There is an untold truth about money – an actual equation that allows you to build wealth from nothing.
It’s an equation that is hardly taught in schools if at all, and is often overlooked by those who are trying to get rich, or achieve their dreams of “financial freedom”.
In this video, we’ll take a look at exactly what that equation is.
It’s an equation that is hardly taught in schools if at all, and is often overlooked by those who are trying to get rich, or achieve their dreams of “financial freedom”.
In this video, we’ll take a look at exactly what that equation is.
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Short filmTranscript
00:00Let this circle represent 1 million dollars.
00:12This is what 10 million dollars would look like.
00:15This is what 100 million dollars would look like.
00:19And this is what 1 billion dollars would look like.
00:30Jeff Bezos, the founder of Amazon, has a net worth of 117 times this number.
00:37And then, there's you.
00:40You're probably working a job right now.
00:42One that you got from the degree that you studied for in university.
00:45You probably don't have much in savings.
00:47Your living expenses seem ridiculously high.
00:50You feel as though you're not paid enough.
00:51You have credit card debt that needs taking care of.
00:53Maybe you're a student, studying for a degree that you hope can land you a job that you
00:57hope can bring in some good money.
00:59You probably don't have any savings.
01:01Only a pesky student debt hanging above your head.
01:04Wealth?
01:06Getting rich?
01:07That all seems like a distant dream.
01:09How did they do it, you ask yourself?
01:11Seeing all those millionaires, billionaires, especially the ones who got there at such
01:15a young age.
01:16It baffles you.
01:17It makes you angry.
01:18They got lucky.
01:19They were born into wealth.
01:20They cheated their way to the top.
01:21That money doesn't make them happy.
01:23Money is evil anyway.
01:24I'm not smart enough.
01:25I'm just unlucky.
01:26Those dreams you had of buying that mansion, your favourite sports car, paying off your
01:30mortgage, travelling around the world, they'll forever remain that way.
01:33Just dreams.
01:34Nothing more, nothing less.
01:36You come to the harsh realisation, it's a rigged game.
01:39It's been a rigged game from the start.
01:42And you?
01:43You're on the losing side of it.
01:48But what if I told you, you were wrong?
01:53What if there was a way of getting there?
01:56An actual equation to wealth.
01:58A science behind the way money works.
02:00What if you didn't have to abandon those dreams of paying off your parents mortgage
02:04or travelling around the world?
02:05Would you call me a liar for saying so?
02:07I promise that I'm not.
02:08And by the end of this video, you'll understand, there's a side to the coin that you're
02:12not being shown.
02:13But I warn you, the road is tough, it's filled with struggle, it's filled with ups
02:18and downs.
02:19It'll mean swallowing some difficult truths that the school system and society haven't
02:23told you yet.
02:24And let me be clear, there are many of you who will not make it to the end of this road.
02:28But for those of you that do, at the end of this road lies wealth beyond what you thought
02:32you could attain.
02:33At the end of that road lies the freedom of never having to worry about money again.
02:38So, are you with me?
03:08Still with me?
03:19Then let's not waste any more time.
03:25What do you really think about money?
03:28Is it something you work for?
03:29Is it earned or is it inherited?
03:31Is it the root cause of all evil?
03:33Are you desperate to have more of it?
03:36Have you been chasing it most of your life?
03:38Truth is, most of what you think about money has been influenced by your upbringing and
03:42environment.
03:43If you were born into a family that didn't have much money growing up, then you're
03:46more inclined to believe that you too will not grow up to have much money.
03:49Or perhaps you went on the complete opposite end and decided to make as much money as you
03:53can so that you will never be in that position again.
03:56The fact that your school didn't teach you much about this subject doesn't help things.
03:59And because of this, most of you are going to have false beliefs about money that aren't
04:03going to help you on this journey.
04:04Now stick with me here, because we're going to have to change the way you've been seeing
04:08money your whole life.
04:10Hollywood has always had a habit of depicting the wealthy and rich as evil, backstabbing,
04:15entitled or corrupt individuals.
04:17If you won't get me a squirrel, I'll get one myself.
04:22Question is, have you bought into that stereotype?
04:24A recent report released by WealthX showed that of the world's ultra-wealthy, those
04:29that had a net worth of $30 million or more, 68% of them were self-made, and it seems like
04:34every other study backs up this conclusion.
04:37Warren Buffett, self-made billionaire.
04:39Howard Schultz, born in poverty.
04:41Oprah Winfrey, born in poverty.
04:42Jeff Bezos, self-made billionaire.
04:44Elon Musk, self-made billionaire.
04:46Sarah Blakely, self-made billionaire.
04:49What is it that these people know that you don't?
04:51Truth is, your equation is all wrong.
04:54Here's the two-dimensional equation that you've been taught.
04:57Money equals salary earned from a job.
04:59Past a certain point, the prospect of getting a job becomes the sole purpose of your education.
05:04So what's wrong with that, you ask?
05:05I'm going to assume that if you're watching this, you want to make money.
05:08A lot of it.
05:09And in as short amount of time as possible.
05:11If that is your goal, then this equation for generating money will never get you there.
05:16We all have one precious resource.
05:18The most important resource of all.
05:20And once it's gone, there's no way of getting it back.
05:23That resource is time.
05:25In a standard job, the amount of money you earn is dependent on the amount of time you
05:29put into that job.
05:30If you earned $20 an hour and worked 40 hours a week, it would take you nearly 24 years
05:36to reach a total of $1 million.
05:38But that is without subtracting any taxes or any expenses that you will incur over 24
05:43years.
05:44And let's not forget that inflation would make your $1 million less valuable.
05:47The reality is that on a salary of $20 an hour, you can only really be a millionaire
05:52at an old age by living frugally.
05:54And most of that precious resource known as time has slipped through your fingers.
05:58You traded all that time for money and it wasn't even a substantial amount either.
06:03So again you ask yourself, how is it then that there are self-made millionaires and
06:07billionaires at such young ages?
06:09What makes them so different?
06:11And the truth is, they have a better equation than you.
06:13They have a way of understanding money that you haven't quite grasped yet.
06:28Pay very close attention now.
06:33Stop chasing money.
06:35In a capitalist society, the rules of the game are as follows.
06:39You are paid in proportion to the perceived value that you have.
06:42And the people that perceive your value, they are the market, the consumers of the economy.
06:46The market is you, your friends, your family, your neighbours, your country.
06:51People complain that football players are overpaid.
06:53But for players to be paid millions, there has to be a market for the football industry
06:57in the first place.
06:58People have to see the value in football in the first place for them to want to spend
07:01money on matches and merchandise.
07:04And if the market has a high demand for football, guess what happens to the players who are
07:09at the top of their game?
07:11They are paid generously for it.
07:12It's not about how hard you work.
07:15The cleaner that's sweating and tiring himself out every day is paid far less than the accountant
07:20sitting behind a desk.
07:21Why?
07:22Because the market perceives the value of what the cleaner does to be far less than
07:26the accountant.
07:27As harsh as it may sound, the cleaner can be replaced by anybody.
07:30It isn't difficult to learn how to do his job and therefore the market will not pay
07:34him more than the accountant, the guy who spent years studying numbers, the guy who
07:38has saved his clients thousands on their taxes.
07:41But even so, we just discussed how getting a job isn't the right equation to amassing
07:45a great amount of wealth in a shorter period of time.
07:48So then how can we increase our perceived value?
07:50What is it about people like Elon Musk or Jeff Bezos that makes their perceived value
07:55so high?
07:56The first step to this equation of wealth is quite simple.
07:59If you want money, solve problems.
08:01If you take a second to digest this statement, you'll realise that just about all money
08:06runs from this basic premise.
08:07If it solves a problem, money will be thrown at it.
08:10If it's a million dollar problem, then the solution will make you millions.
08:14If it's a billion dollar problem, then the solution will make you billions.
08:17Think about all the problems that a site like Amazon solves.
08:20The hassle of going to a store, the hassle of having to wait weeks for a delivery, cheaper
08:24prices and so on.
08:26Not to mention all the other companies that Amazon owns and the problems that those companies
08:29solve.
08:30Jeff Bezos helped solve a billion dollar problem and was rewarded favourably for doing so.
08:36If you've been chasing money, then you've been doing it all wrong.
08:39It sounds almost paradoxical, but if you want money, it isn't money that you should be
08:43looking for.
08:44You should be looking for problems, and more importantly, solutions to those problems.
08:48And once you've found that solution, make a business around it.
08:52Wait, so that's it?
08:56Just solve problems and money will appear?
08:58So I'm going to have to create the next Amazon for me to be rich, or the next Facebook
09:01or Google?
09:02You've got to be kidding me, right?
09:04I don't even know how to code, I don't even have the money to start something of
09:07that scale.
09:08I don't even-
09:09Hold on.
09:10You're once more going into old patterns of thinking.
09:12Start with a problem.
09:13Always start with a problem.
09:14Listen to the market around you.
09:18What are people saying they don't like?
09:20What are people saying they wish existed?
09:23What are people saying frustrates them?
09:25What do people think is incredibly inconvenient?
09:28Is that a problem that you can solve?
09:30And also, is it a problem that is worth solving?
09:43The final step of this equation to wealth is finding a scalable solution to the problem.
09:48Your solution needs to affect a magnitude of people.
09:51Starting a restaurant?
09:52That's not scalable.
09:53You're constrained to the local area and the footfall of that area.
09:56But a franchise?
09:58Now that's more scalable.
09:59Is your solution a piece of software?
10:01Then that means once that software has been built, you can scale it infinitely online
10:05without needing to worry about things like production or shipping costs as it's all
10:09done virtually.
10:10Good luck finding infinite scale with a job.
10:12But be careful.
10:13Does your solution require your time to generate money?
10:16Let's say you were a yoga teacher that charged $100 per hour.
10:20Congratulations, you only made yourself another job disguised as a business.
10:24There's only a certain amount of lessons that you can feasibly do in one day, and therefore
10:28your income is time bound.
10:30But if you created an online yoga class that ran 24-7 with lessons you only had to create
10:36once?
10:37Now that is scalable.
10:38Scaling your solution is critical here, so do not get lost on this point.
10:42Automation also plays an important role.
10:44Solutions and processes will keep your business running like a smooth machine if implemented
10:48properly.
10:49If there is something in your business that you can outsource to somebody else, or hire
10:53an employee to do it for you, assuming it financially makes sense for you to do so,
10:57then do it.
10:58Tasking yourself with everything is a bad thing.
11:01As much as you may think you're the best, there's someone out there that can do a
11:04better job than you.
11:05Once you've found a solution, it's your job to make sure that solution can be accessed
11:09by everyone in your market.
11:11It's not about your ego, and it's not about what you're passionate about.
11:14The market doesn't care about your passions.
11:16So now that you have your profitable business running with the right systems and processes
11:20in place, it's time to move on and reap what you sowed.
11:38There are two likely paths you're going to face at this point.
11:40You either continue your business, or cash in and sell it.
11:44This is the acquisition, the moment someone buys the solution that you spent years building
11:48a business around.
11:50This is Instagram being acquired by Facebook for $1 billion, this is PayPal being sold
11:54to eBay for $1.5 billion, of which $165 million went straight to Elon Musk's pocket, and
12:00the countless other liquidation events that happen across the world.
12:04This is where all the effort that you spent into building your company comes to fruition.
12:08And if you choose to continue running your business, well, there's a multitude of reasons
12:11for you wanting to do so.
12:13Maybe you love the company that you built and want to stick with your baby.
12:16Maybe you think you can add more value to the company and sell it down the line for
12:19more than it's currently worth.
12:21Perhaps that business runs passively in the background, so you don't have to do much
12:25to keep the wheels turning.
12:26Or maybe it's a combination of these three things.
12:29Either way, you did it.
12:31You solved a problem that the market wanted solving, and it rewarded you favorably for
12:35doing so.
12:36And so now I ask you, what was it all for anyway?
12:43What was it all for?
12:56For most of you, it was never about the money.
13:00Money is just a piece of paper, a number on a screen.
13:04Its value is only backed up by our belief in its value.
13:08From the very start, this was never about the money.
13:12Paying off the mortgage, buying your dream car, traveling around the world, never having
13:16to worry about your financial situation.
13:18It's the freedom that you were looking for.
13:20Your destination wasn't anything monetary related.
13:23It was a feeling, a sensation, the ability to do what you want, whenever you wanted,
13:28without ever having to cast a thought towards, can I afford this?
13:31Have I used up all my holidays for the year?
13:33How am I going to pay the rent?
13:35Will I be able to live off my pension?
13:36What dreams will I have to sacrifice because I can't afford to pursue them?
13:40The most important lesson from this video was never about the nature of money.
13:44It was about the one valuable resource that we all have.
13:47The one resource we will never be able to reclaim.
13:50Time.
13:51Is giving up a large chunk of your time towards a job that you probably don't like worth
13:55it?
13:56Is your life settled on working, coming home, watching the telly, sleeping, waking up the
14:00next day and repeating the same cycle till you retire?
14:03How many more hours of your life do you let slip through because of this pattern?
14:09Or perhaps you're fine with that reality.
14:11Perhaps you have no other choice but to follow that path for the time being.
14:14And if that's the case, there's nothing to worry about.
14:17The most you got from this video was a little entertainment and maybe a change in perspective.
14:21But there are those of you that understand the other side.
14:23Those of you that have the desire to never need to worry about money ever again.
14:27And so I feel the need to remind you, stop chasing money, chase problems and find the
14:33solution to those problems.
14:34This is the equation through which all money is found.
14:38If you desire liberty through never needing to worry about money ever again, then let
14:41solving problems be the meaningful struggle in your life.
14:45Does it mean you'll be happy at the end of the road?
14:46Does it mean you'll feel fulfilled?
14:48Only you can answer that question.
14:50But if your struggle is meaningful, then perhaps it's worth pursuing.
15:08And there it is, your equation to wealth.
15:15Of course, I missed out on a lot of intricacies in this video.
15:18The topics of business, money, entrepreneurship are far too vast for me to cover in a single
15:22video like this.
15:23But if you do want to get started on this journey, I do recommend you read the works
15:27of MJ DeMarco, who heavily inspired me to create this video.
15:31And it's also important to come back to an original point that I made at the start
15:34of this, which is that most people will not succeed.
15:37For various reasons, but the most important part is failing, failing fast and moving on
15:42to the next thing.
15:43And if you're out there doing something that isn't strictly related to a business,
15:46but you want it to make money, then asking yourself the question of what problems am
15:50I solving could lead you to find ways of better monetizing whatever it is that you're doing.
15:55And that also includes a job and a career.
15:57If you can solve more problems and find more solutions at your place of employment, you
16:01have something that you can use to leverage a higher salary.
16:04But I will end this all on the same message that I've repeated numerous times in this
16:08video.
16:09Stop chasing money and start chasing solutions to problems.
16:17Hey, you've arrived at the end of the video and thank you so much for watching, but don't
16:21click off just yet.
16:22I do want to take the time to say thank you very much for watching to the end.
16:26These things take quite a few sleepless nights to research, script, film and edit.
16:31So you can't imagine how much I really do appreciate your support.
16:34If you genuinely enjoyed this video, then don't be shy.
16:37Hit the like button.
16:38And if you disliked it, hit the dislike button twice just to be sure and comment down below
16:42and let me know why.
16:43My goal with this channel has been to create entertaining documentary style videos on business,
16:48finance and life in general.
16:49And if that sounds like something you'd be interested in and you'd want to tune in for
16:52more, hit the subscribe button and hit that notification bell.
16:55Make sure all your notifications are turned on.
16:57But with all of that being said, I hope you have a wonderful rest of the day.
17:01And as per usual my friends, hand to head, salute!