United States 85% of stocks are owned by the

wealthiest 10% of citizens which means that hundreds of millions of people are

forgoing the financial benefit that can be realized when invested well some shy

away from investing due to the fear that the market will collapse the reality is

that most people don't invest simply because they don't have the money to do

so however if they spend time investing in their financial intelligence they

would know that while investing takes money it doesn't have to be your own the

first way debt can be used to increase your investment power is by investing on

margin investing on margin allows you to buy a higher dollar amount of stock then

you actually have the money for for example if you had $50,000 in your

traditional brokerage account you could leverage your investment and open a

margin account a margin account allows you to only put up a max of 50% of the

purchase price of a stock you would have $50,000 in cash and an additional

$50,000 would be loaned to you from your broker your $50,000 investment gives you

a hundred thousand dollars worth of buying power you could use this money

and buy a hundred thousand dollars worth of stock if the stock price appreciates

then you can pay back the loan and pocket the profit sounds great right the

negative is that if the equity in your account falls below a certain value your

brokerage firm can issue a margin call which will require you to pay back part

of the loan by selling off some of your stock or contributing more cash to your

account this method of investing is quite high risk and something that

should be left to more experienced investors as well the propensity to make

money is great the risks are certainly heightened the other way to invest using

debt is the leverage of mortgage most people who buy a home cannot afford to

do so strictly with cash meaning that some of the purchase price of their home

will be supported by a mortgage loan from the bank over time as mortgage

payments are made or the value of the property increases you begin to build

what's called equity or invested value in the home what many people will do is

borrow against equity in their home either through a home equity loan or a

home equity line of credit then invest his money into other

long-term assets quite frankly this is quite a savvy financial move that can be

very profitable when done correctly you see mortgage loans are some of the

cheapest forms of debt and the returns you can make on this money can be

significant for instance if you took out a second mortgage on your home at 3%

that granted you fifty thousand dollars and put that money into the stock market

that averages a seven percent return then after a year you would have made

thirty five hundred dollars than investment income or two thousand

dollars after you net your return against your borrowing costs you see

well the poor only look at their savings account when thinking of investing the

rich know that there exists so much more investing potential be on their own

piggy bank thanks to the use of debt method number two investing in your

education if you were to ask the investing magnet Warren Buffet what the

best way to invest was what do you think he would say invest in stocks buy real

estate well both are solid investment

strategies when done correctly Buffett's been famously quoted as saying the most

important investment you can make is in yourself and continuously educating

yourself is one of the ways to see your wall score over time it's why we see the

majority of people assume tens of thousands of dollars worth of debt in

exchange for a college education however when you run the numbers this financial

move makes sense the average college graduate will earn a million dollars

more in their lifetime than someone whose education ended after high school

therefore there's no doubting that the 30 or 40 thousand dollars you will spend

on tuition will come back to you in time but college isn't for everyone and quite

honestly it doesn't offer classes in many fields that may interest you for

instance when I first started this YouTube channel I needed to gain

knowledge and animation to make videos like the one you're watching now since I

couldn't take an animation course at college I'd look elsewhere and settled

across Skillshare after taking advantage of their two free months of premium

content I was able to learn enough to get my channel off the ground and I'm

now learning a solid income using the skills I was able to obtain and if you

want to continue using the platform after your free trial ends with just a

cost of $20 a month chances are you won't have to go into debt in order to

gain the skills you need to make more money in your current job or through

secondary streams of income I've left a link in the description

below if you want to try Skillshare for free for two months because well that

can be used to make you money sometimes it feels good to get something for free

method number three acquiring real estate let's face it most people don't

have the cash on hand to pay for their homes and investment properties recent

survey shows that under 30 percent of homes are bought through cash only

transactions and this makes sense in saving up hundreds of thousands of

dollars is no easy task well the thought of not borrowing and being mortgage free

is endearing using debt to acquire real estate is usually a better financial

decision if you're trying to build wealth I'm using an example to better

illustrate what I mean let's say you have two hundred thousand dollars cash

and are considering two different investment strategies one where you buy

one property outright and another where you divide up your cash to use as

multiple down payments in option one you can buy a $200,000 home that provides

you with a net cash flow of fifteen hundred dollars a month in option two

you split up the $200,000 you have into for $50,000 down payments that you used

to buy four homes worth $500,000 each after mortgage payments and other

typical housing costs each property provides you with a net cash flow of

five hundred dollars or a total of $2,000 worth of rental profit a month

now both situations have their pros and cons owning just went home means only

having to deal with one tenant and avoiding the interest rate risk that's

associated with owning multiple properties however I would argue that

owning the four properties is more beneficial for a few reasons

first owning multiple homes diversifies your rental risk meaning that even if

you have one tenant leave you will still have three paying you every month

whereas an option one you rental income stream dries up immediately

second owning for properties allows you to benefit from the appreciation of four

houses versus just one which over time will increase your equity in your homes

and ultimately your net worth so if the $200,000 house from option 1 rises in

value by 4% then your appreciation will be $8,000 however if you own the four

houses from option number 2 and they all rose in value by the same percentage

each house will be worth an extra $20,000 for a total real estate holding

appreciation of $80,000 finally as we saw when comparing the

monthly rental incomes from the two options owning more properties has the

potential to earn you more income therefore when used to acquire real

estate debt can be a powerful tool method number four paying down other

debts the least obvious and potentially most lucrative way to use debt to make

you money is to use it to eliminate other forms of debt you may carry you

see well paying down high interest debt isn't directly making you money it's

saving you money in the form of interest payments and that's just as valuable so

how can you use that to save you money what you will want to do is identify

your highest interest rate debts and then seek out opportunities to acquire

data at lower rates in order to wipe out that costly debt of yours for instance

if you can refinance your mortgage at 3% and use that freed up money to pay down

your 20% credit card debt you can cut down on interest payments dramatically

and save yourself money in action this technique could look like the following

say you have twenty thousand dollars worth of credit card debt charging you

20% annually at this rate it would cost you four thousand dollars to carry this

debt for the year however if you were to pay down that debt with twenty thousand

dollars you took out on a home equity loan charging you just three percent or

six hundred dollars annually you would be saving yourself thirty four hundred

dollars which is nothing to scoff at therefore sometimes fighting debt with

that is the wisest move you can make thanks for watching if you want to go

from the life you have to like you deserve then hit the subscribe button

now

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