Now say you were a pothead who never worked with 12% interest (which is an above average
return) you made $2,460,934.18.
So I gave myself a challenge. To figure out how the poorest person in America can invest
just $3.78 a day and become a millionaire over a lifetime.
If you watch this video till the end you will figure out whether or not I was able to complete
this seemingly impossible challenge. I did this to see if the system is really
rigged against the poor. To be clear $3.78 a day represents 1/10th of the poorest full-time
employee's salary in America. And is roughly the amount you spend on expensive coffee.
Let start with capitalism, you were told that a few people hold all the wealth. And they
were, in fact, responsible for your lack of wealth. As wealth is generational. Lets analyze
the validity of this claim.
If this is true, the only way we had a chance to get rich or least make it was if we were
to redistribute the wealth of the rich.
But is it possible for the little guy or girl to become a millionaire?
Most forms of traditional media say no. But according to the research from the Book The
Millionaire Next Door. Most People are first generation rich. In fact, 80% of millionaires
were either poor or in the middle class before becoming millionaires.
The majority of wealth is not passed on generationally but is created during a lifetime.
So if the system is not rigged? How do I become rich?
The key to becoming rich is not complex but extremely simple. According to the book The
Richest Man In Babylon a tenth of everything you earn is yours to keep. Its simple, if
you spend 90% of your income you must keep 10% for yourself.
If you set aside 10% of your income for yourself, you will indeed become a millionaire over
your lifetime. Robert Kiyosaki described this as paying yourself first in the best selling
book Rich Dad Poor Dad.
But you might be saying to yourself I can't afford to put aside 10% of my income.
If that is true, you must answer this question.
But then how is it possible that you give the government over 50% of your income in
taxes. About 33% in income taxes and the rest in sales and property tax.
To be honest 10% would not even make a difference as you can afford to pay 50% or more of your
income every month without fail to the government.
Now you might be saying, I don't work 6 months of the year for free and give up 50%
of my income, I get my CPP, Social Security or Pension in return.
Let's analyze the validity of this claim.
Here is the retirement road map. You work hard and you pay the Government taxes to ensure
your future. Essentially if you pay up, the government
will protect you. It's the same promise most mobs make as well.
But are mobsters and government officials truthful?
Let's find out.
If this is true there should be a livable income coming from your pension. But there
is no treasure at the end. Your ship has already sailed.
Because the current money being invested in government backed retirement plans goes to
pay for existing retirees. It is not invested. I repeat it is not invested.
Your pension is a Ponzi Scheme. Not figuratively, literally.
If this was a business they would be prosecuted like a criminal and thrown in jail.
Let's look at the retirement rate where I live to illustrate this fraud.
The Max Retirement amount = $1092 and almost no one gets the maximum.
They get close to $500-$700
That's not enough to live in a house, so let's see if they can live in a car.
A Car Cost $594 (Car Payment)+$400 (Insurance...Canada eh)+$1000 (Winter Tires...Oh Canada) +$100
(Gas) = $2094
Your contributions to retirement yielded a bad return on your investment.
Not only is this not livable. You can't even live in a car on that amount.
The problem is that the young are paying for retirees now, not their investing in their
own retirement. And the retirement they are paying for now
will not exist in its current form as the rate of retirees are increasing exponentially
along with life expectancy.
Your pension will probably drop to an even more unsustainable rate in coming years.
Let's get things straight. There are 2 things keeping you from getting rich.
Reason 1 - The loss of most of your income due to taxes from the government.
The government's taxes create more widespread poverty than any business ever will. There
is no capitalist trying to take half of what you earn, only the government and mobsters
do that.
Here is what Benjamin Franklin one of the Founding Fathers Of America Said.
"It would be thought an unfair government that should tax its people one-tenth part."
What would benjamin franklin think about a government that plunders and deceives its
people by taking over 50% of their incomes?
Let's get one thing straight it is criminal for a government to oppress its people by
taking away over half their money and then blame the big corporations that pay the employees
that very income.
You have to look at it this way. I work for free for most of the year by giving away over
50% of my income to the government. Why can't I pay myself a 10% tax to ensure my future
when the government cannot make good on its promises.
Reason 2 - You lose the other 50% of your income.
You don't get away scot free either. You are the other half of the problem. Don't
be a victim. You have to save yourself from yourself.
You are your worst enemy when it comes to paying yourself first.
Never rely on your self-control. Don't go over to the bank and take out $100
and then spend $90. Almost no one has that kind of self-control.
Go to your nearest bank.
And have 10% of your income deposited in accounts that you cannot touch.
But what about my bills, taxes and debts. Be honest with yourself, you will always have
them. And every month you make the minimum payments,
so make a the minimum payment to yourself. You owe this to yourself and your family.
Blaming the government, taxes and debt is the easiest way to remain poor. If you want
to be a millionaire you need to blame no one but yourself for your financial situation
even if it seems unlikely to think that way.
Like Robert Kiyosaki said in Rich Dad Poor Dad, Pay yourself first or you will never
get ahead. It's strange how everyone else gets to keep
your money but you. Remember...
You Will Always Have Debt You Will Always Have Taxes
Pay Your Yourself 10% First
This money is not to be spent. It cannot be used to pay off loans, debts
or taxes. If at any moment you decide to spend it, you
give up your chance of becoming rich.
You are probably thinking, that's it. It's so simple I can get super rich now.
If you keep your money in a bank where the interest is between 0 to 0.5% you are losing
money. As the inflation rate at which your money
loses value is between 1-2%.
Here is the problem with saving money. A dollar saved today is worth a few cents tomorrow.
Money loses value over time due to inflation and other factors.
Saving money is dangerous because each year your money loses a little of its value.
Your ship will sink with this strategy. Saving money is a failing strategy and should not
be taught to children as a means of acquiring wealth.
You must make your money grow and work harder than you can.
It should create an investment team beyond what is humanly possible.
Stocks, Bonds and Real Estate, that are conservative and well researched should be invested in.
Your fight is now against inflation. Your investments must beat inflation by a significant
margin in order for you to become a millionaire.
To illustrate this point let's say you invest $3.78 a day in…
Planet Stocks at 7%
in Planet Bonds At 10%
And in Planet Real Estate At 12% You would have invested the same amount in
all three planets.
Each planet had $64,957.60 invested in it. Which is not much? It's roughly an upper-middle-class
yearly income.
Say you were a union worker who didn't work much with 7% interest (which is a below average
return) you made $463,708.64.
Say you were an athlete who worked a lot with 10% interest (which is an average return)
you made $1,246,110.94.
Now say you were a pothead who never worked with 12% interest (which is an above average
return) you made $2,460,934.18.
Your chance of becoming a millionaire is not on how hard you work but on how hard your
money works for you. Notice how a small 2% increase in interest made you jump from over
1 million to over 2 million dollars.
So was I able to accomplish my goal of coming up with a plan to make every minimum wage
fast food worker into a millionaire by the time they retire.
The answer is maybe. It's based on 2 conditions.
Condition 1 - If you have an average return, which is achievable. Because well, it's an
average return.
Condition 2 - You cannot be too old. You have to start from a young age.
If you are older you will have to invest more than 10% of your income to become a millionaire.
So even these limitations can be overcome.
So next time the politicians tell you that there is a system rigged against you. Remember
the poorest full-time minimum wage earner has every opportunity to make it into the
top 5% of net worth individuals in the world if they invest the money they spend on expensive
coffee.
Politicians will not tell you this, as it gives them no platform to run on.
Remember... Pay yourself first. 10% of your income is
yours to keep.
It only takes ⅕ of the taxes you give to the government to become a millionaire.
Make your coffee at home before you get to work and invest the money you saved. And you
will have every opportunity of becoming a millionaire.
But is it not true that money is the root of all evil?
This is a misquoted verse from the bible. The bible says it is the love of money that
is the root of all evil.
If you love money, you will put it over God and people.
Gary Keller explains this well. Money is good for the good it can do. Money simply amplifies
what is already there if you committed evil when you were poor you will commit even more
evil when you are rich. If you did good when you were poor, you will do even more good
when you are rich.
Money is neither good nor bad. It is a tool that has power.
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