How To Get Rich
Summary
TLDRIn this episode of Gary's Economics, Gary addresses the common query of how to get rich, highlighting the difficulty of achieving wealth without a rich background in today's society. He shares his experience as a successful trader but warns against the inaccessibility of such a career path for most. Gary also discusses the pitfalls of personal trading, emphasizing its high-risk nature. He critiques the societal pressure on young people to amass wealth and the lack of viable opportunities for upward mobility, advocating for systemic change to create a fairer economy where hard work can lead to financial security.
Takeaways
- đĄ The speaker emphasizes the difficulty of becoming rich in today's society, especially without a rich background.
- đ€ He highlights the common question of how to get rich and the trickiness of providing a universally applicable answer.
- đ The speaker's personal success as a trader was partly due to his strong academic background and exceptional mathematical skills.
- đ Becoming a professional trader is almost impossible for those without a rich background or extraordinary talent in mathematics.
- đ The speaker suggests that inheriting wealth or parental gifts are often the only ways for the younger generation to become rich, as legitimate paths are blocked.
- đ He shares his experience of advising friends on trading and how they ended up losing money due to poor decision-making and lack of discipline.
- đŒ The speaker criticizes the societal pressure on young people to accumulate wealth as a measure of success, which is not only unrealistic but also harmful to mental health.
- đ He points out the rigged nature of the economic system, where the rich are getting richer at the expense of the poor and middle class.
- đ€ The speaker calls for unity and collective action to change the system, rather than focusing on individual wealth accumulation.
- đ° The message is that financial outcomes are increasingly disconnected from personal merit or effort, and it's crucial to recognize the systemic issues at play.
- đ The speaker encourages viewers to maintain dignity and self-respect despite the challenges of living in a rigged economic system.
Q & A
What is the main topic of the video script?
-The main topic of the video script is discussing the challenges and methods of becoming wealthy in today's society.
What is the author's view on the commonality of becoming rich through trading?
-The author believes that becoming rich through trading is almost impossible for ordinary people without a rich background, as it requires exceptional talent and opportunities that are not widely accessible.
What is the author's profession and how did it contribute to his wealth?
-The author is a successful trader, and his profession as a trader from 2008 to 2014 significantly contributed to his wealth.
Why does the author suggest that having a rich father is the most foolproof method to get rich in today's society?
-The author suggests this because inheriting wealth is a direct and almost guaranteed way to become rich, which is more accessible than other methods that require exceptional skills or opportunities.
What does the author imply about the role of education in becoming a successful trader?
-The author implies that education, particularly in mathematics and economics, plays a crucial role in becoming a successful trader, but even with a strong educational background, one must still overcome significant barriers to enter the trading profession.
What is the author's opinion on the advice he gave to his friends regarding gold investment during the early stages of the COVID-19 pandemic?
-The author believes that his advice to invest in gold was sound and profitable initially, but his friends lost money due to poor decision-making and lack of discipline in following his recommendations.
Why does the author discourage teaching people to trade based on his experiences?
-The author discourages teaching people to trade because trading is difficult and requires years of experience and understanding of the market. His friends' experiences show that even with good advice, they lost money due to their own actions.
What does the author consider as the current state of wealth accumulation for the younger generation?
-The author considers the current state of wealth accumulation for the younger generation to be nearly impossible through work alone, suggesting that inheriting wealth is the primary method for becoming rich.
What message does the author want to convey about the societal pressure on young people to become rich?
-The author wants to convey that the societal pressure on young people to become rich is unfair and unrealistic, as the system is rigged in favor of the rich, and financial outcomes are increasingly disconnected from individual effort or intelligence.
What is the author's proposed solution to the systemic issues discussed in the script?
-The author's proposed solution is to work together to change the system by taxing the rich more and creating an economy where ordinary people can achieve financial security and wealth through hard work.
How does the author suggest individuals should view themselves in relation to the current economic system?
-The author suggests that individuals should recognize that they are not at fault for the economic challenges they face and should not judge themselves or others harshly based on financial outcomes that are largely determined by a broken system.
Outlines
đ€ The Challenge of Getting Rich
In this paragraph, the speaker reflects on the frequent question of how to get rich, which he often encounters both online and in person. He shares anecdotes of being asked this question at a friend's 50th birthday party and by a Japanese friend. The speaker admits the complexity of the question, noting that having a rich dad is the most foolproof method in today's society. He also discusses his own success as a trader, highlighting the difficulty for those without a rich background to break into the profession, and suggests that the only realistic path for wealth accumulation for the younger generation is through inheritance, which is often invisible to those from less fortunate backgrounds.
đ The Perils of Personal Trading
The speaker recounts his experiences advising friends on trading, particularly during the early stages of the COVID-19 pandemic. He recommended buying gold as a hedge against rising house prices, which initially proved successful with a 20% increase. However, when the price dipped by 5%, his friends panicked and sold their investments, losing money. They had failed to follow his advice to hold and instead made impulsive decisions, leading to significant losses. This narrative illustrates the difficulty and risk of trading, even when following expert advice, and the speaker's reluctance to teach others to trade due to its complexity and the potential for significant financial loss.
đ° The Illusion of Social Mobility and Wealth Inheritance
This paragraph delves into the harsh realities of social mobility and wealth inheritance. The speaker argues that the only legitimate way to become rich in modern society is through inheritance, as other paths are effectively blocked. He describes how parents from wealthier backgrounds often gift significant sums to their children to purchase property, creating an illusion of success that is invisible to those from less affluent families. The speaker criticizes the societal pressure on young people to amass wealth as a measure of success, while simultaneously blocking their paths to achieving it. He emphasizes the importance of recognizing the rigged nature of the system and the need to stop judging oneself and others based on financial outcomes.
đ The Need for Collective Action to Change the System
In the concluding paragraph, the speaker calls for collective action to change the economic system that favors the rich and leaves the majority in poverty. He acknowledges the difficulty of individual efforts to combat wealth inequality and suggests that the only way to achieve financial security and wealth through hard work is by working together to change the rules. The speaker expresses his commitment to advocating for a more equitable economic system, including higher taxes on the rich and reduced taxes for ordinary people. He encourages viewers to join him in this endeavor, emphasizing the importance of unity and collective effort in creating a fairer society.
Mindmap
Keywords
đĄFinancial Inequality
đĄRich Parents
đĄTrading
đĄSystemic Barriers
đĄSocial Mobility
đĄMental Health
đĄEconomic System
đĄPersonal Responsibility
đĄInheritance
đĄTaxation
Highlights
Gary discusses the common question of how to get rich and the difficulty of achieving it safely for young people today.
Having a rich dad is humorously suggested as the foolproof method to get rich in today's society.
Gary shares his personal journey to wealth through being a successful trader, highlighting the challenges of entering the trading profession.
The importance of education and a strong academic background in mathematics is emphasized for aspiring traders.
Gary's experience of advising friends on trading, leading to losses despite his successful track record, illustrates the risks of trading.
The recommendation to buy gold as a hedge against rising house prices during the early stages of the COVID-19 pandemic.
An account of how Gary's friends lost money in trades, despite initial gains, due to poor decision-making and overconfidence.
Gary's perspective on trading as a form of gambling and the risks associated with it, especially for inexperienced individuals.
The societal pressure on young people to achieve wealth and the mental health implications of this expectation.
The concept of inheriting wealth being the primary way to get rich today, with the majority of property purchases involving parental financial support.
Gary's critique of the current economic system, where the rich are perceived as taking everything, leaving little opportunity for wealth creation for the rest.
The idea that financial outcomes are increasingly disconnected from personal merit or effort in the current economic climate.
A call to action for young people to accept the rigged nature of the economic game and to stop judging themselves and others based on financial success.
Gary's advocacy for systemic change, including taxing the rich more and moving towards an economy that allows for financial security through hard work.
The message that the only way to achieve wealth in the current system is either by birth or by collective action to change the rules.
Gary's hope for a future where people work together to change the system and his invitation for viewers to join him in this effort.
Transcripts
okay welcome back to Gary's economics
today we're going to talk about how to
make
money all right so this is one of the
questions well not just one of the
question the question by million miles
which I get asked most on the channel
and I also get this asked this question
a lot in real life so I wanted to
address it and I got asked this question
twice recently uh in person which is I
went to a friend of mine's 50th birthday
party and his his nephew is there and uh
we were standing outside this Pub and he
said to me oh you know you're that guy
what's your channel you know what do I
do what do I do how do I how do I get
rich and um I had another friend of mine
a Japanese guy come around to my house
and were cooking dinner and he said I
want to ask you like you know you you've
got a lot of money can you tell me how
to get rich and um it's a tricky one
right cuz I was thinking when this
second guy asked me if you came to me
and said you know how do I get Hench I
would say go to the gym every day if you
said to me you know how do I get my
English better I would say you know
speak English every day if you say how
do I learn Japanese I'll tell you what
textbooks to buy um but the truth of the
matter is what I said to this guy he
said can I ask you one question I said
you're going on he said how do I get
rich I said to him ask another question
because the truth is this is the one
thing which it is almost in impossible
to safely do as a young person nowadays
there's there's basically one really
really good method for getting rich in
today's society it's almost foolproof
have a rich dad if you failed that
one try again
because okay so obviously people ask me
this question because I'm a rich person
I've been very open about that I talk
about this on the channel um I made my
money working as a
Trader um I was a very good Trader I was
a very successful Trader I wasn't a
professional Trader for a long time I
worked as a Trader from 2008 till 2014 I
made a lot of money especially in in
2011 but also a couple of years around
that um if you can get a job as a
professional
Trader it's an extremely well-paid job
and and you will become a relatively
rich
person basically nobody not from a rich
background becomes a Trader nowadays
it's it's almost impossible to get that
job and I got that job partially because
I was a very good student you know I was
a very talented math student I got very
good grades I got into a very good
University and I got very good grades at
that University but even on top of that
I needed to win like an like a national
card game to get that job and I think
that shows you you know this story is in
my book if you want you can read my book
and tells you about
this it's almost impossible for ordinary
people to get that job nowadays
so unless you are like a kind of like a
extremely unbelievably talented
mathematician in which case you know go
and study Master economics at Oxford
Cambridge LSC and try and get a job as a
Trader this is just not a route that is
open to you you know the trading floor
has almost nobody from a poor ordinary
background almost everybody is from a
rich background so if you if you come to
me from an ordinary background say how
do I get rich I can't really say to you
do what I did because it's almost
impossible for you to do that so then
you might say okay well you know maybe I
can't get a job as a Trader but you know
you still trade personally and I do
still trade personally and I've got a
very good track record trading
personally and I have made quite a lot
of money trading personally since I quit
trading um so you might say well teach
me how to
trade so for this I've mentioned this a
couple of times before on the channel I
have a couple of times tried to help
friends get involved in trading
and this happened particularly at the
beginning of covid so I sort of started
doing my public work at the beginning of
Co in 2020 and one of the big things
that I said when I came out publicly was
that house prices will go up a lot
because of because of covid because rich
people accumulate a lot of money during
covid um you can go and look at my early
videos um how the rich get rich from Co
covid-19 I talk about exactly
this and some of my friends who had were
trying to BU buy houses had maybe 50 60
Grand saved up came to me saying listen
I'm worried you said house prices will
go up uh I don't have a big enough
deposit yet I can't buy a house what can
I do and at that time at the beginning
of Co I was making some really big bets
in particular I had a really big bet
that the gold price would go up and um I
thought the gold price would go up it
has come up a lot I thought house price
would go up they have come up a lot and
actually like quite a good way to hedge
your exposure to Rising house prices is
to buy other assets like gold so I said
to my friends okay well you can't buy a
house yet but what you can do is you can
buy gold um I had a massive trade on
that the gold price would go up so I
felt quite comfortable recommending to
them to do the same thing that I was
doing
and yeah it was a good trade
recommendation gold price went up a lot
has gone up a lot since and the gold
price went up about
20% not long after that recommendation
and then it came down sort of
5% and sort of when happened about 9
months later both my friends called me
up and they said you know what what do
we do you they called me up individually
you know what do I do and I said well
you know it's gone up 20% it's down 5%
so you still up a lot of money like just
don't do anything just sit wait you know
if you want you can buy a little bit
more on this dip um and they both said
you know you know you don't understand
like I'm out like I'm wiped out like
I've lost all my money
and I was confused like how could you
have lost money it's up 15% since I told
you the buyer and they both did
basically the same thing which was they
didn't do anything when I said buy it
because at the time it looked terrible
because the price is really low it went
up 5% and they thought oh damn I should
have bought it it went up another 5% and
they thought oh man I really should have
bought I'm going to buy now so straight
away they missed the first 10% goes up
another 5% and they make a little bit
more and they're like okay great I made
some money they buy a little bit more
goes up another 5% and then they both
just basically went totally insane and
didn't say anything to me they they
bought a ton more gold they bought
silver they bought Platinum they bought
pum they bought Bitcoin they're buying
Tesla not telling me any of this stuff
basically they because they made a
little bit of money trading on my
recommendation they basically became
sort of convinced that they themselves
are really good Traders and they they
did a load of stuff which I didn't tell
them to do and they bought loads
basically and then it came down and they
lost a ton of money so this is why I
don't try and teach people to trade
basically you know the few times I've
given friends trading recommendations
most of the time they managed to lose a
ton of money because it's trading's hard
and you know I make money as a Trader
and I every now and again I I do say my
positions on the
channel um but I was a professional
Trader for six years and I've been
looking at the economy for 20 years and
you know I have an extremely good track
record as a professional Trader an
extremely good track record as a as a
personal Trader
um I don't think this is a thing which I
can teach you to do you know what I mean
you know it's a bit like going and
asking the same bat how how can I win
the Olympics you know like maybe trained
for 20 years yeah I just don't think
that it's um I don't think it' be
responsible I think it'd be super
dangerous you know I see I I know that
trading has become super popular for
young men on the internet and you see
them on Instagram showing off their
Lamborghinis um I've come out and you
know very aggressively said I think
crypto trading is dangerous and and day
trading is dangerous and FX trading is
dangerous and for that reason I get you
know young men emailing me all the time
telling me they've lost all their money
FX trading crypto trading and a lot of
the time when they send me those emails
they say but don't worry I've figured it
out now and from here I'm going to make
money and
um it's difficult to read those emails
listen trading is gambling trading is
gambling if if you go on I trade on IG
index which is a spread Bank platform it
says there on the front page like 75% of
accounts lose money I'm not losing money
and there's professionals on there like
me that are not losing money and there's
an old saying if you don't know who the
idiot is at the poker table you're the
idiot listen professional Traders like
me if you go out you're trading against
me you know and it's dangerous it's a
dangerous thing for ordinary people to
do and it's it's I think we've created
this situation now where
we have basically convinced young people
especially young men that
the only way to be of of value in
society is to make a lot of money and
we've created a situation where all of
the legitimate past to getting rich are
basically blocked and it's it's almost
impossible to become rich nowadays
um
realistically for the younger generation
if you're working you've already lost
basically it's almost impossible to get
rich to your work the only way to get
rich nowadays is is to inherit money
from your parents but often these
inheritances are invisible
so you know I I went to a grammar school
but I also went to a comprehensive
school and I've got friends from
different kinds of financial backgrounds
people from poor families it's basically
impossible to buy property people from
richer families what happens is the
parents will gift them 100,000 ÂŁ2
200,000 maybe half a million pound to
buy property people from poor
backgrounds don't don't realize that
that's happened behind the scenes so
they see other people from different
families buying properties and they
people don't tend to and say you know
the reason I bought the property is cuz
my mom gave me half a million quid but
that is what is happening then people
from poor backgrounds see these guys
buying property and they think what are
they doing that I'm doing wrong and the
thing that you're doing wrong if you're
poor is you had the wrong parents you
shouldn't have done that you should have
had the right parents this is the world
that we live in nowadays we live in a
world in which the only way to get rich
is to have Rich parents and yet we tell
young people if you are poor you are a
failure you you are a loser it is your
fault and this is just absolutely
devastating for the mental health of
young people so what I want to say is
listen you live in a rigged game you and
I live in a rigged game it is almost
impossible to get rich if your parents
are not
rich so what I want you to
do is to accept that the game is rigged
and to stop judging yourself and other
people based on Financial outcom when
Financial outcomes are increasingly
nothing to do with how smart you are how
hard you work what job you do you know
this is the world that we live in but I
think what what obfuscates this a little
bit is the fact that there is social
Mobility on like the micro scale so like
the people who come from the same
Financial background as you if you work
harder than them and get a better job
you will be able to get slightly better
off than them but you will never be able
to jump up to the level of somebody
who's parents are richer so so that's
what is so at the same
time you know especially if you're poor
you do have to work really hard and you
do have to try and study the right
subjects you do have to try and get the
right job because increasingly poor
people put people are put in the
situation where otherwise you'll become
like homeless and completely
impoverished so you have this kind of
small
scale competitiveness but there's no
macro competitiveness so you're forced
to compete with other people who are
poor but you have no way of competing
with people who are who are born
richer and it's it's a horrible game
it's a horrible game it's a horrible
game so I think we need
to you need to understand that this is
this is the world that you've been put
in they want you to fight each other to
be rich but it's impossible to be rich
um because the rich are taking
everything so while you are sort of
being convinced to fight each other and
obsessed about being a failure and
obsessed about making
money the game is is being rigged such
that you and and the middle classes are
basically being Rob blind and the
government is being Rob blind
and my concerns are one devastating for
the mental health of young people but
two it's like really really deeply
depoliticizing I think if you can
convince ordinary young people to focus
only on their specific bank
balances whilst the game is rigged so
that it's very easy for the rich to rob
the poor then the poor will never unite
and stop that theft basically so um this
is the world we're living in and this is
the thing which I worry about a lot at
the moment which is how how do we stop
the systemized robbing of the poor when
the poor have been really trained to
play the game very individualistically
and to not work together
um and I think if I if I want to send
one message it is
that the game is set up in a way
that you are being robbed of your wealth
and there's very little you could do as
an individual to stop that but no matter
how much they rob you of your wealth
they can't rob you of your dignity
and it's not your fault that you live in
increasingly in poverty the game is
being set up such that the majority of
this country increasingly will live in
poverty but you can realize that that's
not failing on you as an individual that
is the result of a rotten system it is
the result of a rotten system and um
I think people can can deal with poverty
I know I know poverty is not easy but
you know I grew up in poverty and it was
hard but what affected me in many ways
more than the poverty was was the
Judgment so um don't judge yourself
harshly and don't judge other people
harshly because because it's the system
that's broken and you should be proud of
the work that you do and you should be
proud of what you do to support yourself
and to support your family and support
the people around you because I think
once we managed to shake off this
judgment and this idea that it's our
fault then we can start being proud of
ourselves and each other and seeing the
game for what it really is which is a
broken game that we have to fix together
so there's only two ways to be rich in
this world that we live in be born rich
or change the rules um and we can only
change the rules
together so I'm going to try to change
the rules tax the rich more tax you less
move us back into an economy where
ordinary people like my parents like
your parents can Achieve Financial
Security and even wealth by hard work um
but the only way to do that is to work
together to change the system so how do
you get rich you get rich by working
together I'm going to try and do that
and I hope you en join me Good Luck
thank you
Voir Plus de Vidéos Connexes
5.0 / 5 (0 votes)