Rich vs Poor: Why the Poor Pay More Taxes (Secret Revealed!) | Finance Hacked - video Dailymotion

Finance Hacked

Rich vs Poor: Why the Poor Pay More Taxes (Secret Revealed!) | Finance Hacked  ----------------------------  FINANCE HACKED team would like to thank the audience for their interest and support of the Channel in the past time. We hope that the content of FINANCE HACKED will bring long-term value to the audience.  All contributions to support the development of the Channel, dear viewers can send to:  - PayPal: https://paypal.me/FinanceHacked - Wise: https://wise.com/pay/me/hongnguyenphuongd  ----------------------------  Welcome to Finance Hacked! 🤔 Ever wondered why it seems the poor pay more taxes than the rich? It's not just about income, it's about financial intelligence!  In this eye-opening video, we dive deep into the secrets the wealthy use to legally reduce their tax burden, inspired by the principles of "Rich Dad Poor Dad." Discover why focusing on cash flow and understanding business structures like Limited Liability Companies (LLCs) can be game-changers.  We'll explore: 💰 The shocking truth about how the rich avoid high taxes. 🏢 Why setting up a company is the FIRST step towards financial freedom. 🛡️ How Robert Kiyosaki's "bankruptcy" actually protected his wealth. 📈 The power of creating your own "currency" like the ultra-rich. 🌐 Why taking your business online is crucial in today's world. 💡 The mindset shift needed to stop being taxed like the middle class. 💸 Legal tax avoidance strategies used by billionaires like Trump and Buffett. 🚀 The ultimate goal: making money work for YOU and achieving financial freedom!  Don't let the system keep you in the dark! Learn the financial secrets the wealthy don't want you to know.  What would YOU choose: instant cash or long-term assets? Let us know in the comments below! 👇  🔔 Subscribe for more wealth-building insights and turn on notifications so you don't miss out!  👍 Like this video if you found it valuable and want to support us in sharing this crucial knowledge!  #RichDadPoorDad #Taxes #WealthBuilding #FinancialFreedom #Investing #Entrepreneurship #LLC #TaxAvoidance #MoneyMindset #FinanceHacked #RobertKiyosaki #PersonalFinance #WealthSecrets #BusinessTips #OnlineBusiness

Transcript

00:00Poor people have to pay more taxes than the rich, finance hacked warmly greets you and

00:05our dear friends.

00:08If I were to tell you a secret, that your ancestor was once a billionaire and that his

00:13fortune has just been discovered and that he would leave his entire estate to you and

00:18your cousins, what would you do?

00:21You have two choices, first, receive $100 million in cash immediately, second, receive

00:29all the real estate and publicly traded company shares he owns, also worth $100 million.

00:37As the eldest, you have the right to choose first.

00:42What would you choose?

00:44Please leave your comments to let me know.

00:47This question is extremely serious because it determines whether your future generations

00:53will be rich or poor.

00:55I once asked several very smart people and they all insisted on choosing cash.

01:02The reason is very simple, the value of real estate and stocks can fluctuate and if the

01:09market falls, they could lose everything, right?

01:13This seems reasonable because cash is more liquid.

01:16Now, let's see if you make the same choice.

01:21If you do, that's great.

01:24I congratulate you on being truly smart, but at the same time, you are also a poor person.

01:31If you have ever read Rich Dad Poor Dad or, like me, revisit this book every year, you will

01:37realise that the rich always focus on cash flow, while the poor only care about cash.

01:43I speak sincerely, cash is truly terrifying for us, it's like a hot potato, the longer you

01:51hold on to it, the less likely you are to achieve financial freedom.

01:58Think about it, how much will $100 million today be worth after 50 or 100 years?

02:05When I was young, I thought being a millionaire was something distant, only seen on television,

02:12but now, you can meet many such people just by going out on the street.

02:18Every year, central banks announce interest rate hikes to curb inflation, right?

02:24But have you seen that inflation is actually being controlled?

02:28They say it is, but in reality it continues, only at a slightly reduced pace.

02:36And now they are announcing an interest rate cut, which means what?

02:41It means that your cash will continue to lose its value.

02:46But does that mean the value of stocks and real estate never declines?

02:50Since, I know some people will ask, you claim that you achieved financial freedom thanks

02:56to Rich Dad Poor Dad, yet the author of that book, Robert Kiyosaki, also went bankrupt.

03:04So why should we learn from him?

03:07I will tell you, when the poor go bankrupt, they lose everything, but when the rich go bankrupt,

03:14they can still achieve financial freedom.

03:16Poor people who read Rich Dad Poor Dad often feel uncomfortable,

03:22because the book completely overturns their views about money, and thus many attack it.

03:28This is not surprising because 97% of the world's population is poor.

03:35However, if you have an open mind, truly believe in what the book teaches,

03:39and put it into practice, then you are definitely like me now,

03:44enjoying the freedom that money brings.

03:47All the wealthy entrepreneurs I know have read this book,

03:51yet they would never advise you to read it.

03:54Why?

03:56Because they only want to earn money quietly,

03:59and do not want anyone else to know about the hidden secrets within.

04:04But I don't think that way.

04:06I cannot stand seeing people online attack my teacher just to increase their interaction.

04:12I want to clear his name, so I decided to reveal the secrets in this book,

04:18those things that have helped me become wealthier day by day.

04:22If you are not an entrepreneur or an investor,

04:26if you have never practiced these principles directly,

04:29you will not be able to understand the real principles hidden in this book.

04:34But this video may attract the attention and even oppression of the top powers.

04:41So, I hope you will support me by liking this video so that it is not taken down.

04:47Incidentally, this channel specializes in sharing wealth-building mindsets

04:53for those who want to become entrepreneurs, investors, and rich people.

04:57If you wish to connect with us, besides being able to subscribe for free,

05:04you can also turn on notifications to not miss the latest content.

05:09First and foremost, if you want to open the door to becoming rich,

05:13you must establish a limited liability company.

05:18Why is that?

05:19Robert Kiyosaki's bankruptcy taught us one thing,

05:22a company is the best legal tool to protect our assets.

05:26You might not understand because you usually think bankruptcy means having no money left, right?

05:34That is true for the poor.

05:37But after Robert went bankrupt,

05:39did you know that in 2020 his personal assets were still around $80 million?

05:45His assets were not only preserved,

05:48but also protected through the bankruptcy process.

05:53The reason is that Robert had established a company

05:56a company called Global Wealth LLC.

05:58He partnered with an online platform company for marketing and promotion.

06:05But after some time, the two parties no longer got along.

06:10Robert became angry and decided not to pay any more money to that company.

06:16Isn't that taking advantage?

06:18Was it illegal?

06:20Of course it was.

06:23Consequently, the online platform company sued Robert's company in court.

06:29As a result, Robert's company was ordered to pay $24 million in damages.

06:36Normally, when the court rules, the money must be paid, right?

06:41Robert accepted the court's decision, but he made a declaration.

06:46His company, Global Wealth LLC, had only $1.8 million in assets.

06:54And clearly, the company couldn't pay the $24 million in damages.

07:00Therefore, he filed for bankruptcy protection and closed the company,

07:05ceasing operations.

07:07So how will the $24 million in damages be settled?

07:13Even if the plaintiff company requests liquidation of the assets,

07:17they could only recover $1.8 million, right?

07:22Not exactly, because the liquidation process goes as follows.

07:26First, a portion of the $1.8 million will be used to pay court fees,

07:32lawyer fees, etc.

07:35Then, the remaining money will be prioritised to pay wages for employees,

07:40rent, and other operating expenses.

07:44Next, if the company still owes money to other business partners,

07:49they will also be given priority.

07:52Finally, if any money is still left,

07:55it will go to the online platform company to recover its damages.

07:59The result is that this company might not receive much at all.

08:05As for Robert, this did not affect him at all

08:08because a limited liability company is a separate legal entity,

08:12which means that if the company goes bankrupt,

08:15creditors can only claim from the company,

08:18not Robert's personal assets.

08:20In simple terms, Robert's company owes $24 million.

08:25He used most of the $1.8 million to pay his employees and cover other expenses.

08:34If nothing remains, then the $24 million debt does not have to be paid.

08:41Does that mean Robert actually earned $24 million?

08:44That's right, and more importantly, that $24 million.

08:51Remember, borrowers always have the upper hand.

08:55Thus, Robert's company's bankruptcy did not stem from poor business performance.

09:01He fully accepted his responsibilities and followed the law to settle his debts.

09:06It was simply that his company couldn't afford to pay,

09:10so it had to declare bankruptcy, while his personal assets remained completely unaffected.

09:17This is a perfect example of the pinnacle of financial thinking.

09:22Of course, I want to make one thing clear.

09:25I do not encourage people to intentionally take on debt or irresponsibly declare bankruptcy.

09:31I also do not advise you to do so because it may affect your credibility and the growth of your

09:39business, making others reluctant to work with you.

09:43But I want to show you one truth.

09:45Why do the poor often say that the law only protects the rich?

09:50Not because the rich have more money than you,

09:53but because they have financial intelligence.

09:56There are many top billionaires in the world, such as Donald Trump.

10:01In their autobiographies or media interviews,

10:05they have all mentioned that their companies went bankrupt,

10:08sometimes even owing billions of dollars, yet they eventually rebounded.

10:14Many people laughed at them, but have you ever thought that a company going bankrupt

10:19does not mean that the person himself has failed?

10:22To this day, they remain on the billionaire lists,

10:26while most people are still working for them.

10:29How can a person go through bankruptcy multiple times?

10:35It is because they are strong enough that even if a company goes bankrupt and their reputation

10:40is affected, there are still many people willing to work with them.

10:45Closing a company does not mean that one cannot continue doing business.

10:50Robert Kiyosaki can close one company and still open another,

10:55even up to 10,000 companies if he wishes.

10:59He can even rehire all his former employees to work for his new companies,

11:05continuing to help him make money.

11:08Essentially, it is only a change of the external shell,

11:12perhaps a new name,

11:14while the internal operations remain nearly unchanged.

11:18You see, the book Rich Dad Poor Dad is still selling very well

11:22and remains one of the best-selling books in the world.

11:26You might think that setting up a limited liability company requires a lot of money,

11:32but in reality, the registration fee for a business is only a few hundred dollars.

11:37This is precisely why, if you want to achieve financial freedom,

11:44the first thing you need to do is to establish a limited liability company.

11:50At the very least, when you have a company,

11:52you can introduce yourself as a business owner when networking.

11:57This gives you the opportunity to connect with wealthy entrepreneurs

12:01and join the circles of the elite.

12:03Only by stepping into the network of the rich

12:07do you get the opportunity to make money from them.

12:11Connections are equivalent to money.

12:15If you work with an entrepreneur worth billions,

12:17at the very least, you could earn millions.

12:21But if you only work with your friends or colleagues around you,

12:25how much can you really earn?

12:27The second thing you need to do is to take your business online.

12:31If I told you today to do business with one billion people,

12:36you might think I was crazy because how can you know so many people?

12:42But let me tell you,

12:43I currently reach over a billion people on the internet

12:46because YouTube has 2.5 billion users.

12:50If each of them pays us just $1 to buy a product,

12:54we would have $2.5 billion,

12:57and the whole process is automated.

12:59That means even when we are travelling around the world,

13:04driving sports cars, buying houses, or even sleeping,

13:09money automatically flows into our pockets 24-7.

13:14So don't tell me that all roads lead to Rome.

13:17That phrase is empty talk.

13:20You choose to walk to Rome while we fly there.

13:24Can we really be the same?

13:26In this world, speed determines everything.

13:31Whoever captures the market first and becomes the pioneer in making money

13:35can become a millionaire, even a billionaire,

13:39in just six months to a year.

13:42Don't blame your parents for not buying a house

13:45or starting a business in the past.

13:48Now is the time for you to decide your future.

13:51If you do not engage in e-commerce,

13:55you will have to work for someone every day,

13:57exchanging your labour for money,

14:00you fear losing your job during the pandemic,

14:03do not dare to travel,

14:04do not dare to buy your favourite bag or watch.

14:09Only hoping to save a little money.

14:12But then, when you get married,

14:14that money is all spent.

14:15In the end, you may even be too afraid to have children

14:20for fear that later on your children will blame you

14:23just as you blame your parents now.

14:27There is a humorous story,

14:29many companies have names like

14:31Ex-Cultural Limited Liability Company,

14:33and many people laugh and think that

14:36the employees in that company have no culture at all.

14:40I also laugh, but for a different reason.

14:43As I just mentioned,

14:46limited liability means that legal responsibility is limited

14:50because the company is an independent entity.

14:54If you incur personal debt,

14:56that is your own problem.

14:59If the company incurs debt,

15:01that is the company's problem.

15:03Once you understand this,

15:05you will see that it relates to a larger issue.

15:09The book Rich Dad Poor Dad states

15:11that the poor pay taxes while the rich do not.

15:16Here, the poor are not those

15:18who live on government assistance,

15:20but the middle class,

15:21people who have stable jobs

15:23yet still have to work hard to pay taxes.

15:26When I was young,

15:27I used to play basketball

15:29and knew a friend who was more than

15:31ten years older than me.

15:33He owned a small business.

15:36When I was in college,

15:38he got married and invited me

15:40to be the best man.

15:42His wedding was held on a grand scale.

15:46His father stood up to raise a toast and said,

15:50This year,

15:51our company paid hundreds of thousands of dollars in taxes.

15:56At that moment,

15:57I was shocked because I had never done business.

16:00It seemed so far-fetched.

16:02How much money must one earn

16:04to pay so much in taxes?

16:05But after reading Rich Dad Poor Dad,

16:10I no longer admired him.

16:12In fact,

16:12I thought he was stupid

16:14and even proudly flaunted his stupidity.

16:18According to Forbes,

16:19among the 25 richest people in the world,

16:23their total assets increased by $4.11 billion

16:27over the past five years,

16:29and during that same period,

16:31they only paid $136 billion in taxes.

16:36You might think that number is huge, right?

16:40But in reality,

16:42their effective tax rate was only 3.4%.

16:45Meanwhile,

16:48the average annual household income in America

16:50is about $70.000,

16:54and they have to pay 14% in federal taxes.

17:00And those in the middle class

17:02who consider themselves rich

17:03if their income exceeds $630,000 a year,

17:08they have to pay taxes at a rate of 37%.

17:12Isn't that ironic?

17:15And even more notable is that Warren Buffett,

17:18our great stock market guru,

17:21publicly calls for the rich to pay taxes.

17:25But did you know that in private conversations,

17:28Warren Buffett proudly admits

17:30that the taxes he pays each year

17:32are even less than those paid by his secretary?

17:37According to this logic,

17:38Buffett's secretary ends up paying more taxes than he does.

17:43So does that mean Buffett is poor

17:45and his secretary is rich?

17:48The New York Times once revealed

17:50that US President Donald Trump

17:52paid only $750 in taxes in 2017.

17:58In the 15 years prior,

18:00there were even 10 years in which

18:02he did not pay a single dollar of income tax.

18:06This is a prime example of financial intelligence.

18:11When you own a business,

18:12you have the opportunity to work with accountants

18:15and realize that there are countless legal ways

18:17to reduce taxes.

18:19The more you do business and invest,

18:22the more money you make,

18:24and the more legal ways there are to optimize taxes,

18:27keep in mind that tax avoidance is not tax evasion.

18:32Tax evasion is when you do not declare your income,

18:36whereas tax avoidance is when you fully declare your income,

18:40but also legally claim deductions to reduce taxes.

18:43Most people pay personal income tax.

18:49For example,

18:50if you earn $640,000 a year,

18:53you have to pay 37% in taxes to the government,

18:57that's more than $200,000.

19:01After taxes,

19:02you're left with just over $400,000.

19:06Many people boast that they earn hundreds of thousands of dollars a year,

19:11but in reality,

19:12the money they actually keep is not as much as they think.

19:17Personal income tax systems around the world operate on the principle,

19:22you pay taxes first,

19:23and what remains is yours.

19:26But for businesses,

19:27it's different.

19:30If you own a limited liability company,

19:32your company is an independent entity.

19:36When the company earns $100 million,

19:38it pays corporate tax,

19:41and you personally do not have to pay tax on that income.

19:46The key point here is,

19:47companies worldwide use the principle of deducting expenses first

19:52and then taxing the remainder.

19:55For example,

19:56if Trump earns $1 billion,

19:58but his company has to pay for employee salaries,

20:02rent,

20:03operating expenses,

20:04and purchase raw materials

20:06with total expenses up to $800 million,

20:09then the company's actual income is only $200 million.

20:15In that case,

20:16Trump's company only needs to pay tax on that $200 million.

20:22Even if Trump had a revenue of $1 billion,

20:26but operating expenses reached $1 or $2 billion,

20:30causing the company to continuously incur losses,

20:33then essentially he would not have to pay corporate income tax.

20:38This can completely change the way you look at finance.

20:43You might wonder how it is possible to spend $1 to $2 billion.

20:48In fact,

20:49there are many legal ways to create losses for a company.

20:54According to reports in the New York Times

20:56and my personal experience,

20:58some common strategies include purchasing private jets,

21:03mansions,

21:04and sports cars

21:05and classifying them as business expenses.

21:09If you buy those luxury items with personal income,

21:13you have to pay tax first

21:15and may not have enough money left to purchase them.

21:19But if you buy them in the name of your company,

21:22they are considered valid business expenses before taxes.

21:26A large part of Trump's company budget,

21:3020%,

21:31was used for consulting fees of unclear origin.

21:36For example,

21:37in a hotel deal,

21:38Trump received $5 million

21:40but declared consulting fees as high as $1,100,000.

21:47In another deal with revenue of $3 million,

21:50the consulting fee was up to $630,000.

21:56Most importantly,

21:58Trump owns many companies that consistently operate at a loss,

22:02which legally allows him to avoid substantial tax liabilities.

22:06Trump once bought a golf course in the name of his company

22:10and reported a loss of over $300 million.

22:13Additionally,

22:15the hotels,

22:17resorts,

22:18and estates he owns consistently report losses.

22:22These companies help him save a huge amount in taxes.

22:27You might think that legal tax avoidance is a privilege only available to the rich,

22:32but in reality it is not so.

22:35If you have financial intelligence,

22:37you will understand why entrepreneurs,

22:40when dining with clients,

22:42buying cars,

22:43or renting parking spaces,

22:46always ask for receipts.

22:49Because those expenses can be recorded in the name of the company

22:52and are completely legal in business.

22:56Meeting with clients,

22:57organizing meetings,

22:59and entertaining partners are unavoidable

23:02because these expenses aim to boost profit for the business

23:05and are thus considered legitimate company expenses,

23:09so,

23:09does the government know about these methods of tax avoidance?

23:14Of course they do.

23:16Even a president like Trump clearly understands this,

23:20so there is no reason for the government not to know either.

23:24First,

23:25expenses such as entertaining,

23:27buying cars for business purposes

23:29can all be reasonably explained as business-related.

23:33Second,

23:35if you spend money,

23:36you can legally reduce your taxes.

23:39If you do not spend money,

23:42you have to pay more taxes.

23:44This completely aligns with the laws of economics.

23:49The government wants to encourage spending to boost the economy.

23:54Taxes are inherently a tool for redistributing wealth.

23:57If the rich only earn money without spending it,

24:02the gap between the rich and poor will continue to widen.

24:06The government collects taxes to redistribute to lower-income groups.

24:12But if the rich do spend money,

24:14the economy will generate more jobs,

24:17reduce unemployment,

24:18and the government can still tolerate legal tax avoidance.

24:22People without financial intelligence

24:25typically pay personal income taxes directly.

24:30In contrast,

24:31business owners use business income

24:33for legitimate expenses like buying cars and luxury goods.

24:39Outsiders see their extravagant purchases

24:41and want to imitate them,

24:43but they do not understand that entrepreneurs

24:45do not buy luxury goods to show off their status

24:48but to legally reduce taxes.

24:52Moreover,

24:53after using these items,

24:55they can still resell these assets,

24:57such as artwork or collectible items.

25:00That is why the rich get richer when buying luxury goods,

25:04whereas the poor get poorer.

25:06The difference is not that the rich earn more

25:08but that they have financial knowledge.

25:11This is also why most business owners

25:14do not take a salary for themselves.

25:16Because they do not want to pay personal income tax.

25:22However,

25:22I am different because I invest in real estate

25:25so I need to borrow from banks.

25:29To be highly rated by banks on my debt repayment ability,

25:33I have to pay myself a high salary,

25:35which means I still pay taxes.

25:39The most important goal of establishing a company

25:42is to legally create money.

25:43Do you know why 95% of people participating

25:48in the stock market are poor?

25:51Because stocks are our currency

25:53and businesses are our money printing machines.

25:57People cannot print money on their own

26:00because it is illegal.

26:02For example,

26:03when Robert and his best friend Mike were young,

26:06they were looked down upon for their poor backgrounds.

26:09They were not invited to rich people's birthday parties.

26:15So they devised a way to create their own money,

26:19but later they discovered that counterfeiting was illegal

26:21and became frightened.

26:24However,

26:25when grown up,

26:26Robert realized that while making counterfeit money is illegal,

26:30that does not mean we cannot issue our own legal currency.

26:33Many people do not know that the reason why the rich keep getting richer

26:38is because they know how to legally create money.

26:41For instance,

26:42Bill Gates's currency is Microsoft stock.

26:46What is the biggest difference between the rich and the poor?

26:50The poor desire to buy valuable stocks,

26:54whereas the rich are the ones selling those stocks to them.

26:58From this perspective,

27:00one could say that the rich take their money

27:02and sell it back to the poor.

27:05Therefore,

27:06when Robert stepped into the world of business,

27:09he decided that he would be the one selling stocks.

27:13Later,

27:14he owned many publicly traded companies

27:16and sold their shares.

27:19Meanwhile,

27:20market participants only focused on investing,

27:23buying,

27:24and trading stocks.

27:26The lesson Robert wants to impart

27:29is that you must clearly differentiate

27:30between buying and selling.

27:33If you want to become rich,

27:35you need to create your own money

27:37and sell it on the market.

27:40Haven't you noticed that Warren Buffett

27:42always teaches people how to invest in stocks,

27:46encouraging you to follow his value investing method

27:48and build a reputation as a legendary investor?

27:51But do you know what Buffett's most effective money-making method is?

27:56It is opening companies and selling stocks.

27:59His conglomerate, Berkshire Hathaway,

28:04and his investment funds are his most important sources of income.

28:09Do you understand this?

28:11Whether it is Warren Buffett,

28:13Elon Musk,

28:14Jeff Bezos,

28:16or Bill Gates,

28:17their greatest asset is not cash,

28:20but the stocks they hold in their companies.

28:23So why do many individual investors put their money into buying a company's stock?

28:28Because the most valuable asset is not just the profit of that company,

28:34but also the brand and reputation of its founder.

28:39Donald Trump's greatest asset is not his real estate, but his name.

28:44Trump's personal reputation has helped him earn over $400 million

28:49without having to invest in any tangible product.

28:53Essentially, stocks are just a form of currency.

28:56Look at Elon Musk.

28:59He doesn't spend a lot on advertising to sell Tesla's electric cars.

29:05Meanwhile, other corporations spend billions of dollars every year promoting their products,

29:11but Musk does not need to do that because he himself is the best brand ambassador.

29:17With just one small action on social media, he can earn millions of dollars.

29:23This is the power of influence.

29:26Why were many unknown people in the past able to make millions from selling NFTs?

29:33Why are some artists,

29:36despite having been in the entertainment industry for years,

29:40now making hundreds of times what they used to make just because of online platforms?

29:45Why do many children, just by filming themselves playing video games or unboxing toys,

29:53earn tens of millions of dollars a year while most adults work hard every day yet cannot even afford a Porsche?

30:00Don't make excuses saying that they were just lucky.

30:02Don't make excuses saying that they were just lucky.

30:04Ask yourself why you are not that lucky.

30:08It is because they have grasped the trend of personal media, while you remain stagnant.

30:14It's not that you don't believe this can make money, many have done it,

30:18but the core issue is that you don't believe you can earn money from it.

30:22You think that you don't understand entrepreneurship,

30:26you don't know about marketing or attracting followers,

30:30you have no fans, no special hobbies or skills,

30:34you're not handsome or pretty, and you don't even have money or ideas.

30:38So you end up denying yourself.

30:43But let me tell you, it's all about who you know and who you don't.

30:47Are you afraid of failure when self-marketing?

30:50So, do you think that traditional business practices will guarantee your success?

30:57Self-marketing does not require you to have money,

31:01connections, employees or even a storefront.

31:05Essentially, your biggest cost is just a computer and your time.

31:12Moreover, as I mentioned earlier,

31:15to avoid taxes we always spend under the company's name and not as an individual.

31:21So what if they need cash?

31:24They sell company shares and then have to pay investment tax, right?

31:29Furthermore, when they sell their shares,

31:32the media will report that Bill Gates sold Microsoft stock,

31:36causing the stock price to drop sharply.

31:40Therefore, they almost never sell their company shares.

31:45Instead, they use their company shares as collateral at the bank.

31:50For example, if I have company stocks worth $100 million,

31:55I pledge them to the bank, borrow money,

31:58and pay interest, right?

32:02The interest rate is actually very low,

32:05sometimes even lower than the tax one would have to pay.

32:10Thus, they prefer to pay interest to the bank rather than a huge tax bill.

32:16Most importantly, when borrowing from the bank,

32:19the debt can even be deducted from taxes.

32:21In other words, as long as the company is listed on the stock market,

32:27we will have many more legal ways to reduce taxes.

32:32More importantly, essentially many of our future generations

32:36will not have to work at all yet still achieve financial freedom

32:40because this is a super money printing machine,

32:43the essence of it is issuing a new form of currency.

32:47It sounds far-fetched, doesn't it?

32:50But according to the top financial experts I have met,

32:55listing a company on the stock market is not as difficult as we imagine.

33:00You see, many companies listed on the stock market today continue to incur losses,

33:06they just need to attract investors.

33:09But what I want you to remember is that the most outstanding people create change,

33:14the average ones merely observe change,

33:17and the unremarkable ones don't even notice that change is happening.

33:22The rich do not only create currency and set the rules,

33:26they also lead smart, astute investors to follow them.

33:31As a result, their assets grow rapidly.

33:34In reality, the vast majority of small, inexperienced investors

33:40who let emotions drive them in the long run end up losing,

33:44Robert once told us that most people in this world struggle all their lives for money

33:49and yet never achieve wealth.

33:51The reason is that no matter how many years they have spent in school,

33:56they have never truly learned about finance.

34:00As a result, they only know how to work hard to earn money,

34:05but never understand how to make money work for them.

34:08Due to time constraints, I will pause here.

34:11I am sharing free knowledge on how to become rich

34:15as an entrepreneur and investor to achieve financial freedom.

34:21If you do not want to miss out, follow my channel,

34:25turn on notifications, and share this video with everyone.

34:29I also extend my greetings to everyone who liked this video.

34:34I wish you all to soon achieve financial freedom.

34:39If in today's content you find even one or two useful ideas

34:43that help improve your life, I will be satisfied.

34:47Goodbye and see you next time.

Rich vs Poor: Why the Poor Pay More Taxes (Secret Revealed!) | Finance Hacked

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