January 10, 2025 • 23 mins
What if I told you the way you’ve been taught to save and invest is actually keeping you broke? The wealthy don’t play by those rules. Instead, they’ve mastered a system that turns every dollar into 5, 10, even 20 dollars over time. While most people let their money sit idle—losing value every second—the rich have unlocked a hidden wealth engine. It’s a system that grows their money exponentially, without working harder or cutting back. Today, I’m pulling back the curtain on this powerful strategy and showing you how to use it to make your money work harder than you ever could. By the end of this video, you’ll know exactly how to invest $1 into 3, 5, even 10 investments, turning your dollars into unstoppable wealth. My name is Mark Moss. I’ve built and invested in businesses through three boom-and-bust markets, exiting two of them for high value. I’m a partner at a leading Venture Capital Tech fund, and I’ve coached thousands of people on leveraging these strategies to build wealth and time freedom.
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Speaker 1 (00:00):
What if I told you the way you've been taught
to save an invest is actually keeping you broke. You know,
the wealthy don't play by those rules. Instead, they've mastered
a system that turns every one dollar into five, or
into ten or even twenty dollars over time. Now, while
most people let their money sit idle, losing value every second,
the rich have unlocked a hidden wealth engine. It's a
(00:22):
system that grows their money exponentially without working harder or
cutting back. So today I'm going to pull back the
curtain on this powerful strategy. I'm going to show you
how to use it to make your money work harder
than you ever could. And by the end of this video,
you'll know exactly how to invest one dollar into three, five,
or even ten investments, turning your dollars into unstoppable wealth. Now,
(00:44):
my name is Mark Moss. I've built and invested businesses
through now three Booma Bus markets. I've exited two of
them for high value exits. I'm a partner at a
leading venture capital tech fund, and I've coached thousands of
people on leveraging these exact strategies to build wealth and
time freedom. So let's go all right, So the wealthy
are playing a different game. Look, before we get into
(01:07):
the wealthy game, let's think about what game you're playing. Now.
You've seen me probably use this graphic before if you
watch my videos on a regular basis. And the premise
of this that you have to just grasp this premise
before we get into the rest of this, is that
if I came over to your house with a game,
a board game, let's say, and I said, hey, let's
play this board game, and you've you've never seen the
board game, Well, you'd want to know, like, well, what's
the objective of the game, what's the strategy of the game,
(01:28):
what are the rules of the game, who are the
players of the game? Where the mechanics of the game.
All these things right, you have to figure those out
before you could play the game. And imagine if I'd
been playing this video game, Call of Duty or whatever,
I've been playing this game for years and you've never
have wouldn't you imagine that I would have some tips
and tricks and strategies that you wouldn't understand. Okay, so
keep an open in mind as we go about this. Now,
(01:49):
First of all, what game are you playing? Because you've
been told this mantra your whole life of go to school,
get good grades, get a good job, save for retirement.
Now it's not that you've been told out your whole life.
We have some of the most famous money managers, financial
gurus like Dave Ramsey telling you this stuff, that we
(02:09):
should do things a certain way. Let's play this first
clip from Dave Ramsey.
Speaker 2 (02:13):
The debt snowball. You list your debts smallest to largest.
You pay minimum payments on everything but the little one.
You attack the little one with a vengeance. Scorched earth lifestyle,
sell so much stuff the kids think they're next. Take
sixteen extra jobs. We're getting out of debt. All right.
Speaker 1 (02:30):
So what Dave Ramsey again, probably the number one financial
guru millions of people, tens of million, millions of people
are listening to him, is debt is bad. Don't have debt.
If you have debt, get rid of your debt as
fast as possible. Okay. Now, look that's not a bad strategy. Okay.
I call debt like fire. Now, fire is very useful
(02:51):
and it's very important. I use fire to warm up
my house, fire to cook my food. But I could
also burn my house down. Now, kids, shouldn't play with
fire because they don't know how to manage fire. They
could burn the house down. But as you grew up
as to be an adult, you learn how to cook
with fire and warm your house, warm your water. Now,
what Dave Ramsey is saying is that he thinks you're
a baby and you shouldn't play with fire. You shouldn't
(03:13):
play with debt. But as we grow up, the rich,
the wealthy, they play a different game. They leverage debt.
We're going to talk about that in a second. Now,
let's play this other clip of Dave Ramsey again. This
is traditional advice that tens of millions of people are following.
Let's play this clip.
Speaker 2 (03:27):
The best thing I can do is get you to
save money. If I can get you to do your
roth iras, get you to do your four to one case,
get you out of debt so that you can do that,
Get your emergency fund in place so you don't go
and cash the stupid thing out once it's going. Keep
you investing in, investing in investing in investing in investing
in investing in investing in investing in investing. If I
can do that for you as your teacher, all.
Speaker 1 (03:47):
Right, So what everyone's favorite wealth guru is saying is
just save, save, save. If I can tell one person
one thing, all you have to do is just save, save,
save forget everything else. Just save, save, save. Not just
saving your bank account. He's saying to save in either
an index fund like the S and P five hundred index,
or into mutual funds. Okay, so let's just take this
advice one, never use debt number two, save safe, save
(04:09):
number three, put it into S and P five hundred
or mutual funds. Why doesn't that work? Well, let me
show you why it doesn't work. Now. What happens is
you follow his vice, You work for forty years, you
save safe, save into your index fund or your mutual fund,
and on paper, when you look back forty years later
(04:30):
at your statements, you're like, oh my gosh, I'm rich.
I started with fifty thousand, now I have two million dollars,
five million dollars whatever. But I don't feel more rich.
Why does it feel like my quality of life actually
went down? And here's why. This is a chart showing
the S and P five hundred, your index fund, and
the global liquidity, or basically the amount of money that's
created in the world. What we can see here is
(04:50):
the orange line being global equity. The black line is
the S and P five hundred. And what you can
see is that the stock market the real estate market
are basically perfect proxies for inflation. As the money supply grows,
the S and P five hundred and your home goes
up in value at about the same rate. So on paper,
it looks like that, but you've heard the term like
(05:11):
it's a million dollars, but adjusted for inflation, it's really
twenty thousand, right, So what happens is it's going up
with the rate of inflation. Now this is the S
and P five hundred. Now you're getting the mutual funds
like the Ramsey talks about, and you're getting eaten in
live by fees. A lot of times, your advisor, your
fund administrator might get two thirds of the amount of
profit in fees and you get what's left over. So
(05:34):
that's why it doesn't work. Now I want to show
you one more chart, and we'll talk about what you
should be doing. But I want to show you another chart,
and this is the S and P five hundred. Now
it's adjusted. We can price the S and P five
hundred dollars or in bitcoin, or in oil or gold,
or you want it in or oranges or rice. And
this is priced in the basket of commodities, the CRB.
(05:54):
It's the biggest to most commonly use basket of commodities
real things. What we can see is the S and
P five hundred made a high here in the year
two thousand and as of today, it's never made a
new all time high. As a matter of fact, priced
in real things, commodities, things you need, it's down twenty
two percent since the year two thousand. That means the
price of commodities real things, rice, gold, oil, energy, things
(06:18):
have gone up. You've lost twenty two percent of your
prisoning power if you sat in the SFP of five
hundred versus what the cost of things are today. Not good. Now, again,
the wealthy have their own set of rules they play
with and they have a hack. And that's what we're
going to talk about today is the wealth hack. Okay, Now,
I call this the velocity of wealth. Now, this concept
(06:39):
is a concept I've taken from one that we use
in economics, and it's called the velocity of money. So
when you hear about economists talking about the economy, like
in the year twenty twenty, during the pandemic, the velocity
of money slowed down. That's the problem. They want to
get the velocity back up. So here's the velocity of money.
From an economic terms, the velocity of money is the
(07:00):
amount of money going through the GDP. So basically what
this means is the GDP is the gross domestic product
of the economy. It measures the economy how much productivity
or how much wealth is created in the economy. So
if I give one dollar to the tire repair shop guy,
and the tire repair shop goes and gives the dollar
to his supply guy, and the supply guy goes and
(07:21):
gives the dollar to the taco guy, well that's one, two,
three dollars of economicivity, three dollars of GDP, but only
one dollar actually went through that. So it measures how
fast one dollar moves through an economy. And for economists, again,
the faster a dollar moves to the economy, the better. Right,
(07:41):
when we're spending, spending, spending, those dollars are moving really fast,
that's good. During the pandemic, everybody hoardes, nobody spends, and
it slows down. That's really bad. So we use that concept,
but we can adopt it for our own wealth using
the velocity money. How fast can we get one dollar
to move through three, five, or ten investment. The slower
your money moves through your investments, the worse it is.
(08:04):
Just like in the economy now, the poor they use
money this way. The poor use money to do one
Job's what Dave Ramsey's telling you. Never use debt. Just save,
get one dollar, put it into account and leave it there.
Your dollar's doing one job. It's sitting in a fund,
and that's it. That's what the poor do. But the
wealthy they build wealth engines and they red those up
(08:27):
so they get their money. They build an engine, and
they're trying to get their wealth to go faster and
faster instead of doing the one job. Like Dave Ramsey's
talking about. All right, so what are these wealth engines?
And how can you build one? It's really not that
hard now if you really want to know how I'm
building these, and you can build out two, three or
(08:48):
four of these like right away, Like in months, I'm
going to be doing a three day live event. I'm
gonna be live in this studio for three full days
and I'm gonna be teaching you all the good stuff,
all the best on how to reclaim more of your time,
how to accelerate your wealth through these wealth assets and
these engines, and how to keep more of the wealth
(09:09):
that you create using some of these strategies. If you'd
like to come check it out. Like I said, I'll
be going live from this studio. I'm going to teach
all of this too. I'm not holding anything back. I'm
going to give it all to you, actual strategies. There's
a link down below or on the screen right here.
Check it out the Wealth Accelerator event. If you want
to accelerate wealth INN twenty twenty four, check out that event. Okay, Now,
let me give you three different terms that you need
(09:29):
to know, and then I'm going to actually draw some
them out for you. I show you some numbers. Okay.
So number one is leveraging assets. So we need leverage.
Lever is like if I have a lever long enough,
I can move the world. Leverage is like fire. It
can be dangerous, it can do great things, it can
be bad. So we have to learn about leveraging assets
number one. Number two we have to learn about arbitrage.
That means I can get something from one market and
(09:50):
take it to another market and make more money. I
can buy something here in the United States, drive it
down to Mexico and sell it for more money. Buy
in one market, selling I can buy on Aldi Baba
and China, and I can sell on Amazon in the
United States. So we want to learn out arbitrage, and
then we want to learn how to manage cash flows,
manage debt, and equity in our investments. So these are
(10:11):
the terms that we have to learn. Hopefully that makes
sense to you. Now, let me show you a couple
examples of how we can do this. So I'm going
to draw some out and then I'm going to show
you some actual data. So for example, I have one dollar.
Now I can take this dollar and I can put
it into an account that, let's say makes me five
percent forever. So as long as that dollar sits there,
(10:31):
it's making me five percent over time. So that dollar
is now doing one job. I'm making five percent, like
sitting in a treasury, like in a dividend stock. Okay,
but what if I wanted to go faster, Well, what
I could do is I could borrow that money out,
that one dollar back and to get that dollar back,
I have to pay interest. So let's say that I
(10:53):
have to pay five percent interest to borrow the money.
So I'm making five percent on the dollar. But then
when I borrow it, I also have to pay five percent.
And not only do I have to pay five percent interest,
I also have to pay back the principle of the
one dollar. But how would that make me any money? Well,
(11:15):
it's because the interest moves non interrupted and exponential, while
this moves linear. So that'd be job number one. I'm
gonna break this map down for you number two. Now
I have this money I've borrowed out, I can put
it into another asset. I could put it into a
piece of real estate that's making me, you know, somewhere
between eight to fifteen percent. I could put it into
(11:36):
an asset like bitcoin that's making me sixty percent. I
could put it into my business where I buy some
new equipment and that makes me one hundred percent. So
now I'm making five percent. I've got the money back out,
and now I'm in another asset making me sixty percent
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So now I put into bitcoin, I borrow it out,
and then I put it into my business. That business
now makes me money, and I put it into real estate.
So we can mix and match and we can stack
these as. Now, the order in which we stack them
is very important, because some of them get me better
(13:05):
tax treatment. Some of them are more liquid, and we'll
talk about that. But let me show you a couple
examples so you can understand how the numbers work, because
I get it like this sounds really weird, So let
me give you an actual example. So if I were
to take one dollar and put it in an account
and earn five percent, Okay, now we're going to use
fifty thousand. And if I put fifty thousand into account,
(13:28):
that's earning five percent, but it's compounding, so it's earning
interest on the interest on the interest of year. And
I'm gonna let that fifty thousand sit in account for
only seven years, not that long seven years, that fifty
thousand turns into sixty seven thousand dollars. Now, as soon
as I put the fifty thousand in the account, I
also borrowed the fifty thousand back out, and I'm paying
(13:51):
five percent and I'm earning five percent. But here's what happens.
I'm not only am I again paying the interest, I'm
paying the debt back. So over the same seventy two
months period, I've now paid the fifty thousand dollars back,
but it cost me money. So about fifty thousand now
cost me fifty seven thousand, nine hundred and seventy seven dollars,
So it cost me seven thousand dollars in interest, plus
(14:12):
I paid the fifty thousand back and now at the
end of the seven years, I have a net gain
of almost ten thousand dollars. As a matter of fact,
it's nine thousand and twenty seven dollars. So by doing this,
by if I put fifty thousand in, made five borrowed
it back out, I came up nine thousand, almost ten
thousand dollars difference. Now this is a picture that I
(14:34):
put on Instagram and Twitter just about a week ago.
This is my daughter. A Happy birthday to my daughter.
I went and I got her a new car, and
I had option one. The reason why I put fifty
thousand is it was a new Bronco and I had
option one. Should I pay cash for the car? I
have no debt, I have no interest, like Dave Ramsey
would recommend. Or I could take the fifty thousand dollars
(14:55):
and buy something else with it and then instead get
a loan for the car. So the dealer offered me
as I said, zero down, four point nine percent interest
for five years. So why not borrow that and pay
the interest five percent? This is a real example and
instead buy an asset that's going up by more than
five percent, like bitcoin. So that's what we did. I
(15:15):
went ahead and did that, and let me show you
some math of how this works, an actual real example
if we start stacking these. So now I have the
initial investment of fifty thousand, It goes into an account
earning five percent. Right now, I borrow the fifty thousand
back at five percent rate. So now I have the
fifty thousand back, and then I invest the borrowed fifty
(15:37):
thousand into Bitcoin. So I'm putting it into Bitcoin assuming
that it's going to go by fifty percent per year.
Now it's been going up by sixty percent a year
over the last four years. It's going to four thousand
percent a year if I go back further. But just
the last four years has gone up about sixty percent.
So let's take it down to fifty percent. So then
I purchase a fifty thousand dark car with a loan
at five percent interest rate advertise over the five years.
(15:58):
So it's what I did, breaking down the math for you. Now,
the interest rates and investment returns remain constant over this
investment period. Loan payments are made monthly compound and investment
returns occur only. So this is what I'm expecting over
the course of five years and how this works out.
So what we do now is we have our money
doing multiple jobs and you can see that our net
(16:18):
gain is now almost seven hundred thousand dollars. So Option one,
I could have paid cash for the car. I had
the cash, I could have done that. That's what Dave
Ramsey would tell you do. Option two. I put the
money in, I borrowed it back out. I borrowed the money,
I put it into another asset. And now we're talking
a difference of about seven hundred thousand dollars. Let me
(16:40):
break down how that math works for you. So the
financial outcomes in this given scenario, the future value of
account number one. I put the fifty thousand in, I'm
e running five percent compound, and we'll growthreate over six
years I pay, I earn that fifty thousand goes into
sixty seven thousand dollars. The future value of bitcoin investments
at the fifty percent compound an a growth rate is
(17:01):
now five hundred and sixty total repayment for the loan
the fifty k five percent interest because I have to
pay that money back that I borrowed cost me a
fifty seven thousand or seven thousand interests. The total repayment
of loan number two, the car forty K ten percent
interest to for five years is fifty thousand, but the
net gain is now over half a million dollars. I
have to pay the debt back half a million dollars.
(17:23):
I'm ahead instead of just paying cash for the car.
Do you see how this works? Now, this is only
going to two jobs or three jobs, but imagine when
I go to four jobs, five jobs, six jobs, seven jobs,
ten jobs. You can see how instead of buying cash
like Dave Rams said, for a fifty car, now I
could have six hundred thousand, eight hundred thousand, a million
(17:46):
dollars very easily. And we haven't even got into the
tax of benefits of doing this now. Really, this takes
into a couple things into account. Number one, the law
of compounding. It's why I can put fifty thousand and
pay and earn five percent, borrow fifty thousand and pay
five percent, but still come out ahead because of the compound,
which means I earn on top of what I earn
(18:08):
on top of what I earn on top of what
I earn. It's what Einstein called the eighth wonder of
the world. He said, those who know what it is
receive it, and those who don't know what it is
they pay it. Now you don't want to be paying it,
so it's nonlinear. Most people think wealth grows like this.
Instead it's exponential and even better, all of this is
tax advantage. You see, when I took Dave Ramsey's device
(18:30):
and paid the fifty thousand for the car, I had
to pay tax on that money. So in California, I
needed one hundred thousand dollars pay the tax on fifty thousand,
and I have fifty thousand left over. But in the
other example, every time I get the money back, I
don't have to pay tax. So now my money's growing
faster and faster and faster. Now I already know what
you're saying. I can hear the grumbling. You guys are
(18:51):
already leaving comments before I've even gotten there. But Mark, Mark,
isn't this super risky? It sounds really risky. I mean,
what if I can't afford to pay, and what if
the value of the real estate or the business or
the bitcoin goes down and what if it sounds really risky, Mark,
Sure it is risky, but here's what I have to
say about that. We understand what the risk is, we
(19:13):
understand the potential risk that could pose to us, and
then we learn to mitigate those risks. It's what I
say that the risk is in the investor, not the investment.
Let me give you an example here. If someone asked
me I'm a surfer, they say, hey, Mark, what's the
best wave I should surf? I'd say, well, Pipeline and
Hawaii is the best wave. But here's the thing. If
you've never surf before, you certainly should not go out there, right,
(19:36):
You'll probably die. But yet there's hundreds of people out
there every day that don't die. It's because they've learned
how to mitigate the risk. They've learned how to hold
their breath for a long period of time. They go
out there with safety equipment of a vest and a helmet.
They may bring a partner out there on a jet ski.
They've also worked their way up from when waves are
tiny all the way to big over years and years
and years. So they learn how to manage these situations.
(19:57):
And so are these things risky? They do carry risk,
you can learn to mitigate them. So, for example, number one,
if you have debt, that means there's probably payments, and
so you can sure how am I going to make
those payments. There's a couple of ways that you can
do this. Number One, you should have income, so you
should have a job covering that covering that income. Number Two,
when you borrow money, you could borrow more than you
(20:17):
need to put into the interest serve account. So for example,
when I was building real estate, I built this building
that we're in here right now, I would borrow hard money.
The bank would give me a million dollars or in
this case, like seven million dollars to build this. Now
I couldn't make the payment on the seven million for
a year, so I'd borrow extra money that I would need,
and that money would sit into what's called an interest
reserve account, and then they would just pull from the
(20:39):
interest of account directly to make the loan. So there's
ways that we can mitigate this. And these are the
strategies that you have to grow into. Now. The goal
is not to just go from one to ten investments overnight,
but if you take the right strategy, you implement the
right way, and you account for the risks, then you
can manage this properly. Now, this really is about do
(21:01):
I want to play the game because I like to
play the game, or am I playing to win the game?
There's a big difference in that, And what I would
say is that this is if you want to play
to win, if you want to be like Dave Ramsey
and work in a cubicle for forty years and get
your two weeks offcation and save without ever taking dead
and put that money into an account like the S
and P five hundred that I showed you, is not
actually making you any more wealthy. You can play the game,
(21:23):
that's what most people do. But if you want to
play to win the game, most people could win the
game being financially free in less than ten years. And
the thing is is that I think it was Bill Gates.
He said that most of us tend to overestimate what
we can get done in a year, but we underestimate
what we can get done in ten. And that's exactly
what I'm talking about. So right now everyone's chasing meme
(21:43):
stocks or crypto coins or option strategy. I need to
get rich in six months, and they don't instead of thinking, hey,
if I start building this type of a strategy today,
in probably four or five six years, I could achieve
my goal. And this is taking this long term advantage because,
as this said, the game is exponential. It might start small,
(22:07):
but then it starts growing really really fast when you
build this wealth engine and the engines start going faster
and faster and faster. Enough. This sounds complicated, it's not,
but there's a lot of intricacies as to how you
would apply this based off of your skill set which
you have experience in, and how you mitigate the risk
based off your personal circumstances. So if you'd like to
learn more about how to build these how the wealthy
(22:29):
do this, then come check out my live event. It's
called the Wealth Accelerator. It's about kicking off twenty twenty five. Right,
We're going to talk about reclaiming more of your time
almost instantly. I want keeping more of the wealth that
you create instead of giving so much way to taxes.
Then once you have more time and you have more income,
then how do I multiply that wealth using wealth ins
and strategies just like this to make twenty twenty five
(22:51):
and really hit your goals before twenty thirty. Check it out.
There's a link down below if you'd like to come
check it out. Otherwise, take this information, use it. You
can listen to Day of Ramsey, but you'll end up
like everybody else. If you want to go somewhere different,
you gotta use different strategies, all right, That's what I got.
Let me know what you think about this down on
the comments down below. Is it too risky or can
you mitigate that risk? Say yes or no down below,
(23:13):
And that's what I got. All right, to your success,
I'm out.
What if I told you the way you've been taught
to save an invest is actually keeping you broke. You know,
the wealthy don't play by those rules. Instead, they've mastered
a system that turns every one dollar into five, or
into ten or even twenty dollars over time. Now, while
most people let their money sit idle, losing value every second,
the rich have unlocked a hidden wealth engine. It's a
(00:22):
system that grows their money exponentially without working harder or
cutting back. So today I'm going to pull back the
curtain on this powerful strategy. I'm going to show you
how to use it to make your money work harder
than you ever could. And by the end of this video,
you'll know exactly how to invest one dollar into three, five,
or even ten investments, turning your dollars into unstoppable wealth. Now,
(00:44):
my name is Mark Moss. I've built and invested businesses
through now three Booma Bus markets. I've exited two of
them for high value exits. I'm a partner at a
leading venture capital tech fund, and I've coached thousands of
people on leveraging these exact strategies to build wealth and
time freedom. So let's go all right, So the wealthy
are playing a different game. Look, before we get into
(01:07):
the wealthy game, let's think about what game you're playing. Now.
You've seen me probably use this graphic before if you
watch my videos on a regular basis. And the premise
of this that you have to just grasp this premise
before we get into the rest of this, is that
if I came over to your house with a game,
a board game, let's say, and I said, hey, let's
play this board game, and you've you've never seen the
board game, Well, you'd want to know, like, well, what's
the objective of the game, what's the strategy of the game,
(01:28):
what are the rules of the game, who are the
players of the game? Where the mechanics of the game.
All these things right, you have to figure those out
before you could play the game. And imagine if I'd
been playing this video game, Call of Duty or whatever,
I've been playing this game for years and you've never
have wouldn't you imagine that I would have some tips
and tricks and strategies that you wouldn't understand. Okay, so
keep an open in mind as we go about this. Now,
(01:49):
First of all, what game are you playing? Because you've
been told this mantra your whole life of go to school,
get good grades, get a good job, save for retirement.
Now it's not that you've been told out your whole life.
We have some of the most famous money managers, financial
gurus like Dave Ramsey telling you this stuff, that we
(02:09):
should do things a certain way. Let's play this first
clip from Dave Ramsey.
Speaker 2 (02:13):
The debt snowball. You list your debts smallest to largest.
You pay minimum payments on everything but the little one.
You attack the little one with a vengeance. Scorched earth lifestyle,
sell so much stuff the kids think they're next. Take
sixteen extra jobs. We're getting out of debt. All right.
Speaker 1 (02:30):
So what Dave Ramsey again, probably the number one financial
guru millions of people, tens of million, millions of people
are listening to him, is debt is bad. Don't have debt.
If you have debt, get rid of your debt as
fast as possible. Okay. Now, look that's not a bad strategy. Okay.
I call debt like fire. Now, fire is very useful
(02:51):
and it's very important. I use fire to warm up
my house, fire to cook my food. But I could
also burn my house down. Now, kids, shouldn't play with
fire because they don't know how to manage fire. They
could burn the house down. But as you grew up
as to be an adult, you learn how to cook
with fire and warm your house, warm your water. Now,
what Dave Ramsey is saying is that he thinks you're
a baby and you shouldn't play with fire. You shouldn't
(03:13):
play with debt. But as we grow up, the rich,
the wealthy, they play a different game. They leverage debt.
We're going to talk about that in a second. Now,
let's play this other clip of Dave Ramsey again. This
is traditional advice that tens of millions of people are following.
Let's play this clip.
Speaker 2 (03:27):
The best thing I can do is get you to
save money. If I can get you to do your
roth iras, get you to do your four to one case,
get you out of debt so that you can do that,
Get your emergency fund in place so you don't go
and cash the stupid thing out once it's going. Keep
you investing in, investing in investing in investing in investing
in investing in investing in investing in investing. If I
can do that for you as your teacher, all.
Speaker 1 (03:47):
Right, So what everyone's favorite wealth guru is saying is
just save, save, save. If I can tell one person
one thing, all you have to do is just save, save,
save forget everything else. Just save, save, save. Not just
saving your bank account. He's saying to save in either
an index fund like the S and P five hundred index,
or into mutual funds. Okay, so let's just take this
advice one, never use debt number two, save safe, save
(04:09):
number three, put it into S and P five hundred
or mutual funds. Why doesn't that work? Well, let me
show you why it doesn't work. Now. What happens is
you follow his vice, You work for forty years, you
save safe, save into your index fund or your mutual fund,
and on paper, when you look back forty years later
(04:30):
at your statements, you're like, oh my gosh, I'm rich.
I started with fifty thousand, now I have two million dollars,
five million dollars whatever. But I don't feel more rich.
Why does it feel like my quality of life actually
went down? And here's why. This is a chart showing
the S and P five hundred, your index fund, and
the global liquidity, or basically the amount of money that's
created in the world. What we can see here is
(04:50):
the orange line being global equity. The black line is
the S and P five hundred. And what you can
see is that the stock market the real estate market
are basically perfect proxies for inflation. As the money supply grows,
the S and P five hundred and your home goes
up in value at about the same rate. So on paper,
it looks like that, but you've heard the term like
(05:11):
it's a million dollars, but adjusted for inflation, it's really
twenty thousand, right, So what happens is it's going up
with the rate of inflation. Now this is the S
and P five hundred. Now you're getting the mutual funds
like the Ramsey talks about, and you're getting eaten in
live by fees. A lot of times, your advisor, your
fund administrator might get two thirds of the amount of
profit in fees and you get what's left over. So
(05:34):
that's why it doesn't work. Now I want to show
you one more chart, and we'll talk about what you
should be doing. But I want to show you another chart,
and this is the S and P five hundred. Now
it's adjusted. We can price the S and P five
hundred dollars or in bitcoin, or in oil or gold,
or you want it in or oranges or rice. And
this is priced in the basket of commodities, the CRB.
(05:54):
It's the biggest to most commonly use basket of commodities
real things. What we can see is the S and
P five hundred made a high here in the year
two thousand and as of today, it's never made a
new all time high. As a matter of fact, priced
in real things, commodities, things you need, it's down twenty
two percent since the year two thousand. That means the
price of commodities real things, rice, gold, oil, energy, things
(06:18):
have gone up. You've lost twenty two percent of your
prisoning power if you sat in the SFP of five
hundred versus what the cost of things are today. Not good. Now, again,
the wealthy have their own set of rules they play
with and they have a hack. And that's what we're
going to talk about today is the wealth hack. Okay, Now,
I call this the velocity of wealth. Now, this concept
(06:39):
is a concept I've taken from one that we use
in economics, and it's called the velocity of money. So
when you hear about economists talking about the economy, like
in the year twenty twenty, during the pandemic, the velocity
of money slowed down. That's the problem. They want to
get the velocity back up. So here's the velocity of money.
From an economic terms, the velocity of money is the
(07:00):
amount of money going through the GDP. So basically what
this means is the GDP is the gross domestic product
of the economy. It measures the economy how much productivity
or how much wealth is created in the economy. So
if I give one dollar to the tire repair shop guy,
and the tire repair shop goes and gives the dollar
to his supply guy, and the supply guy goes and
(07:21):
gives the dollar to the taco guy, well that's one, two,
three dollars of economicivity, three dollars of GDP, but only
one dollar actually went through that. So it measures how
fast one dollar moves through an economy. And for economists, again,
the faster a dollar moves to the economy, the better. Right,
(07:41):
when we're spending, spending, spending, those dollars are moving really fast,
that's good. During the pandemic, everybody hoardes, nobody spends, and
it slows down. That's really bad. So we use that concept,
but we can adopt it for our own wealth using
the velocity money. How fast can we get one dollar
to move through three, five, or ten investment. The slower
your money moves through your investments, the worse it is.
(08:04):
Just like in the economy now, the poor they use
money this way. The poor use money to do one
Job's what Dave Ramsey's telling you. Never use debt. Just save,
get one dollar, put it into account and leave it there.
Your dollar's doing one job. It's sitting in a fund,
and that's it. That's what the poor do. But the
wealthy they build wealth engines and they red those up
(08:27):
so they get their money. They build an engine, and
they're trying to get their wealth to go faster and
faster instead of doing the one job. Like Dave Ramsey's
talking about. All right, so what are these wealth engines?
And how can you build one? It's really not that
hard now if you really want to know how I'm
building these, and you can build out two, three or
(08:48):
four of these like right away, Like in months, I'm
going to be doing a three day live event. I'm
gonna be live in this studio for three full days
and I'm gonna be teaching you all the good stuff,
all the best on how to reclaim more of your time,
how to accelerate your wealth through these wealth assets and
these engines, and how to keep more of the wealth
(09:09):
that you create using some of these strategies. If you'd
like to come check it out. Like I said, I'll
be going live from this studio. I'm going to teach
all of this too. I'm not holding anything back. I'm
going to give it all to you, actual strategies. There's
a link down below or on the screen right here.
Check it out the Wealth Accelerator event. If you want
to accelerate wealth INN twenty twenty four, check out that event. Okay, Now,
let me give you three different terms that you need
(09:29):
to know, and then I'm going to actually draw some
them out for you. I show you some numbers. Okay.
So number one is leveraging assets. So we need leverage.
Lever is like if I have a lever long enough,
I can move the world. Leverage is like fire. It
can be dangerous, it can do great things, it can
be bad. So we have to learn about leveraging assets
number one. Number two we have to learn about arbitrage.
That means I can get something from one market and
(09:50):
take it to another market and make more money. I
can buy something here in the United States, drive it
down to Mexico and sell it for more money. Buy
in one market, selling I can buy on Aldi Baba
and China, and I can sell on Amazon in the
United States. So we want to learn out arbitrage, and
then we want to learn how to manage cash flows,
manage debt, and equity in our investments. So these are
(10:11):
the terms that we have to learn. Hopefully that makes
sense to you. Now, let me show you a couple
examples of how we can do this. So I'm going
to draw some out and then I'm going to show
you some actual data. So for example, I have one dollar.
Now I can take this dollar and I can put
it into an account that, let's say makes me five
percent forever. So as long as that dollar sits there,
(10:31):
it's making me five percent over time. So that dollar
is now doing one job. I'm making five percent, like
sitting in a treasury, like in a dividend stock. Okay,
but what if I wanted to go faster, Well, what
I could do is I could borrow that money out,
that one dollar back and to get that dollar back,
I have to pay interest. So let's say that I
(10:53):
have to pay five percent interest to borrow the money.
So I'm making five percent on the dollar. But then
when I borrow it, I also have to pay five percent.
And not only do I have to pay five percent interest,
I also have to pay back the principle of the
one dollar. But how would that make me any money? Well,
(11:15):
it's because the interest moves non interrupted and exponential, while
this moves linear. So that'd be job number one. I'm
gonna break this map down for you number two. Now
I have this money I've borrowed out, I can put
it into another asset. I could put it into a
piece of real estate that's making me, you know, somewhere
between eight to fifteen percent. I could put it into
(11:36):
an asset like bitcoin that's making me sixty percent. I
could put it into my business where I buy some
new equipment and that makes me one hundred percent. So
now I'm making five percent. I've got the money back out,
and now I'm in another asset making me sixty percent
or I e. Eight ten one hundred percent? Does that
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(11:59):
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So now I put into bitcoin, I borrow it out,
and then I put it into my business. That business
now makes me money, and I put it into real estate.
So we can mix and match and we can stack
these as. Now, the order in which we stack them
is very important, because some of them get me better
(13:05):
tax treatment. Some of them are more liquid, and we'll
talk about that. But let me show you a couple
examples so you can understand how the numbers work, because
I get it like this sounds really weird, So let
me give you an actual example. So if I were
to take one dollar and put it in an account
and earn five percent, Okay, now we're going to use
fifty thousand. And if I put fifty thousand into account,
(13:28):
that's earning five percent, but it's compounding, so it's earning
interest on the interest on the interest of year. And
I'm gonna let that fifty thousand sit in account for
only seven years, not that long seven years, that fifty
thousand turns into sixty seven thousand dollars. Now, as soon
as I put the fifty thousand in the account, I
also borrowed the fifty thousand back out, and I'm paying
(13:51):
five percent and I'm earning five percent. But here's what happens.
I'm not only am I again paying the interest, I'm
paying the debt back. So over the same seventy two
months period, I've now paid the fifty thousand dollars back,
but it cost me money. So about fifty thousand now
cost me fifty seven thousand, nine hundred and seventy seven dollars,
So it cost me seven thousand dollars in interest, plus
(14:12):
I paid the fifty thousand back and now at the
end of the seven years, I have a net gain
of almost ten thousand dollars. As a matter of fact,
it's nine thousand and twenty seven dollars. So by doing this,
by if I put fifty thousand in, made five borrowed
it back out, I came up nine thousand, almost ten
thousand dollars difference. Now this is a picture that I
(14:34):
put on Instagram and Twitter just about a week ago.
This is my daughter. A Happy birthday to my daughter.
I went and I got her a new car, and
I had option one. The reason why I put fifty
thousand is it was a new Bronco and I had
option one. Should I pay cash for the car? I
have no debt, I have no interest, like Dave Ramsey
would recommend. Or I could take the fifty thousand dollars
(14:55):
and buy something else with it and then instead get
a loan for the car. So the dealer offered me
as I said, zero down, four point nine percent interest
for five years. So why not borrow that and pay
the interest five percent? This is a real example and
instead buy an asset that's going up by more than
five percent, like bitcoin. So that's what we did. I
(15:15):
went ahead and did that, and let me show you
some math of how this works, an actual real example
if we start stacking these. So now I have the
initial investment of fifty thousand, It goes into an account
earning five percent. Right now, I borrow the fifty thousand
back at five percent rate. So now I have the
fifty thousand back, and then I invest the borrowed fifty
(15:37):
thousand into Bitcoin. So I'm putting it into Bitcoin assuming
that it's going to go by fifty percent per year.
Now it's been going up by sixty percent a year
over the last four years. It's going to four thousand
percent a year if I go back further. But just
the last four years has gone up about sixty percent.
So let's take it down to fifty percent. So then
I purchase a fifty thousand dark car with a loan
at five percent interest rate advertise over the five years.
(15:58):
So it's what I did, breaking down the math for you. Now,
the interest rates and investment returns remain constant over this
investment period. Loan payments are made monthly compound and investment
returns occur only. So this is what I'm expecting over
the course of five years and how this works out.
So what we do now is we have our money
doing multiple jobs and you can see that our net
(16:18):
gain is now almost seven hundred thousand dollars. So Option one,
I could have paid cash for the car. I had
the cash, I could have done that. That's what Dave
Ramsey would tell you do. Option two. I put the
money in, I borrowed it back out. I borrowed the money,
I put it into another asset. And now we're talking
a difference of about seven hundred thousand dollars. Let me
(16:40):
break down how that math works for you. So the
financial outcomes in this given scenario, the future value of
account number one. I put the fifty thousand in, I'm
e running five percent compound, and we'll growthreate over six
years I pay, I earn that fifty thousand goes into
sixty seven thousand dollars. The future value of bitcoin investments
at the fifty percent compound an a growth rate is
(17:01):
now five hundred and sixty total repayment for the loan
the fifty k five percent interest because I have to
pay that money back that I borrowed cost me a
fifty seven thousand or seven thousand interests. The total repayment
of loan number two, the car forty K ten percent
interest to for five years is fifty thousand, but the
net gain is now over half a million dollars. I
have to pay the debt back half a million dollars.
(17:23):
I'm ahead instead of just paying cash for the car.
Do you see how this works? Now, this is only
going to two jobs or three jobs, but imagine when
I go to four jobs, five jobs, six jobs, seven jobs,
ten jobs. You can see how instead of buying cash
like Dave Rams said, for a fifty car, now I
could have six hundred thousand, eight hundred thousand, a million
(17:46):
dollars very easily. And we haven't even got into the
tax of benefits of doing this now. Really, this takes
into a couple things into account. Number one, the law
of compounding. It's why I can put fifty thousand and
pay and earn five percent, borrow fifty thousand and pay
five percent, but still come out ahead because of the compound,
which means I earn on top of what I earn
(18:08):
on top of what I earn on top of what
I earn. It's what Einstein called the eighth wonder of
the world. He said, those who know what it is
receive it, and those who don't know what it is
they pay it. Now you don't want to be paying it,
so it's nonlinear. Most people think wealth grows like this.
Instead it's exponential and even better, all of this is
tax advantage. You see, when I took Dave Ramsey's device
(18:30):
and paid the fifty thousand for the car, I had
to pay tax on that money. So in California, I
needed one hundred thousand dollars pay the tax on fifty thousand,
and I have fifty thousand left over. But in the
other example, every time I get the money back, I
don't have to pay tax. So now my money's growing
faster and faster and faster. Now I already know what
you're saying. I can hear the grumbling. You guys are
(18:51):
already leaving comments before I've even gotten there. But Mark, Mark,
isn't this super risky? It sounds really risky. I mean,
what if I can't afford to pay, and what if
the value of the real estate or the business or
the bitcoin goes down and what if it sounds really risky, Mark,
Sure it is risky, but here's what I have to
say about that. We understand what the risk is, we
(19:13):
understand the potential risk that could pose to us, and
then we learn to mitigate those risks. It's what I
say that the risk is in the investor, not the investment.
Let me give you an example here. If someone asked
me I'm a surfer, they say, hey, Mark, what's the
best wave I should surf? I'd say, well, Pipeline and
Hawaii is the best wave. But here's the thing. If
you've never surf before, you certainly should not go out there, right,
(19:36):
You'll probably die. But yet there's hundreds of people out
there every day that don't die. It's because they've learned
how to mitigate the risk. They've learned how to hold
their breath for a long period of time. They go
out there with safety equipment of a vest and a helmet.
They may bring a partner out there on a jet ski.
They've also worked their way up from when waves are
tiny all the way to big over years and years
and years. So they learn how to manage these situations.
(19:57):
And so are these things risky? They do carry risk,
you can learn to mitigate them. So, for example, number one,
if you have debt, that means there's probably payments, and
so you can sure how am I going to make
those payments. There's a couple of ways that you can
do this. Number One, you should have income, so you
should have a job covering that covering that income. Number Two,
when you borrow money, you could borrow more than you
(20:17):
need to put into the interest serve account. So for example,
when I was building real estate, I built this building
that we're in here right now, I would borrow hard money.
The bank would give me a million dollars or in
this case, like seven million dollars to build this. Now
I couldn't make the payment on the seven million for
a year, so I'd borrow extra money that I would need,
and that money would sit into what's called an interest
reserve account, and then they would just pull from the
(20:39):
interest of account directly to make the loan. So there's
ways that we can mitigate this. And these are the
strategies that you have to grow into. Now. The goal
is not to just go from one to ten investments overnight,
but if you take the right strategy, you implement the
right way, and you account for the risks, then you
can manage this properly. Now, this really is about do
(21:01):
I want to play the game because I like to
play the game, or am I playing to win the game?
There's a big difference in that, And what I would
say is that this is if you want to play
to win, if you want to be like Dave Ramsey
and work in a cubicle for forty years and get
your two weeks offcation and save without ever taking dead
and put that money into an account like the S
and P five hundred that I showed you, is not
actually making you any more wealthy. You can play the game,
(21:23):
that's what most people do. But if you want to
play to win the game, most people could win the
game being financially free in less than ten years. And
the thing is is that I think it was Bill Gates.
He said that most of us tend to overestimate what
we can get done in a year, but we underestimate
what we can get done in ten. And that's exactly
what I'm talking about. So right now everyone's chasing meme
(21:43):
stocks or crypto coins or option strategy. I need to
get rich in six months, and they don't instead of thinking, hey,
if I start building this type of a strategy today,
in probably four or five six years, I could achieve
my goal. And this is taking this long term advantage because,
as this said, the game is exponential. It might start small,
(22:07):
but then it starts growing really really fast when you
build this wealth engine and the engines start going faster
and faster and faster. Enough. This sounds complicated, it's not,
but there's a lot of intricacies as to how you
would apply this based off of your skill set which
you have experience in, and how you mitigate the risk
based off your personal circumstances. So if you'd like to
learn more about how to build these how the wealthy
(22:29):
do this, then come check out my live event. It's
called the Wealth Accelerator. It's about kicking off twenty twenty five. Right,
We're going to talk about reclaiming more of your time
almost instantly. I want keeping more of the wealth that
you create instead of giving so much way to taxes.
Then once you have more time and you have more income,
then how do I multiply that wealth using wealth ins
and strategies just like this to make twenty twenty five
(22:51):
and really hit your goals before twenty thirty. Check it out.
There's a link down below if you'd like to come
check it out. Otherwise, take this information, use it. You
can listen to Day of Ramsey, but you'll end up
like everybody else. If you want to go somewhere different,
you gotta use different strategies, all right, That's what I got.
Let me know what you think about this down on
the comments down below. Is it too risky or can
you mitigate that risk? Say yes or no down below,
(23:13):
And that's what I got. All right, to your success,
I'm out.
Host
Mark Moss
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