Who doesn�t want to be rich?
Most of us want to earn a lot of money and fulfil all what we dream about.
We plan things, procrastinate and then somehow adjust with our busy life.
We get a job where we work 9-5, we pay bills and we keep waiting for the month end to get
our salary so that we can pay the upcoming bills.
We spend our whole life in this circle and we never get rich.
There must be some reason for why only a very few people get really rich and most of us
lead a poor or middle class life.
Hello Everyone, I am Divyanshu.
You are watching BoostYourBrain and in this video I am going to tell you the reasons for
why most of us lead a poor or middle class life and what exactly we can do to join the
league of those few people who are really rich.
So let�s start with the story of a kid named Robert.
He has two fathers.
One of them has a PHD and other one never completed his 8th Grade.
Now, both of them earn substantial income yet one of them struggles financially and
other is going to become the richest man in Hawaii.
One of them is going to die leaving tons of money and income for his family while the
other is going to die leaving bills which are supposed to be paid by his family.
Now both of them teach different things to Robert.
One of them says that money is root of all evil while the other one says that lack of
money is the root of all evil.
One said that we can�t afford expensive things while other told Robert to find a way
in which he can afford expensive things.
One told him to study hard and get a job in a big company while other told him to study
hard and open his own company and create jobs.
Now since Robert can see both of them grow, he saw his educated Dad always struggle with
money whom he referred to as poor dad.
While his other dad grew to become the richest person in Hawaii whom he referred to as his
Rich Dad.
Now the problem with financial education is that it�s never taught in school, so our
families decide to teach it.
So, unless your parents are in those top 1% rich people, they are only going to teach
you how to get poor, not because they don�t love you but they just don�t know what they
are teaching.
So one of the biggest teaching Robert got from his rich dad was the difference between
an asset and a liability.
To put it simply, an asset is something which puts money in your pocket where as a liability
is something which takes money out of your pocket.
Now the reason rich people get richer is that they acquire assets whereas middle class just
buys liabilities.
Now to understand this clearly, let�s take an example of two people named George and
Michael.
They both work in a same company.
But as soon as they get their salary, George goes ahead purchases things like latest cell
phone, branded clothes, Bike, Car etc.
These things made him feel good and rich.
But lesser did he know that these were just liabilities.
Not only were these things taking money out of his pocket but also needed more money for
further maintenance.
Apart from this, their value depreciated every passing day.
On the other hand, Michael never used to spend money on these things until it was necessary.
He used to save his money and buy assets such as bonds, stocks, real estate or in developing
his own skills which could generate income in the future and can make money for him.
So if look at it closely, we see that poor people get income and their expenditures eats
all their income.
Middle class people get their income and they spend it on liabilities mistaking them as
an asset.
Example most of the middle class people think that their house is an asset but the truth
is it takes out your money from your pocket for maintenance which doesn�t really qualify
by the definition of an asset.
If only you put your house on rent, it becomes an asset as it starts generating income or
you.
Now upper class people spend all their money on building assets which in turn makes more
money for them.
Now most of the people might say that what if we invest in business or stocks and we
lose our money.
Well, you are losing it anyhow by spending it on things which are not really important
like an iPhone 7, car, LED TV etc, so why not take a chance and try to multiply your
money.
Furthermore, you are going to learn from your mistakes and you will gradually know how finance
works.
Those lessons learned will be far more valuable.
Now some of you might even say that why can�t we just save the money in our bank accounts.
So let me tell you this, you might get interests on that but there�s this concept called
inflation which says that value of money decreases over time and it decreases much faster than
it would increase if you put it in your bank account.
For example if you deposit 10,000 dollars then you might get around 12,000 dollars after
4 years but the value of that 12,000 dollars after four years is not really equivalent
to even that 10,000 dollars which you had invested 4 years back.
So what I am trying to say is, build assets.
Make your money work for you.
Stop working for money.
Change your consumer mentality and develop an investor mentality.
Stop blaming your less salary.
If you salary is increased, so will be your liabilities like bigger house, more expensive
cars and in the end you will again keep struggling to pay bills.
Start investing in some real assets.
Now the other concept says that it�s not about how much money you make but it�s about
how much money you keep.
like if I offer you a million dollar job but I tax you 75% of what you earn, you would
be an idiot if you say that you are making a million.
If you look at the salary figures of doctors and engineers, you might feel they are rich
but trust me, they pay more than 30% of what they earn to the government.
You get taxed when you earn, you get taxed when you eat outside, you get taxed when you
spend, you get taxed when you save and guess what, you get taxed when you die.
On the other hand, if you operate from the assets quadrant, you sometimes might have
to pay a 0% tax.
Now talking about tax, let�s have a look into the history of taxation.
Years ago, there was no tax.
The government would sometimes collect taxes during civil wars or some big development
but there was no actual tax.
But then the government realized that poor and middle class people are idiots and they
actually admire the idiotic story of Robin Hood who takes from rich and gives to the
poor.
So government decided to leverage that and it said � Hey guys, let�s put tax on rich
so that you poor people can get money from them.
So all the poor and middle class people agreed and voted for it.
But the government�s greed grew bigger and bigger and the taxes trickled down to everyone
including the poor.
Now the rich were too smart to be taxed.
They easily found out ways so that they don�t get robbed by the government.
So, in the end, it actually hurt the poor and middle class people.
If we look at facts, it�s really funny but people who are in job pay almost 90% of all
the tax that government collects.
They are not even rich and they are paying so much in tax, so what are rich people doing?
Are they even paying tax?
Think about it.
So if you think I am going to pay all these money as taxes which I had earned from my
blood and sweat, you got to be kidding me.
Yes, I would buy a car, but on the name of my organisation.
Now when I say organisation, big buildings comes to your mind but in real, it�s just
a folder full of papers where I declare my small team as an organisation allowing me
to make expenses and pay taxes at the end.
Sometimes I might even collect it from people working for me.
Funny, isn�t it!
So my point here is the rich are never going to be affected by any of these, it will always
come down to the poor and middle class people, the people who work the hardest, just to pay
taxes.
So I repeat, start building assets.
Invest in business and make your own organisation.
That�s how you can get richer every passing day.
Now to let you guys know, I have collected these information from a book named Rich Dad
Poor Dad by Robert Kiyosaki.
This is one of my favourite books and I highly recommend each one of you to read this.
If you want to purchase the book, check for a link in description to purchase it online.
Now some updates regarding my channel.
I had conducted a poll asking if you guys want me to make videos in Hindi language as
well.
Well, most of you voted for yes so I have made a different channel which will have only
Hindi Videos.
This channel will have only English Videos.
So make sure you check that out.
You can find the link to my Hindi channel in the description below or you can see it
as featured on home page of this channel.
Smash that like button if the video was an eye-opener for you.
Comment out your thoughts and subscribe to my channel as I keep bringing such videos
which can really help you in life.
See you all soon, stay blessed.
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