This 6-Step Formula Thats Makes People Rich (Most Never Learn It)
Published: 2025-11-30
Status:
Available
|
Analyzed
Published: 2025-11-30
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 2
Prediction
Topic
Status
An investment of $6,200 at a 20% annual return for 45-46 years could result in $20 million at retirement, demonstrating the potential impact of early investment vs. carrying credit card debt.
"So, if you are 21 years old right now and you invested $6,200, which is the average household credit card debt right now, if you invest $6,200 right now and you got a 20% return on your money and you did that for the next 45 46 years, you are going to retire with $20 million."
Pending
The speaker questions the sustainability and profitability of 'Buy Now Pay Later' services, despite their consumer-facing appeal of no interest, suggesting that the rapid growth implies a significant financial return for investors, which must come from somewhere.
"The way that they work is you can buy something now and worry about the price later. Now, the pitch to consumers, to people, is well, you don't have to pay any interest. It's kind of like the housing market back in the day, right? It rhymes. History rhymes, right? But the whole idea that they say is you don't got to pay any interest? Just pay it off over, say, 12 months or 6 months, which doesn't seem like a bad idea. Why would I want to pay $1,000 for a laptop today if I could just pay it off in installments and not pay any interest for the next 12 months? Yeah. Well, if that's the case, why is it such a fast growing industry? I mean, no one's going to invest billions of dollars into something if they're not going to see any sort of financial return."
Correct
Failure to pay off 'Buy Now Pay Later' purchases within the agreed interest-free period results in substantial fees and high interest rates, akin to credit card debt.
"If you don't get past your if you don't pay it in your 12 months, then what? So, that's the first part. If you don't pay it off now, you get slapped with a very very hefty hefty fine, a very very hefty fee where now you're paying a massive interest rate essentially like a credit card."
Correct
There has been an unprecedented surge in credit card debt in recent months.
"And so over the last number of months, we have seen the fastest growth of credit card debt in the history of time."
Correct
Financially, it is more advantageous to invest money and earn an 8% return than to pay off a mortgage with a 5% interest rate, as this strategy would yield a higher overall return.
"The simple math is if your mortgage is costing you say 5% a year and you can get a 8% return on your investment, you can invest your money, get a better return, pay off your mortgage, and have some money in your pocket. It's a no-brainer. So, if you can invest your money, get a better return. Why would you not do that?"
Correct
For those seeking significant wealth and a lavish lifestyle, investing in markets, business, education, or oneself offers a potentially higher return than a guaranteed 5% return from paying off a mortgage.
"If you want to live big. I want to have the nice stuff. I want to have the big things. I want to be flashy. Nothing wrong with that. Like you, I want to have it all. Okay, that's fine. Then you don't want to be trying to get a 5% return. You want to invest this money in the markets. You want to invest this in your business. You want to invest this in your education. You want to invest this in yourself because now you can get a much better return."
Pending
A personal rule suggests that if one cannot afford to purchase five units of an item, they cannot truly afford to purchase a single unit, implying a need for significant disposable income beyond the immediate purchase price.
"The simplest things to do is now to understand the difference between being able to buy something and being able to afford something. And one of the things that I like to say is just follow my rule of five. If you can't buy five of them, you can't afford one of them."
Pending
The internet has made it highly accessible to start side hustles in various fields such as virtual assistance, copywriting, design, and video editing.
"So much more accessible now than ever before. I mean, you can go on to the internet, become a virtual assistant, you can become a copywriter, you can become a a designer, you can become a video editor."
Correct
The speaker has spent over $250,000 on Upwork in the last 2-3 years hiring freelancers, highlighting the significant growth and opportunity in the freelancing sector.
"I have paid. So, Upwork, they're not paying me. Upwork is a platform that I use to hire freelancers. And I did a video on this, so I looked this up. In the last two years or three years, I have spent more than a quarter million dollars on Upwork alone. Wow. Praying on different individuals, different individuals just hiring people in different areas who don't work for me. They work on their own schedule because now this freelancing business has grown so much."
Correct
When pursuing a business idea, prioritize investing in one's mind and education, and aim to invest minimal capital until revenue generation begins.
"If you have a business idea, invest in it. First, invest in your mind, invest in your education, and then try to do it. You want to invest as little money as possible until you start generating revenue."
Correct
The speaker successfully launched a sock company for under $3,500 by leveraging communication and partnerships, significantly lower than the typical $100,000+ cost for product manufacturing and prototyping.
"I started a sock company a number of years ago when I was trying to figure things out and it was a waterresistant sock. Yeah. Yeah. And the interesting thing was I knew nothing about socks. How do you manufacture socks? How do you make them waterproof? And so I was working with textile engineers. I was working manufacturing companies. I was working with a lot of different people. I didn't have a lot of money and they wanted and now we're talking about a real product. So I learned to talk and essentially I did not I think my total cost to build my first round of socks was $3,500. still a lot of money, but relative to what if you want to manufacture products and create a product to go through the prototype after prototype to prototype, right? It costs typically $100,000 plus."
Correct
The speaker successfully launched their event planning company and the 'Minority Mindset' brand with minimal capital, under a few hundred dollars and using a cell phone for video creation.
"My first business I started with nothing essentially when I started my event planning company. I started minority mindset with under a few hundred dollars when I was making videos off my cell phone."
Correct
Credit card debt is experiencing the fastest growth in history in the months leading up to the transcript date.
"And so over the last number of months, we have seen the fastest growth of credit card debt in the history of time."
Correct
The Buy Now Pay Later sector is experiencing rapid growth, making it arguably the fastest growing segment in fintech over the past few years.
"Buy now pay later with the last couple of years is arguably the fastest growing sector in fintech."
Correct
Investing the average US household credit card debt of $6,200 at age 21 with a 20% annual return could result in $20 million by retirement without further investment.
"If you invest $6,200 today and you never invest another penny again at 21 and you get a 20% return on your money, you're going to retire with 20 million."
Pending
Interest rates on credit cards can range from 15% to 28% and are charged monthly.
"Well, that's at 15 to 25 28%. And that's every month. Every month you're paying that."
Correct
The fastest growth of credit card debt in history has occurred in the recent months leading up to the transcript.
"And so over the last number of months, we have seen the fastest growth of credit card debt in the history of time."
Correct
Following the reopening of the economy in late 2021 and into 2022, people began spending due to pent-up demand and inflation, leading to increased expenses.
"And then towards the end of uh 2021 into 2022 was the economy opened back up. People started spending. You wanted to go out and you know this pent-up demand. You want to start traveling. You want to eat out again. You want to have fun again. Fine. But then we were also hit with inflation. Everything is so expensive now."
Correct
The fastest credit card debt paydown in history occurred in 2020 due to reduced expenses during the pandemic.
"Because in 2020, when the pandemic hit, we saw the fastest payown of credit card debt ever."
Correct
If the return on investment (e.g., 8%) exceeds the mortgage interest rate (e.g., 5%), it is mathematically advantageous to invest the money rather than paying off the mortgage early.
"The simple math is if your mortgage is costing you say 5% a year and you can get a 8% return on your investment, you can invest your money, get a better return, pay off your mortgage, and have some money in your pocket. It's a no-brainer."
Correct
The freelancing market has grown significantly, offering opportunities to earn money by providing services.
"And so there's a lot of opportunity there where now you can if you can present a service, you can make money doing that."
Correct
Numerous online opportunities exist for starting a side hustle, including roles like virtual assistant, copywriter, designer, and video editor.
"I mean, you can go on to the internet, become a virtual assistant, you can become a copywriter, you can become a a designer, you can become a video editor."
Correct
It is possible to start a business with very little capital, as demonstrated by an event planning company and the 'minority mindset' initiative which began with under a few hundred dollars and cell phone videos.
"My first business I started with nothing essentially when I started my event planning company. I started minority mindset with under a few hundred dollars when I was making videos off my cell phone."
Correct
When starting a business, prioritize investing in your knowledge and education, and minimize financial investment until revenue is generated.
"If you have a business idea, invest in it. First, invest in your mind, invest in your education, and then try to do it. You want to invest as little money as possible until you start generating revenue."
Correct
The speaker started a waterproof sock company despite having no prior knowledge, collaborating with textile engineers and manufacturing companies.
"I started a sock company a number of years ago when I was trying to figure things out and it was a waterresistant sock. Yeah. Yeah. And the interesting thing was I knew nothing about socks. How do you manufacture socks? How do you make them waterproof? And so I was working with textile engineers. I was working manufacturing companies. I was working with a lot of different people."
Correct
The initial production cost for the speaker's first round of waterproof socks was $3,500, significantly less than the typical $100,000+ cost for product prototyping and manufacturing.
"I think my total cost to build my first round of socks was $3,500. still a lot of money, but relative to what if you want to manufacture products and create a product to go through the prototype after prototype to prototype, right? It costs typically $100,000 plus."
Pending
The speaker spent over six figures ($100,000+) on top blog managers to handle their blog.
"And they charged me a lot of money, like as in six figures plus, $100,000 plus to manage the blog."
Pending
An additional $100,000 was spent on blog content creation over a 12-month period.
"at least another $100,000 on blog content over the course of 12 months."
Pending
Despite significant investment in outsourced blog management and content, no results were achieved over 12 months.
"And guess what? No results. Zero. Nothing."
Incorrect
After firing the previous managers, a new blog strategy was implemented at a fraction of the previous cost, leading to growth and revenue generation.
"And so, we built a brand new strategy. It costs us a fraction, like a teeny tiny fraction of what we were paying before bigger results. And we're our blog is growing. We're generating revenue now."
Pending
The key to wealth building is to significantly increase income and investments while keeping expenses relatively stable.
"You want to increase your income and your investments way more."
Correct
Employees who are happy in their jobs should actively seek raises, promotions, and bonuses by communicating their desire to contribute more and asking for actionable steps.
"If you like your job, look for ways to get a raise, to get a promotion. See how you can get a bonus. Just be open with your boss. Say, 'Hey, look, I want to be able to contribute more. I want to earn more money. What can I do?'"
Correct
Employees can increase their income by demonstrating value to their employer, such as increasing revenue, saving time, or creating efficient systems.
"what value can you bring to the business to bring in more money for the business or save more time or create some system."
Correct
Businesses are willing to increase an employee's salary if the employee can demonstrably generate significant additional profit (e.g., $10,000) for the company.
"I mean, if you can bring in an extra $10,000 a year to the business of profit, they're not going to have a problem paying you $5,000 or whatever it might be, right?"
Correct
The 'Buy Now Pay Later' sector has become arguably the fastest-growing segment within fintech over the past few years.
"Buy now pay later with the last couple of years is arguably the fastest growing sector in fintech."
Correct
Buy Now Pay Later options encourage increased consumer spending, leading to individuals accumulating debt for purchases made over extended periods.
"So it allows people to spend even more to lock in all the stuff. So you have a whole bunch of stuff and all your money is going out to pay for the stuff that you bought yesterday, a year ago now, a year ago."
Correct
Mindset and financial education are critically important for managing finances effectively.
"The mindset, the education, it is so so so crucial."
Correct
Paying off a mortgage early offers a guaranteed return (equal to the interest rate), whereas investing in the market carries inherent risk of loss.
"Because when you pay off your mortgage, you get a guaranteed 5% return on your money. Because now if you pay it off a year early, you get a guaranteed 5% return. Versus when you invest your money, it comes with risk."
Correct
Paying off a mortgage can lead to financial freedom and peace of mind by eliminating a significant recurring expense.
"Do you want to say, you know what, I just don't want to have to worry about my mortgage payment. I just want to be financially free, never have to stress about money, and just be okay. then pay down the mortgage because now once you pay down the mortgage, your biggest expense is gone."
Correct
A personal finance rule suggests that if you cannot afford to buy five of an item, you likely cannot truly afford to buy one of it.
"If you can't buy five of them, you can't afford one of them."
Pending
Financing a home is presented as the only acceptable liability, unlike other consumer goods.
"A house is the one exception here where, you know, when it comes to your liabilities, that's the only liability that would say it's okay to finance."
Correct
The concept of 'interest-free living' is introduced as a financial goal.
"interestfree living."
Correct
To build wealth, individuals should aim to increase their income and investments while maintaining their current lifestyle expenses.
"You want to increase your income with your investments and keep your expenses the same."
Correct
Starting a side hustle has become significantly more accessible than in the past.
"So much more accessible now than ever before."
Correct
The speaker has spent over $250,000 on the Upwork platform for hiring freelancers in the past two to three years.
"In the last two years or three years, I have spent more than a quarter million dollars on Upwork alone."
Pending
A carrot cake business operating through Instagram is generating approximately $700 to $1,000 per month in revenue.
"They're making a good I don't know how much maybe I think it's like 700 or $1,000 a month selling carrot cakes from Instagram."
Pending
When starting a business, the primary requirement is the right mindset, rather than an abundance of tools.
"Like again, mindset versus tool set. We assume that we need all these tools to start doing it, but the reality is the first thing you need is your mind."
Pending
The 'Minority Mindset' project was initiated with under a few hundred dollars, utilizing a cell phone for video creation.
"The minority mindset with under a few hundred dollars when I was making videos off my cell phone."
Correct
Achieving goals requires hustle, creativity, consistent action, strong relationships, effective communication, and a proactive approach.
"You just need some hustle, some creativity, some action, some consistency, some relationships, some communication and just making stuff happen."
Pending
The hustle mentality is a crucial trait that cannot be taught through books but must be experienced and lived.
"that hustle mentality is so crucial and you can't teach that. You can't read that in books. You have to actually live it."
Unrated
Savings should be strategically allocated for emergencies, significant purchases, or investments.
"So you want to save your money for three reasons and three reasons only. Save your money for an emergency. Save your money for a big purchase. ... And then three, save your money for an investment."
Correct
An emergency fund should ideally cover three to twelve months of living expenses.
"You want to save somewhere between three to 12 months worth of your expenses."
Correct
The appropriate amount to save for an emergency fund varies based on individual circumstances and risk tolerance.
"The amount of money you save is going to depend on where you are in life and how much risk you're willing to take on."
Correct
The fundamental wealth formula is: Income minus Expenses equals Investments plus Savings.
"income minus expenses equal your investments plus your savings."
Correct
Savings serve as a safety net for emergencies, while investments are the primary driver of wealth creation.
"Your savings are not there to make you wealthy. They're there to protect you against an emergency. Your investments are what make you wealthy."
Correct
To accelerate wealth accumulation, it is necessary to increase the volume of investments.
"If you want to become wealthy sooner, or if you want to become a wealthier, you need more investments."
Correct
To increase investment capital, one must either earn more income, reduce spending, or implement both strategies.
"Either increase your income, decrease your expenses, or do both."
Correct
Personal outcomes are directly tied to one's mindset; a change in mindset is required to alter results.
"You cannot change your outcome without changing your mindset."
Pending
For the majority of individuals aiming for success, the key is possessing the correct mindset, which then facilitates the discovery and utilization of necessary tools.
"for 90% of people it's lacking the right mindset. Because when you have the right mindset you'll discover that the tool set is right around you."
Unrated
Believing in one's potential for success motivates proactive learning, such as seeking information on platforms like YouTube.
"because now if you say you know what yeah maybe I can become successful what are you going to do you're going to go on to YouTube watch videos how do I become successful"
Unrated
Business books, even inexpensive ones, offer significant value and can be accessed through platforms like Audible.
"there's so much wealth in a $20 business book. Just go on to Audible, look at some of the top business books and just start reading them"
Correct
Mistakes are valuable learning experiences, especially in entrepreneurship, even without formal guidance.
"Even if you make mistakes, I have learned from my mistakes. I didn't have a mentor. I didn't have guidance. I didn't have investor family members. I didn't have people telling me how entrepreneurship works. I screwed up a ton just like you. We made a ton of mistakes and that's how we learned."
Unrated
Establishing a financial foundation begins with saving at least $2,000.
"You have to start by building your financial base. And what that means financially is first you want to save $2,000 at the very least."
Correct
High-interest debts, including credit card and hard money loans, especially those with rapidly increasing APRs (e.g., 20-25%), must be prioritized for rapid repayment due to their severe financial drain.
"your high interest debts, your credit card debts, your hard money loans, your 0% APR loans, which are now charging you 20 to 25%. These need to be paid off as fast as possible because these are loans that are skinning you alive financially."
Correct
Credit cards are powerful tools that can be detrimental if not used with proper education and understanding.
"Credit cards are a tool. They are a tool. If you're not educated with them, you could get stuck. If you have this tool without the education, it will burn you."
Correct
Responsible credit card usage can yield benefits such as cash back, fraud protection, insurance, and travel perks.
"But my credit cards gives me perks. It gives me cash back. It gives me fraud protection. It gives me free insurance. It gives me hotel upgrades. It gives me all these things just because I use my credit card instead of paying with cash."
Correct
Credit card companies benefit financially from customers who are financially uneducated and prone to overspending, leading to increased debt.
"It's profitable to keep people poor. It's profitable to keep people financially uneducated because now if you just keep spending money on your credit card because you have no idea what you're doing now, your credit card company's going to get rich."
Correct
The average American household carries approximately $6,200 in credit card debt.
"The average household in America has $6,200 worth of credit card debt."
Correct
Credit card interest rates are variable and tend to increase when the Federal Reserve raises its benchmark rates.
"And the interest rate on your credit card isn't fixed rate. is variable interest rate. So, as the Federal Reserve Bank raises interest rates, the interest rate on your credit card also goes up."
Correct
The Debt Snowball method, recommended by Dave Ramsey, involves paying off debts from smallest to largest to build psychological momentum.
"So Dave Ramsey's going to tell you to do something called the snowball method. Smallest first to the biggest because you're building momentum. Right."
Correct
The Debt Avalanche method, often advised by financial professionals, prioritizes paying off debts with the highest interest rates first to minimize overall interest paid.
"A financial advisor may tell you the opposite. do the debt avalanche, which is now pay the highest interest rate first and then go down because now you're going to pay off the most interest first so it costs you the most money in the long term."
Correct
The snowball method leverages small victories to maintain psychological motivation, enabling faster debt repayment.
"The reason why Dave Ramsey recommends the snowball method is because psychologically when you get those small wins of paying something off, you feel like you're winning and you can pay it off faster."
Correct
Financial advisors focus on the mathematical efficiency of the debt avalanche method, which saves more money in the long run by targeting high-interest debts first.
"A adviser is going to look at the math and say, 'Hey, look, these numbers are telling me that pay off the higher interest rate first because it's going to save you the most money over the long term.'"
Correct
The optimal debt repayment strategy (snowball or avalanche) depends on individual psychological needs and preferences; the speaker personally favors the avalanche method.
"Which one's right? Again, I'm not going to say which one. Do what's best for you because I know if I was in a situation I'm not. I like the idea of paying down the heavy interest rate first because that's how my brain works. I don't need the small wins like that. I can work for the long term."
Correct
Savings should be allocated for three purposes: emergencies, large purchases, and investments.
"So you want to save your money for three reasons and three reasons only. Save your money for an emergency. Save your money for a big purchase. ... And then three, save your money for an investment."
Correct
Saving money should be done strategically, with specific goals in mind, rather than aimlessly.
"It means you need to save your money strategically. So, you want to save your money for three reasons and three reasons only."
Correct
The 7510 plan allocates 75% of income for spending, a minimum of 15% for investment, and a minimum of 10% for savings.
"my 7510 plan, which means for every dollar that you earn, 75 is the maximum that you can spend. 15 cents is the minimum that you invest and 10 cents is the minimum that you save."
Correct
Once an adequate emergency savings goal is met, any further savings should be redirected towards investments.
"after you hit that savings goal for your emergency savings, you don't keep saving your money for the emergency because you built that whatever months you want. You put that towards your investments."
Correct
For those who prefer not to actively manage their investments, passively investing in low-cost ETFs and index funds is a viable strategy.
"Put it into lowcost ETFs, index funds, and don't even worry about it and let it do its thing."
Correct
Prioritizing the appearance of wealth through spending on material possessions over investing hinders wealth-building goals.
"you're paying the price to look rich, which there's nothing wrong with that, but you just have to understand what your goals are. If you say, 'I want to have wealth.' You have no investments and you're spending money on all this stuff. This is where you want to rethink what you're doing."
Correct
A strategy for wealth accumulation involves investing in the companies where you regularly spend money.
"Own the company. Own the places where you're spending your money."
Correct
Purchases of luxury items like watches or cars should only be made if they can be afforded outright, without relying on credit.
"Don't go on a credit card with it. If you want a nice watch, you want a nice house, you want a nice car, fine. Just make sure you can afford it first."
Pending
Failure to pay off 'Buy Now Pay Later' purchases within the agreed-upon term results in substantial fines and interest rates comparable to credit cards.
"If you don't get past your if you don't pay it in your 12 months, then what? So, that's the first part. If you don't pay it off now, you get slapped with a very very hefty hefty fine, a very very hefty fee where now you're paying a massive interest rate essentially like a credit card."
Correct
The 'Buy Now Pay Later' model enables consumers to purchase more items, leading to a situation where their income is continuously allocated to past purchases.
"So it allows people to spend even more to lock in all the stuff. So you have a whole bunch of stuff and all your money is going out to pay for the stuff that you bought yesterday, a year ago now, a year ago."
Correct
Mathematically, it's advantageous to invest money that yields a higher return than the mortgage interest rate, rather than aggressively paying down the mortgage.
"The simple math is if your mortgage is costing you say 5% a year and you can get a 8% return on your investment, you can invest your money, get a better return, pay off your mortgage, and have some money in your pocket. It's a no-brainer."
Correct
Paying off a mortgage offers a guaranteed, risk-free return, whereas investing in the market involves potential gains and losses.
"Because when you pay off your mortgage, you get a guaranteed 5% return on your money. Because now if you pay it off a year early, you get a guaranteed 5% return. Versus when you invest your money, it comes with risk."
Incorrect
It is crucial to understand spending habits to avoid repeating past financial mistakes, such as accumulating credit card debt.
"But the key here is you don't want to put yourself back into the situation that got you here in the first place where if you have the credit card debt, you got to know how to spend your money that we don't end up there again."
Correct
Multiplier income refers to increasing earnings to accelerate the process of wealth accumulation, as dictated by the wealth formula.
"multiplier income where you know going back to the wealth formula where it's income minus expenses equal your investments plus your savings."
Correct
To significantly accelerate wealth building, increasing income is a key strategy.
"If you want to put fuel on the fire, you just got to earn more money."
Pending
The most effective way to build wealth is to increase income and investments while keeping lifestyle expenses constant.
"You want to increase your income with your investments and keep your expenses the same."
Correct
The internet provides numerous accessible opportunities for starting side hustles, such as becoming a virtual assistant, copywriter, designer, or video editor.
"So much more accessible now than ever before. I mean, you can go on to the internet, become a virtual assistant, you can become a copywriter, you can become a a designer, you can become a video editor."
Correct
When launching a business, it's advisable to minimize initial financial investment until revenue generation begins.
"You want to invest as little money as possible until you start generating revenue."
Correct
The speaker initiated their first business and 'Minority Mindset' with minimal capital, demonstrating that significant funds are not always required to start.
"My first business I started with nothing essentially when I started my event planning company. I started minority mindset with under a few hundred dollars when I was making videos off my cell phone."
Correct
Success in any endeavor requires a combination of hustle, creativity, consistent action, relationship building, communication, and a proactive approach to execution.
"You just need some hustle, some creativity, some action, some consistency, some relationships, some communication and just making stuff happen."
Unrated