The 8 Laws of Money to GET RICH (Apply them NOW)
Summary
TLDRThis video explores the eight essential laws of money to achieve financial freedom. It emphasizes the importance of understanding money's growth potential, spending wisely, and recognizing that wealth building is a lifelong journey. The script dispels the myth that money solves insecurities and advises maintaining financial discretion. It highlights the opportunities for wealth transfer during crises and the necessity of increasing income to offset rising expenses. The power of early and consistent investing is underscored, with examples of billionaires like Warren Buffett, illustrating the potential for significant wealth accumulation over time.
Takeaways
- 📚 **Understanding Money Rules**: The video emphasizes the importance of knowing the rules of money management to achieve financial freedom.
- 🌳 **Money Grows on Trees**: It's possible to create passive income sources that generate wealth over time, similar to planting trees that bear fruit.
- 💸 **No Limit to Spending**: As income increases, so can expenses. It's crucial to maintain discipline and keep spending below income.
- 💼 **Long-Term Game**: Wealth creation is a lifelong process that requires continuous management and cannot be achieved with a one-time effort.
- 🚗 **Money and Insecurities**: Material possessions won't resolve personal insecurities; instead, focus on emotional regulation and self-confidence.
- 🤐 **Discretion with Wealth**: Avoid flaunting wealth to prevent attracting unwanted attention and potential legal issues.
- 🌪️ **Wealth Transfers in Crises**: Crises often present opportunities for wealth transfer; being prepared can allow one to capitalize on such situations.
- 👵 **Increasing Expenses with Age**: Expenses tend to rise with age, necessitating proactive planning to ensure income outpaces costs.
- 🌱 **Wealth Accumulation Over Time**: Wealth, like a tree, grows slowly. Early and consistent investment can lead to significant wealth over time.
- 💰 **Compounding Power**: The power of compounding can turn small investments into substantial wealth, highlighting the importance of starting early.
Q & A
What is the main theme of the video?
-The main theme of the video is to educate viewers on the eight laws of money to achieve financial freedom and success in the money game.
Who is the fastest self-made billionaire mentioned in the script?
-Jay Walker is mentioned as the fastest self-made billionaire, who achieved billionaire status in less than a year through his company, priceline.com.
Why did Jay Walker's wealth not sustain after becoming a billionaire?
-Jay Walker's wealth did not sustain because it was tied to the .com bubble, and when the bubble burst, his net worth crashed as well.
What is the first law of money presented in the video?
-The first law of money is that money grows on trees, which means one should not spend their entire life exchanging time for money but instead create passive income sources.
What is the significance of planting trees in the context of the first law of money?
-Planting trees symbolizes the need to invest in assets or businesses that will provide income over time without constant active work, similar to how trees produce fruit.
What does the second law of money suggest about spending habits?
-The second law of money suggests that there's no limit to what one can spend, and as income increases, so can expenses. It advises maintaining a budget lower than one's income.
Why is it important to manage money as a lifelong game according to the third law?
-The third law emphasizes that managing money is a lifelong game because income sources require continuous management, and wealth can be lost if not actively maintained.
How does the fourth law of money address the issue of insecurities?
-The fourth law states that money won't solve insecurities. It suggests that material possessions provide temporary happiness but do not address underlying emotional needs and can lead to a cycle of spending to seek validation.
What is the advice given in the fifth law regarding displaying one's wealth?
-The fifth law advises not to let anyone know that you have money, as it can attract negative attention and people who may try to take advantage of your wealth.
What opportunities does the sixth law suggest can arise during financial crises?
-The sixth law suggests that the greatest wealth transfers happen during crises, and those who are prepared can seize opportunities to become wealthier during such times.
How does the seventh law relate to the increasing expenses as one gets older?
-The seventh law states that as one gets older, expenses will grow, and it's important to ensure that income also increases to avoid falling into a paycheck-to-paycheck cycle.
What is the key takeaway from the eighth law of money regarding wealth accumulation?
-The eighth law emphasizes that wealth accumulates over time, and the sooner one starts investing, the better, due to the power of compounding.
Outlines
💰 Introduction to the Eight Laws of Money
The video introduces the concept of the eight laws of money, which are essential for achieving financial freedom. It emphasizes the importance of understanding these rules to master the money game. The video contrasts the wealth-building strategies of Warren Buffett and Jay Walker, highlighting the importance of sustainable wealth creation. It stresses the need to plant 'trees' that provide income without constant effort, like a business or smart investments, and the importance of nurturing these 'trees' for long-term growth and income.
🌳 The Long-Term Growth and Care of Wealth
This paragraph discusses the importance of treating money as a long-term game, rather than a short-term pursuit. It explains that wealth requires continuous management and that even successful businesses face daily competition. The paragraph also addresses the misconception that money can solve insecurities, suggesting that material possessions only provide temporary happiness and that true acceptance and confidence come from within. It advises viewers to focus on improving social skills and self-confidence rather than seeking external validation through expensive purchases.
Mindmap
Keywords
💡Financial Freedom
💡Money Rules
💡Self-made Billionaire
💡Wealth Sustainability
💡Passive Income
💡Budgeting
💡Insecurities and Consumption
💡Wealth Display
💡Wealth Transfers
💡Compounding
💡Long-term Perspective
Highlights
Understanding the rules of money is crucial for financial success.
Jay Walker's rapid wealth accumulation and subsequent loss illustrates the volatility of unsustainable wealth.
The importance of building wealth that is sustainable over time, as demonstrated by Warren Buffett's enduring success.
Money should be seen as something that grows, similar to a tree, requiring nurturing and time to bear fruit.
The necessity of planting 'financial trees' that generate income passively.
The myth that there's a limit to what one can spend is debunked; costs rise with income.
The importance of maintaining a budget below your income to avoid financial strain.
Money is a lifelong game that requires continuous management and cannot be retired from.
Wealthy individuals often continue to work not out of necessity but by choice.
Material possessions do not alleviate insecurities and can lead to a cycle of spending.
The recommendation to focus on emotional regulation and social skills rather than materialistic solutions.
The advice against openly displaying wealth to avoid attracting negative attention and potential legal issues.
Wealth transfers are most significant during economic crises, presenting opportunities for those prepared.
The potential for rapid wealth accumulation during times of crisis, as seen with Jay Walker and Mark Cuban.
As one ages, expenses naturally increase, necessitating a strategy for growing income.
The power of compounding and the importance of starting to invest early in life.
The example of how a small investment can grow exponentially over time due to compound interest.
Warren Buffett's experience of earning his first billion over 55 years and the rapid accumulation of wealth thereafter.
Transcripts
hello everyone today we will see
together the eight laws of money to win
the money game and Achieve Financial
Freedom First you need to know the rules
there are several Money Rules but for
this video we chose the most important
ones and put them all in one video it's
like an accelerated course on money
management if you want to master the
money game this video will teach you
everything you need to know about money
if you're ready grab a drink and some
snacks and enjoy the video
who is the fastest self-made billionaire
ever while it took Warren Buffett 55
years to join the billionaires Club Jay
Walker literally did it in less than a
year he launched priceline.com during
the.com bubble and his net worth
instantly jumped from zero to billions
but that wasn't sustainable because when
the bubble burst his net worth crashed
as well while Buffett is still on the
top of the list and he doesn't seem to
go anywhere anytime soon and that's the
kind of wealth you want to build the
money game is not easy it's tough
competitive and ruthless if you don't
know the rules you're doomed to failure
some work hard all their lives but end
up poor because they don't understand
how the game works so if you want to be
on the opposite side study the rules
first allow me to present the eight laws
of money let's start with number one
money grows on trees
I'm sure many of you have been taught
otherwise but the fact is that if you
don't act in this manner you'll be
impoverished for the rest of your life
you can't spend your entire life
exchanging time for money you must plant
trees that will provide income even when
you're not around however it is not as
simple as it seems you're aware of how
difficult it is to plant a tree it is
ineffective unless planted in
nutrient-rich soil and the tree will not
develop on its own
you have to water and care for it and it
won't grow overnight
some trees can take 10 20 or even 30
years to mature but once they do they
will continue to produce fruit with
little work
the same is true for acids when you
develop a business or save enough for a
smart investment it will continue to
provide money even when you are not
there
rule number two there's no limit to what
you can spend
[Music]
I remember when I lived paycheck to
paycheck I had an extremely limited
budget I figured if I made a bit more
money I'd start investing
however when my income increased I began
to spend more
as you expand your costs will rise so
discipline yourself to keep to a lower
budget
Elon Musk survived on one dollar A Day
in the United States surely you can
survive on a few hundred euros
enjoy the money you make from your hard
work travel and do anything you want but
keep your budget below your income
[Music]
rule number three money is a lifelong
game
when I first became serious about money
and investing I had this idea in my head
that if I start making so and so I won't
have to stay to a strict budget and I'll
be able to retire and enjoy the rewards
of my labor
but when I started making that much I
realized it wasn't enough and that I
needed to produce more in fact if you
stop managing it it will stop generating
income
just because you purchased a house you
instantly won't find tenants if you
don't take care of it it may potentially
become a liability
the concept of creating an asset and
then doing nothing is absurd even if you
build a successful business you will
have competitors who will try to take
you down every single day
so forget about retiring one day of
course you may automate some of your
tasks and reduce your working hours but
in general this game will continue as
long as you live
the world's wealthiest people are a
clear illustration of those who work
even when they don't have to
rule number four money won't solve your
insecurities
we all have insecurities and a lot of
times we buy that expensive car or move
to a bigger house or buy a newer phone
because we want to be accepted or
admired by Society
that pricey automobile will make you
happy for a week or two but it will soon
become normal
but your insecurity won't go away so you
would want a better and more expensive
car it's a never-ending Loop that
maintains wealthy people in power
if you want to find acceptance learn how
to better regulate your emotions
the truth is that your insecurities will
drain down your bank account but will
still stay there instead work on
improving your social skills and
learning how to build your confidence
I'm not suggesting you buy an expensive
automobile or a private plane buy
anything you want but don't do it to
compensate for your discomfort there are
better and less expensive ways to
accomplish this
rule number five don't let anyone know
that you have money
we love to brag about how much money we
make
at the end of the day that's what
determines your social position in the
age of capitalism also most people
believe
but the trouble is that money attracts
it people will suddenly be friendly to
you and everyone will want a piece of it
of course it will make you feel good and
respected but that will come at a price
that's not worth it and if they won't be
able to get it nicely they will sue you
and get it the hard way
that is the reality in which we live
even if you make a million dollars every
year don't tell anyone stay humble don't
brag about it and keep making more
rule number six
greatest wealth transfers happen during
crises
when the economy crashed in 2008 the
unemployment rate skyrocketed because
the companies couldn't keep paying the
bills millions of individuals become
unemployed homeless or impoverished
however because the greatest transfers
of wealth occurred during crises some
people actively began investing and were
substantially wealthier following the
crises
you may become an overnight success if
you are willing to seize the chance
remember Jay Walker from the beginning
of the video who became a millionaire in
less than a year by capitalizing on
the.com Bubble despite the fact that his
fortune was not sustainable he was able
to keep hundreds of millions of dollars
Mark Cuban is another case in point
he even mentioned you were fortunate to
become a billionaire since he would not
be a billionaire if it hadn't been for
the 1998 financial crisis instead of
looking at Financial crises as a hoax
created by the government or the one
percent to rip off the poor take
advantage of it as they do
understand how the system works research
previous crises to learn how and why
they occur and be prepared to be on the
receiving end when the next one occurs
rule number seven as you get older your
expenses will grow have you noticed that
you spend more and more money every year
in one way or another
when you routine a hundred dollars was a
lot of money now it barely covers your
gas payment
and as you become older your expenses
will only rise that's the way our lives
are especially when you start a family
most individuals are unconcerned about
the future since they are earning a nice
living now when their costs exceed their
income people begin to complain that
they do not have enough money to invest
so if you do not make sure that your
income is increasing every year soon you
will trap yourself in a paycheck to
paycheck cycle that will keep you poor
for the rest of your life
that is why you must take the following
guideline very carefully
rule number eight
wealth accumulates over time
as you can't grow a tree overnight you
can't grow wealth overnight
remember that the sooner you invest the
better
with the power of compounding you may
become wealthy with as little as dollar
one hundred it's no surprise that the
world's best investor began investing at
the age of 11.
what were you doing when you were 11
years old
here's an interesting fact you may make
your grandchild a billionaire by
investing eleven sixty dollars which is
the cost of a new smartphone because it
will rise to over a million dollars in a
hundred years without any extra
investment you won't live that long but
I'm sure your grandchild will be
grateful if he is not greedy and keeps
it for his grandchild for another
hundred years it will rise to about a
billion dollars of course it's futile to
wait so long but the sooner you start
the sooner you'll be able to earn enough
money to stop worrying about your bills
Warren Buffett made his first billion in
55 years and his second billion in just
three years in fact he made 98 of his
fortune after his 55th birthday
subscribe for more weekly investment
tips leave a comment below happy
investing
foreign
[Music]
Weitere ähnliche Videos ansehen
Why Pay Cash for your House Part 1
15 Lessons Rich Parents Teach Their Kids
7 SMART Investment Choices for Your Paycheck!
18 Wealth Lessons From The Psychology of Money
Pé de Meia - Poupar... para Investir - "Invista a partir de 20 euros/mês"
Any POOR person who does this becomes RICH in 6 Months | Warren Buffett
5.0 / 5 (0 votes)