- 3 months ago
Category
📚
LearningTranscript
00:00This is how most people play the game of money.
00:02Sacrificing pawns, obsessing on the small moves.
00:06But real wealth? It's not about the pawns.
00:08It's about moving pieces that actually change the game.
00:12Because while most people spend their lives reacting,
00:15the wealthy are playing to win.
00:17And the worst part? Nobody ever taught you the real rules.
00:20You'll stay in the job that you pick for the rest of your life.
00:25We are one of the wealthiest nations in history,
00:27and yet, seemingly, no one has any money.
00:30Which raises a haunting question.
00:32How can you make money and not lose?
00:36In 2016, a lottery winner named David Lee Edwards,
00:39who walked away with $27 million in winnings,
00:42was found living in a storage unit, penniless, battling addiction.
00:45He had gone from instant multimillionaire to broke in less than a decade.
00:49And he is not alone.
00:51Six-figure earners are living paycheck to paycheck.
00:54Celebrities file bankruptcy after careers worth hundreds of millions.
00:57People are financing their DoorDash orders.
01:00This is not just a story of bad luck, or greed, or poor judgment.
01:04It's about a system.
01:05A game.
01:06A game of money that has rules most people were never told.
01:08Rules that quietly separate those who play to survive from those who play to win.
01:13And unless you learn the rules, you'll spend the rest of your life running harder and harder
01:17in a race you are never designed to finish.
01:19You see, schools and the systems are basically prisons.
01:22They keep kids locked up physically and mentally, and prepare them for jobs that are basically
01:26prisons, until they retire and go to a nursing home, their final prison.
01:30So in this video, let's pull away the blindfold.
01:32I'm definitely not in the rat race now, but I used to be.
01:35I worked in corporate jobs and cubicles with padded walls at Goldman and State Street.
01:39I had a job where I had to clock in and clock out every time I went to the bathroom at Vanguard.
01:44The bathroom.
01:45I refused to go back there.
01:46It actually scares the hell out of me.
01:48But we're going to expose why you were never taught the real game of money, and how the
01:52system is structured, and what you can do today to stop playing as a pawn on the board,
01:56and start becoming the one making the rules.
01:59Part 1.
02:00The Illusion of the Rat Race.
02:02Most people's financial lives look like this.
02:04Go to school.
02:05Get a job.
02:06Earn wages.
02:07Spend them on expenses.
02:08The cycle is so deeply ingrained that we don't even question it.
02:10But it's a treadmill.
02:11A rat race.
02:12Every raise is matched by a new expense.
02:15Every windfall canceled by a new debt.
02:17The faster you run, the more exhausted you get, and you never actually move forward.
02:21A survey found that 78% of American workers live paycheck to paycheck.
02:25But what is even more shocking?
02:27Even among people earning over $100,000 a year, 1 in 10 are still broke at the end of every month.
02:32The answer lies in what I call the consumption trap.
02:35This is what stops you from becoming rich.
02:38This is you.
02:39You earn money.
02:40You start motoring.
02:41But every time you get it, you spend it.
02:42So you're forever stuck in a cycle that never has an end.
02:45Ask 10 people to define money, and you'll hear some version of this.
02:48It's a medium of exchange.
02:50But that's not very useful.
02:51A better way to think of it is, money is stored value.
02:54You exchange money for something because you believe its value is equal to the dollars you gave up.
02:58But here's the problem.
02:59From an early age, we are conditioned to see money not as stored value but as fuel for consumption.
03:03Good grades, good job, paycheck, expenses.
03:06Entire economies are built on this cycle.
03:08Advertisers fuel it, credit cards lubricate it, social media amplifies it.
03:12And it creates a culture where our worth is measured by what we consume.
03:16The car we drive, the shoes we wear, the vacations we post online.
03:19Dad, why do I have to go to school?
03:21So you can get a job.
03:22But why do I need a job?
03:24So you can earn money.
03:25Why do I need money?
03:26To buy the stuff the TV makes us want.
03:28But why do I need to buy stuff?
03:29Because if you didn't buy stuff, everyone would be out of a job and no one would have any money.
03:34Wait, so I have to work for the rest of my life to pay for stuff that I don't want just so everyone else can suffer the same horrible fate as me?
03:39Consumption never creates wealth.
03:41At best, managing your consumption keeps you from falling apart.
03:45At worst, it chains you to debt, anxiety, and financial fragility.
03:48That's why high earners aren't even safe.
03:5062% of people making over $300,000 a year still struggle with credit card debt.
03:55And why millennials now fear debt more than death itself.
03:5866% of us say we're more scared of running out of money than dying.
04:02Because in the consumption trap, your entire financial life is defined by what goes out.
04:06And unless you break out of that paradigm, you'll never have anything left over to build with.
04:18Part 3. Defense wins games, but not championships.
04:34Let me be clear. Mastering consumption, necessary.
04:38But remember, the master was once a beginner, too.
04:40So you start like a snowball down the hill.
04:42You face your numbers, you journal expenses, you build a budget, you live below your means.
04:46Out of its total weekly income, Jack's family allows so much for food, household, clothing.
04:53Each part of their regular expenses is allowed for in the budget.
04:57Create an emergency fund, three to six months of expenses.
04:59That's the minimum. And it's simple. Maybe not easy.
05:02A proven savings framework for every paycheck, 50, 30, 20.
05:06The rule is you give 50% of take-home pay to essentials, only things you need.
05:1130% to discretionary spending once and 20% directly to savings.
05:16So you're spending most of what you earn on your housing, food, utilities.
05:19You're spending 30% on entertainment, dining out, hobbies.
05:2320% you pay yourself first.
05:25You know why? Because what should really scare you and what scares me is having to go work a normal job.
05:30A job I hate where you take the subway every single day and a commute that feels like you're wasting time
05:34to a place where you like nobody, that you work alongside, doing things that don't stimulate you or inspire you.
05:41For a bunch of people where the mission is not yours, I think that should scare you too.
05:45So this is financial defense. It keeps you in the game.
05:47But here's the paradox. Defense doesn't win championships.
05:50So yes, cutting Starbucks might save you $5 a day, but nobody builds generational wealth by skipping lattes.
05:55You can cut until you're blue in the face.
05:57And the best you'll achieve is being comfortably not broke.
06:00You know what keeps me up at night? That I wasn't made for this.
06:03Which brings us to the other side of the equation.
06:04Part four, the power of production.
06:06When it comes to wealth, offense wins.
06:09If you think the life I'm chasing is crazy, one of freedom and possibility,
06:12I think the life most people accept is crazy, one of monotony and boredom.
06:16Warren Buffett didn't become one of the richest men alive by skipping lattes.
06:19Elon Musk didn't become a billionaire by skipping brunch.
06:22They both mastered their burn, yeah, but the real wealth came from production.
06:26Production means creating value and capturing part of it.
06:29It looks like identifying a problem, creating a solution, delivering that solution at scale.
06:34It's often called the cash flow quadrant by Robert Kiyosaki,
06:37which categorizes four primary ways people earn income.
06:40Employee, self-employed, business owner, investor.
06:43The first two, you work for other people.
06:45The second two, the money works for you.
06:48That's it. It sounds simple, but it's the one thing school never taught you.
06:52Because schools weren't designed to teach you to build wealth.
06:54They were designed to produce workers.
06:56Dependable, disciplined, compliant workers.
06:59It's why only 6% of Americans run a business profitably.
07:02That's why we were taught how to write resumes, but not balance sheets.
07:05Why we learned quadratic equations, but not compounding interest.
07:08Because if everyone knew how to play the money game, who would clock in?
07:12Part five, the hidden rules of the game.
07:15So what are the real rules?
07:16The ones the wealthy quietly exploit.
07:19They can be boiled down to five concepts.
07:21Compounding, the most powerful force in finance.
07:24Your money earns money, which earns money, and so on.
07:27Time is your multiplier.
07:29Start early, the game bends to your will.
07:32Leverage, using tools, capital, technology, media, or people to multiply your efforts.
07:36While you trade hours for wages, the wealthy trade systems for outcomes.
07:41Ownership, the rich don't just work for businesses.
07:44They own them. Equity, not wages.
07:46That's where wealth accumulates.
07:48Taxes.
07:49The wealthy don't just earn differently.
07:50They're taxed differently.
07:51Workers pay the highest rates.
07:53Owners, investors, and asset holders use the system itself as a shield.
07:56Income streams.
07:58The average millionaire has seven streams of them.
08:00Capital gains, buying and selling stocks at a profit.
08:03Interest income, which is lending money.
08:05Earned income, working a job.
08:07Profit income, flipping.
08:09Rental income, renting a property.
08:11Dividends, buying dividend-paying stocks.
08:13And royalties.
08:14These are your rails to income.
08:16These rules aren't secret.
08:18They're just not taught.
08:19And because they're not taught, most people don't play them.
08:21Many people ask me, Cody, 9 out of 10 businesses fail.
08:24Why would you even start?
08:25Because do you have another choice?
08:27If you don't play, you end up back in the race.
08:29Remember, the average person lives 78.4 years.
08:33That's 78 summers, 78 falls, 78 birthdays, that's it.
08:38It scares me to think about wasting even one.
08:41Part 6, From Player to Architect.
08:44So how do you stop being a pawn on the board
08:46and start becoming the one who makes the rules?
08:48It starts with a mindset shift.
08:50Stop seeing your income as a paycheck.
08:52Start seeing it as fuel for freedom.
08:53If you earn wages, great.
08:55That's your seed capital.
08:56Use it too.
08:56Escape the consumption trap.
08:58Build your emergency fund.
09:00Buy yourself time to think and plan.
09:01Channel the surplus into production.
09:03Invest in assets and businesses and ownership,
09:06even if it's just a slice.
09:07Because in the long run, ownership is the only escape
09:10from the race.
09:11The rat race doesn't end by running faster.
09:13It ends by changing the game you're playing,
09:15by realizing that action is the fundamental key to all success.
09:19Part 7, Your Next Move.
09:20Here's your roadmap.
09:22Audit your relationship with money.
09:23Write down every single dollar in and out.
09:26Shine a light on the numbers you've been avoiding.
09:28That's how you stabilize, build your budget,
09:30create that fund, get out of high interest debt.
09:32Once you shift focus, you can have stable,
09:36instead of obsessing over only cutting.
09:38You start thinking about creating.
09:40Then you move to producing and owning.
09:41Whether through a side hustle, a small business,
09:43or equity in your job,
09:44find a way to own a piece of the value you create.
09:46Then you learn the rules.
09:48Study compounding.
09:49Learn leverage.
09:50Understand taxes.
09:51The earlier you master these,
09:52the faster the game tilts in your favor.
09:54Then remember God gave you this mindset for a reason.
09:58And you know this truth, the time is always now.
10:01Because money is not evil.
10:02It's not good.
10:03It's simply a mirror.
10:04A reflection of the choices we make.
10:06The same hundred dollars can buy drugs,
10:08or fund your kid's future.
10:09The same paycheck can be consumed on liabilities,
10:12or invested into assets that compound.
10:15Same tool, different outcome.
10:16Most people spend their lives as players in a game
10:18they never designed.
10:19But you don't have to.
10:20Because once you understand the hidden rules,
10:22once you realize the system was never built to make you free,
10:25you can start building your own system.
10:27And when you do, you stop being a pawn,
10:29and start becoming the architect.
Be the first to comment