How To Build Wealth With $0 - The Easy Way

Summary

This video challenges the notion that wealth-building requires decades of hard work, advocating for early financial success. The speaker, who rose from humble beginnings, shares personal anecdotes and strategies for rapid wealth accumulation, including the importance of ambition, seeking advice from successful individuals, thinking creatively to solve problems, and stepping out of one's comfort zone. The video also emphasizes the value of investing early, diversifying investments, and leveraging multiple income streams to mitigate risk and build a robust financial future.

Takeaways

• 💡 Building wealth at a young age is preferable to waiting until later in life.
• 🚀 Despite challenging beginnings, it's possible to accumulate wealth quickly with the right mindset and actions.
• 🌱 Rejecting the idea that one's ambitions are unrealistic is crucial for wealth creation.
• 🧐 Be cautious about the advice you take, especially from those who haven't achieved financial success themselves.
• 🤔 Approach problem-solving with creativity and persistence, considering multiple solutions before settling on one.
• 🏋️‍♂️ Stepping out of your comfort zone is essential for personal and financial growth.
• 💼 Taking calculated risks, such as starting a business or changing jobs, can lead to higher income and wealth accumulation.
• 📈 Investing in the stock market early and consistently can significantly impact long-term wealth, but it's important to start early and invest wisely.
• 🌳 Diversification in investments and income streams is key to mitigating risk and ensuring financial stability.
• 💼 The three-fund portfolio strategy, including US stock market index, international stock index, and bond market funds, is recommended for a balanced investment approach.
• 🏡 Diversifying wealth through various assets like real estate, classic cars, and timepieces can further spread risk and increase potential returns.

Q & A

What is the main message the speaker wants to convey about building wealth?

The main message is that building wealth doesn't necessarily take decades of hard work and it's better to achieve financial success at a younger age. The speaker emphasizes the importance of ambition, perseverance, and strategic thinking in wealth creation.

How does the speaker suggest one should approach obstacles in the pursuit of wealth?

The speaker advises to think from multiple angles when solving problems, considering at least 10 different solutions and trying them until one works. This approach helps in overcoming challenges and not getting stuck with the herd.

Why is it important to be cautious about who you listen to when trying to build wealth?

It's important because the advice you receive can significantly impact your financial decisions. The speaker suggests being cautious of unsolicited advice, especially from those who haven't built significant wealth themselves, as their advice might not lead to the desired outcomes.

What role does stepping out of your comfort zone play in building wealth according to the speaker?

Stepping out of your comfort zone is crucial as it helps in personal growth and improvement. The speaker shares a personal experience where leaving a bullying work environment led to better opportunities and was a stepping stone in building wealth.

What is the significance of the story about the work experience lad and the stock investment?

The story illustrates the importance of being open to new ideas and opportunities, even from unexpected sources. It also highlights the potential of the stock market for wealth creation, as the investment in a particular stock led to significant returns.

Why does the speaker emphasize the importance of starting to build wealth early?

The speaker emphasizes early wealth-building because the longer you wait to start investing, the more difficult it becomes. Early investment allows for more time for money to grow, as demonstrated by the study mentioned about missing the best trading days.

What investment strategy does the speaker recommend for diversification?

The speaker recommends the three-fund portfolio strategy, which includes a total US stock market index fund, a total international stock index fund, and a total bond market fund. This strategy allows for diversification across different markets and asset classes.

How does the speaker suggest one should approach investing in the stock market?

The speaker suggests starting with research and investing in stocks that one believes in for the long term. They also recommend using features like paper trading to practice and refine investment strategies without risking real money.

What is the significance of diversification in investments and income streams according to the speaker?

Diversification is significant because it reduces risk exposure. By spreading investments across various industries and asset types, and having multiple income streams, one can mitigate the impact of a poor decision or a single market downturn.

What are some of the income sources the speaker has diversified into?

The speaker has diversified into physical shops, a distribution company, affiliate income, advertising revenue, stock dividends, and rental income from various properties.

What cautionary tale does the speaker share about a friend's investment group?

The speaker shares a cautionary tale about a friend who was part of an investment group that promised high returns but eventually went under, leading to significant losses due to leverage. This story underscores the importance of not investing in something you don't understand and the risks of over-leveraging.

Outlines

00:00

💰 Achieving Wealth at a Young Age

The speaker emphasizes the importance of not waiting decades to become a millionaire and shares their personal journey from a working-class background to wealth. They recount a discouraging experience in school where they were told to lower their ambitions but chose to maintain a determined attitude. The speaker advises viewers to be cautious about the advice they receive, especially from those who have not achieved significant wealth themselves, and to approach challenges with multiple solutions until success is achieved.

05:00

🚀 Building Wealth Through Early Investment and Diversification

The speaker shares a story of how they and a young work experience lad made significant profits from a stock investment, highlighting the importance of starting to build wealth early. They discuss the benefits of investing in the stock market for long-term gains and the risks of missing out on the best trading days. The speaker also suggests looking for investment platforms with user-friendly chart features, a wide range of investment options, and paper trading capabilities. They caution against investing without understanding and the dangers of over-leveraging, advocating for a diversified investment strategy including stocks, real estate, and other assets.

10:00

🌟 Diversifying Income Streams for Financial Security

The speaker stresses the importance of diversification not only in investments but also in income sources to mitigate risk. They recount a cautionary tale of a wealthy friend who lost everything due to leveraged investments and advise viewers to spread their investments across different industries and asset types. The speaker lists their multiple income streams, including physical shops, a distribution company, affiliate marketing, advertising revenue, stock dividends, and rental income, encouraging viewers to explore various ways to generate income to secure their financial future.

Keywords

💡Wealth Building

Wealth building refers to the process of accumulating assets and increasing net worth over time. In the video, the speaker emphasizes the importance of starting this process early in life to maximize the potential for wealth accumulation. The speaker's own journey from a working-class background to building wealth serves as a testament to the possibility of achieving financial success through determination and strategic planning.

💡Ambition

Ambition is the desire to achieve something, often requiring determination and hard work. The video script highlights how societal norms and educational systems can suppress ambition, urging individuals to be 'realistic' and settle for less. The speaker counters this by advocating for maintaining high ambitions and dreams, which is a driving force in the pursuit of wealth.

💡Mindset

Mindset refers to a set of attitudes and beliefs that shape how a person views the world and themselves. In the context of the video, the speaker stresses the importance of having a positive and growth-oriented mindset for wealth creation. Believing in one's ability to achieve financial goals is portrayed as crucial for overcoming obstacles and taking the necessary steps towards wealth.

💡Problem Solving

Problem solving is the process of finding solutions to problems or challenges. The video mentions that the speaker approaches obstacles with multiple potential solutions, which is a strategy for overcoming the mindset that certain challenges are insurmountable. This approach is linked to the broader theme of breaking away from the 'herd' mentality and achieving individual financial success.

💡Comfort Zone

The comfort zone is a metaphorical space where people feel at ease and in control because they are in familiar surroundings or situations. The speaker advises stepping out of one's comfort zone as a means of personal and financial growth. This is exemplified by the speaker's decision to quit a bullying job environment, which was a risk that ultimately contributed to their path to wealth.

💡Risk Taking

Risk taking involves making decisions that involve uncertainty and the potential for loss. The video script discusses the importance of calculated risk taking, especially for young individuals with fewer responsibilities. The speaker contrasts this with reckless risk taking, using the example of a friend who lost everything due to over-leveraging investments.

💡Investing

Investing is the act of allocating resources, such as money, with the expectation of generating an income or profit. The video emphasizes the importance of starting to invest early and using the stock market as a tool for wealth building. The speaker shares personal experiences with investing, including a serendipitous encounter with a profitable stock tip from a work experience student.

💡Diversification

Diversification is a risk management strategy that involves spreading investments across various financial instruments, industries, or other categories to reduce the impact of any single investment's poor performance. The speaker advocates for diversification in investments and income streams to mitigate risk and increase the potential for returns, as illustrated by their own portfolio which includes stocks, real estate, and other assets.

💡Multiple Streams of Income

Multiple streams of income refer to having more than one source of earnings. The video script highlights the importance of creating multiple income streams for financial stability and growth. The speaker's own income comes from various sources, including physical shops, a distribution company, affiliate marketing, and rental properties, which collectively contribute to their wealth.

💡Leveraging Investments

Leveraging investments means using borrowed money to increase the potential return of an investment. The video warns against the dangers of over-leveraging, as it can lead to significant losses if the investment performs poorly. The speaker recounts a cautionary tale of a friend who was part of an investment group that leveraged heavily and lost everything when the group failed.

Highlights

Making millions doesn't have to take decades of hard work.

Being a millionaire at a younger age is preferable.

The speaker wasn't born into wealth and overcame the odds.

The importance of not letting the system control your ambition.

The speaker's experience of being told to lower expectations.

The necessity of believing in the possibility of wealth creation.

The danger of conforming to societal pressures and realism.

The need to be selective about who you take advice from on wealth building.

The value of thinking from multiple angles to solve problems.

The importance of stepping outside your comfort zone for growth.

The story of quitting a job to take a risk on personal growth.

The benefits of calculated risks for increasing income.

The strategy of job hopping to build wealth faster.

The importance of choosing a career based on results, not hours worked.

The success of opening a model shop and reinvesting in the business.

The impact of a work experience lad introducing the speaker to stock market investments.

The significance of starting to build wealth as early as possible.

The study by Fidelity on the importance of being present in the stock market during the best trading days.

Advice on researching and investing in stocks for the long term.

The features to look for in an investment platform.

The concept of paper trading for practice and strategy testing.

The story of a friend's downfall due to leveraged investments.

The importance of diversification in investments and income streams.

The speaker's diversified portfolio across stocks, real estate, and other assets.

The strategy of the three-fund portfolio for investment diversification.

The concept of multiple streams of income for financial stability.

Transcripts

A lot of people aren't gonna like this one,

but making millions doesn't have to take you decades

of hard work.

Sure, being a millionaire in your fifties is all right,

but being a millionaire when you're younger is far better.

Take it from someone who's experienced both.

And no, I wasn't born into a rich family.

Quite the opposite.

The odds were stacked against me.

I was a ginger, working class kid

without a penny to his name.

So if I can build wealth

in a relatively short amount of time,

then you can too.

This isn't gonna be one of those generic videos

about investing in index funds

and getting rich when you're old and gray.

I'm gonna be taking you

through the actual moments in my life

where I uncovered the truth

behind building wealth from nothing.

From the moment you step foot into school,

they try to control your ambition,

and one memory that stands out to me

was sitting in a lecture theater just like this one.

The teacher asked us to write down our dream job,

our dream car, and our dream house.

I was really excited.

So I wrote down business owner, Ferrari, and mansion.

She then said, "Life is gonna be tough,

so I'm gonna break the hard news to you now:

You're probably gonna have none of those things,

so be realistic and lower your expectations."

I thought to myself, "Of course I will.

I'll have all of those things."

And I've carried that attitude for the whole of my life.

(dramatic music)

If you allow the system to crush your hopes and dreams,

you'll never be able to create wealth from nothing.

Look, this isn't some fluffy mindset BS.

If you can't even believe something is possible,

then how on earth are you gonna do the work required

to become wealthy?

Most people give into the pressure of being realistic

and end up joining the crowd,

and then they discourage the next generation

from following their hopes and dreams.

But you can decide to break the cycle just like me

in that lecture theater.

So if you wanna do this,

then you firstly need to be very careful

about who you listen to.

I'm not just referring to those fake gurus on social media.

I'm also talking about the people in your life

who give their unsolicited advice.

While your friends and parents may have good intentions,

if they haven't built a large sum of wealth,

why would you listen to them when it comes to making money?

Secondly, you need to learn to think from multiple angles

when trying to solve problems.

Most people will come across an obstacle

that they've been told is impossible for them to conquer

and give up at the first sign of trouble.

The more you let these kinds of challenges beat you,

the harder it is to break out of the herd

as you are cemented to yourself that you aren't good enough.

Whenever I come across a challenge,

I think of at least 10 different solutions

and then decide on the best way forward.

If one doesn't work, then I just try the next one

and so on until I'm successful.

Thirdly, you need to step outside your comfort zone.

Look, if Harry Potter stayed

in the cupboard under the stairs,

then he would never have defeated Voldemort.

Sorry for the spoilers, but it's so true.

Putting yourself in challenging situations helps you grow

and improve more than anything else I've ever experienced.

When I first joined the workforce

as a carpenter's apprentice,

I was so excited.

It was the job I really wanted to do,

but unfortunately,

the manager took a bit of a dislike to me

and he bullied me practically every day,

give me all the rubbish jobs.

I didn't know what to do.

I couldn't take anymore.

I came home that night, sat on my couch,

and I looked around the room,

and thought to myself, "What have I got to lose?"

I've got no child or wife to look after.

I'm 20 years old.

I've gotta make this decision.

Sure, I'm scared of quitting a job.

Of course, you're scared,

but I knew that was the best thing for me,

so I quit the very next day.

(upbeat music)

If you're young and have few responsibilities,

it's a clear choice to take more risks

to increase your income.

Of course, I'm not suggesting you should go

and invest all your money in crypto.

The risks should be calculated.

Looking back, I didn't realize at the time,

but the biggest risk in my life would've been staying

at that dead end job.

For me, increasing my income meant starting my own business.

However, if this isn't for you,

you could always start a side hustle

or upgrade your job every couple of years.

Studies have actually found

that you're more likely to build wealth faster

by job hopping rather than staying loyal to one company.

However, if your goal is to build wealth as fast as possible

and you decide to pick the employee route,

then you need to choose a career that isn't dependent

on how many hours you work,

but on the results you achieve.

After lots of hard work and many sleepless nights,

I managed to open my model shop.

It was a huge success.

I was reinvesting all of my money in the business

to help it grow

that I didn't have time to think about investing.

One day, I decided to take on a work experience lad

for two weeks,

and on the first day, all he kept banging on about

was stocks and shares,

and I thought, "What does a 14 year old know

about stocks and shares?"

Anyway, he mentioned this one particular stock

that he said was gonna go to the moon.

He said, "I've got a thousand pounds

and I'm gonna pile it all in because I'm so confident."

I thought, "Well, if he's that confident,

I think I'll better have a little go myself."

Two weeks later, I drove into the shop

and I had a chat with that young lad

and I said to him,

"Do you know how much money you've made today?"

He said, "But Mark, I don't make any money.

I'm on work experience.

I don't get paid."

I said, "Son, you've made 10,000 today

because that share we've bought into

has pretty much 10X overnight

and I didn't do too bad myself either."

If you want to build your wealth,

then you need to start sooner rather than later.

The reality is, the longer you wait to start investing,

the more difficult it's gonna be

because the more time you allow for your money to grow,

the more money you'll eventually have.

I mean, check out this study by Fidelity,

which shows that if you miss the five best trading days

over the past four decades,

you'd have reduced your long-term gains by 38%.

Even worse, if you've missed a 10 best days,

you'd have lost out by 55%.

So I'd strongly suggest getting in the habit

of investing your money for the long-term

in the stock market.

But don't be as crazy as I was when I first started.

Do your research

and invest in the stocks you believe in long term.

So what should you look for

when deciding where to invest your money?

Well, firstly, when choosing an investment platform,.

It's important to make sure it has smooth

and easy-to-use chart features.

You may think this isn't important,

but I can't stress enough

how many times I've struggled with clunky apps

while trying to track the growth of my investments.

Having a wide range of stocks

and ETFs to invest in is also important for diversification

and reducing risk.

It allows you to spread your investments

across different sectors and asset classes.

Another thing I'd suggest to look for is paper trading.

This feature allows you

to experience the full investing process

using virtual money.

It's a great way to practice

and refine your knowledge,

as well as test out new strategies,

all without risking any actual money.

But if you do this,

it's important to treat it like your real money.

Otherwise, you'll start changing your strategies

when it comes to the real thing

and get completely different results.

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Just as quickly as I've made my fortune,

I could have lost it all.

I was friends with one of the richest guys in the UK.

He was featured in the Top 50 UK rich list,

which is pretty impressive.

And we used to go to his parties.

He used to have these great firework parties at his mansion.

And one night I sat down and had a coffee with him.

I said, "How do you make this sort of money

just from a business?"

He said, "I don't make that much money for my businesses.

I make money from leveraging my investments."

And he said, "I'm part of an investment group,

and that group earns 30 to 40

and sometimes even 50% per year."

You know, I sat there and I thought to myself,

"This sounds too good to be true."

So there was no way I was gonna get involved.

Around two to three months later, that group went under.

It took everyone out.

Because they were leveraged,

they lost considerably more

than they'd actually got invested.

This isn't even his house.

He lost it all.

(dramatic music)

Never invest in something you don't understand.

And even if you do believe what you're investing in,

don't put all your eggs in one basket.

When you spread your investments out,

we call this diversification.

This is something I highly recommend you do

because it reduces your risk exposure.

When it comes to my stock market investments,

I primarily focus on a strategy

called the three-fund portfolio.

This portfolio consists of three main components:

a total US stock market index fund,

a total international stock index fund,

and a total bond market fund.

These funds allow for diversification

across different markets and asset classes,

reducing risk while still providing the potential

for long-term growth.

In addition to my stock market investments,

I've also diversified my portfolio

by investing in other assets such as real estate,

classic cars, and high-end time pieces.

This approach allows me to spread my investments

across various industries and asset types,

further mitigating risk

and increasing the potential for good returns.

It's key to remember the importance of diversification,

not only in investments, but also in making money.

This is otherwise known

as having multiple streams of income.

My income sources include my physical shops,

my distribution company, affiliate income,

advertising revenue, stock dividends,

and rental income from my various properties.

I'm probably missing out a couple,

but hopefully this gives you some ideas.

So remember, when you are building your empire,

constantly be thinking about

how you can build different streams of income

so that you can't be completely wiped out

by one wrong decision, like my friend.

If you wanna know seven side hustles to avoid,

then I'm gonna leave that video right up there.

Don't click on it just yet.

Make sure to subscribe if you wanna grow your wealth, okay?

I'll see you over there.