15 Things Poor People Dont Know About Making Money

Summary

This video delves into key concepts for achieving financial success, such as the difference between salaries and profits, the limitations of traditional education, and the importance of multiple income streams. It critiques the education system, highlighting how most tuition fees don't go toward teachers but instead benefit high-level administrators. The speaker stresses the importance of having multiple income sources to secure financial freedom, sharing personal examples of diverse revenue streams. Additionally, tracking progress in all aspects of life is crucial for continuous improvement. Ultimately, it emphasizes that success is a numbers game and requires strategic monitoring and growth.

Takeaways

• 😀 A-students often end up working for B and C students, who learn to build businesses and play the game of life.
• 😀 Salaries provide for necessities, but profit provides freedom and financial independence.
• 😀 The education system benefits more from tuition payments than it does from teachers' salaries, with most of the money going to trust funds and university executives.
• 😀 Teachers may not be as financially successful as they portray, and mechanics can sometimes earn more than them.
• 😀 Most successful individuals have multiple income streams, not just a single job.
• 😀 It's important to have at least three income streams to secure financial stability and reduce risks.
• 😀 Tracking progress is key to success—whether it's for finances, weight loss, or personal improvement.
• 😀 Writing down your financial progress allows you to see changes and adjust your actions accordingly.
• 😀 Life only gets better when you actively work on improving yourself through learning, eating better, and making smarter financial decisions.
• 😀 Business owners must track the performance of their companies and employees to identify areas for improvement and growth.
• 😀 Financial success is a numbers game, and tracking those numbers is crucial to understanding where you stand and how to improve.

Q & A

What is the difference between salary and profit, as explained in the video?

Salary provides stability by covering basic living expenses like food and necessities, while profit offers freedom, allowing individuals to create wealth and opportunities beyond a regular paycheck.

Why do B and C students often succeed more than A students, according to the video?

B and C students tend to develop entrepreneurial skills and learn how to 'play the game of life,' building businesses, while A students focus on following instructions and excelling in academic environments, often working for others instead of creating opportunities.

How much of the tuition fees actually go toward teachers, and what happens to the rest?

Only 25% of the tuition fees paid by students go towards teachers' salaries. The remaining 75% is allocated to trust funds and board members, who often earn significant salaries, even though they don't teach any classes.

How do high-level administrators at universities compare to teachers in terms of salaries?

Top university administrators, such as the managing director of real estate at Harvard, can earn multi-million-dollar salaries, whereas most teachers earn far less, despite being the ones doing the actual teaching.

What is the importance of having multiple income streams, as mentioned in the video?

Having multiple income streams provides financial security. If one income source fails, others can help mitigate the damage. The video stresses that building multiple revenue channels over time is essential to safeguard against market fluctuations.

Can you give examples of the various income streams that Alux Inc. generates?

Alux Inc. earns from several sources, including ad revenue from YouTube, strategic sponsorships, digital courses, merchandise sales, licensing royalties, and the Alux app. Additionally, they plan to release a book as another income stream.

What is the advice given regarding personal income streams?

It’s recommended that individuals diversify their personal income by creating multiple streams. This can include salaries, dividends from investments, rental income, and even returns from stock portfolios, offering a more stable financial foundation.

Why is tracking progress important in both business and personal life?

Tracking progress is crucial because it allows individuals to measure improvement. Whether it's personal goals like weight loss or financial goals like income, writing down data and monitoring it helps identify what works and what needs adjustment.

What’s the significance of the statement 'numbers don't lie,' as mentioned in the video?

The statement 'numbers don’t lie' emphasizes that financial success and business growth are quantifiable. Tracking key metrics, such as revenue and performance, is the best way to determine if you're truly succeeding or if adjustments are needed.

What should someone do if they want to improve their life or business?

To improve, one must actively track and measure key aspects of their life or business. Without periodic tracking, it’s impossible to see if changes lead to tangible results. Whether it's income, health, or business performance, the only way to improve is to first measure it.