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Get your (financial) life together! If you're broke, maybe you haven't grasped ore or all of these five lessons from rich people.
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I already see you running to the
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comments right now to angry type are you
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saying there are no rich black people
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have you ever heard of Oprah Michael
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Jordan the Carters obviously when I say
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five things rich people understand that
0:11
black people don't of course I'm not
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saying if you're black you're not rich
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if you watch my video about why black
0:16
people are 13 times poorer then you
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understand I'm talking about us as a
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whole our community is not rich our
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community is very very behind
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financially a new year is upon us and my
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wish for you and for myself too is to be
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financially better every year than the
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year before and I'm making this video
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because in the next 4 years it looks
0:34
like there won't be any reparations
0:36
coming anytime soon we have to start
0:37
taking care of ourselves and our
0:39
financial well-being here's Five Lessons
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From the rich let's start with probably
0:44
the most important thing that rich
0:46
people understand that a lot of people
0:48
in our community don't understand that
0:50
is compound interests the magic trick
0:53
rich people swear by actually they live
0:55
by and search for every day of their
0:58
lives is the ability for your money to
1:00
make more money without you doing any
1:02
work and then for that money to make
1:05
even more money it's like putting your
1:06
dollars on steroids except it's 100%
1:09
legal here's how it works if you invest
1:11
$110,000 at a 7% annual return in 10
1:16
years you will have almost doubled your
1:17
money to
1:20
$1,672 that's doubling your money for
1:22
not doing anything but if you leave that
1:25
same money in your savings account at a
1:27
0.1% interest you'll have earned earned
1:30
in a decade enough to buy probably a
1:32
large fries in McDonald's that's even a
1:35
maybe and then there's a lot of people
1:36
in our community they don't even trust
1:38
the banks and still leave money under
1:40
their mattress which gives you 0% and
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actually you're losing money due to
1:45
inflation because your money is actually
1:47
losing its purchasing power every single
1:49
year the problem is only 34% of
1:52
African-American households have any
1:54
investments in retirement accounts
1:56
compared to 60% of white households
1:58
according to CNBC
2:00
why the lack of education and investing
2:03
and a fear of losing money but here's
2:04
the thing doing nothing is a guaranteed
2:07
way to lose we need to stop thinking
2:08
that investing is for rich people you
2:10
can start investing with as little as
2:12
$10 but in order to take full advantage
2:14
of compounding you need to start as
2:17
early as possible starting at let's say
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25 and having 30 to 40 years to let your
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money make more money is so much more
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powerful compared to starting at 40 or
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50 and only having 10 to 20 years to
2:29
grow money one of the richest people in
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the world Warren Buffett talks about
2:33
this all the time all the time most of
2:36
his money came from compounding and he
2:38
started at such a young age and I'm just
2:41
going to go ahead and say it it seems
2:42
like to me and I understand I completely
2:45
understand that so many of us in our
2:48
community have a short mindset and
2:51
hopefully I'm saying that right we think
2:53
about the next year the next 6 months so
2:55
every time I tell one of my friends
2:57
about compound interest if I tell them
2:59
well well you'll be rich in 30 years or
3:01
you'll have this amount of money in 10
3:03
years I don't know why it just doesn't
3:05
make sense to them but that time is
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going to go by so quick watching your
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money grow especially after you get it
3:11
to $100,000 you got to imagine you're
3:14
making 10% on your money when you get to
3:16
$100,000 so that's an extra $10,000 a
3:19
year I think what Einstein called like
3:21
the ninth wonder of the world maybe
3:23
we'll put that quote up here what even
3:25
boggled the mind of Einstein compound
3:28
interest is something Community needs to
3:30
learn as soon as possible now let's talk
3:32
about keeping money in the community did
3:35
you know that in the Jewish and Asian
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communities a dollar circulates for up
3:40
to 30 days in Black communities the same
3:43
dollar vanishes within six hours why you
3:47
might ask because too often we're
3:49
shopping at big box stores or on
3:52
non-black owned businesses instead of
3:54
supporting our own now I'm not saying
3:56
you need to overhaul your entire
3:58
spending overnight but imagine if we all
4:01
made a conscious effort to buy black
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more often blackowned businesses would
4:05
grow create jobs and funnel that money
4:07
right back into our own neighborhoods
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apps like we buy black and official
4:11
Black Wall Street make it easier to find
4:14
black owned businesses you know another
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way to keep money in our own communities
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is investing with each other or joining
4:21
investing clubs and number three
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avoiding the Trap of buying brand names
4:26
I got to admit I've fallen for this trap
4:29
and I don't know where it came from but
4:32
somewhere growing up you just start
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falling in love with brand names and the
4:36
effect that it has on other people I get
4:38
it I understand I'm sure you've done it
4:40
and I've done it we'll all stand in line
4:42
for hours to buy the latest Jordans but
4:45
we'll act like investing $200 in stocks
4:48
is a scam I know we're not the only ones
4:50
who love buying brand names but we might
4:53
be the ones least qualified to be
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spending hundreds or thousands of
4:57
dollars to get the brand names the truth
4:59
is rich people don't care about looking
5:01
Rich they care about being rich take
5:04
Warren Buffett he's worth over a $100
5:07
billion but he still drives a modest car
5:10
I'm not saying that I would do that and
5:12
eats at McDonald's obviously not the
5:14
best diet in the world but the man is
5:16
over 90 and still sharp in 2019 Nelson's
5:19
reported that African-Americans spent
5:21
over $1.6 trillion annually and a
5:24
significant chunk of that was on luxury
5:27
goods but guess what those Brands they
5:29
don't give two craps about us and
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they're spending literally probably $5
5:35
on the shirt that you're spending $2
5:36
$300 on and of course those Brands
5:39
obviously don't reinvest in our
5:41
communities you think Louis Vuitton is
5:43
building schools in the hood they're
5:45
building more stores to sell you on
5:48
overpriced bags and to be honest I don't
5:50
even care if you buy any of this stuff I
5:52
like luxury stuff but the thing that I
5:55
wish I would have knew earlier on is
5:58
just invest in Louis Vuitton first and
6:01
then let them pay you and then use their
6:05
money to go out and buy your Louis
6:09
Vuitton or whatever luxury good you want
6:12
after keeping money in the black
6:13
community for at least a day or two I
6:16
mean God dang 6 hours what the heck and
6:19
number four understanding assets versus
6:22
liabilities I was just teaching my
6:24
99-year-old nephew this last week and he
6:27
honestly understood this in less than 10
6:29
minutes so let me break down this
6:31
fundamental lesson the difference
6:33
between assets and liabilities an asset
6:35
puts money in your pocket a liability
6:38
takes money out it's that simple but
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here's the problem many of us treat
6:43
liabilities like assets for example
6:45
we'll brag about owning a car but as
6:48
soon as you drive it off the lot it
6:50
loses value faster than ice cream melts
6:52
in the sun meanwhile we hesitate to
6:54
invest in our own businesses it's one
6:56
thing to take a calculated risk and
6:58
something else can completely to avoid
7:00
it all together without even doing the
7:02
research according to the Federal
7:04
Reserve the median net worth of black
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households is
7:07
$224,000 compared to
7:09
88,000 for white households much of this
7:12
disparity comes down to asset ownership
7:14
rich people invest in things that grow
7:16
in value real estate stocks and
7:18
businesses while too many of us spend
7:20
money on things that just don't make any
7:23
money it's finally time to rethink what
7:26
we as a community value instead of
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financing a new iPhone every year
7:31
imagine putting that same ,000 into a
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Roth IRA I'll leave a link below where I
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talk about Roth IAS and number five
7:38
giving back finally rich people
7:40
understand the power of giving back
7:42
again I know what you're thinking how
7:44
can I give back when I barely have
7:46
enough for myself but giving back
7:47
doesn't have to mean writing million
7:49
dooll checks like Oprah or Robert F
7:51
Smith it can mean mentoring a young
7:54
person volunteering your time or even
7:57
just sharing what you've learned
7:58
preferably in this video philanthropy
8:01
creates a ripple effect when we invest
8:03
in our communities we build
8:04
opportunities for everyone look at
8:06
historical black colleges and
8:08
universities despite being underfunded
8:10
they produce 40% of black engineers and
8:13
50% of black doctors imagine what they
8:15
could do with more support and giving
8:17
back isn't just about charity it's about
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Legacy rich people give because they
8:22
know it keeps their influence alive long
8:24
after they're gone I mean really think
8:26
about it would you rather be remembered
8:28
for driving a luxury car or for
8:29
uplifting an entire generation so there
8:32
you have it five things rich people
8:35
understand that we all need to embrace
8:37
compound interest keeping money in the
8:39
community avoiding brand name traps
8:42
understanding assets and liabilities and
8:44
last but not least giving back the truth
8:46
is Building Wealth isn't about having
8:48
money it's about having the right
8:50
mindset we don't have to wait for
8:52
someone else to save us and remember
8:54
it's not about being perfect it's about
8:57
making progress make sure to follow me
8:59
at directed by Jared on Instagram none
9:01
of you guys are following me and make
9:03
sure to like And subscribe leave a
9:05
comment let me know what you think and
9:06
I'm going to give a little bonus and
9:08
really piss off some people that made it
9:11
all the way to the end of this video at
9:12
the present moment Bitcoin is almost at
9:17
$100,000 and I couldn't stress enough
9:20
that our
9:21
community as a form of investing needs
9:24
to stay away from this at all costs
9:27
everyone I know at the moment is rushing
9:29
back into Bitcoin but I will say this
9:32
until I'm bleue in the face
9:34
Bitcoin is not a form of investing
9:37
because you cannot assess the value of
9:40
what it will be in the future you have
9:43
no idea if it's going to go from
9:45
$100,000 to a million or back down to
9:48
$10 no one knows I don't care what
9:51
anybody says so as a community as a form
9:54
of investing I want everybody to stay
9:56
away from this if you want to gamble
9:58
with some money that you have on the
10:00
side and you don't mind losing go ahead
10:03
and put it into Bitcoin I don't care if
10:05
Trump's in office I don't care who's in
10:08
office at the end of the day if you
10:09
cannot assess like for instance for a
10:12
house I know that in a neighborhood
10:14
where houses are
10:16
$500,000 if you sell me that house for
10:19
$200,000 there's a good chance that I'm
10:22
going to make money if this house is in
10:23
decent shape cuz I can iness how much
10:26
this house that I'm buying is worth
10:28
compared doing the comps on the houses
10:31
that are surrounding it that is
10:33
investing okay if you're going to use
10:35
that house to flip or do something and
10:37
you can get it at a really good price
10:38
and assess the value that is investing
10:41
if you cannot assess how much Bitcoin
10:44
should be worth you are gambling and
10:47
that gamble can pay off just like going
10:49
to Vegas and putting it on red or black
10:52
you can put 500,000 in there you could
10:54
say I made money and but you cannot call
10:57
that investing cuz you can not assess
10:59
the value of that bet so as a community
11:03
I would love if black people as a form
11:06
of investing or growing their money or
11:09
with money that they need in the future
11:11
stay away from Bitcoin or any of these
11:14
coins that everybody's rushing back into
11:16
instead invest in ETFs I've made videos
11:19
about that maybe I'll leave a link below
11:21
and then with spare money that you're
11:24
like you know I have extra $2,000 or
11:26
something and I have a net worth of
11:30
$100,000 $200,000 I'm going to throw it
11:32
in Bitcoin see if Jared's wrong maybe
11:35
it'll grow into
11:37
$10,000 in the future or if I lose it I
11:39
don't care but leave your comments below
11:42
I'll see you guys soon thanks again