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In this video, we break down why the rich keep cash, and it's not because they're afraid of investing, it's because it lets them buy when everyone else is forced to sell. We cover 2 of the 10 institutional money strategies the top 1% use.

Never think of your emergency fund as an expense, think of it as a weapon. When the market crashes, most people are forced to sell their investments to pay bills. The wealthy do the opposite, buying great businesses and assets at huge discounts while everyone else is panicking.

Before buying anything expensive, the wealthy ask themselves one question: "Am I paying with my salary, or with my investments?" They spend the returns from their assets, protect the original investment, and let it keep generating more money. That's how wealth compounds for decades.

These are 2 of the 10 institutional money strategies covered in this series, explaining how the wealthy negotiate better deals, avoid lifestyle traps, build cash-flowing assets, and create wealth that survives recessions.

This is Part 20 of The Money Formula's Millionaire Behaviors series — subscribe for daily videos on money mindset, wealth building, and financial freedom.

This content is for educational purposes only and is not financial or investment advice.

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Transcript
00:00How to become a millionaire, part 20. Most people think rich people keep cash because they're afraid
00:05of investing. The truth is, they keep cash so they can buy when everyone else is forced to sell.
00:12Here are two wealth strategies the top 1% use. Lesson 1. Never think of your emergency fund as
00:19an expense. Think of it as a weapon. When the market crashes, most people are forced to sell
00:25their investments to pay bills. The wealthy do the opposite. Because they have cash ready,
00:30they buy great businesses and assets at huge discounts while everyone else is panicking.
00:35Lesson 2. Before buying anything expensive, ask yourself one question. Am I paying with my salary
00:41or with my investments? The wealthy spend the returns from their assets. They protect the
00:47original investment and let it keep generating more money. That's how wealth compounds for decades.
00:52But here's the thing. These are only two of the 10 institutional money strategies covered in the
00:58full breakdown. The remaining strategies explain how the wealthy negotiate better deals, avoid lifestyle
01:03traps, build cash-flowing assets, and create wealth that survives recessions. Watch the full video.
01:10The link is in the pinned comment.
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