How To Be Rich At A Young Age

– I think it doesn’t matter
what you do to earn money, even you earn money as an employee, you earn money as a self-employ, as an entrepreneur, as a business owner. I think we all need to be in one business, you and I, we need to be in one business and that is the money management business. (energetic electronic music) Doesn’t matter how you earn your money, you must treat your business,
what you do, like a business. How do you manage your money? Because most people, when we go to school we
learn how to get a job or as an entrepreneur we
learn how to build business, we learn to make money, but very few us know how
to manage money well. How do you actually manage money? You see, I believe there are two types of people you need to study. The first type is the people who have, become successful, and
they have stayed successful for a long period of time. Don’t go study people that only have, they have succeeded, but only
last a short period of time instead of like say, Warren
Buffett or Bill Gates or some of those successful people where they have succeeded, but
they have stayed successful. And the second type of
people that you want to study depends on what your goal is, is to study people who have
succeeded at a young age. So, yes, it’s perfectly fine, you can learn something from everybody, where if they succeeded when they are, let’s say, 60 years old,
65 years old, 70 years old, that’s nice, we can all learn something from those examples and stories, but it would be nice to
study what did people do to study at the age of 30 years old? 35 years old? It didn’t take them 30 years, it took them maybe
three years, five years, or maybe only seven years or eight years. What did they do? Because I could tell you that they way that they think about money, they way they think about wealth or success is a different perspective. So in order for you to manage your money and when it comes to financial planning, I believe there are four
stages that you go through. I talk about this in
another one of my videos, about that in life you
go through four stages and when it comes to these four stages, you also need a financial
plan for all these stages. So number one: and that is a
financial plan for survival. And most of time, people at
a survival stage financially, they have no fucking financial plan. Their plan is: spend
whatever I earn, that’s it. That’s their financial plan. And if they’re lucky, they’re not in debt, but most of them, they are in debt, right? The financial plan for survival, what you focus on is
simply making enough money that your income exceeds your expense instead of your expense
exceeds your income, which actually, believe it or not, it’s a big part of the population. That most people, they actually, they spend more than what
they earn every single month and that’s why they rack
up their credit card debts and all these things,
especially in the United States, very, very common. So, financial plan for survival. Earn more than what you spend. That’s all you need. Let’s just get to that point first and then you get to the second stage, which is you need financial
plan for security. For security. I’m talking about putting away, depends on what your situation is, three months or six months of cash away. Right? For the rainy day emergency fund. The way you budget, the way you, how you maybe are saving and
investing 10% of your money, just putting some money aside. At this stage, you’re focused
more on the saving aspect. Not only now, you are earning
more than what you spend, but now you’re actually
saving some of that money. That’s a financial plan for security. Now, then the next stage, you need financial planning for success. This is different. Now you are setting yourself
up for comfort, for abundance. Now, at this stage, most people, Now you’re thinking
about, as an entrepreneur, let me give you an example, as entrepreneur now, it’s your
profit, your tax planning, or your insurance policy, right? Maybe you will have one or even
multiple insurance policies or now you are what I
call a passive investor, meaning you’re putting money aside, you’re putting into, for some people, it could be a retirement plan account, it could also be your stock portfolio, your mutual fund porfolio, which I’m not an advocate of that, but for most people, it
is better than nothing. It’s better than nothing. Some plan is better than no plan. And they’re putting some money aside, you’re setting yourself up for, hopefully, a comfortable
retirement, right? That’s a financial planning for success and there are different
levels when it comes to that. At a higher level, where in
the beginning of my career, I had, of course, like, nothing, right? Then I make a little bit of money, I put some money aside,
go through this stage, financial planning for
comfort, for security. Put some money aside,
put some savings aside and then once you’ve
accumulate enough money then you can put into some
kind of, you would say, more modest or conservative
kind of investments and then once you do enough of that, once you have more money
coming in, the game changes because when you become
an accredit investor, when you become a more
sophisticated investor, the investment world opens up to you where now you’re not investing in things that most people invest in. You have access to investments that most people don’t
have access to, right? So, if I am having, and then you also would
start putting together a team, which evolves into
more now the fourth stage which is financial
planning for significance. That’s legacy, that’s when
you have so much money that, how are you gonna allocate
some of that to charity? How are you gonna allocate
that to pass on to your, the next generation, right? A legacy. How are you gonna make sure
that after you pass away, how are you going to minimize
the tax that you pay? It gets more complex because, example, personally, in my life,
for financial planning, where it’s not so much just
I talk to my accountant, so I have my financial planner, now your financial
planner, most of the time, they are experts in their own field, they can give you a
lot of technical advice but most of the time,
they’re not wealthy, right? So you can take their advice but you still need to
process it and filter out, does that make sense? Just because they tell
you: do A, B, C, and D doesn’t mean you have
to do A, B, B, and D. Maybe just do B or maybe just
do A, that’s perfectly fine. But as you are the CEO of your
money management business, you have to know how your money works and how you want to allocate your money, resources and capital. So, in my case, I could have
a meeting with a group of them where I have the accountant,
I have the bookkeeper, but then I also have my
tax strategist and expert and then maybe talk to
my real estate broker about what investments
to make next, right? How the money will flow through. At the same time, with
my financial planner, with my insurance person,
how that would work, maybe I need to buy more insurance to have revenue flow through
that to minimize my tax. Everything is much more complex because everything has
to kind of work together, it’s not so linear about this. They need to talk to each other, that’s a very different
level of financial planning, you may not be there yet, but I would say start somewhere. Depends on which stage you’re at. Maybe you’re just at a survival stage, make more money, develop
your high income skill. You’re now making more money? Well, save some money. You’ve gotta save some
money so you can invest. Not saving money just for
the sake of saving it, right? You save the money and then you can invest and move on to stage three. So you have some kind of financial plan. Now, one of the things I don’t like to do is to give you certain tips about, oh, you should invest in this
and shouldn’t invest in that because what you invest in
depends on your risk tolerance also depends on what you like, also depends on what’s your expertise. Most importantly, it also
depends on what’s your goal. What kind of return are you looking for? How much more capital
are you going to have or this is all the money that you have or are you, like, an entrepreneur,
you’re a successful CEO that you have money coming in constantly, then you need to think
about how the revenue or how the income would flow. Does that make sense? That’s the answer. That’s financial planning and that’s how you can retire comfortably, how you can retire young and retire rich. Any other questions, comment below. Until next time, I’ll
see you in my Bentley.

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100 thoughts on “How To Be Rich At A Young Age

  1. What was your biggest takeaway from
    my video? Comment below.

    Also, you can comment any questions
    you have for me.

    I might feature your question
    in one of my next videos.

    Don’t forget. Like. Comment. And subscribe.

  2. i love you dan, your video give me spirit when shit happened during my job, thanks for the knowledge.. you're my mentor, hope i can meet you one day..👉

  3. Thank you Sifu Dan for your advise ! I am in the financial planning business. I now have a clearer picture how to talk and advise people above success tier for financial planning !

  4. Working for other people will never get you rich! This is why I started working on my own business as an affiliate marketer. I achieved this with hard work, courage, and enthusiasm. And by that, I consider myself a rich person with the accomplishments I got at this age of mine. Thanks for sharing this, Dan!

  5. Awesome advise sifu..yeah you're right most of the financial planner were not wealthy..but they really excellent in technical aspects…

  6. Dan what is your best advise on how to get rid of spending more than what you earn mentality…how can stay away from instant gratifications..

  7. I’m asking for my cousin, should he stay in education eg work for high marks. Or should he do some business like bitcoin as he has a great a future plan????

  8. I am a blogger Dan Lok. Haven't started making money yet, wanna focus on building great value first before that. Also want to start an online store.

  9. Sir you are my greatest mentor thank you so much! This is very helpful but sir how will i manage my money and focus on saving if i am in a stage of paying depths? Im so grateful on your response.

  10. i have some money to invest but I don't know what options i have so how to know the top things to invest in and thank you for all this knowledge that you give for free and teach people like me how to deal in with money cues before you i have no idea what money means .

  11. How can I do this? I have a 2 year old I have knowledge in some stuff but I don’t know everything I need income because there really aren’t any good jobs where I live?

  12. My real name is Dallas penny AKA Dallas uno , My takeaway from this is that if you want to be successful or at least comfortable , your gonna have to sacrifice first to get yourself there. May that be stopping pointless spending like cigarettes or just going out on Friday. In the end do you wanna do that or live comfortably down the road , and be able to use that comfortability to help yourself succeed further and take the risks you need to in order to do so. May they be big risks or small ones.

  13. Dan. Thank you for your golden information. Because of you, I learned to invest and trade %10 of my income in the stock market professionally (no emotion, just charts and math). $20 or $40 doesn't sound like much to most; but it's income that turns into $4000, or $40,000 a day. You have saved my life with your way of thinking. Thank you!!!

  14. Thank you Sifu, Study from someone who have the success and able to maintain success for a long period of time. Learn from success ppl. Is good each ppl. gives values in different aspect but try to learn from ppl. Who can sustain success for a long time.

  15. There’s time to turn things around. Now is the only moment we have to take action and go after what we want with the intention to make contribution and impact.

  16. I've doing my freelancer job with some millionaire, found out they are very cheap person, they selling low quality products at very high profit margin, they always delay to pay me, and always try to bargain with me, hard to deal with customer…… after watching your other videos make me realized I was a hard to deal with customer in some area, maybe that's why I attracted some asshole like that to be my client

  17. Happy New Year! These stages remind me of "Maslow's Hierarchy Of Needs". Like your stages, they must be achieved in specific order to be stable and sustainable. Thank you once again for such great content and the value you provide.

  18. Take after all the greats

    . Edison.. Barnum.. Bill gates.. Steve jobs.. suckerberg..

    Step one: find someone with a great idea and gain trust.

    Step two: steal idea and hire better lawyer.

    Have fun kids..


  20. My grandfather die broke.. all the relative and family aven at 60 years old yet all never taste success… Not even get out from lower class….

  21. 27 and have passed first 2 stages, I pay into a retirement account. I have no idea how to maximise/invest to get past this next hurdle though. I have watched all the YouTube videos but I still dont understand how to choose stocks and shares. What is your opinion on real estate investment?

  22. I have a question, my dad told me that he wants me to help him buy a home with a lot of acres, that if I help him . You think I can also get a piece of real estate from that too?

  23. BIG IDEA.CBD CIGARETTES it is extracting CBD from marijuana in order to have THC less Weed. This product will appear as a normal cigarette but cure anxiety and cancer as the person smokes. Better than anything on the market. New idea from yours truly I just want to help. No 💰

  24. Money man, i like your video because you share what you know. But i want you say to your dear follower that all this is for vainglory. Things of this world, we need it for a long limited time but after, do you worry about how we can be if we spend all our time to discuss this fucking piece of paper around which all of this world power is organised

  25. You say that rich man read but most of them forget to read the life book, the bible, a book not like others. Think about

  26. Forgive this world opulence and pounce on heaven wealth which is forever an this start by bible, read it and you 'll like it.

  27. Accept Jesus my friend, you re even a good teacher, I think that if you teach in save some soul, it will be very benefit for you. You have a treasure and this is not here coz for this world is perishable. May be you 'll read this message. May god bless you, show you his path and save you in jesus

  28. I am a first year cse student getting graduation in computer science its a four year course i will go to 2nd year in this years august…..sir please tell me what should be mindset i should follow i want to be rich…i need to be rich …..i have to be rich…..i will buy a bentley…..i cant imgine my life without it i cant survive without it…….its necessary for me to be rich… me please i need help

  29. Hey guys, this actually works because I've been putting the same effort into making money online and I'm only 18 years old working a day job after school. its honesty the best thing because I can show off to my friends lol! Here's exactly what i've been doing @t

  30. “some plans are better than NO PLAN” because with no plan you can never start something new or exploring your inner ability /talent .

  31. If his advice was correct his driver would have started a new business and would have become rich after hearing his advice while driving

  32. Dan Lok I has Something Important Question…All Motivation we Learn its really mean Working In the All World?..Even We Diffrent Place or Country and Diffrent Language ?

  33. I see a lot of your videos as well as other's. With that i come up with very valuable topic to prepare myself to be am entrepreneur. But the thing is i can't possibly figure out where m i gonna implement all these.

  34. Hi Dan! My question is, as a busy entrepreneur, how do YOU relieve stress. In my case, I often allocate just a couple of hours a week for the purpose of work life balance, the rest is grinding and sleeping. I’m doing fine. Every 6 months of 14 hour days I take one week off. I work on the weekends as well it all totals up to about 98 hours a week. I COULD work longer, but I can’t put my best effort in when I have migraines and am sleep deprived. It’s about quality over quantity, the larger a business grows the more qualitative each role becomes.

  35. Hey Dude! Don't misguide the kids and make them desperate. Teach them perseverance and hard work.. The real key to become self sustainable happy youth.. They trust you make it count.. or do not come across as Lee's student.. 🙏

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