5 Money Rules You Must Know To Build Your Wealth

These five things are laws. They will never change. They will always be the same. And if you do them, you will make more money. Recently, a friend that I've known for some time made a comment to me and he said, I hope that some of your financial wisdom rubs off on me. And I've been friends with this person for some time now and I've had enough time to examine and evaluate his mindset and how he thinks about wealth, how he thinks about spending money, how he thinks about savings. And it made me pause and reflect on the lessons that I wish I could have given him when he was growing up or at the beginning of his journey, the beginning of his career. The rules or the mindsets that if you follow them, lead to success. This is based in not what I read in books, but things that I learned over 20 years of seven figure successes, eight figure successes, seven figure failures, six figure failures, and all of the things that I accumulated along the way. So I'm just going to walk you through these five lessons. The first being that nothing happens until something is sold. This came to me as I was talking to this friend who was asking for some of my financial wisdom to affect him because he was sharing with me how hard he works, how hard he's worked at other companies, how he is often the first to show up in the last to leave. But he had never been in a revenue producing role. He was in a role that was about making things work smoother. It was about working behind the scenes. Very important stuff. Believe me, as somebody who employees and works with people who make things happen behind the scenes, I know how important these are. In fact, I really can't do my job unless I have people supporting me making sure that things are happening smoothly. But nothing happens in terms of growth, nothing happens in terms of wealth accumulation, nothing happens in terms of cash flow until things are sold. And a way to think about this is that when someone buys something, that is the point at which they are voting to say this is valuable for me. But nothing happens in true productivity until something is sold. So if you're working a job or if you are starting a business, the way that you accumulate more upside, the way that you accumulate more wealth faster, is to think about the activities that eventually lead to sales. Now, I don't mean to insult your intelligence by telling you this, but I know a lot of people who feel frustrated that they're not getting ahead and they're working really hard. But if you're working hard in a role that is not revenue producing or doesn't touch the customer or doesn't lead to more sales, then the best shot that you have at getting a raise or making more money is asking your employer to give you more money. And so when you're at the beginning of your journey, if you're early in your life, if you are building a business, the only thing that directly contributes to what you take home to the amount of money that you make is where you impact a sale to an end customer. If you want to be rich, if you want to accumulate millions of dollars over the course of your life, then you have to look at that endpoint. How do I contribute in a way to where the end user says, I want this. This is valuable for me. The second lesson is related, and it's that there is an inverse relationship between security and upside. And so it is nearly impossible to pursue security, to pursue predictability and ride the upside. That doesn't exist. But if you go back to lesson one and you think about how I can contribute in a way that leads to direct revenue for the company, you can thread the needle in having some security. If you're not an entrepreneur and having a piece of the upside that you contribute, if you're an entrepreneur like I am, then the way that you have some predictability and upside is getting good at sales, is getting good at a scalp skill set that leads to sales. It's getting good at marketing, it's doing the things, developing a skill set that you can rely on in order to have the upside and have the predictability because you're good at it. That is the only way that you can have some semblance of both being good at the thing that drives upside. So if your dream is to get rich, to make a lot of money, you have to be okay not having predictability. If you want upside, you are sacrificing predictability. And you have to decide if you're okay with that. You have to decide if you're okay with the downside, the potential for loss. That leads me to my third point, and that third point is that as a rule, things tend to go up, things tend to get bigger, things tend to expand. When I was seven years old, I remember having this conversation with my dad at the dinner table. And I remember telling him that I wanted to make all the money in the world. And my dad said, do you know how much money that is? How much money is all the money in the world? He said, it's a trillion dollars. I'd never heard that number before seven years old. But if you look it up, now it's actually true. My dad was right. Well, today, 30 years later, Apple, the company is worth $3 trillion. There's now $100 trillion in the world in our lifetimes, at some point we will hit about a quadrillion dollars. There will be more money in the world, more abundance, more opportunity in 10 years than there is today. The government will probably be bigger, even though I don't want it to be because I'm a crazy libertarian who thinks the government should be as small as possible and say the hell out of our lives. It will probably get bigger over the next 10 to 20 years than it is now. There will be some inflation. There will be prices that go up. Things tend to go up and they tend to get better, they tend to get faster. There tends to be more innovation. This is stock market tends to go up. What does that mean? Practically, it means invest. It means that even though there's an inverse relationship between predictability and upside, bet on the upside. Even though the stock market may not be predictable, it's probably going to go up over time. It means that even though real estate can go through down cycles, over the long term, it tends to go up. It means that if you sell physical stuff like I do, if you sell E commerce, it means that as you improve in your business, the price and your profits will probably go up. It means that if you develop a skill set now, you will probably get better at it in the future. So plant those seeds now. So, number one, nothing happens until something is sold. So put yourself in a position to affect the revenue and the cash collection of where you work or the business that you're in. Otherwise you're kind of wasting your time. Number two, there's an inverse relationship between predictability or security and upside. And three, over time things tend to go up. So you might as well bet on that upside. The fourth lesson is, since things tend to go up, if you want to build wealth, you have to own things. You don't build wealth without owning anything. My playbook for doing that is you choose a person that you serve, one core person that you want to make a difference in their life, and then you launch four products to that person. You choose four products that you know that they would buy. They might already buy those products, make them for sale, you get them made, you put them for sale. You get them to 25 sales a day. That's 100 sales a day. At 30 bucks, that's $3,000 a day. That's a million dollar business. And that's a business that you can sell because you own the business. You build wealth by having things that go up in value that can be sold to someone else. Businesses have the biggest inverse relationship between security and upside. So they can go up with the most value. That leads us to lesson number five, which is that value is subjective. Value is a story. Value is made up. Money is a concept. Price is a concept. Value is a mental construct. It doesn't actually exist. The price of something is 100% determined by someone else's willingness to pay for it. This is why art is worth millions of dollars. It's only because someone else has a subjective value placed upon it. And you could do things like the government does, or you can incentivize certain things that you put more money into that sector. But value is completely subjective to the person who is willing to pay for it. That means that the price that you sell your services or your product or your company is simply a story. It's made up. You know, when we value stocks, when we value companies on the stock market, what we're really doing is we are looking at what the last price that someone else paid for a share in that company. So when we look at Tesla being worth $500 billion or a trillion dollars, what we're really doing is we're saying the last person who bought a share in this company bought it for $250. So all shares are worth $250, times that by the number of shares. And this is what that company is worth. That's what the stock market is. Someone else saying, I think it's worth this. And therefore all of your stock is worth this too. It's made up. It's a story. When you go to sell a company or a house, what determines if you get a million dollars or $10 million? Now, there's some fundamentals that play into this, of course, because it's hard to tell a story that a company is worth $10 million when you have no revenue. But it does happen. Why does it happen? It happens because the buyer is buying the talent that works for that company. They buy it because there are customers that would fold over nicely into the buyer's business. It's because they have skill sets that they want to acquire. It's not just the numbers times 5 or times 10. It's not just the profit times whatever number you're going to sell it for. It's a story. It's subjective value. What determines your salary. It's a story. It's what your employer believes that the value that your position will bring to the company. But again, if you know that nothing happens until something is sold and you therefore negotiate that you're going to get a piece of the upside, you could probably make more money if you take less predictability and ride more upside. If you're confident that you're going to produce, which if you want to like make a lot of money, you have to get good at producing. Number one, nothing happens until something is sold. Number two, there's an inverse relationship between predictability or security and upside. Number three, over time things tend to go up. So bet on the upside. Number four, since things go up, own stuff. And number five, value is subjective. It's a story. We're making it up so you can create as big a pie as you want. So if you're watching this and you're working a job and you want to make a lot of money or you're a new entrepreneur and you want to hit it big, these are the five lessons that I wish somebody had taught me early in my career. Now, if you're watching this video and you are new to my work, my name is Ryan Daniel Moran. I help entrepreneurs. I help them cast a vision for a business, launch a brand, get to 100 sales a day, which is a million dollar business, and then have a multi million dollar exit. And if you're going to do that, you're betting on the upside, not on predictability. You're betting on things going up. You are betting on the fact that you're going to own something that eventually is is going to be worth a lot of money. And if you apply these principles, this is how you can basically stack the deck in order to build a company that sets you financially free for life. If you want some help, you can find the resources in the description of this video. And if you found value in this video, I'd be honored if you subscribe to it and let me know what you thought in the comments. Thanks for watching. Have a great day. I'll see you next time. Sam.