Why Rich People Don't Spend Their Own Money (And How They Get Away With It)

What's up, family? Listen here, today I'm going to talk about something that most people will never learn, and honestly, it's the reason why some people stay broke no matter how much money they touch. I was talking to my daughter about this, and I was explaining to her why so many people can win the lottery, they can inherit money, they can get a big settlement and 3 years later they will still end up right back where they started. But somebody else can start with almost nothing, and in about 5 or 10 years they've turned that into something gigantic. And the difference is never the money. I want you to hear this. It is the mind behind the money, because wealthy people use one tool that poor-minded people never even think about, and that tool is leverage. And that's what I want to break down today, is the difference in a real honest eye opening way so that you can stop thinking like a consumer and start thinking like a wealth builder. Now, here's a quick reminder for you before we get into this. This is not financial advice. I'm just sharing what I've learned, what I've lived, and what I've seen wealthy people do to protect and grow their money. And if you love conversations like this that help you build your wealth and mindset, please do me a favor and hit that like button. And if you're not already subscribed, make sure you subscribe and turn on your notification because I'm going to be dropping videos like this all throughout the week to help you think sharper and move smarter. Now let's start right here because this part, whoof, listen, it's uncomfortable, but I'm gonna tell you the truth. When someone with a poor mindset suddenly comes into money, let's say they got $2 million, their first thought is usually going to be— I'm not even going to say usually— if they're poor-minded, their first thought is going to be, what can I buy? It's going to be, hey, we made it, we made it out the hood, I'm gonna get the car, the house, I'm gonna go get the designer clothes, I'm headed for vacation. Uh, they gonna have the take care of everybody syndrome. Let me upgrade my life overnight without even thinking about it. And listen, there's nothing wrong with wanting nice things. I always say that. And there's nothing wrong with wanting to enjoy your life. Who wouldn't want to enjoy their life? But here's the problem that most people are not talking about, and it's that it's one thing to buy a lifestyle is a whole nother thing to be able to sustain it, okay? Because a big house does not just cost money once. I know that's what you think, but it ain't what it is. It costs money every single month. You got to pay taxes, you got to pay insurance and maintenance and repairs. And man, those repairs are expensive when you have a big house. The same with cars, you know, if you're buying a luxury car, it's going to come with some expenses. And the same also with just living large. Most people can afford the purchase they can't afford the pressure that comes after the purchase. So they burn through the money real fast because guess what? They ain't got no plan. They ain't got no strategy. All they doing is reacting, not even thinking. And that's exactly why lottery winners lose their entire jackpot in like 3 to 5 years. It's statistical, it's research, and it's not the money that's the issue with the people who lose it. It's the mindset. When your mind is programmed for consumption instead of creation, it doesn't matter if you get $10 or $10 million, you're going to treat it the same way. So now, so now let's flip it. Let's talk about what happens when someone with a wealthy mindset comes into money, because it's the complete opposite. See, when a wealthy-minded person gets, for example, $2 million, their first thought is not, what can I buy? Their first thought is, how can I leverage this? Let me say that again. How can I leverage this? They're not running out to upgrade the house or buy the latest car or impress people who don't even care. Okay? They are not thinking about spending it all. They are thinking about positioning. And that's because a wealthy person looks at money like a tool, not a toy. They're not emotionally attached to it. They're strategic with it. They understand that the goal is not to spend the $2 million. That's actually the goal, to not spend it. The goal is to build systems that turn $2 million into $10 million. So here's how their mind works. And this is where everything changes when you start thinking like this. The first thing you have to think is, how do I protect this and grow it at the same time? Now, that's a challenge. So here's some examples. You might park it somewhere earning interest or yield. You might, uh, move things strategically for taxes. You might put it in assets instead of liabilities. You might position it inside something that appreciates or put it somewhere that you can borrow against without ever touching the original money. That is leverage. Wealthy people don't use their own money to buy their lifestyle. They use cash flow from their assets. They live off the fruit and not the tree. A lot of people cutting down the tree, and guess what? The fruit gonna fall with it. You're not gonna have nothing to be able to live off of. So while the average person is out buying a big house, a wealthy-minded person is saying, if I put this money in the right place, it'll pay me enough to buy the house, and I'll still have the asset, and it will still appreciate. Different mindset, different results. And here's the most important part with this: a wealthy-minded person isn't in a hurry. They don't rush because rushing is how you lose money. Money is moved from the impatient to the patient. They take their time, they strategize very quietly, they plan privately, and they build silently because their goal is not to look rich. The goal is to never be broke again. Which one do you want? That's why you'll see somebody with a wealthy mind turn a little bit of money into a lot, while somebody with a poor mindset turns a lot of money into nothing. It's the mind, not the money, that multiplies. So let me go into detail and break down what leverage actually looks like, because a lot of people hear that word and immediately think debt, danger, risk, loans, and all that scary stuff. And I was able to break this down even to my teenage daughter. And that's why I'm having this conversation with you, because when I talked to her, even she said, man, why don't everybody live like this? And I told her, my people perish from a lack of knowledge. They just don't know how. So back to what I was saying, leverage is not debt or risk or danger and all of that. But when wealthy-minded people talk about leverage, They're not talking about reckless borrowing. They're talking about a strategy. They talking about putting their money somewhere it can work harder than they do. Let me show you how their brain works simply and very clearly so you can understand, just like my teenage daughter did. When a wealthy person gets a lump sum of money, here's the first thing they think: where can I put this money so it grows by itself? So again, I want to reiterate, they're looking for yield, they're looking for appreciation, they're looking for cash flow. Before they ever spend a dollar, the money is already in a position to produce more dollars. Let's get more specific. In a high-yield interest account, they might park it inside a brokerage and buy stock, maybe inside a trust, inside of real estate, inside business equity, inside an investment with tax advantages. Uh, um, some people will just put it inside of a, a profitable business and get the cash flow from the business. As a matter of fact, a good strategy they might use is they might borrow debt from one asset right, at a smart loan-to-value ratio. Then they take that and they go and put it into a profitable business. And that money that they took out is not taxed because debt is not taxable income. And so then they put it in another business and now they're generating cash flow from this business and that business is also appreciating. So they got two appreciating assets from borrowing money from one asset into another and now they have cash flow and they can rinse and repeat as much as they want to. And this is why they do this, because they know something most people do not know. Money sitting still is money shrinking, but money placed strategically can multiply. Then, and this is the part that most people do not know, so I'm gonna say it again 'cause repetition is important. Wealthy people live off the cash flow their asset produces, not the actual money they started with. So let me say this again. They'll borrow money against a percentage of their asset value at a low interest rate and use that money to buy the lifestyle. Why? Because when you borrow against your assets instead of selling them, I want this to be clear to you. You avoid taxes, your asset keeps growing, you keep ownership, you keep appreciation, and you keep control. And that is leverage. You're using what you have without losing what you have. Meanwhile, the average person sells the original asset to buy the lifestyle and loses everything, the principal and the future growth. Wealthy-minded people say, hey, let my money stay planted, let the fruit pay for my life. And that's how rich people stay rich and pass their assets from generation to generation. That's how they protect their money. That's how they multiply without starting from scratch every single year. They're not smarter. They just train differently. They've learned how to make money, do all the heavy lifting so that they don't have to. And it becomes easier and easier as time goes on. And that's why you might hear somebody say it's easier to make $100 million than it is to make $1 million, because that $1 million is just hard. It takes a lot of your effort, it takes a lot of your work. But once you get that first $1 million, it's much easier now to generate and to move it into $10 million. Why? Because you have leverage. You have the option of leverage, and you didn't have leverage at first. You just working it out and trying to do your own thing. And so I hope that this is sinking in, that wealth has everything to do with mindset, because if you take someone with a poor mindset again and give them $10 million, you know what happens? They're gonna gonna go eventually broke. It might take 3 years, maybe 5, but it will happen. But if you take someone with a wealthy mindset and give them $10 million, they're gonna turn that $10 million into something big over time, because the mind is the machine and the money is just the material. And that's why people who are just given money all at once, they're gonna lose it, because they never grew the mind required to manage it. And that's why athletes, entertainers, celebrities who make millions can end up in bankrupt the wrong way because income is not the issue. Identity is. If your identity is rooted in scarcity, insecurity, or impulse, your money's gonna mirror that. But if your identity is rooted in discipline, strategy, vision, and patience, your money is gonna mirror that instead. And that is why wealth is predictable. It is not luck, and it's also not blessing without stewardship. It's not a miracle with no management. It's the mindset, the inner world, the calm logic you build inside of yourself. Someone with a wealthy mind will always outpay someone with money but no discipline, because wealthy people don't look at money emotionally. They look at it mathematically. They don't ask, what can I buy? They ask, what can I build? And that's the difference between being rich and being wealthy. Richness is a moment. Wealth is a mindset. All right, family, I hope that this opened your eyes even a little bit. And if it did, please go ahead and like this video and subscribe if you haven't already. Share it also with someone who needs to hear this. We need to share this knowledge. We need to empower other people. I'm gonna continue to talk about wealth and mindset every single week. And trust me, these conversations are gonna change the way you move through money and life. I'm gonna give you practical insight and wisdom to how to build your wealth. And I wanna hear from you in the comments. If you got $2 million today, what's the first thing that you would do? Be honest. It's okay to be honest because then you can evaluate and you can bring awareness to yourself. All right? Your answer will tell you a lot about where your mindset is right now, and that is the only way that you're gonna be able to change it. All right, don't forget to check the links in the description. We got some powerful resources down there, our community link if you want to grow with people who think long term, and we got some tools and programs that's going to help you increase your wealth IQ. And of course, the 90-Day Wealth Challenge for those who are ready to go deeper, transform your mindset, and build real financial confidence. Because remember, money isn't the key to wealth, Your mindset is, and when your mind is right, everything else is going to follow from there. All right, family, stay wise, stay grounded, and keep building wealth the healthy way. I'll see you in the next video.