How to Manage Your Money like the Rich

Here’s an interesting fact for you. Since the beginning of the year 2000, 6% of
the world’s population was using the internet but right now, almost 20 years later in the
present year of 2019, that number has climbed over 55%. Because of this, the way people do shopping
has been revolutionized since the introduction of e-commerce. Not only that, in this rise of the digital
age, there’s been a huge growth of new opportunities for new entrepreneurs crossing over from the
employee quadrant to run an online business and work independently for themselves. With the power of the internet, the ability
to create large income streams from never having to create a traditional Brick and Mortar
business is now truly possible and in fact not uncommon. We can see that there is a lot of money to
be made online such as with YouTube, Amazon, Affiliate Marketing, Social Media marketing,
and so on. Now… You can make extraordinary income from these
avenues, but SUPRISINGLY it’s not just about how much money you earn. What sets you apart the majority of the world
is what you do with that money that really matters especially if you’re brand new in
the business world. Tell me. If you received a large commission check that
you made from your business, would you immediately deposit it into your own personal bank account? Hm. Interesting. If you said yes, there’s a high chance you
would probably end up just like the rest of the 80% of the population that would have
to continuously work for money for the rest of their lives. That’s because there are 3 different kinds
of business strategies from each of the 80%, 15%, and upper 5 percent of the population. Let’s break it down for you. 80% of the population when they get older,
they’ll usually have to work to make money or become dependent upon the government or
their family. Next, there’s 15% of the population which
is considered the middle class. They live comfortable lives and usually end
up with a net worth of a million dollar. An then there’s the Upper 5% which their net
worth would have to be at about 5 Million dollars and more. Now that you have an overview of the 3 groups,
by the end of this, you will learn the differences of each of these groups and the best ideas
of how to manage money like the rich upper 5% using their business strategy. So… let’s start with the 80%
Let’s say Joe right here earned a commission check from his Marketing business and that
check is $5000. Like everybody, Joe is excited to receive
the commission check and he deposits it into his own personal bank account. Now this might seem normal for many of you
but the problem is if you run a business… that $5000 is untaxed and you don’t own
all of it. The biggest mistake average business owners
make is when they get a check, they start spending that money. In fact, the bigger the check, the more they
start spending. They’ll never think about debt reduction
which is a huge problem because they think how they’ll do it that later… Once you deposit into your own personal account,
it’s considered yours now so you’re already missing out the tax benefits and eventually
have to overpay more in taxes because your own Personal Bank Account is not an LLC,
S. Corp, limited partnership, or a corporation. Now let’s take a look how the 15% would
of handled that same commission check of $5000. They understand that government will be taking
their portion of the money. So… in this case we have Darren. He was smart enough to create an LLC for his
business so technically he doesn’t own the business as something personal so he’s eligible
to all the tax advantages. He gets the same check but now instead depositing
it into his own personal bank account, the check goes right into a business account and
the money automatically splits into 3 accounts. The check hits the business account and instantaneously
$1650 of the $5000 goes directly into Darren’s tax account. That’s 33% which will be untouched and saved
for later when the time comes to pay his taxes. Next – $1650 or less goes into his business
expense account. This is where he runs his business that has
expenses such as marketing, advertisement, cost of products, etc. As an entrepreneur, you’re going run a business,
in this account, you should start taking better write-offs so having a hired CPA will be beneficial. And finally about 34% of the money gets transferred
into the home account leaving $1700. Now simply doing this, gets you better organized
and prepared to manage your money without any hassles when it time to do your taxes
and the biggest advantage you’ll able to notice is you can have more savings in your
bank account by the end of the year because you’re were happy to be able pay off taxes
at a lower rate with great business write-offs. Now, let’s take a look what does the Upper
5% does it. Let’s say Susan gets the same commission
check of $5000. What happens? Actually, everything starts off the same way
as Darren. But now, we see the money gets split up even
more once it goes through a 3rd account that which is called the investment account. Here’s where things get really interesting. The investment account operates in a systematic
way where the wealthy can organize different accounts, each with their own special tasks. The money will get split up to go into home
expenses, retirement savings, and into an account just for entertainment. Within these accounts, you can see some of
them are basically assets which can grow over time as new checks comes in. The more the assets grow, the more passive
income pours in, which ultimately leads to bigger checks coming in through this cycle
which creates a snow ball effect over time. The powerful part about this is that the upper
5% takes advantage of hiring or outsourcing tasks through their business account. This becomes a write-off for their business
account, which becomes a win-win situation because it supplies more time for themselves
to focus on other important matters. For example, if I run an Amazon FBA business,
I could take my own time to create Okay photos for product OR I can hire a professional who
can take beautiful photos and whatever I paid that person I can document that as business
write-offs. That’s pretty smart. And now you see how you can manage money like the
upper 5% Thank you for watching. Be sure to subscribe for more stuff like
this. Besides that, Stay tuned!

74 thoughts on “How to Manage Your Money like the Rich

Leave a Reply

Your email address will not be published. Required fields are marked *