How To Build Wealth For Beginners

Are you one of the people who desires to create wealth or are you one of those people who just desires to have enough money just to be comfortable? In this video, I wanna talk to the people who have a desire to create wealth. Not just wealth, but lasting, generational, perpetuating wealth. And in order to create wealth, you have to understand the purpose of cash, right? Or the purpose of wealth. What wealth is, what wealth is not, the purpose of cash. And it's really fascinating when I talk to people, like I can talk to somebody for five minutes and I can pretty much, even if we're just talking about something random, I can pretty much assess where they are financially because your words betray you. They tell people who you are. And creating wealth, the idea feels hard until you learn how to do it. And then once you learn how to do it, you ask yourself the question, why did I ever feel like this was hard? I don't know if anybody can relate to what I'm talking about, but when you're on the come up and you're struggling financially and you're like, I don't get why this isn't working. You don't get why it's not working. But number one reason it's not working is because you don't understand what wealth is, you don't understand the purpose of money. And when you start to realize some of those things, you don't understand the difference between cash flow and cash accumulation and cash perpetuation. Like you don't understand these concepts. You just think, well, money is the stuff you get when you go to work and you trade some of your time, right? And what you do with it is you pay bills or what you do with it is you pay bills on time and you create good credit. And so my objective is to give you a totally different perspective because if you have a totally different perspective, then maybe you'll shift your focus to a totally different purpose when it comes to money. Does that make sense? And so when I think of like the concept in my book on how to build a strong financial house, you know, you have it built on the foundation of truth because truth is the foundation of everything, right? And then up here you have your asset protection and then you have your four windows and you have your door with your doorknob, of course. And so you have this one is your income window. And on your income window, like most people get their income from their job, right? And so when people think of money, they think number one, job. And what they do is they trade some of this for some of this and then they trade this for the stuff that they desire to have for their car, their insurance and their food and whatever, their clothes and whatever else. They trade this for this and then this for everything else in their life. Okay, cool. And so because everything costs money, they emphasize the money because everything costs money. And so they think, well, if I can just accumulate more money and so people obsess because people obsess in America or in the world over accumulating money. And they think that cash accumulation is the primary objective of cash. I submit to you that it's not. So people who are wealthy understand that cash accumulation is not the primary purpose of wealth. I'm gonna get into that in a minute. So what happens is this is your, this is your, what I call your IPA window. This is your WRL window and this is your outgo window. So most people, poor people, their cash comes in. This is what happens with poor people. Their cash comes, their money comes into their house and then it goes out the outgo window in the form of bills because poor people think the primary purpose of this is to pay for this. Oops, is to pay bills, right? So poor people, they hyper obsess on bills and they hyper obsess on income so that they can pay those bills because if they don't pay their bills, they're gonna get phone calls they don't wanna receive. Like they're gonna lose things that they desire to have. And so like you may be able to relate to this, maybe not, but you're like, okay, do I pay my water bill this month or my electric bill this month? And maybe none of you have ever been there, but I've been there. That's where I used to live at the end of, am I gonna pay my water bill this month or my electric bill this month, the street, right? And so, okay, are we gonna pay the car insurance or are we gonna pay our gas bill? Like, and when I say gas, I'm talking about gas for the house, right? So it's like when you hyper focus on bills, the focus on bills, your focus on this is what makes you poor. It's like thinking that this is the primary purpose of money is what makes you poor, right? Now, middle-class people, middle-class people, what they do is they pay their bills on time so they can maintain good credit. So they use debt and WRL stands for wealth reducing liabilities. So they take some of their money, they pay their, they borrow money and then they pay their debts. And so their money comes in through their job and then it comes down through the debt window and then through the outgo window and then out in the form of bills again. But they focus, this is the primary window focus of the middle-class people, right? And what a lot of people do is they say, well, if I could just make this window bigger, if I could just get more income for the amount of time that I work, if I get paid a higher dollar an hour, so I was making $15 an hour. So now if I can make $35 an hour, my life is gonna get better. Well, it is gonna get incrementally better, but it's not gonna get exponentially better, right? Or if I can make $50 an hour or $75 an hour or $100 an hour and most people who are making $25 an hour right now, they think, man, if I could make $100 an hour, I'd be in the catbird seat for the rest of my life. Catbird seat, Texas colloquialism, very good spot. Okay, so rich people understand that this is the window that makes you wealthy. Income producing assets. You take some of your money, you take some of your time and you put it in here. This is where we put that. And when we do this, when you take some of your money and some of your time and put it in here, in the beginning, it produces nothing. And this is why most people never do it. Because when you first start, it's like you can't really ever start making a lot of money until you learn how to stop working for money. And that doesn't mean you stop working, you quit your job because you stopped working for money. It means you work on things that don't pay you in the beginning. Because a part of wealth creation, a big part of wealth creation is delayed gratification. You have to put off things you desire to do now and you have to sacrifice some of the things you want to do now on the altar of things you want to do in the future. What most people do is they do the exact opposite. They sacrifice the long term on the altar of the short term when making your life better in any arena, you sacrifice the short term on the altar of the long term. It doesn't matter if you want to learn a new skill, it doesn't matter if you want to acquire wealth, it doesn't matter if you want to develop a new physical experience of life, like you want to have more energy and have more health and vitality in your body. It doesn't matter, it always resolves, it always goes down to the same thing. Valuing the long term over the short term, why? Because eternity is more real than time. Because spirituality is more real than physicality. Because that's what it's a picture of. Like this is bigger than just a conversation about money. This is a conversation about how life works. And so what happens when you take some of your money and some of your time and you put it in here, in the beginning it does nothing. Then it produces a little bit of money. And then it produces a little more. And at this window, as you begin to fill it up with assets or the assets begin to be more productive and produce more wealth, what happens is this window now starts putting some money back into this window. And so now you have this thing where the money's coming in but it's coming back out. Then eventually when you get to this point, you get to the point where this window, this income that you're making, the income producing asset window now pays for your bills. So all of your bills, imagine if you had assets that could pay for all of your bills. For instance, I'm gonna take this book. I'm gonna take this book right here. This book right here generates between 7,000 and $18,000 a month. I wrote this book in 2006, right? Literally, all of my personal bills could be paid for with this one asset. I wrote the book one time. I put this book, boom, in that window. And every month, month after month after month after month after month after month, whether I go get it or not, this is income that comes in from my income producing asset window every month from this book. My other book, Boss Moves, I wrote that book in 2021. That book generates between 35 and $70,000 a month. I'm not, oh, you're so rich and wonderful. That has nothing to do with it. I have an asset, income producing asset window that has assets in it that income can follow. If you don't, like if you're struggling financially right now, it's because you have no assets and you are an asset. Like your work and your time is your only asset. And if that's all you have, for now, that's fine. But man, if you know this now and you keep on living in five years from now, that's still all you have, maybe that's a problem. And so eventually, this window in your house gets so big, you don't need this anymore. Eventually, this window in your house gets so big, not only does it pay for this, not only does it put money over here, but it also pays for your wealth reducing liabilities. It changes the game forever. Like when I think about money, this is how I think about it. When I get a dollar, I don't say, oh, what can I go buy? Like, what can I go buy? What bill can I pay? No, the first thing I think when I get some money is, okay, what can I use this money for to acquire or enhance an asset that'll produce more money? How can I turn this money into more money? That's my first question. Some of you watching this video right now, it's not your first question, not your second question, not your third question, not your fourth question. In fact, it's not even a question on your question list. And you wonder why you're struggling. You're struggling because all of the money that comes into you and your family, you have to go out and get it. That's why you're struggling. If you think about it, when God made man, where did he put him? Did he put him in a factory? No, he didn't put him in a factory. Oh, he put him in a bakery, right? Because the economic pie, right? No, he didn't put him in a bakery. Where did God put man when he made him? In a garden. Isn't that fascinating? Because what you do is you plant the seed and the seed becomes the asset. The seed produces the fruit. And the fruit is what you live off of. Of every tree of the garden thou mayest freely eat. And see what's happening, you haven't planted any seeds for assets and you wonder why, like you're doing it. God gave us clues. You're doing it in a different way than he set it up and you're wondering why it's not working. It's not working because he didn't design it to work that way. He designed it to work a different way. And so what you gotta do is you gotta work within the parameters of how God created the system. Is what I'm saying making sense? I mean, I know I'm getting a little animated right now, but is what I'm saying making sense? This, when I got this, it was a wrap. When I understood this, I was rich in my mind before I was rich in my pocketbook because I knew what I needed to do now. I was like, I was done. It wasn't that I didn't have a job. It was that I hyper, for the first time in my life, and it was April of 1999. For the first time in my life, I hyper-focused on this window, hyper-focus. Assets, assets, assets, I need more assets. Gotta have more assets, gotta have more assets, gotta have more assets. Need some assets, income can follow. Okay, so now, here's what most people think. This is average Joe. Say, why is he so sad? Because he's average, I'm sorry. Couldn't resist, I couldn't resist. Okay, so, this is average Joe. An average Joe stays broke because he thinks that the primary purpose of money, like, he thinks the way you get rich, he thinks the way you get rich is cash accumulation. And so, because, this is, by the way, this is what they taught us to do. Think about it, when you first started learning about money, what did they teach you to do with money? Come on, talk to me, somebody. Save it, you save it, so you save money. And by the way, rich people know that saving money is not a good idea. Right, you don't, saving money, when you're saving money, you're saving something that's becoming worth less over time. If nothing hits it but inflation, it's becoming worth less over time, right? So, you think of it as, okay, well, I wanna have this big pool of money that I can go back and keep looking at, and as long as it's getting bigger, I'm getting richer. Well, I mean, that's okay, but it's better if you're not doing that, okay? So, but what if, instead of you viewing money as a pool to be viewed, pool, instead of envisioning wealth as a big pool of money to be viewed, what if you looked at it as a tool to be used? So, this is cash accumulation, right? And that's what most people think as well, but I submit to you, I would rather, personally, I would rather, I'm sure y'all can guess what that is. Lazy River, you're funny, Lazy River. See, there's one in every crowd, and today, Ryan is both of them, okay. So, this is, this is cash flow. Cash flow is infinitely more important than cash accumulation. I would rather have massive cash flow and small cash accumulation, or none, than massive cash flow, massive cash accumulation, no cash flow, or small cash flow. I would rather have massive cash flow. Now, if I could, this is such a cool concept. It's a cool concept because when you think about bodies of water, right, or when I think about bodies of water, I think about a couple of different types of bodies of water. So, we went to Israel a couple of times. I think we went in 2018, no, 2019, we went again in 2020, right? So, one of the coolest things is when we went to Israel is like towards the end of our trip, we went down to the Dead Sea, and we stayed in, we didn't stay in the David Hotel the first time, we stayed in the David Hotel the second, I don't remember the hotel we stayed in, but what's really cool is when you stay at the Dead Sea, a lot of the hotels there, they have water that they pipe in from the Dead Sea into their pool, in their indoor pool. And it's a flotation, it's like a flotation tank, right? So, you can get in a swimming pool, and it's not a swimming pool. You can get in this floating pool, and you float. And when you get out, you just feel so invigorated from all the minerals. Okay, but nothing can live in the Dead Sea. Hmm, why is, it's interesting. So, the Dead Sea in Israel is at the south. The sea at the north is the sea of what? The sea of Galilee. And there's a river that connects them. What's the river? The Jordan River. Okay, stuff lives in the sea of Galilee. We know that, because the apostles were fishing in the sea of Galilee, right? Stuff can live in the Jordan River, but nothing can live in the Dead Sea. Isn't that fascinating? Or am I just easily fascinated? Okay, probably a little bit of both. Okay, so, why can't things live in the Dead Sea? Because the Dead Sea has inlets, but no outlets. And that's why it's the Dead Sea. And I promise you, if your money has inlets and no outlets, your money is gonna turn into a dead sea of cash accumulation. And I know a lot of people, I know a lot of people, who have big cash accumulation, small cash flow, and they struggle financially. Why? Because all their money's tied up in a retirement account, or all their money's tied up for future use, where they might or might not live long enough to use it. So cash flow is more valuable than cash accumulation. And if you can get cash flow and cash accumulation, that's better. But if I can figure out, if I can figure out how to have my cash keep flowing long after I'm gone, like I'm gone. Eventually, one of the things we all have in common is we're gonna die. Either you're gonna come to my funeral, or I'm gonna come to yours. Or you're gonna find out about my funeral, or I'm gonna find out about yours, right? That's how it works. Like, you just live long enough, everybody you know, either you're going to their funeral, or they're coming to yours, right? Or, but at least they're gonna find out about it. Okay, well, long after I'm gone, my objective is to have cash perpetuation. And my cash perpetuation is gonna be determined by what I do with the cash flow and the cash accumulation while I'm still here. Because without going into great detail, because I don't have time, definitely don't have time. Without going into great detail, legacy wealth is not an amount of money. We're gonna create generational wealth. Generational wealth is not an amount of money. There have been plenty of families who've accumulated a bunch of money, and in less than two generations, it was all wiped out. Like millions, tens of millions, hundreds of million dollars just gone in two generations. Why? Because generational wealth is not an amount. Generational wealth is a system of cash perpetuation where cash perpetuates, and your cash flow perpetuates after you die. And you can, like all of us can set that up. How? Well, one, by having assets that income can follow, and the assets that income can follow while we're alive, and assets that income can follow even after we're gone. So I think about the fact that, you know, I've self-published these books. When I'm gone, my family still has access to the funnel, the books. That cash flow keeps coming in. Why? Because it wasn't determined by something that I do every day. It's something that I, my cash flow from those assets is determined by something I did one day, not by something I do every day. Right, and when I say one day, I mean a group of days. Right, I've done it one time. But also, we can use life insurance for cash perpetuation. So I learned this concept from a guy named Garrett Gunderson. Garrett Gunderson wrote a book called What Would Billionaires Do? He wrote a bunch of books, Killing Sacred Cows. I don't know if any of you have ever read any of his books. But, and I mean, I didn't learn it from him because I learned about life insurance back in the 80s, probably before Garrett Gunderson was born. But this, the concept that I'm talking about right now. Wealthy families that perpetuate wealth, one of the things that they do is they use life insurance for wealth perpetuation. For a couple of reasons. One, the death benefit of life insurance is not taxable. Right, and so being, like, being insured, making sure you have life insurance on yourself, and, hear me now, everyone in your family. Did I say that too fast? Making sure you, but I thought life insurance was income replacement insurance. That's one of the things it does. But you have to, you don't have to. But if you're serious and not just curious about creating wealth, one of the things that you would desire to do if you knew the desire to do it is to have life insurance on everybody in your family because you already know everybody in your family's gonna die. That's not what we wanna think about. So we think if we don't buy any life insurance, we don't think about it, then maybe they won't die. They're gonna die anyway. So think about it. Get life insurance on yourself, get life insurance on your children, get life insurance on your spouse. And I mean significant life insurance. It's worth it. I don't sell life insurance, so nobody can accuse me of trying to make a sale. I don't sell life insurance. But I bought tons, why? Because I want my wealth to perpetuate. What people don't realize is how someone in your immediate family dying affects you. They don't realize it until it happens. They don't realize how surreal it is, how energy draining it is, how distracting it is, how confusing it is, how surreal it is. And they feel like, well, if somebody dies, I'll just go back to work and blah, blah, blah. Yeah, that's what you think you'll do because you haven't experienced it yet. You cannot conceive the level of distraction and the level of anguish that comes with that. And so having life insurance gives you the ability to step back from a minute. Now, maybe going back to work is something that will be beneficial to you. But it depends on who you are, maybe not. But wouldn't you rather have the choice, right? And while your children don't provide income, generally, right, they do provide a sense of significance and responsibility and purpose. And if one of your children dies, you're not profit, like, I don't wanna profit off my family's death. Okay, right, I get that. So, but you don't wanna necessarily have to go back to work when your family needs you to be there with them to support them because your family member died, their family member died also. And if you're the strong one, they need you. Y'all picking up what I'm putting down? Like, there are guys that have, like, like, if you're married, if you're a married man and you have a wife and children and you don't have life insurance, shame on you. You don't have, like, I shouldn't say shame on you, but like, do something about it. Like, if you don't have life insurance because I don't want my wife to have all this money and then she goes marry somebody else and then just ruin my money. Okay, right. But you want her to have to go find somebody else because you didn't take care of her. Did I come out swinging too hard? Right, well, my wife doesn't generate any money so I don't need life insurance on her, right. So you're gonna leave your children at home and go back to work when their mom dies because you can't stay home with them and encourage them and strengthen them and bless them with your presence in the hardest time in their life because you didn't have enough foresight to have life insurance. All I'm saying is let's stop pretending that we're not going to die. And let's act like the clock is ticking and we're all expiring. And if you will set up your life where you prioritize this as step one, this is step one, this is step two, and this is step three, then you can create generational wealth. This is wealth building 101. Let me say this, though. And I'll talk more about this in another video. How much cash flow you create, how much money you accumulate doesn't determine how wealthy you are. Like, wealth is not money. I did a whole video on this already. I forgot about that. I did a whole video on this already called Wealth is Not Money, or Money is Not Wealth. Money is not wealth. What is wealth? Wealth is your ability. Whose ability? Everybody type yourself in. Should I say my ability? Wealth is your ability to create value for someone other than yourself. That's wealth. And when you can create value for someone other than yourself, you're wealthy. And when you can't create value for someone other than yourself, you're not wealthy. So this is my wealth building 101 video. Hopefully it'll help you in some way, shape, or form to make a decision to increase your cash flow and prepare your cash perpetuation so eventually when you accumulate a bunch of cash, it's not flushed down to it. By the way, let me say this. When I talk about cash perpetuation, it's not enough just to have life insurance and just to have assets. You have to raise up children who you teach to be financially literate, who understand these principles so that when you die, they don't decimate the wealth, they perpetuate the wealth. Hope this video blessed you. Stay blessed by the best and we'll see you in the next video. Bye for now. Thank you.