15 Assets That Are Making People Rich

Summary

This video script from alux explores 15 assets that contribute to wealth accumulation, including cash reserves, real estate, bonds, stocks, and intellectual property like patents and trademarks. It emphasizes the importance of understanding assets versus liabilities and the potential of assets like equipment, brand goodwill, and unique rights to generate income. The script also introduces the concept of 'time money time arbitrage,' encouraging viewers to leverage their time to create opportunities for wealth growth.

Takeaways

• 💰 Assets are investments that generate income, while liabilities cost you money. The more assets you have, the wealthier you become.
• 🏦 Cash is still considered an asset, despite low bank interest rates, because it provides liquidity and opportunities for higher returns through peer-to-peer lending.
• 🏠 Real estate is a significant asset due to rental income and property appreciation, but a personal residence is a liability, not an asset.
• 📈 Stocks allow you to own a percentage of a business and can be a gateway to wealth, especially when investing in index funds like the S&P 500 for diversification and historical high returns.
• 📊 Bonds are a safe investment, typically backed by the government, offering a steady, though low, return compared to other investments.
• 🔧 Equipment is an asset if it directly helps in generating income or increasing efficiency in money-making processes.
• 📄 Patents protect inventions and can be a significant source of income if others want to use your invention, making them a valuable business asset.
• ™ Trademarks protect brand identity and can be licensed for commercial use, generating income and contributing to a company's asset base.
• 🏷 Brand and Goodwill are intangible assets that represent a company's reputation and customer loyalty, which can significantly impact a company's value.
• 👥 People are assets to a company due to their ideas and contributions; their value increases with their irreplaceability and impact on the business.
• ⌛ Time is an asset that can be exchanged for money, and by using the money to buy others' time, you can scale your business and grow wealth exponentially.

Q & A

What is the fundamental rule of getting rich according to the video?

The fundamental rule of getting rich is having more assets that put money in your pocket and fewer liabilities that cost you money.

Why is cash considered an asset even though bank interest rates may not keep up with inflation?

Cash is still considered an asset because it provides liquidity, allowing individuals to access opportunities as they arise and potentially earn higher returns through peer-to-peer lending.

What are the two main reasons rich people keep a significant portion of their wealth in cash reserves?

The two main reasons are to be able to access any opportunity that presents itself and to get higher returns from straight cash deals, such as peer-to-peer lending.

How does real estate generate income for its owners?

Real estate generates income through rent payments from residential, office, and commercial buildings, as well as through land appreciation.

Why is the house you live in considered a liability and not an asset?

The house you live in is considered a liability because it costs you money to maintain and live in it, rather than generating income for you.

What is a bond and how does it provide a return to investors?

A bond is a financial instrument issued by governments or businesses to raise funds, promising to pay the bondholder a certain amount of money regularly until the bond's maturity date, at which point the principal is returned.

What is the average yearly return range for bonds?

Bonds usually offer a 3% yearly return, which is better than most banks but not high enough to excite beginner investors.

How do stocks allow individuals to own a part of a business?

Stocks represent ownership in a company, allowing individuals to buy a percentage of a publicly traded business by purchasing shares.

What is the main advantage of investing in mutual and index funds over individual stocks?

The main advantage is diversification, which reduces risk. Index funds, in particular, provide exposure to a basket of companies, ensuring that you're invested in the overall market performance rather than relying on the performance of individual stocks.

Why are patents valuable assets in the business world?

Patents are valuable because they protect an inventor's rights to their invention, allowing them to license it to others for use, which can generate significant income.

What is the significance of trademarks in business and how can they generate income?

Trademarks protect symbols, words, or phrases associated with a brand, and owning a valuable trademark can allow for licensing it to others for commercial use, generating income in return.

How does brand and goodwill contribute to a business's value and success?

Brand represents the company's image and what it stands for in the minds of consumers, while goodwill is the emotional connection people have with the brand. Both contribute to customer loyalty and can significantly impact a company's success.

Why are people considered valuable assets in a company?

People are valuable assets because they generate ideas and innovation that drive a company's success. Key individuals can significantly impact a company's direction and performance.

What is the concept of time money time arbitrage and how can it be used to grow a business?

Time money time arbitrage is the process of using time to generate money, then using that money to buy other people's time, thereby growing the business exponentially. It involves identifying opportunities to convert time into money and then leveraging that money to create more value by employing others.

Why is it important to invest in assets that you understand?

Investing in assets you understand is crucial because it allows you to make informed decisions and manage risks effectively, avoiding potential losses due to lack of knowledge or misinformation.

How can information or content products like books, digital courses, and songs be considered assets?

Information or content products are assets because they can be created once and then sold multiple times, providing scalable income with minimal additional effort after the initial creation.

What is the potential of royalties in generating income from intellectual property?

Royalties can generate significant income by allowing creators to receive a portion of the earnings from the use of their intellectual property, such as books, music, or movies, in various formats and media.

Why is having a first-mover advantage or a proprietary business model considered valuable?

A first-mover advantage or a proprietary business model is valuable because it provides a competitive edge in the market, allowing a company to capture market share and establish a strong presence before competitors catch up.

Outlines

00:00

💰 Understanding Assets and Wealth Accumulation

This paragraph introduces the concept of assets as the foundation for wealth accumulation, emphasizing that assets are what put money in your pocket, unlike liabilities which cost you money. It explains that having more assets working for you makes you richer. The script welcomes viewers to 'alux', a platform for inspiration, and lists cash as the first asset, highlighting its importance despite low bank interest rates due to its liquidity and potential for higher returns through peer-to-peer lending. It also mentions Apple's cash reserves as an example of cash's significance in wealth management.

05:01

🏠 Real Estate as a Wealth Generator

The second paragraph delves into real estate as a significant asset class, loved for its ability to generate passive income through rent payments and its potential for appreciation due to increasing population and housing demand. The paragraph outlines different types of real estate assets, including residential, office, commercial buildings, and land. It also clarifies that one's personal home is not considered an asset but a liability, as it does not generate income but incurs costs.

10:03

📈 Diversification and Growth through Stocks and Funds

This section discusses the role of stocks and mutual/index funds in wealth building. It simplifies the concept of stocks as a means to own a percentage of a business and highlights the benefits of mutual and index funds for diversification and safety. The paragraph lists the top five index funds and emphasizes the historical performance of the S&P 500 index, making a case for why index funds should be a part of everyone's portfolio looking for long-term wealth accumulation.

15:05

🛠 Equipment, Patents, and Trademarks as Intellectual Property Assets

The fourth paragraph explores equipment and intellectual property, such as patents and trademarks, as assets that can generate income or enhance the value of a business. It distinguishes between assets and liabilities based on their direct impact on income generation and provides examples of how patents can be a powerful and lucrative asset, with stories of inventions like the Slinky and the Big Mouth Billy Bass. Trademarks are also highlighted as protectable assets that can be licensed for commercial use, with the story of Michael Buffer's catchphrase as a prime example of商标权的商业价值.

20:06

🏛 Brand, Goodwill, and People as Intangible Assets

The fifth paragraph focuses on the importance of brand and goodwill as intangible assets that can significantly impact a business's value. It explains the difference between brand, which is the company's image in the marketplace, and goodwill, which is the emotional connection customers have with the brand. The paragraph also discusses the value of people within a company, emphasizing that a company's success is driven by its employees and their ideas, with examples of how key individuals can influence a company's fortunes.

🌟 Raw Materials, Royalties, and Unique Rights as Diversified Assets

This section covers a range of assets including raw materials, commodities, royalties, and unique rights. It discusses the fluctuating market value of raw materials and commodities and the potential for wealth through art and collectibles. The paragraph also explains royalties as a source of income from intellectual property and provides examples of how royalties have made individuals wealthy, such as George Lucas with Star Wars. Additionally, it touches on unique rights and first-mover advantages as competitive assets in the market.

🕒 Time Money Time Arbitrage for Business Growth

The final paragraph introduces the concept of 'Time Money Time Arbitrage' as a fundamental business strategy. It explains how individuals can start by working hard to convert their time into money, then use that money to hire others, thereby generating more value than the cost of the labor. This approach is the basis of profit and business growth, encouraging viewers to think like business owners and apply this knowledge to build wealth.

Keywords

💡Assets

Assets are items or resources that generate income or have value that can be used to produce more wealth. In the context of the video, assets are crucial for wealth accumulation, as they work to put money into one's pocket. Examples from the script include cash reserves, real estate, and stocks, which are all ways the rich get richer.

💡Liabilities

Liabilities are debts or obligations that cost money. The video emphasizes the importance of distinguishing between assets and liabilities, as liabilities take money away from you. The script clarifies that a house you live in is a liability, not an asset, because it incurs costs rather than generating income.

💡Real Estate

Real estate refers to land, buildings, and other immovable property. The script identifies real estate as a significant asset class for the rich, as it provides rental income and has the potential for appreciation due to increasing demand for housing.

💡Bonds

Bonds are debt securities issued by governments or corporations to raise capital. They promise to pay the bondholder a specified interest over a period and repay the principal at maturity. The video describes bonds as a safe investment with relatively low returns, often backed by the government.

💡Stocks

Stocks represent ownership shares in a company. The script explains that owning stocks allows individuals to participate in a company's success and profit from its growth, which is a common way for the rich to increase their wealth.

💡Mutual and Index Funds

Mutual and index funds are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks or bonds. The video highlights the benefits of these funds for diversification and safety, mentioning the S&P 500 index as an example of a popular index fund.

💡Patents

A patent is a legal document that grants the inventor exclusive rights to an invention for a limited time. The script discusses patents as a form of intellectual property that can be very valuable, allowing the inventor to receive payments for its use or sue for infringement.

💡Trademarks

Trademarks protect brand identities, including logos, names, or phrases. The video explains that owning a valuable trademark can be an asset, as it can be licensed for commercial use, providing a source of income for the owner.

💡Brand and Goodwill

Brand refers to the image and reputation of a company in the minds of consumers, while goodwill is the positive emotional connection people have with the brand. The script illustrates how strong branding and goodwill can significantly contribute to a business's value and success.

💡People as Assets

The script identifies people as valuable assets, especially in the context of their ideas, skills, and contributions to a company. It emphasizes the importance of key individuals in driving a company's success, such as Steve Jobs at Apple, and the concept of 'acqui-hiring' to bring in talented people.

💡Raw Materials and Commodities

Raw materials and commodities are basic goods that are used in the production of other products. The video discusses how understanding market fluctuations and investing in these materials when prices are low can be a profitable strategy, with examples like gold and art.

💡Information Products

Information products, such as books, digital courses, and songs, are intangible goods that can be sold multiple times without additional production costs. The script explains that creating and selling information products can be a scalable way to generate income.

💡Royalties

Royalties are payments made to the creators of intellectual property for each use or sale of their work. The video uses examples like the song 'Gangnam Style' and 'Friends' TV show to illustrate how royalties can provide a continuous income stream long after the initial creation.

💡Unique Rights

Unique rights refer to special permissions or advantages that can provide a competitive edge in the marketplace. The script mentions the Indian gaming regulatory act and tax-exempt status of churches as examples of unique rights that can be considered assets.

💡First Mover Advantage

First mover advantage is the advantage gained by a company that is the first to introduce a new product or service to the market. The video cites the App Store by Apple and Netflix's streaming service as examples of innovations that provided a significant advantage and became valuable assets.

💡Time Money Time Arbitrage

Time money time arbitrage is a concept where one uses their time to generate money, and then uses that money to buy other people's time, thereby growing their wealth exponentially. The script explains this as a fundamental business lesson, where the profit comes from the difference between what employees generate and what they are paid.

Highlights

Cash is considered an asset as it can earn interest and provide liquidity for seizing opportunities.

Apple has over $150 billion in cash reserves, emphasizing the importance of liquidity for accessing opportunities and higher returns.

Peer-to-peer lending can offer higher interest rates than traditional banks, with risks involved for those willing to participate.

Real estate is a significant asset due to rental income and property appreciation from increasing demand.

Different types of real estate assets include residential, office, commercial buildings, and land for cultivation or development.

Bonds are a safe investment option backed by the government, offering a steady but low return.

Stocks allow individuals to own a percentage of a business, with the potential for high returns.

Mutual and index funds provide diversification and historically have been among the best-performing asset classes.

Equipment that generates income or improves efficiency is an asset, depending on its direct correlation to money generation.

Patents protect inventions and can be a significant source of income through licensing or litigation.

Trademarks protect brand symbols and phrases, allowing for licensing and commercial use, with significant monetary potential.

Brand and goodwill are valuable intangible assets that represent a company's market presence and consumer affection.

People are a crucial asset in a company, with the potential to drive innovation and business success.

Raw materials and commodities can be bought low and sold high, leveraging market fluctuations for profit.

Art and collectibles like luxury cars and watches can appreciate in value, serving as alternative asset classes.

Information products like books, songs, and digital courses are infinitely scalable and can generate significant income.

Royalties from intellectual property can provide ongoing income, exemplified by the success of TV shows and music.

Unique rights and competitive advantages, such as licensing or geographical benefits, can be considered assets.

First-mover advantage and proprietary business models can create significant value and market share.

Time money time arbitrage is a fundamental business concept where time is used to generate money, which is then used to buy more time.

Transcripts

assets put money in your pocket

liabilities cost you money the more

assets you have making money for you the

Richer you are this is the fundamental

rule of getting rich but that said here

are 15 assets that are making the rich

even

richer welcome to alux the place where

future billionaires come to get inspired

starting off at number one cash straight

up cash put in a bank deposit is earning

you interest pretty straightforward the

downside is though the interest paid up

by banks these days isn't even keeping

up with inflation but cash is still a

priority Apple the company has over $150

billion in cash reserves that's

liquidity so why do rich people still

keep a good portion of their wealth in

cash reserves well two reasons one being

able to access any opportunity that

presents itself which is pretty

self-explanatory if you think about it

the deal of your dreams is in front of

you and you don't have the money to take

advantage of it that would suck this is

also the main reason why rich people

save cash and two because they can get

higher returns from Straight Cash deals

not only do people offer better pricing

for cash but you can also lend money

with high interest this practice is

called peer-to-peer lending if you're

low on income and willing to take this

risk there are plenty of platforms out

there that offer peer-to-peer lending

Services basically you lend people your

money and they pay you back with

interest the average bank is offering

under 1% interest on your deposit while

peer-to-peer lending fluctuates from

seven to as high as 15 or 20% but please

keep in mind that if something is too

good to be true it probably is maintain

a rational mind when ever

investing number two real estate this is

a big one we personally love real estate

why once again two reasons one rent

payments money is coming in every single

month with a minimum amount of work if

you're a bit smart you can take

advantage of the technology improvements

happening right now and instead of

traditional rents do short-term rental

for higher yields but it isn't as

passive and two the second argument is

appreciation population numbers are

going up and more and more people need a

place to live or rent the demand is

increasing so prices for properties are

constantly going up and they forever

will making real estate one of the

better Investments that you could

possibly make now in terms of real

estate assets you've got one residential

buildings where people live in your

properties and pay you rent two Office

Buildings people work in your property

and they pay you rent three commercial

buildings businesses use your space to

sell stuff and pay you rent and four

land which can be cultivated developed

or even left as it is for appreciation

now super important here the house you

live in is not an asset okay it's a

liability it costs you money to live in

it and it's not putting any new money

into your

pocket number three bonds when

governments or businesses might be in

need of some cash they can issue

something called bonds which are sold to

interested investors now through these

bonds the government or business vows to

pay the person buying the bond a certain

amount of money every month generally

bonds have an expiry date on them from 1

month to 30 years these are super safe

Investments because they're mostly

backed by the government as you probably

know by now low risk in business

translates to low reward as well bonds

are usually in the 3% yearly return

range which is better than what most

banks offer but not high enough to get a

beginner investor excited when the bond

reaches its end the principal amount is

returned to the investor the main ways

that people buy bonds are one directly

from the treasury Department or two

through a brokerage

firm number four stocks Now Stocks are

not as complicated as all those Wall

Street films make you believe stocks are

an easy way for you to own a percentage

of a publicly traded business so if a

business issues 10 million shares and

you own 1 million of those shares you're

a 10% owner in that business this

incredible breakthrough in financial

instruments has allowed the average

person to own a stake in some of the

most lucrative companies of our day with

a very low entry barriers here's how

much you need to pay to purchase one

share into these

companies number five mutual and index

funds if stocks allow you to purchase

shares in a company one by one mutual

and index funds bring multiple companies

together so you're buying into the

entire basket of companies as a whole

why is this better well basically you're

more Diversified so it's a safer

investment to make statistically index

funds are one of the most best

performing asset classes the five most

popular index funds are the following in

no particular order Fidelity zero large

cap index Vanguard S&P 500 ETF spdr

smp500 ETF trust I shares core S&P 500

ETF and Schwab S&P 500 Index Fund and

look okay here's the deal if you were to

start buying stocks one at a time you're

statistically more likely to screw it up

you're not going to be one of those

Miracle traders that beats the market

year over year you don't have that kind

of info and it's super complicated to

try and compete with the big boys that

is where the index fund comes in S&P 500

brings together the best 500 performing

companies and when a company Falls from

that top 500 it gets replaced with a new

better performing one the average

annualized return for the S&P 500 index

over the past 90 years is

99.8% out of the five mentioned Vanguard

is our top pick index funds should be an

every portfolio of everyone who's

looking to build wealth

longterm Number Six

Equipment anything that generates money

for you or helps you make money faster

is considered an asset if you're a

farmer a tractor is an asset if you're a

programmer that laptop is an asset if

you're an Uber driver your car is an

asset whether or not something is an

asset or a liability changes depending

on if it has a direct correlation to the

money you are generating so unless your

income is directly dependent on the car

buying a new one is a liability and it's

very often that people confuse the two

they try to justify it as an asset when

in reality they're mismanaging their own

finances due to a lack of self-control

you don't need the most expensive laptop

on the market to watch YouTube videos

number seven patents patents are awesome

okay for those of you unfamiliar with

the term when you invent something new

you can protect that invention by filing

a patent it's a document that certifies

you as an inventor and describes in

detail what your invention does with

this protection in place companies have

to pay you money in order to use your

your invention and if they don't you get

to sue them patents are incredibly

powerful and valuable in the business

World a single patent can make you rich

and all the best inventions are backed

by patents just to put things into

perspective here's the most us patents

received last year but you know it's not

just big companies that rely on patents

remember the slinky it made over $3

billion in sales Scott Singer invented

the cush ball which was bought by Hasbro

for $100 million back in '97 the moving

fish you saw on everyone's wall years

ago called Big Mouth belly bass that was

also worth over $100 million and the

list goes on like this the magic

eightball hula hoops and anything you've

seen on Shark Tank or the teleshopping

channel number eight

trademarks if patents protect your

invention trademarks protect your

symbols words or phrases it's pretty

obvious why this is a big deal when it

comes to the logo or the name of a brand

but here's where things get super

interesting if you own a valuable

trademark that has marketable value you

can license it to people to use it for

commercial purposes and they have to pay

you in return our alltime favorite is

the story of Michael Buffer who in 1992

trademarked the catchphrase you can see

right now on the screen I'm not going to

say it but chances are you can hear it

in your head it's super catchy

entertaining and every single time it

said in a commercial manner you need to

write Michael a check and since

trademarking it get this okay he's made

over $400 million just from that one

catchphrase and you know trademarks can

be local or International but good luck

enforcing it just to keep things

interesting one in five us companies

says there are companies in China

infringing on their intellectual

property and this is actually one of the

main reasons why China has been growing

so quickly the complete disregard for

intellectual property rights China is

stealing over $600 billion in IP from

the rest of the world every single year

which is wild okay but let's get back to

the topic at hand more assets that make

you rich number nine brand and Goodwill

now there are subtle differences between

brand and Goodwill but both are very

valuable to any business a brand is the

footprint a company leaves in the minds

of its consumers what they stand for but

they present themselves as being

Goodwill is the emotional affection

people have toward the brand a brand is

owned it's an effort the company is

making to push a particular image of

itself into the marketplace Goodwill

comes from the way the company treats

its customers the positive impact it has

on the community and how grateful people

are that the company exists Goodwill is

super hard to cultivate or scale but

people will literally save companies

from Bank rupy because of the Goodwill

they have for it and there are companies

that become incredible successes just

through branding the cardashian family

is a great example here if Kim or Kylie

attach their name to something it can

drive sales like nobody's business we're

not sure if Kylie's lip kits are any

better than the competitions but it did

make her a billionaire also remember

when Kim kardashi made over a million

dollars per minute from her kimoji app

that was nuts now of course there are

other examples that might even drive

this narrative better take a simple

black t-shirt for example you can buy

them for less than $2 a pop but put a

Disney logo on there and now they're

worth $10.99 just because of the

intangible value that brand brings to

the shirt number 10 people you don't

realize just how valuable an asset that

people are until they leave very few

people understand that companies aren't

actually real companies are a figment of

imagination validated by the state

companies are names ideas and The

Innovation happening under this

imaginary umbrella and who comes up with

all of these it's the people in that

company a single person can shift a

company with their ideas just look at

the impact replacing Steve Jobs with the

former Pepsi CEO had on Apple nearly

bankrupting what is today probably the

most loved technology brand and digging

deeper into Apple their lead product

designer Johnny I youve designed the

products that are now in the hands of

billions then there are the teams that

make the company as a whole there have

been cases where bigger companies have

acquired startups just to bring those

people in house there's actually a term

for it it's called aqu hire hire the

right people and they'll make you rich

ideally nobody in your company should be

Irreplaceable but the harder someone is

to replace within an organization the

more valuable an asset they become and

if your goal is to position yourself

this way if you want to be one of the

most valuable assets at your

organization we've got you covered with

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only do you get access to a fresh

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your yearly plan number 11 raw materials

and

commodities the price of raw materials

and commodities fluctuates and varies

depending on the market if you're smart

about it you buy it when it's cheap hold

it and then sell it when it's in high

demand this applies to everything in

life from currency to oil to gold to

crypto luxury cars and art over the past

15 years the price of gold has increased

by

221 this might come as a shock to most

of you but we love art as an alternative

asset class very few people know this

but art has been outperforming the SMP

for the last 20 years this is one of the

big reasons why you see the wealthy

dropping stupid money on Art because

it's making them even richer the same

goes with vintage cars while your car is

costing you money some of the wealthiest

people in the world are buying rare

vintage cars that are quickly

appreciating in value and the same goes

for other Collectibles like luxury

watches now before you go and blow all

your money on a vintage Rolex because

you read some post on Kora about how

they double in value over time you might

want to take a quick breather never

invest in things you do not understand

it's one of the most important rules of

money disobey it and you'll never be

rich number 12 books songs digital

courses information or

content information is an incredible

thing to be selling because it's

infinitely scalable you write the book

once and then you can sell it a million

times same goes for a digital course a

song or any other type of info or

digital product creating and

distributing such an asset increases not

only the value of the business but can

also make you rich the moment your

product is done your job is to promote

it and get it in the hands of as many

people as you can with music it's even

more interesting because you only have

to get it right once and you could

literally be set for life Gangam Style

is a good example of this one Sai made

over $10 million just from that one song

distributed via YouTube and iTunes not

to mention merch shows licensing and so

on Mariah Carey makes around

$500,000 every single year from one hits

song you all know and love all I want

for Christmas that song alone has made

her over $60 million to date and on a

similar note number 13 royalties now

we've brushed a bit on royalties in the

previous points but there's an entire

world revolving around them the simplest

way to put it you wrote a book that's

great a movie studio wants to buy the

rights to your book and make a TV show

out of it in exchange you're getting a

portion of the money generated let's say

TV show is Friends you've made a ton of

money already the show wraps up after 12

seasons and you're already rich but it

doesn't stop there no no there's a term

called syndication that's when a TV show

becomes so big it makes sense to open it

up to multiple broadcasters so keeping

with a friend's example the cast of the

TV show is still earning to this day

between1 and $20 million per year each

from the reruns of the show that's

insane royalties apply to everything

that has to do with your intellectual

property royalties made George Lucas a

billionaire when he proposed Star Wars

to Studios they didn't give it much

thought assuming it was likely going to

flop instead of paying George $500,000

in director's fees Fox allowed Lucas to

maintain the licensing and Merchandising

rights long story short the movie is a

massive success and by 2011 the toys and

merch have brought in over $3 billion in

order to make up for their mistakes dis

dis bought lucas films for $4 billion

and it took Disney just 6 years to

recoup their

investment number 14 unique rights now

we wanted to mention this because there

are instances where some parties might

have an unfair competitive Advantage

which counts as an asset for example in

the US there's something called the

Indian gaming regulatory act which

grants Native Americans the rights to

all types of gambling activities

regulated under state law law anything

from specialty licenses to geographical

advantages can be considered an asset if

it grants you a competitive advantage in

the marketplace the church is another

example since they don't have to pay

taxes and this happens all over the

world in Eastern Europe almost every

church is run like a business they have

products merch services that cost money

all tax exempt same goes for art museums

and fraternal

organizations and number 15 first mover

advantage and proprietary business

models whenever you innovate in a

commercial manner this Innovation is

regarded as an asset the app store by

Apple is one of those Innovations the

microtransactions in games are a newvo

business model the fact that Netflix

evolved from delivering solid tangible

DVDs to a streaming service has been

regarded as a very valuable asset for

the company it gave them the edge to

capture market share while everyone else

was is still on the sidelines it took a

couple of years for other companies to

catch on and now streaming services are

everywhere the same thing happened to

music you used to purchase physical

albums then digital albums now you just

pay for Spotify title or YouTube premium

Airbnb disrupted the hotel industry with

a new way to rent short-term

accommodations your job is to figure out

a way to take advantage of any of the

assets mentioned in this video and

secure a bag for yourself if you made it

this far into the video we're curious to

know which of these assets do you plan

to secure in the future we can't wait to

hear from you in the comments and we

know okay this was a long video but it

was filled with educational value and we

hope you got your time's worth for those

of you still watching here's a bonus

piece of info the time money time

Arbitrage so this is one of those things

they don't teach you in business school

but if you pay attention it's probably

the most valuable thing you'll ever

learn at this point in time you might

not have the financial resources to

purchase all the assets we mentioned but

you've got an asset that you can

exchange for money and from the subtitle

you probably figured out we're talking

about time okay so the time money time

Arbitrage is when you use time to

generate money then use that money to

buy other people's time that's how you

exponentially grow time working for you

now I know it might sound a bit

confusing at first but we'll break it

down for you pay attention because this

is valuable basically your job is to

identify opportunities where you can

convert time into money and you do that

for some time until you have enough

money to bring in another person because

you've generated this opportunity you

can pay this person less than the money

you're earning for that time and

pocketing the difference this is a

fundamental business lesson it's why

every single company has employees every

single person in an organization is

generating more value for that company

than they're being paid and that company

is keeping the difference this is called

profit this profit is the reward for

solving that time money time Arbitrage

problem so if you're new to business

work your ass off trading your own time

for money and then figure out how you

can use this Arbitrage to build a real

business every business owner out there

understands this methodology but very

few other people know about it because

well they're not thinking like a

business owner now you do and we look

forward to finding out what what you're

going to do with that information if

you've made it this far and you

understand the time money time concept

please write TMT in the comments of this

video everyone else will be baffled by

your comment but we will know who the

true alers are