Stop Acting Like A (Broke) Employee
Published: 2023-11-01
Status:
Available
|
Analyzed
Published: 2023-11-01
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Every person in America should aim to be a business owner to build wealth.
"every person in America needs to be a business owner period if you want to become wealthy you have to be a business owner"
Pending
Employers can benefit from both salary and profits of their company, while employees primarily receive salary. To build wealth, employees should aim to access profits through asset ownership.
"when you get paid with a paycheck now when you get paid you are happy when you are the employer it works kind of the same way you're putting your time into the company maybe you created this company and an change for putting you time into this company you're also getting paid with a paycheck but you as the employer also have the ability to get access to these profits"
Pending
Smart employers reinvest the majority of profits back into the company, especially in its early stages, to increase its value.
"now what a lot of people assume is oh my God I'm generating $100,000 for the company but I'm only making $50,000 see a smart employer not every employer does this but what a smart employer will want to do is take the bulk of those profits especially in the early stages of the company and put it back into the company"
Pending
Employees should use their earnings to acquire assets, and then use the profits generated by those assets to acquire more assets, thereby increasing their overall asset value.
"now what you want to do is the exact same thing you're making money from the company you use it to buy these assets as this asset makes you money you can use it to buy you more assets that way your asset can become become more valuable"
Pending
Employees should use a portion of their earnings to start acquiring assets for themselves, similar to what employers do, to generate income and build wealth.
"you want to take this money that you're generating or at least a piece of this money to start doing exactly what your employer is doing us this to start buying these assets for yourself that way you can start creating your own income and start building your own wealth"
Pending
Wealth in a capitalist system is primarily built through investing capital, rather than solely relying on labor income.
"in a capitalist system there are two ways that you can make money you can make money from your labor or you can make money from your Capital when you go to work you're making money from your labor when your boss goes to work and they get that paycheck they're making money from the labor but the way that real wealth is built through a capitalist system is by investing your Capital"
Pending
Company owners build wealth by reinvesting profits and capital back into their business, putting their capital to work.
"when your boss if they own the company when they reinvest their money into the company or they reinvest their profits back into their company now they're putting their Capital to work"
Pending
Individuals can build wealth by using their capital to purchase assets and put that capital to work.
"the same thing can apply to you but now you take some of your money you're taking your capital and use it to buy this asset now you're putting your Capital to work"
Pending
Investors can be compensated through cash flow (e.g., dividends, rental income) or value growth (appreciation of assets).
"there are two ways that you can get paid now as an investor now this the same applies whether you are the employer or whether you are investing your money into different assets and the way this get paid are through either cash flow or through value growth meaning the increase in the value of Investments also known as appreciation"
Pending
Real estate can generate income through rental payments.
"you can invest in real estate that's paying out rental income"
Pending
Stocks can provide income through dividend payments.
"you can invest in stocks that pay out a dividend"
Pending
The goal of an investor should be to make their investments as passive as possible, avoiding constant monitoring and management, which turns investing into a job.
"the key for you now as an investor is to make this as passive as possible I have other videos on my channel that go over how to do that but the key here is now is you don't want to be spending all of your time monitoring your Investments and managing your Investments because now it's not an investment it's a job"
Pending
Stock funds, ETFs, index funds, and mutual funds can be invested in to generate dividends passively.
"maybe invest in stock funds each ETFs index funds mutual funds that pay out dividends"
Pending
A company's valuation can be estimated by multiplying its annual profit by a factor, such as 10. For example, $500,000 in annual profit could result in a $5 million company valuation.
"if your company makes a million dollars a year you have half a million dollars in expenses you have $500,000 worth a profit that means your company might be worth 10 times profits that means your company might be worth $5 million if you generate half a million a year in profit"
Pending
Increasing profits can directly increase a company's valuation. If a company doubles its profit from $500,000 to $1 million, and the valuation multiple remains 10, its worth increases from $5 million to $10 million.
"now if a company can make $2 million a year in revenue and you have $1 million a year in expenses that means you have $1 million of profit now if you apply that same 10 times multiple to that profit that means now your company's worth1 million"
Pending
Investments carry risk, including the possibility of not increasing in value or even losing value due to economic factors, and gains are only realized upon selling.
"there is more risk here because there's a chance that your investment value will not go up just like with your company there's a chance your company could go bankrupt well if the value of investment doesn't go up because of the economy because of things you don't get paid until you see the value of investment go up and you sell"
Pending
High-growth companies in the stock market may reinvest all profits, and even take on debt or more investors, to maximize their growth and company value.
"if you go into the stock market you can invest into a high Growth Company a company that's making Zer dollars in profits because they're reinvesting all of their money and some by taking on debt by taking on more investors to grow the company as big as possible as fast as possible because they want to grow the value of the company"
Pending
Investing in established, profitable companies offers slower, steadier growth with less risk and upside. Conversely, investing in high-growth, aggressive companies is riskier but offers potential for faster appreciation.
"or you can invest in companies that are already established that are already making a healthy profit and now they're just trying to get the slow and steady growth the slow and steady growth is less risky but you're going to see less upside that fast and aggressive and risky growth is more risky but you have the potential to see more faster appreciation"
Pending
Cash flow from investments (like dividends) is taxable income. Appreciation of stock value is not taxed until the asset is sold.
"when you get cash flow you got to pay taxes on that cash flow if your stocks paay a dividend if you're getting profit distributed into your pocket that's taxable income versus if you see your stock price grow from $100 a share to $500 a share you don't pay taxes until you sell"
Pending
To build wealth in a capitalist system, it's essential to own a company, even if one is not actively involved in starting, operating, or managing it.
"every person in America needs to be a business owner period if you want to become wealthy you have to be a business owner you don't have to go out and start a company you don't have to go out and operate a company you don't even have to go out and manage a company but you have to own a company if you want to build wealth in a capitalist system"
Pending
Investing involves risks such as potential loss of value during recessions or market crashes, but continued investment and holding onto good assets are key to building wealth.
"investing has risks you might see your investment lose value if you see a recession your investment might go down in value if you see a market crash your investment might go down in value but the key is to continue investing and to continue holding on to good Investments because that's where the real wealth is built"
Pending
To become an 'overpaid' employee, one must understand company financials, make themselves indispensable, and know how to secure a higher salary.
"if you want to be an overpaid employee there are three things that you have to understand number one is you have to understand the company's financials number two you have to know how to make yourself Irreplaceable as an employee and then number three is you got to know how to get your piece of the pie meaning how do you get that overpaid salary"
Pending
The speaker predicts that to build wealth in America, every person must become a business owner, which doesn't necessarily mean starting or managing a company, but rather owning a piece of one.
"every person in America needs to be a business owner period if you want to become wealthy you have to be a business owner you don't have to go out and start a company you don't have to go out and operate a company you don't even have to go out and manage a company but you have to own a company if you want to build wealth in a capitalist system"
Pending
The speaker predicts that investments can lose value due to economic downturns like recessions or market crashes.
"investing has risks you might see your investment lose value if you see a recession your investment might go down in value if you see a market crash your investment might go down in value"
Pending
The speaker predicts that investing $100 in a company can lead to doubling the investment if the stock price doubles.
"if you invest $100 into a company and the stock price doubles well now you just doubled your investment"
Pending
The speaker predicts that a company generating $500,000 in annual profit could be valued at $5 million, based on a 10x profit multiple.
"if your company makes a million dollars a year you have half a million dollars in expenses you have $500,000 worth a profit that means your company might be worth 10 times profits that means your company might be worth $5 million if you generate half a million a year in profit"
Pending
The speaker predicts that a company generating $1 million in annual profit could be valued at $10 million, based on a 10x profit multiple.
"now if a company can make $2 million a year in revenue and you have $1 million a year in expenses that means you have $1 million of profit now if you apply that same 10 times multiple to that profit that means now your company's worth1 million"
Pending