Give me 52 minutes, and I'll Make You Disgustingly Good at Making Money

You're making good money, but you're not building wealth. So in this video, I want to show you the exact formula I used to build more wealth, 5 times more wealth in 10 years than I did the previous 2 decades combined. But here's where this really becomes urgent for you. You see, every year that you run the wrong formula, the gap continues to get bigger and bigger. Not by a little bit. I'm talking about exponentially. So I want to show you the math, the math that's going to probably make you sick. And here's what we're going to cover in this video, right? The single biggest wealth killer that nobody really talks about. I want to show you why the formula that your financial advisor taught you is mathematically broken. I want to show you the 5-step system that I use to actually build wealth, and you can copy as well. And then I want to give you a diagnostic that you can run on your own, on your own numbers before the video's over, so you can start to figure out where you could end up. You ready? Let's go. Okay, so before I get into the 2 formats, the 5 steps you can do and give you the diagnostics so you can see how much wealth you could build in a short period of time doing this. I want to just first start by talking about 2 different ways that you can play the game of building wealth, 2 different mindsets. And I know you're going to probably want to skip this part because you don't want to hear mindset, but this is the most important part. There's a reason why the top 10% own most of the assets and the 90% don't. And it's because the way they approach the game, the mindset they have of the game, the strategy of the game is just different. And so the 90% just don't know this, obviously, which is why they don't do it. And you might fall into that camp. So let me, let me explain what I'm talking about. You see, most people focus on building wealth through what I call a P&L mindset, a profit and loss mindset. So whether you are a W-2 worker and you think about your household budget, or you also own a business, you think about it the same way. So I have my income, right? Whatever income I have. So my W-2 job, my business, whatever. So this is the amount of money I have coming in minus My expenses equals my profit, right? So it's a P&L, my profit and loss. So whether your business is looking at this, or like I said, you're a W-2 worker, you do it the same way. And when you think this way, what happens is the goal that we all have is to try to get more income, right? We want to increase the income. So if it's personally, like, I need to get a new degree so I can get a raise in my job, I could climb the corporate ladder. Maybe you want to work overtime or you want to start a side hustle or your business. I need to start a new business line or start a new business or whatever. But all of that is focused on building more income. Some people, certainly not me, and I'm going to tell you why this is wrong. Some people want to tell you that you should also think about reducing your expenses. And of course you should, but not to the point of where you have to give up your coffee every morning. Like, don't do that. Life is hard enough as it is. Don't give up your morning coffee. But you can't save your way to wealth. You can't increase your income to wealth. So what you're trying to do is take a percentage of this profit. Most people are lucky to get 5%, maybe 10% of that, and put it into investments. And then you hope that this 5% or 10% can grow enough to have enough money when you retire. Okay, so this is what most people are doing. You're doing this. Every business is doing this. You should be looking at your P&L every month at a minimum. Okay, but there's a different game. The game that the 10% that own most of the assets play is completely different. Instead of thinking about income, what they do is they say, what are my assets? Specifically, what are my assets? More specifically, what is my equity within my assets? And then instead of trying to grow, you don't even see income's not even on here. They're not even looking at income. They're focused on growing their equity. It's a different game. It's what I call a treasury mindset. It's how you can become your own bank. It's how you can build your own personal treasury. And it's how you can explode your wealth faster than you've ever imagined, just like the top 10% that own everything do, as opposed to making more income because you can't. At some point you can't work any more hours. At some point your business plateaus. At some point you're maxed out on the income side and you have to focus on building equity. Now, for the math as to why there's a difference of these 2 games, and this one doesn't work for you and this one does, let me break this down. So let's say that I'm making $300,000 a year, right? So you've done pretty good. Like you've got a couple degrees, you've climbed the corporate ladder, you're making $300 grand a year. Let me just say, this is not about making money. This is about making your money make money. So if you're not making at least $100,000, $150,000, focus on that first. Don't focus on this. But let's say that you're making $300 grand a year. According to the Bureau of Labor Statistics, the BLS, your pay is going up by about 3.3% 3% per year. All right. That's how much you're making. So that means you're going to make probably an extra 10 grand per year going this way. This is how much your income is going to go up. Okay. But assets go up much faster. Assets can outpace my income by 10 to 1. If I have, let's say, $1 million in assets and they go up times 10%, how much have I made? I've made 100 grand. So over here, my income goes up by 3.3% or 10 grand. But over here, my assets can go up by 100 grand. But it gets even better than that because what happens with assets is they compound, meaning they grow on top of the growth. So what happens is it's 100 grand in year 1, but it's 121 in year 2 and it's 146 in year 3. Look how much faster this is growing than your income just going up Linear versus your assets going up exponentially. Okay. Now, before I get into the next step of how we can build generational wealth, massive wealth, wealth faster than you've ever imagined and bigger and longer than you've ever imagined, before I give you the actual 5 steps, let me show you a formula that you need to think about. Because I know what a lot of you are thinking already right now is like, hey, I don't make $300 grand. I can't save, you know, 10%. I only make $100 grand. I make $150 grand. Or maybe you make $5 million, whatever. But either way, Life is hard. It gets expensive raising kids, living in New York or California, driving new cars, et cetera. So let me show you just a secret formula first to address this. Okay? This is the first thing that you should be thinking about right here. Back to this hypothetical example, I'm making $300K a year. Adjust it for your own numbers. Now what happens is that's not your money to spend. That's just how much you made. What happens is you're going to have to take out money for taxes. So what happens for most people is I have $300K of income. I'm going to pay, let's call it $111,000 in taxes. So now I have about $189,000 left. This is what I get to live on. Okay. But according to the BLS, for a family of 4, 2 parents working, 2 kids, cars, etc., you're going to spend about $156,000.

Wow.

$100,000 per year just to live, which means you have about $33,000 left over. All right. So you have— this is what you have to invest, to save. It's also what you have to take vacations and things like that. Okay. So this is your disposable income in this hypothetical example. Again, maybe you're at $250,000, maybe you're at $150,000 and you don't have this. Maybe after taxes and lifestyle expenses, you're breaking even. But let me show you what's happened. So we have 10% left over here. And think about what that means. If I take this times the lifetime of my career, let's say 30 years, I've paid in $3.33 million. That's how much I've given to the government. $3.3 million has leaked out of my wealth bucket during this entire time. This is my, this is my lifetime tax number that I've paid. I haven't saved that much. This is not what I get to spend in retirement. This is what I've given to the government. Okay, so what this shows us is that the biggest expense that we have is not your mortgage, it's not your healthcare. It's pretty big for most people.

It's the tax bill.

So what if we could take away, we could find a way to take this tax bill and we could take that tax bill and we could invest that every year? Okay. So the 2 formulas, the 2 different games, like I said, there's 2 different games being played. The top 10% that own almost everything play a different game. So the traditional game, back to the P&L versus the Treasury. So the P&L game works like this. I earn Earn some money. I then pay tax on it. Whatever I have left over pays for my life. And then hopefully I have 5 to 10% that I can save or invest. Cross my fingers. I hope that it grows big enough so by the time I'm ready to retire, I have enough money that I could spend down for the rest of my life. But a treasurer thinks about it a little bit differently, and this is why they're able to grow wealth so fast. So what they do is they earn But instead of paying tax, they buy assets. And they do that using the tax code. They use it doing incentives where the government literally pays you to invest. I'll break that down in a little bit. So we can earn, we can take most or all of our money and put it into assets tax efficiently, tax-free. Then we use the assets to pay for our life. And then we're saving 100% of our wealth. Imagine how much faster your wealth could get if you could save 100% of it. not just what's left over at the end, right? We already showed you how assets compound faster than your income. So if your assets are paying for your life instead of your income paying for your life, you can grow way faster. But you see, your financial advisor would never tell you this. Your CPA would never tell you this. You see, your CPA, your financial advisor, they manage money after this. Your financial advisor is helping you manage this part of the bucket right here. It's sort of like going to a doctor and them trying to diagnose you, but they never ran the blood work. Right. So what we want to do is go, wait a minute, why am I just trying to manage this? What's left over? Why don't I look at this whole stack right here? Why don't I build a new stack so I can have 100% of my assets going or my income going into assets and I can manage that instead? Right. That's the difference of what we want to do as a treasurer, as a treasury mindset. We're going to do that. Okay. So this is just a big part of what I call the treasury mindset, becoming a treasury. But what I want to really show you right now is exactly how the treasury system works. Okay.

And how you build it out. All right, now real quick, there's a link down in the description down below. I'll put a QR code on the screen right here. Hopefully you can see that. And if you want to see how these types of strategies apply to your own specific situation, if you'd like my team to like walk through your numbers like I just showed here and help you build a personalized wealth operating system, just go ahead and scan that QR code on the screen right here or the link in the description, put it in your application, then come right back because I've still got more important parts of this video to get through.

Okay, so now in order to really get this wealth ecosystem built out, the wealth operating system, as I like to call it, and really get the wealth building a flywheel to grow really fast. The first thing we want to do is we want to reclaim— we want to plug the holes in our bucket. We want to add the turbocharger onto the motor, however you want to talk about this. And so we want to plug the holes in the bucket. Now I'm talking about taxes. As I already kind of just showed you, the single biggest expense is your taxes. Now a lot of people don't know this, in the U.S. the tax code is about 7,000 pages, I believe. Um, only about 2% of that tells you what you're supposed to pay The other 98% of that tells you the incentives that the government wants you to do. And so what that means is that the government needs me to invest. They need me to build. They need to create jobs, create housing, invest in technology, things like that. And so they tell you, if you do that, we'll give you money for that. And so if I invest, if I buy assets along the way the government wants me to do that, I get money. We call that either tax depreciation or we call that tax credits.

They can be one or either.

All right. So let me just give you some basic formula. Okay. So let's go back to this $300K example, right? In this example, I was going to pay about $111K in tax. But let's just say that what I could do is I could acquire $300,000 in tax depreciation and I could then zero out my tax bill. But let's not use that math. Let's say that's too aggressive. Let's just say you're just starting out. So let's say that I'm able to generate, I don't know, let's say I'm able to generate $100K in tax depreciation. How do you do that? Well, real estate, short-term rental real estate, oil and gas, solar credits. But let's say I get $100,000 of depreciation. Now that drops my taxable income from $200K— I'm sorry, from $300K down to $200K. Now that drops my tax bill, let's say $30K to $40K. That's what I've reclaimed. So because I bought an asset, an income-producing property, an income-producing asset, they allow me to deduct it off my taxes and I've reclaimed about $40K. All right. Now let's imagine that in scenario number 1, I had the $300K, $111K in taxes. I had $156K to live on and I had about $35K to invest. Remember that? But in this way, I've reduced my taxable income to $200K. Which allows me to discount $30K to $40K that I would have sent to the government. I get to keep now. And so now I get to invest the $35K plus the $40K. So now I'm investing, let's say, $70K a year. So Formula 1, I'm investing $35K. Formula 2, I got a little tax depreciation and now I'm investing $70K a year. Now this is the same income, but I have nearly double the investment capital. Now, we haven't even talked about the investment that was made here, which is also going to grow as well. But now you can just see one simple move. We have instead of $35K investing, we have $70K investing. And that's not savings. That's not working harder. It's taking money I already earned. I'm reclaiming it.

All right.

You're not cutting your life. You're not skipping your morning coffee. You're not doing any of that. You're just redirecting money that you already owned. And instead of giving it to the government because you're not doing what they say, you do what they say and you invest into assets and you get to invest even more money. That's how things really start growing fast. Now, the power goes out when this thing starts compounding. The power really shows, you know, year 10, year 20, year 30. But let's just look at a couple of years just so you can see how powerful this is and how quickly. So let's just say that I reclaim only $37,000. I could go get the whole $111,000. Let's say that I only get $37K plus the $35,000 I was already going to invest means I now have $60,000, $67,000 to invest. That's in year 1. In year 2, I would reclaim a little bit more because it's compounding. It's now $44,000 plus the $35,000. So I have $74,000 to invest. In year 3, look at this, it goes from $53,000 that I could reclaim. I now have $83,000 that I can invest. Year 4, I'm reclaiming $64,000. I now have $94,000 to invest. And just in year 5, again, the power comes in year 10, year 20, but I have now $77,000 reclaimed and I have $107,000 to invest just in year 5. So the first game, I'm hopefully scrimping, saving, skipping my coffee, whatever, not taking vacations with my family, and I'm investing $35,000. Game number 2, just within 5 years, instead of $30,000, I'm investing $107,000. And to get the tax depreciation, I was buying assets along the way the government was giving me money for. And I haven't even got to that part yet. Imagine how much faster your wealth is going to grow. This is how you get the flywheel starting to spin really, really, really quickly. So how do you do that? Let's break that down. Okay. So we talked about getting this flywheel built and getting it spinning. And so what we've talked about already is instead of focusing on trying to make more money, let's just focus on building a treasury system that allows our money to grow faster. And so the first step we did, right, was we didn't make more money. We just kept more of the money we had. And we did that by using assets to offset our income taxes. Okay, so now we have more money coming into the system. But now that's not enough. It's not enough that we're growing, you know, 3 times faster than the average person because we're reclaiming some more of our money. Now, how do we get the money that we have, our treasury, our assets, how do we get that to grow 2, 3, 4, 5 times faster than everybody else? Well, let me break that down.

So now let's say that I'm putting the, you know, we went to like, let's say, a $100,000 number.

What most people would do is I have $100,000 to invest and I have to put it into a well-diversified portfolio. What is your asset percentage breakdown? Right? That's what we've been taught. And so what we want to do is we say, well, what we're going to do is we're going to put 25%, you know, in this bucket, let's call it stocks, you know, and then we're going to put, you know, 25% into, you know, real estate. And then we're going to put, you know, 50% Into, you know, cash flow, let's call it, you know, treasuries, something like that. Right. And then, you know, we're going to take— we'll take 15% or something like that. And this will be like high risk or something like that. Okay.

So we're thinking about this.

But what happens here is each dollar is doing one job. I have $1 in this bucket. I have $1 in this bucket, $1 in this bucket. This is investing horizontally. As you can see, my money is spread out.

What the wealthy do is they, they do it something different.

They invest in layers. All right. So we want to invest in layers where $1 does multiple jobs simultaneously. So we invest in layers instead of going wide, we go deep. So now I put $1 in an asset, the dollar feeds the next asset and the next one and the next one. So now I'm investing in layers. And let me explain how this works. It really comes down again to a mental mind shift. where most people think in terms of return on my investment, ROI, right? So let's say that I have a home and it's a— it's— let's call it— let's say it's a $1 million home. I like to use round numbers because it's easy for me. Okay, let's say I have a million-dollar home and let's say that I have about, let's call it $500K in equity right now. The home— U.S. median real estate is going up at, let's say, 5% per year. So on $1 million times 5%, equals about $50,000. That I'll get return on my investment. I have a million-dollar home times the 5% growth. I get $50,000 of asset growth. I get $50,000 of equity.

All right.

We think about it that way. However, that's not how the 1%— that's not how the 10% own all the assets, not how they think. It's not about return on my investment. It's return on my equity. See, it's not just the asset. It's the equity that we have in there. That's how we think about our money doing multiple jobs.

So let me explain.

This home, this million-dollar home is going up at 5%, whether this $500,000 is there or not. If I have $200,000 of equity, I have $100,000 of equity, it doesn't matter. The million-dollar home is going to go up at 5% and make $50,000 either way. So the question then becomes, what is my— not return on my asset or my investment, what is the return on the equity that I have? That's the different way we want to look at it. So let's, let's run through some math. In this example, I have a million-dollar home, $50,000 equity. In this example, the home goes up by 5%. Again, whether the equity there or not, it's going to do that. If I have this, instead of looking at the return on my investment, I want to look at the return on the equity. So if I leave the $500,000 in and I get the $50,000 gain, now I have a 10% return on equity.

That's better.

So 5% return on the asset, on the investment. 10% return on the equity. But here's where we get things going really nice. Let's say that I decide I want to take $200,000 or $300,000 of the equity out. Remember, this is all going to happen whether the equity is there or not. So in this example, I'm going to take out, let's call it $300K of equity over here, and I'm going to take this $300,000 and I'm going to deploy it into something. I'm not going to give you an exact asset. You know, I like Bitcoin. We can call it that. Bitcoin's been averaging about 50% over the last couple of years. Let's just say you get 20%. Let's call it I put into something making 20%. I mean, so you can put in a stretch and make it almost 12% right now after taxes, probably close to almost 20%. So let's just say you put in $300,000, you're making 20%. All right. Now it looks a little bit differently right now. I have the $50K that I'm making already here on the return on my investment. So I have $50K from here. All right. Now I also have the $300K at 20%. Which is sixty k. So now I have a hundred and ten thousand gain, which means now my return on my equity, R O E equals twenty two percent.

Just by thinking about the game differently, stop thinking about return on my total assets.

Think about what return on my equity is, right? This is the treasury mindset. The regular mindset is how do I make more income? So I can get $1 doing one job, invest horizontally, and grow really slow. Versus the treasure mindset is, okay, what if I didn't focus on making more money? What if I focused on keeping more money, getting my flywheel going, and growing my equity instead? Just one simple move more than doubles our return, and we're just getting started. All right, now before we talk about how this thing really starts accelerating, let's just stop and think. So we've got more money coming in because we've got tax reclamation, right? And now it's going into a layered strategy. And now things are growing really fast. What happens is that wealth compounds. And most people don't really understand what this means. The human brain mostly thinks about things like linear, like this. So I'm over, over my life, I'm putting more money in, my assets are growing at 6 to 8%. And it grows like this. What happens is, is wealth actually compounds. So it grows on top of growth. So it becomes parabolic. And so let me just sort of explain what this means. visually so you can understand this. What happens is what we do is we use something called the rule of 72. So what the rule of 72 says is that I take my return divided by 72, and that tells me how long it takes for my asset to double. And the double is where things start getting really powerful. Now, in the example I said is we get to 20%, we get to 20% pretty easy using the layered wealth strategy, using very safe assets, not having to go out on the risk curve. But let's, let's use a 20% number. So at 20%, that means my wealth is doubling. So 20 divided by 72 is about 3.5 years. So what that means is that $1 million becomes 2, becomes 4, becomes 8, and it starts going like this: 16, 32, 64, 128. You get the idea. But the key piece is that this right here Took 3.5 years to make $64 million here. Took 3.5 years. So what happens is once we start putting money into this system and we reclaim the taxes, we invest it through layers, we want to allow it to grow. So what this means is that we don't ever sell. What most people think is I buy low, I sell high, right? At what point do I sell these to get the dream house that I want? The beach house, the house for my kids? At what point do I sell to get the money? The answer is you don't, because you never want to stop this compounding. What happens is if I want to sell some to get the money, I got to pay taxes. That's a permanent loss. Could be 20%, could be 50% of my wealth gone immediately. That's one thing. But the bigger tax is the loss of this compounding. We've stopped that. So this is very, very expensive. So what we want to do is we want to borrow against these assets instead. So if I need money, I can pull out a little bit. I can pull out $100K here. I could pull out, you know, $3 million here using debt. As long as these assets continue to grow faster, 20% faster than the debt, the debt's going to be 5 to 10%. We can keep this going forever. But let me show you what this looks like over a long period of time using the wealth acceleration curve so you can start to see where this could go for you. Okay. So before I get to the diagnosis part where I want you to use real numbers so you can sort of map out how your flywheel can get built out, I just want to show you some math so I can show you this because I told you in the video, this is the formula that I use to build wealth. It's how you see me here at my beach house, right? It's what I've used and you can use the same thing. So we'll put this in real numbers, but let me just show you this real fast. So remember, we have 2 people. We started with that, right? The person A, 90% of people who don't really build wealth, they focus on building the P&L. They're focused on making more income.

Person B is a treasury.

They're focusing on keeping more wealth and they're focused on return on equity. They're focused on building assets, not income. But let's show you where those two paths— so we have both people are making $300K. Person A, $300K. Person B, same income.

All right.

Let's think about this. So using the examples I've already given you, in year 5, let's just say person 1 has about $190K of wealth. Person 2 has $529K. That's a 2.8 times difference. That's just in year 5. Remember what I showed you? Compounding goes exponentially. So we have to look at this 5, 10, 15, 20, 30, 50 years out. Let's check this out. By year 10, we really start to see this pulling out. Person A has $469,000 of savings left over for retirement. Not too bad. But Person 2 has $1.8 million. Now it's a 3.9 times difference. Wow. Starting to really pull ahead. Now we have year 15. We have this person A, $800,000 and what do we have? $880,000 roughly of savings to retire off of. Person B has now $4.95 million. Now a 5.6 times difference. See how this is starting to pull out 15 years? Let's just zoom out. We'll go one more year. At year 20, we have person A ends up with $1.48 million. to retire off of after 20 years. That's not too bad, right, if you're investing $30,000 per year. But Person B over here now has $12.7 million, which is an 8.6 times difference. So what you see is that on year 5, the gap looks kind of modest, right? But we can see by year 10, the gap is not just a— it's not just a different gap. It's a completely different life that person is living. We can see by year 20, It's a completely different universe. Imagine the difference of investing in retirement is $1 million or $12 million. All right. Now, if you really just want some salt in the wound real quickly here, let's just think that during this period, over the 20 years, both people earned about $6 million. All right. Formula 1 kept about 25% of that wealth. Not bad. Formula 2 generated 212%.

Wow.

So both people earn the same. This person kept this. This person generated this. That's the difference that we're talking about. Now, before I take you to the diagnostic, I just want to say I'm using examples of $300K. This works at $150K. It works at $1.5 million. It works at $10 million. All right. So these are percentages that we're talking about. Caveat, though, if you're not making at least $100K, $150K, I wouldn't really be paying attention to this. Just focus on getting to $150K first. Once you have $150K, you can start building out this flywheel. Of course, the more income you make at $300K, $500K, $1 million, $3 million, it goes way faster. Okay, now let's get to some of the math. In order to diagnose this for yourself and to see how fast you can get your wealth flywheel spinning, just pull out your last year's tax return. Or better yet, just think about this year for 2026. What is your taxable income going to be? Just think about that. So if you're a W-2 employee, it's pretty easy. You make $50,000, $100,000, $300,000, $500,000, whatever.

Okay.

Or if you're a business, you know, you're going to make $5 million, you're going to spend $3 million. So your taxable income will be $2 million, whatever that number is. So if I'm an employee, it's $300,000 in our first example. Maybe I'm a business, I'm going to make $2 million. Okay. So step number 1 is diagnose what is my exposure? Now you could think through like what your tax rate is, what percentage, things like that. But let's just keep this simple for right now. If I'm— if my taxable rate is this, I could look at what my taxable rate is, right? So at this tier, how much am I going to pay? 25%. What state am I in? State taxes, FICA tax, Social Security tax, et cetera. But what we want to do is we want to figure out how much tax depreciation do I have to have to reclaim this money? So let's just you know, call it simple numbers. Let's call it 30%. At $300,000, I'm basically leaving $100,000, $110,000 on the table. This is how much I could grow my wealth with every year if I deployed a strategy like this. At $2 million, we're talking roughly $600,000. And then just ask yourself a question. If I took $100,000, $110,000 times, let's call it 20%, Per year times, I don't know, 10 years times, I don't know, 20 years. How much is that worth? If I took the $600,000 times a 20% return times, you know, 10 to 20 years, how much is that worth? Just so you can start to see where things could be, how much different your life could be. Because the next question that you would ask yourself after that is like, if I could achieve that, the question you should be asking is, How? That's all. How do I do that? Because other people are doing it. The top 10% do it. How do you do it? Well, I do want to tell you real quickly, this is obviously not tax advice. This is not investment advice. It's not investing advice. I am not your advisor. And obviously there's a lot more to this. So make sure that you have someone watching you, helping you with that, with these formulas here. But before I end this, I wanted to talk about one objection that I have because I can already hear the comments coming in. Hey, Mark, this sounds super risky though. Like what you're saying is not to think about return on investment. You're talking about return on equity, which means I'd have to put my equity to work.

But if I put my equity to work, doesn't that cause risk?

And you might say, you know, I heard your story, Mark, from 2008. You were, you know, sold your businesses, you were all in on real estate and the real estate market crashed. Aren't you just making the same mistake? What if things crash? Sure. That's a great question to ask. So what you're saying is there is potential risk. And so what I would say is there's risk in everything. There's certainly risk if you don't do this, because if you go Person A route, you end up with about $1.5 million. But after inflation, you have about $700,000, $800,000 of purchasing power. It's not going to be enough to live on for the rest of your life. So there's risk in that. And if I do this, there's also risk. Now, if I don't do it, I can't mitigate that risk. We mitigate the risk by employing a strategy like this.

But, but there's risk.

What if the market drops, Mark?

So we want to build out a system. We want to build out a system.

We engineer around that. We think of every potential problem that can happen and we engineer a system around that. So I do want to just say that really quickly. Anytime you put money out there, there's risk. You may not get it back. But if you don't put it out there, there's risk also that it won't be enough. So just understand that there's risk in both ways.

But this is the way that the 10% own most of the assets.

It's the way that I've used to build my wealth. It's the way that you can use to build your wealth as well. It starts by shifting your mindset. Stop trying to think of only making more money and think about how do I grow my assets instead? Stop thinking about income. Start thinking about assets. Stop thinking about return on investments and start thinking about return on my equity. And if you start and then of course reclaim your single biggest expense and put that in to really speed things up either way, now that you've seen this, you can't unsee it. There's, there's the I don't know what I don't know, but now you know it. So again, the question that you should be asking yourself is, how do I start implementing this to start growing my wealth even faster? And you can have the life of your dreams.

There's a number the government watches more closely than unemployment, more closely than interest rates, and it measures one thing: how fast money moves. And when that number drops, the most powerful people in the economy, they start to panic. Then they print trillions of dollars To fix it. And it's that mechanism behind the number, the one that grows the entire economy, that the wealthy use to build their wealth faster than you do. Now, most people's version of this number is basically zero, and nobody's printing you a check. So I'm going to do 3 things in this video. First, I'm going to show you the exact return your money needs to hit your goal, your number. Second, I'm going to show you the gap between that number and what the market actually gives you. And then third, I'm going to show you how the wealthy raise their number, the system they use to manufacture returns that the market can't. Now, by the end of this video, you're going to know your number, you'll know your gap, and you'll know what closes it.

You ready?

Let's go.

Okay.

So before we get to the mechanism behind the number, the number the government is fixated on is called the velocity of money. Now, it's pretty simple. The math behind it, it's basically how many times a single dollar gets spent in a year. You see, $1 moves from you, and then you give it to the store, and then the store gives it to the worker, and then the worker gives it to the next business. And now that $1 just went to 4 people. That $1 created $4 of economic activity, $4 of GDP off of one single dollar. So you divide the activity by the dollar and you get a velocity of 4. That's the score. Velocity of money is 4. Now, the faster the dollar moves, The higher the score. And the faster the dollar moves, the more the economy grows, the more the wealth, the GDP of the economy grows. So that's, that's all the Fed's formula is. Total output divided by the money supply. GDP over M2. Now, the economy doesn't just grow from more money. It grows from money that moves, right? The faster it moves, the more it grows. So that's how it works. Now, here's where it actually is right now. The number, the velocity of money, it peaked In the late '90s. And then it started falling, right? 2008, it dropped it. And in 2020, that number completely fell off of a cliff. You might remember during the pandemic, the whole economy was shut down. The world was shut down. People panicked and they saved their money. If they didn't want to save it, there was nowhere to go spend it anyway. And the velocity of money dropped all the way down to 1.13. This was the lowest velocity of money score in history. Now, Now, 2020 is where most people get the story backwards because they printed trillions of dollars, right? The most money in history. So you'd think velocity would explode, but it did the opposite. It collapsed.

Why?

Well, because the money didn't move, right? People sat on it. They were scared. So the government sent out the stimulus, but the stimulus landed in savings accounts. It landed in bank reserves. It landed in asset prices, and it just stopped. Trillions of dollars froze in place. That's the lesson the economy taught us back in 2020. Money that doesn't move, it doesn't build anything, right? The money has to move. But it's that exact problem, the dollar that sits instead of moves, that's happening on your balance sheet right now. You see, your money has a velocity too. Now, for most people, it's about zero, almost nothing. Your cash sits in a savings account, right? Your equity, it sits in your house. Your 401, it sits in one position and it never moves. So $1 doing You know, one job. It's, you know, some of it's doing no jobs at all. But the Fed, they use velocity to hit a target, right? So the Fed projects out the— more precisely, the CBO projects out where the economy will grow over the next 30 years. So they want to grow the economy. They want to avoid a recession. Well, you can use the same logic to hit your number as well. But first, you have to know your actual number. All right. So the first step to doing this, the first way you can find this out is 3 things. There's 3 things you have to fill out, and I call this the wealth GPS. Okay? This is just like Google Maps. Anybody ever use Google Maps? Of course you have, right?

Okay.

So the first thing you do if you open up Google Maps is it would ask you your destination, right? What's your goal? So for you, that might be $5 million, right? Maybe that's $10 million. Maybe it's $1 million. Whatever your goal is, you want to write that down. Okay? That's the very first thing you need. Now, the next thing Google Maps would ask you is, okay, so I know where your destination, where you're trying to go, Then they would ask, where are you? Where are you now? Where are you starting from? Well, again, you have to put that in there. So what do you have right now? $250K, $2.5 million, $25 million, whatever it is. So you have your destination where you're trying to go.

You have your starting point where you're at.

Okay? Now, once you're there, then Google Maps says, well, what's your timeline? So what's the time Or your, let's call it your trajectory. So they may say, which route do you want to go? Do you want to go by bike? Do you want to go by car, by train, or are you going to fly? What's your timeframe? How long do you have to get there? And let's say that I choose by car. Okay, well then it might say, well, you can take this road, but it's going to take you an extra 10 minutes. You can take this road, but there's a toll and it's going to get you there on time or whatever. So only once you have your destination and you have your starting point, then you can get a timeline, a trajectory, and you get route options. Okay. So sounds, uh, sounds easy enough, right? You've, you've used Google Maps, but let's run a real one. Let's say, let's say that your goal, let's set a goal of $1.5 million. Okay. And my timeline to get there is 15 years. So I need to achieve this in 15 years. And then I need to know my starting point. So let's say that I have $100,000. So I have $100,000. In 15 years, I need it to be $1.5 million. All right. So now we have to figure out the math. The beauty of this is once you've figured this part out, which is hard, what do you want? Once you figure this out, it all just becomes a math problem. It becomes an engineering problem. Okay? Now what this tells us here is that the math tells us the exact return that I'm going to need to make in order to make my $100 grand turn into $1.5 million in 15 years. In order to do that, I'm going to need about 20% a year. Let me show you another way. A better way to look at this would be like this. So down here, I have $100 grand, and I need this to grow to $1.5 million over the 15 years. Okay, so what's the rate of return I need to get there? Well, I'm gonna need a 20% return in order to achieve that. Okay, easy enough. But look at what the market actually gives you. So let's say that I'm, you know, investing in my pension fund or my 401, my mutual fund. I'm investing into the stock market broadly. Well, the stock market broadly is giving me about 8%, and over the 15 years, it's gonna end up being about $317,000. Well, shoot, that plan is only getting me here. There's a big gap right there. I need the $1.5 million, but that route that I chose is only gonna get me to $317,000, right? So I'm not even close. I missed it by $1.2 million. So that space right here, this gap right here between the 8% and the 20% that I need to get my gap or to get my goal, that is the gap. How much is the gap? Well, it's 20 minus the 8 that I get. So the gap is 12% return per year. Okay. Now here's the part that changes everything, right? You can't save your way across that. Let's look at a couple other variables just so you can understand this, because you may not even be making 8%. Let's say that I'm only making 6% blended across all my assets. Well, if I make 6% over that timeframe, I'm still very short. I'd only be at $240K. Well, I'm even lower. Well, let's say that I get a little bit better. Let's say that I get up to 10%, a little bit better. Okay. Sounds pretty good, right? Well, that's only $418,000. I'm still way short. Now, let's say that I get up to 15%. All right. So now I'm really crushing it. We're at 15%, but of course, I'm still going to be falling short, right? Only the top, only the 20% is going to get me that number. It's the only one that's gonna help me actually hit that number. Now, index funds, they don't live up to, you know, they don't live at that level, right? So that 12-point gap, it has to come from somewhere. It has to be manufactured. Or what I say is it has to be engineered. Now, that gap is the whole reason that you work as hard as you do, right? It's the reason why you work as hard as you do and you still feel behind because your money isn't pulling its weight right now. Mine does, but it didn't always do that. But before I show you the system, I have to just stop real quick because there's definitely a wrong way to hear everything that I'm about to say. Okay. The wrong way is go chase 20% in one bet, right? So people go start chasing like every hot tip, you know, they're on Twitter and Reddit and watching YouTube videos. They're in Telegram, whatever, right? They're responding to like anonymous DMs on Instagram, getting scammed, right? So you're trying to buy crypto pump and dumps. You're buying meme stocks. You're, you know, you're whatever, you're dumping it all in. You're trying to swing for the fences on that one number, but that's not velocity. Okay? That's how you grow broke faster. Now, I've watched so many people do it. I get DMs from people that fell for these scams way too often, way too common. And what they do is drive themselves crazy trying to chase everything. They're trying to pay attention to everything, trying to go after that one thing, the one lucky break, which if the lucky break really worked, then why do 75% of lottery winners Go bankrupt within five years. It's not about the one lucky break. It's never going to work, right? Piling into one single trade—it's never going to work because you know whatever. Then the market drops 30% at exactly the wrong moment, and now you're forced to sell at the bottom. Okay, so the lucky break isn't going to work, right? The risk isn't worth it. You need a system. All right, those people that lost that way—they didn't just lose the gain either. They lose the thing that they started with. They lost this—the starting point.

They lost the startup capital.

So chasing tips, taking you know huge risks on. speculative assets, that's not going to be the answer for us. What's the answer? Speed. Speed is the answer. But speed without structure doesn't build wealth, it destroys it. You see, the wealthy, they move really fast, but they move fast inside of a structure. So the structure is the entire point that we're going to make this video or the rest of the video about. And I know this personally because I had to learn it the hard way. You see, in my 20s, I sold my first tech company. It was a high-tech medical device business. I sold it to Henry Schein. They were the world's largest distributor of medical and dental supplies. And then suddenly I had a big chunk of money, like a real chunk of money, like life-changing money. But I didn't really have any idea what the wealthy actually do with that money. So what do I do? Well, I went and I found out. I hired a wealth firm and they taught me this principle that basically changed everything for me. They told me that the wealthy don't sell their assets to fund their life. They hold them and then they issue credit against them, just like a bank. Some of you've heard of the banking concept before, right? They hold the assets, I issue credit against those assets, and then the assets continue working and I live off of the credit. Now, the first version of what they gave me, it was kind of limited, right? I mean, I was pretty new, so of course it was very limited. It was one narrow tool and it didn't really fit every situation. So I've basically spent the next 15 years building my own version of it. I've been reading everything, including a lot of Robert Kiyosaki, who's Now, well, I'm lucky enough to call him one of my good friends now. And it was really Robert Kiyosaki was the one that taught me the bigger principle underneath all of this. And he basically said that this isn't about one product. It's about using your assets to fund your life without paying the tax that kills everyone else's compounding. All right? So that's what I want to show you right now. I want to show you the shape of it, right? Not because I read it in a book. It's because I've been struggling with it. I've been working with it. I've been experimenting. I've been running it. For over 20 years. Okay, so let's go back to calculating your number. Like remember your gap, right? You needed 20%, but the market gives you eight. So the missing 12 points, it has to come from somewhere. And like like we just said, right? It's not coming from gambling, right? It's not it's not coming from like hot stock tips or whatever. It has to come from structure. It has to come from structure for a lot of things because maybe you get lucky once, probably not twice. But let's say that you do get lucky twice, but you need to get that number for 15 years. Like you can't be lucky consistently over 15 years, right? So the only only way it's going to work for you is it has to come from velocity. The same thing the Fed measures, but you have to run this on your own money. Now, here's what almost everybody does. They listen to Dave Ramsey, and Dave Ramsey tells you to take your dollar and save it, put it into a mutual fund. And in that mutual fund, it's going to earn 6%, maybe it's 8%, and that's it. So I'm earning and I'm saving, but all those dollars just go on to do one job. And they're just doing that one job in that mutual fund or whatever, Doing that one thing forever. Now, some people move on past that and they say, hey, you know, I understand putting that into the mutual fund, that 401 isn't probably going to be enough for me. So I need to start investing on my own. But what they do is they do a structure like this. So I have my $100 like this, and maybe, you know, I don't know, a good portion of that, 60% of that, that'd be $60 goes into that 401 and whatever the plan administrator's doing. And then maybe I'm going to take, you know, 25% over here. And, you know, maybe I'm going to buy some real estate with it. So this is going to go up at, you know, 6%, you know, this goes up at 5%, you know, I'm going to, if maybe I'm a little crazy, I'm going to buy, you know, 5% of Bitcoin, something like that. Let's call that Bitcoin. And that's going to go up at 25%, something like that. So I'm going to, I'm going to go ahead and do that. But if you notice what I'm doing is I'm investing horizontally. So I'm slicing this into fractions. And what I do is I get the average of this. So 6, 5, you know, maybe because of small percentages, maybe I get this to 8 to 10%. Pretty good, except for I'm still, you know, 8 to 12 points off of my money. That's the problem. What I did here is I diversified my way straight back to the gap, right? That's what we call horizontal investing. It's flat and it's never gonna get you to 20%. Even if I do get those lucky picks, I can't put my entire portfolio in that. So maybe I take 1 to 2% of my portfolio, And swing for the fences. So let's, let's call these bets. And even if I get lucky and I hit a 50, you know, 50%, it's barely gonna move the needle cuz it's a small percent. Maybe I get to, you know, 9 to 11% or something like that. As you can see, I'm still way off the where I need to be.

So you can see it's the structure that's the problem.

But you see the wealthy do it the diff— a completely different way. The wealthy take the same $100, but they go vertical. Watch what happens here. So I'll do the same thing. I'm gonna take the same $100. But instead of going vertical, what I wanna do is I wanna start with one asset. So I'm gonna put it into one asset. Let's call that asset number 1. Okay? Now that asset is, I hold it, it goes up, it appreciates, it's compounding. I never sell it, but instead I issue credit against it. All right? What that does then is that means that I can pull some of that liquidity out and I can go into, you know, asset number 2. All right? And now the first one is still working. So let's say this one's compounding. at 5 to 10% a year. Maybe that's a house, maybe that's real estate. And then I put this into the NASDAQ. Let's say this is some tech stocks, and now this is going up at 17%. But now I have 2 assets growing up, one at 5 to 10%, one at 17% on the same dollar. Now that one, I could also issue credit against that. And now I could buy some Bitcoin here, and now that's going up at 25%. But instead of averaging this, Now I'm adding these together. Now, a structure like this could get me to the 15, it could get me to the 20, it could get me even higher than that depending on how I set this up and how I structure it. Now, when we do it horizontal like we did over here, you can see I get the blended return and that's about 8%. But over here I can build the structure I need. Do I need 12? Do I need 15? Do I need 18? What's the number that I need? And then I build a structure deliberately for that. Now, I wanna be clear about what I'm doing right here. Okay? I'm showing you that it works. I'm not showing you how to build it. Don't copy this. All right? Because how high you stack it, how you size each of the layers, that's the part that either makes you wealthy or yeah, it could wipe you out. I know a lot of you're like, dude, that sounds crazy. It could wipe you out if you don't do it the right way. And that's not just this drawing on the screen. That was for illustration purposes only, but we'll get to that later. But what I wanna show you is the, is the shape of it. Let me show you the shape of it another way. So let's say, I like to think of it more like a flywheel. So I get like an asset, right? Asset number 1, and then that asset becomes collateral, and then that collateral becomes liquidity. And then that liquidity gets me asset number 2, and it gives me some of my lifestyle. What happens is now I have 2 assets compounding, which makes my base bigger. So then as this continues around, I have more collateral. Which means I get more liquidity, which means I get more assets, which then means I can have a bigger lifestyle. And my flywheel continues growing each time it goes around. The collateral base gets bigger and bigger and bigger. Every time it spins, it gets bigger round and round and round. That's the wealth velocity. $1 doing 3, 4, 5, 6 jobs at one time, and nothing ever gets sold to do that, right? That's the part That breaks most people's brains here. The first asset is still yours. It's still compounding while its own value funds the next one. Now, the Fed couldn't force the economy's money to move in 2020, right? Everyone decided to hold it. Even though they sent trillions of dollars, people still held it. But you, you can, you can force your money to move. Now, going vertical kills the 2 things that steal your wealth without most people ever even noticing. Number one is tax. Every time you sell to move money, you trigger a tax bill. Okay? That's a velocity killer. But credit isn't a sell. Okay? When you, when you issue credit against an asset instead of selling it, there's no taxable event. The money keeps moving and the government doesn't get a cut. And inflation, the dollar sitting still loses value every single year to inflation because the dollar is getting printed more of. So the dollar moving through hard asset outruns it. Now, let me just real quick, let me be straight about what I'm not showing you. All right? What I'm not showing you is how much credit do I issue and which assets do I issue those credit against? Like which assets, like in which order? Like when do I pull back? Well, that's the part that you don't freelance, please, because that's the part that could blow people up if they get this wrong. But let me leave you with the part that surprised me, uh, at least the most, uh, when I first ran the system. Okay? We used a $100,000 example. You needed about 20% to hit your But watch what happens when you have more. Let's say that you start with $1 million and now your goal is to say, to get to $10 million. Okay? So if I have that, well, I have the same, let's say, 15-year gap right here. Well, now the rate that I need actually drops. It drops down to about 17%, which is a little bit easier, right? Because the more capital that I have in the system, the more capital that I start with, then the less velocity that I'm going to need. Now, the person with a million, they can compound slow. They can be calm about it. You have to run faster because you started later. Okay? That's not your fault. It's just the math. And that's the part that I really want you to take with you from this. All right? Because it flips everything that you've been told about money and investing. You've been told that to catch up, you have to take more risk. You have to bet bigger. You have to pick the hot stocks, right? You have to swing for the fences. But that's the advice for people who are behind. It's exactly backwards. Right? The wealthy don't hit their number by taking more risk than you. They hit it by taking less risk than you, structured better, right? They're not gambling harder. They've built better structure, right? The whole game is structure, not risk. More architecture, more engineering, less gambling, less risk, less adrenaline, right? Now, that one idea that you close this gap with structure instead of risk, that's the difference between the people who make it And the people who spend 30 years working hard and they're still kind of up short.