Anton Kreil – Build and Own Your Own Infrastructure
Summary
TLDRThe transcript discusses building personal financial infrastructure by avoiding liabilities and focusing on saving and asset accumulation. It emphasizes the importance of creating passive income and maintaining a lifestyle free of debts like credit cards, loans, and mortgages. The speaker critiques traditional systems like pensions, insurance, and credit scoring, arguing that they don't benefit individuals long-term. Instead, they encourage a self-reliant approach to wealth, highlighting the need to become wealthy enough to self-insure and secure financial independence. Success, they argue, comes from sticking to this strategy over time.
Takeaways
- 💼 Building your own infrastructure is crucial for financial independence and wealth creation.
- 💰 To build wealth, you must avoid liabilities and save, focusing on asset accumulation instead.
- 🏠 You may need to live below your means, such as renting or sharing a space, to achieve financial freedom.
- 🚫 Avoid common liabilities like mortgages, credit cards, and loans that can slow down asset building.
- 📊 The traditional pension system has failed, as many people cannot retire with sufficient income.
- 💡 Instead of relying on external systems, build your own pension by growing your assets and saving.
- 🚑 Insurance is another infrastructure that may not serve your best interests, as policies often don’t pay out.
- 🧑💻 The credit score system rewards taking on debt, which contradicts the goal of financial independence.
- 💸 Focus on generating passive income and cash flow to build wealth, as this will make financial growth exponential over time.
- 🏆 Success takes time, but by sticking to a strategy of asset-building and avoiding liabilities, it becomes easier and more rewarding.
Q & A
What is the key to building your own infrastructure according to the speaker?
-The key to building your own infrastructure is saving, having no liabilities, and gradually building your asset base. This involves living well within your means and avoiding financial liabilities such as mortgages, loans, and credit cards.
Why does the speaker emphasize having no liabilities during the asset-building phase?
-The speaker emphasizes having no liabilities because taking on debt such as mortgages, loans, or credit cards can hinder the process of building assets. By avoiding liabilities, you can focus on saving and growing your wealth.
How does the speaker view working for a salary versus building your own business?
-The speaker believes that building your own business is a better path to success because it offers more control over your income and growth. While it's possible to save and build assets while working for a company, it is more difficult due to external constraints.
What does the speaker suggest regarding pride and lifestyle during the asset-building phase?
-The speaker suggests dropping your pride and being willing to make sacrifices, such as renting or sharing an apartment for an extended period, in order to save money and build assets. This may require living below your means.
Why does the speaker believe that the pensions infrastructure in the Western world has failed?
-The speaker argues that the pensions infrastructure has failed because many people who contributed to pensions throughout their working lives are not able to retire comfortably. The average pension value is often insufficient to maintain current living standards beyond a single year.
What is the speaker's solution to the pension problem?
-The speaker suggests building your own pension by creating personal wealth and assets rather than relying on traditional pension systems. This approach ensures you have control over your retirement income.
What criticism does the speaker have regarding the insurance industry?
-The speaker criticizes the insurance industry, describing it as designed to benefit companies more than individuals. Insurance companies use models to ensure they pay out as little as possible, with only a small percentage of claims being paid annually.
What alternative does the speaker offer to traditional insurance policies?
-The speaker suggests becoming wealthy as an alternative to relying on insurance. Instead of paying premiums for insurance that may not pay out, wealth allows you to cover potential accidents or medical expenses directly.
Why does the speaker view credit reports as absurd?
-The speaker views credit reports as absurd because they reward individuals for taking on more debt. Higher credit scores allow for larger liabilities, which the speaker sees as counterproductive to building wealth and financial independence.
What is the ultimate goal in building your own infrastructure according to the speaker?
-The ultimate goal in building your own infrastructure is to generate passive income and cash flow, allowing you to make money even while you sleep. Over time, this wealth-building process becomes easier and leads to financial independence.
Outlines
🚖 Building Personal Infrastructure While Avoiding Liabilities
In this section, the speaker emphasizes the importance of building one's own infrastructure, particularly focusing on financial independence. To achieve this, one must avoid liabilities such as mortgages, overdrafts, and credit cards, and instead, focus on saving and building an asset base. The speaker discusses the necessity of living within one’s means, even if it means renting or sharing an apartment for years. They advise starting small in business ventures and growing gradually. The goal is to go from zero liabilities to owning assets, creating personal infrastructure that will eventually support a self-sustained future, including one's pension.
💰 The Failure of Pensions and the Need for Personal Wealth
This paragraph highlights the failure of the pension infrastructure in the Western world, noting that many people cannot retire comfortably. The speaker argues that the pension system has not provided adequate financial security for retirees. They suggest that individuals should build their own pension by becoming wealthy and not rely on external pension schemes. The speaker criticizes the Western pension model, citing that people can only live at their current standard for about a year post-retirement. They recommend insourcing one’s pension by creating personal wealth and ensuring financial independence during retirement.
📊 Insurance: A Rigged System Benefiting the Industry
The speaker criticizes the insurance industry, describing it as a system designed to benefit companies more than individuals. Insurance policies, whether for cars, homes, or health, are seen as methods for companies to collect premiums while rarely paying out claims. Only a small percentage of policies result in payouts, meaning most people pay for coverage they may never use. Instead of relying on insurance, the speaker advocates for building personal wealth to cover potential future expenses, such as medical emergencies, without needing to depend on uncertain insurance payouts.
💳 The Absurdity of the Credit Score System
The speaker discusses the absurd nature of credit scores, arguing that the system rewards individuals for taking on more debt. Higher credit scores lead to more borrowing capacity, encouraging people to take on larger liabilities, which contradicts the goal of financial independence. The speaker advises avoiding debt and liabilities, focusing instead on building assets. They stress that true success comes from generating passive income and cash flow, allowing wealth to grow exponentially over time. The speaker emphasizes that this is the key to financial freedom, enabling individuals to operate outside traditional systems like credit scores.
Mindmap
Keywords
💡Infrastructure
💡Assets
💡Liabilities
💡Pension
💡Passive Income
💡Credit Reports
💡Saving
💡Insurance
💡Wealth Building
💡Financial Independence
Highlights
The key to building your own infrastructure is saving and avoiding liabilities while building an asset base.
It's crucial to live within your means, especially in the early stages of building wealth.
Starting a business can be done without a large initial investment, and there are many ways to make a million dollars.
The pension infrastructure in the Western world has failed, leaving many unable to retire properly.
You should focus on building your own pension system rather than relying on traditional pension plans.
Insurance companies are designed to avoid payouts, making self-insurance through wealth-building a smarter long-term strategy.
Credit scores reward borrowing, which leads to larger liabilities—a counterproductive approach to wealth building.
To succeed, one must reject conventional wisdom about borrowing and debt and focus on building assets with no liabilities.
The system encourages borrowing, but true financial freedom comes from owning assets and avoiding debt.
Financial independence is achieved by understanding money and how the system works, not just by accumulating wealth.
Building passive income and cash flow should be the goal, allowing you to make money while you sleep.
It becomes progressively easier to build wealth over time, though it is challenging at first.
The saying 'it takes 20 years to become an overnight success' holds true when building your own infrastructure.
Having no liabilities and generating passive income are key steps to building sustainable wealth.
The ultimate goal is to own and control your financial future by building assets and avoiding traditional financial traps.
Transcripts
how do you die how do you build your own
infrastructure
okay well listen we're gonna get yeah
we're gonna get in a cab now and head
back up to the hotel before we go to
before we go to the airport if we jump
in the cab now I'll show you how to
build your own infrastructure okay
so this infrastructure issue how does it
work
so building your own infrastructure ahem
okay well this period we talked about
earlier between essentially going from
zero to owning assets that periods we
talked about so having no liabilities
during that period what you've actually
got to do and it might sound obvious but
what you actually have to do is safe and
you have to build your asset base
because during that period it's gonna be
very very easy for you for example to go
and take a job somewhere
get a salary every month and then start
signing up for liabilities based on that
salary so the best way to do things is
actually build up your business so work
for yourself build up a business it can
still be done if you're working for a
business or a corporation but it's more
difficult you've just got to live well
within your means and you've got to have
no liabilities so liabilities like we
talked about earlier with mortgages
overdraft facilities
credit cards taking loans to buy cars
stuff like this you got have no
liabilities you are safe and you know
even if you have to rent for example or
share an apartment for 10 or 15 years
you've got to be prepared to do that and
you've got to drop your pride you know
setting up businesses if that's the
choice you're going to make there's a
million ways to make a million dollars
you know you can start off small and you
don't have to have hundreds of thousands
of pounds hundreds of thousands of
dollars to start businesses off most
small businesses you can start off with
nothing so if that's something that you
want to do you know that's the way you
have
you have to start small and built and
built this asset base
so during that entire period going from
0 up to owning assets it's saving and
having no liabilities and in its
entirety what you're trying to do is
essentially build your own
infrastructure so you're building your
own pension now if you look at the way
the pensions industry works in the
Western world so if you look at the
United States United Kingdom Europe
what's become really apparent in the
last five to ten years is that the
generation previously who started on the
pensions infrastructure in the 70s and
over the throughout the 80s and 90s and
noughties those people are not able to
retire properly so if they can't do that
it means the pensions question or the
pensions solution has not been met
because the whole point of a pension is
that it provides you income in
retirement and these people can't retire
so pensions infrastructure has failed in
the Western world so whether that's the
fault of the system or the fault of the
people themselves it's probably a
mixture of the two but essentially the
stats are across the US Europe United
Kingdom
the annual national average salary in
each of those regions is basically
equivalent to what an average person's
pension value is when they retire which
means if everybody retired today in the
Western world it would mean that they'd
only be able to live in their current
living standards for one year and this
is why everybody downgrades their
lifestyle when they retire or rely on
their children to pay for their
retirement that's not something you want
to be doing you know if you want to be
wealthy you want to be building your own
pension not outsourcing it but in
sourcing your pension so learning how to
do things properly so the pensions
infrastructure has failed another
another infrastructure you know that you
have to be very very careful of is
insurance you know insurance is a
classic example where it's essentially a
fair pitch you know insurance companies
create policies you know this can be on
anything can be on home insurance car
insurance health insurance it doesn't
matter because at the end of the day
it's just thought numbers to the
insurance company they create the
policies you pay a premium for it and
they literally hire people like
actuarial mathematicians to build models
to insure that they never pay out so or
if they pay out it's a tiny percentage
of overall
policies so insurance claims for example
in the car industry the home insurance
market medical insurance these types of
policies the percentage that get paid
out on per year
I mean it's so small I mean we're
looking at like two to four percent of
policies per year so you know the best
way to create your own insurance and
it's again pretty obvious is to build
your own infrastructure so you become
wealthy so imagine in you know why do
you take in an insurance policy to say
for accidents or health insurance
because one day you might have an
accident and people live in fear that
one day they will and then they have all
these medical expenses that they have to
pay so let's say for example in 15 25
years you're going to have an accidents
where you walk into the road the road
and you get hit by a car and you're
gonna be in hospital for a month well
the only real way to reassure yourself
against that is to actually just become
wealthy you could so if you spend all
that time knowing that that could be the
case it's lazy to go and pay for a
premium that might not for a policy that
may never actually pay out so insurance
is another infrastructure as well as
pensions that isn't necessarily built
for your own benefit and the other one
is the whole private debt Mokey's which
we keep going back to so just think
about for example credit reports and the
credit reports companies just think how
absurd this is you get scored on your
ability to borrow and the higher your
score the more you can borrow so the so
the more but the higher you score and
the more compliance you are when it
comes to liabilities the bigger
liabilities you can take on that's your
reward it's complete insanity it's
absurd and if you want to start off on
the road to success and build your asset
base and build your own infrastructure
these are all things that you have to
avoid you have to literally do the
opposite of what everybody tells you to
do
so going back to this point
understanding the function of money
respecting it having or being
indifferent towards building money and
becoming wealthy but wanting to do it
because you understand how the system
works and you don't necessarily want to
operate within it you want to own it
this is the way you have to go you have
to build your asset but you have to
build your asset base and in that period
as your building have no liabilities and
it's difficult to begin with but it gets
easier over time because the key to this
when you're building assets is actually
to generate passive income and cash flow
you want to be making money while you
sleep and it becomes exponential so it
starts off difficult but it becomes
progressively easier over the years and
what's the old saying it takes 20 years
to become an overnight success but
you've just got to stick at it so build
your infrastructure yourself build your
own infrastructure it's the only way to
go
[Music]
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