How the Wealthy Turn $1M of Assets Into Spendable Cash (Without Selling)

The Fed just added tens of billions of dollars back to its balance sheet, and that should scare you. That's new dollars that dilute every dollar that you already hold. $39.28 trillion in national debt, and it's growing fast. It's growing $8 billion every day. $8 billion today. And your plan, most people's plan, is to sell the best assets that they own to fund their life. You know, buy low, sell high, right? You want to convert your best performing assets and you want to convert them back into the money, the thing that's being printed. Now, that's not a wealth strategy. It's far from it. That's what I call financial suicide. You see, the wealthy don't do that. The wealthy don't sell their assets, not even when they're up 40% or more, even if they're up 80%. But by the end of the video, you'll know exactly what they do and you'll know how to do it as well. So let's go. So in order to understand this concept, you first have to realize something. Nobody wants money. I know it's pretty weird, right? We all want money, right? But not really. We don't want the money. We want the things that money buys us. We're talking about goods and services, right? We want houses, we want cars, we want vacations, we want food, all those things. So money is what allows us to get those things. So really the goods and services is wealth, right? That's the wealth. The money is just what allows us to get the wealth. So what we have is all the money in the world divided by all the wealth of the world. And what happens is every single time the government prints more money, they increase the supply of money. It dilutes your ownership in the wealth of the world. It's going to take you now more dollars to buy the same things you bought before. So when we talk about the Fed increasing their balance sheet, we talk about the money supply expanding, we talk about the Fed balance sheet sitting at about $6.7 trillion. Crazy. What that means is that as that goes up, every single dollar they add to that balance sheet, it starts to diminish or dilute your share of wealth in the world. And let me just put it very simply for you. That means the prices go up and the prices go up because the purchasing power of your dollars go down. I know it's pretty elementary, but that is how it works. It's like a balance. And if you can understand that, then you can understand why you need to hold onto your assets. Now, this is commonly called printing money and we run all kinds of memes where you see the Fed printing money, printers going crazy, printing dollars, things like that. It's not really how it works. Money is created through through debt issuance. So every single time you go to the bank and get a house, a car, a boat loan, your business, a business line of credit, a credit card, whatever, by issuing that debt, the money is created into existence. Now we call it printing money because basically what we have is the Federal Reserve increasing the monetary supply and sort of refilling the bank's ink, if you call it that. They refill the bank's ink, the banks then print the paper by giving you the debt. Now in this environment, it's interesting to point out that when you get the dollars, the dollars become a liability. A liability against what? Against the debt. The debt now becomes an asset to the bank. And so you, if you understand this relationship, then you can start to build your entire investing life much better. So now that you understand how the money supply increases, then you just have to ask yourself, will this continue? So there's a, often a quote that we have that, uh, the two things in life that are certain are death and taxes. I would add a third to that and I would say money printing. And the reason why is after 1971, we went into a debt-based monetary system. And back to now that you understand that the debt becomes the asset, the asset for more collateral for more debt. So in this debt-based monetary system, it has to always continue to grow, what we call a Ponzi scheme, and it has to always continue to grow. And so we can't go into an era of deflation. That's where everything falls apart. The central banks of the world all need this money supply to increase. And so if you understand that, then what that means is that as they continue to increase the money supply, assets will continue going higher and higher and higher. Now, most of this age-old wisdom of investing is I should buy low and I should sell high. Sell high to what? Go back into the very thing that I'm being diluted in? It doesn't make any sense. If we understand that our assets are going to continue to go higher and higher and higher, then we want to hold on to those things. Let me give you an example of exactly why. Most people don't understand this piece. So let me draw it out for you so you can understand this. Most people think that if I buy an asset for $1, eventually it grows to $2, $3, $5, something like that. But that's not how this works. What happens is that money compounds if I leave it in place. And so that means I get growth on top of growth on top of growth. So what really happens is I have $1 and if I have, let's say, a 10% return on my money, it takes 7 years, about 7.5 years, for it to become 2, and then it becomes 4, and then it becomes 8, and then it becomes 16, and then it becomes 32, and then it becomes 64, and then it becomes 128. And so what we really have is this parabolic curve. Now, the interesting thing about this is the time it takes to go from 1 to 2, 7 years, is the same time it takes to go from 64 to 128, meaning I'm making $64 million in only 7 years. Now, if I double this to say 20%, now I cut this in half and now it's about 3.5 years, 3.5 and a half years to make $64 million, right? Or $64, depends on how much money you start with, but you understand the point. And so what happens is when you buy low and you sell high, you break this piece. As long as you believe that the governments will continue to print money, then you believe these assets will continue to go higher. And if I believe those assets are going to go higher, then I probably want to hold on those assets so I can capture this $64 million turn in only whatever, 3 to 7 years. So let's talk about how the wealthy do this so you can copy what the wealthy do. One of the ways I've learned to grow really fast in in this life is I copy success. I learned— I think it was Tony Robbins who said that success leaves clues. You find other people that are successful, you do about the same things they do, and you should get about the same similar results. Look it up. You can see about 50% of Fortune 500 CEOs do not sell their stock. Instead, they issue credit against them. It's what I call harvesting liquidity. Let me show you what I mean by harvesting liquidity. So if I have a stock that, say, you know, it starts at $1 and then it goes to $2, and then it goes to 4 and then it goes to 10. I have now made, you know, the difference of 10 minus the 1. I have $9 of equity. What I could do is I could say, let me pull $5 of equity out of that by issuing credit against it like a central bank does. Central banks hold assets, they issue credit against those assets. Now, let me give you a real case example here. So, you know, good old Elon Musk, right? The richest guy in the world. Of course, you know, Elon Musk. Now, He, uh, took over Twitter, which he rebranded as X, and when he did that, he bought it, I believe, was about $44 billion. But Elon Musk is pretty famous for actually kind of being broke. He's the richest man in the world, but he's usually cash broke. I think he lives in like a $100,000 house and has like $20,000 of plastic furniture in his house, and he's typically cash poor. You'll find this very common with most wealthy billionaires. So Elon Musk doesn't have a lot of cash. How does he buy Twitter for $44 billion. What he decided to do— so he wanted to buy Twitter, $44 billion, but he doesn't have $44 billion. But what he does have is he has Tesla stock. So what he decided to do is pull some liquidity out of his Tesla stock, $12 billion out, to buy Twitter, which is now X. Now, this was his plan. Unfortunately, it didn't go exactly as planned. So while he tried to do this, there was problems at the bank. I'm not going to go into this. The price of Tesla stock was moving pretty rapidly. The price of X was moving pretty rapidly. And he decided at last minute to instead of pulling the $12 billion out against his stock, he actually now sold the stock to get the $12 billion that he needed. Well, he got X, and X has gone up a lot in value, and he's still the richest man in the world, so don't cry for him too much. But that deal right here has already cost him almost $20 billion. Why? Because since he sold the Tesla stock, that's how much the gain was since then that he would have captured if he held it. And every single day for the rest of forever that Tesla stock continues to move up, he will continue to have lost money on that deal. And this is why he tried to issue liquidity against it. It's why all wealthy people do it. And this is the cost of getting it wrong. Hey, quick thing before I keep going. What I just walked through is something most people never actually run the numbers on for their own situation, and it costs them for years without even realizing it. Now my team runs a free strategy session where we look at your actual numbers and we tell you where you really stand. Now, this isn't for everyone, but if you've got some money and it's on the line and you want a real answer instead of just a guess, you want the data, then go down below right now, book a call with my team, and then come back and finish this. So let me give you an example that I would use myself. Let's break this down. The first thing is that you hopefully know what your balance sheet is. Okay? So this means I have my assets minus my liabilities. Equals my, we'll call it net worth. I like to call it my scorecard. How am I doing in life? Now, what most people think is that these are static. I have my assets, I have my liabilities. Those things are static. But what if I looked at my assets as more fluid, as more liquid, meaning I could just move them around whenever I want without actually losing any value? So let me give you an example. Let's say that I have a bunch of like gold bars in my safe and that sits in my asset column. But what if I decided my wife would like some new gold jewelry? So I take a little bit of the gold right here. I melt it down and I turn it into rings or necklace or whatever my wife wants. So now instead of gold sitting in the safe, my wife is wearing the gold. She's enjoying it. We have fun with it. But my asset column didn't move at all. This is what we're talking about by getting liquidity out of an asset and using it differently. Let me give you another example. So again, back to I have my assets and I have my liabilities here. Last year I saw this car that just caught my eye. I don't know why it was, but I saw this car that I just really wanted. I told my wife about it. She's like, what are you going to do buying this car? You don't even drive anywhere, you know, because I live by the beach. I take my golf cart everywhere, but I just wanted it. So what I did is instead of going and paying brand new and losing the depreciation on it, and rather than getting a loan and paying all the fees, I just took some of my Bitcoin right here and I issued credit against that. I was able to get that and buy the car that I wanted. By doing this, by removing some of this liquidity from my asset, from my Bitcoin asset here, I moved it into a car. And that way I was able to do it for zero down. It cost me no money out of my pocket. I just literally transferred equity from my Bitcoin position over into the car. Now, I did have payments that I had to make on the car, but I wasn't making payments on the car. I was making payments on my credit line that I had pulled against my asset. Now, this is not tax advice. Talk to your own tax, um, strategist on this. But typically when you pay interest, that's tax deductible. So I was able to just transfer liquidity from one asset, the Bitcoin, to the car that I wanted asset. The interest I was paying on that was tax deductible. I kept the car for, I don't know, it was about 8 months, and then I got rid of the car, and then I and put the money back into Bitcoin. Now in that transaction, my asset side, my balance sheet or my scorecard never went down. All I did was transfer equity from one asset to another. And when I was done with this asset, I just moved it back over. Now I actually made money on the transaction. So instead of bringing my asset or my scorecard balance down, it actually went up from that transaction. And so I think about the equity on my balance sheet. I think about my assets more fluid, and the equity is the net value that we have. And how could we use that more constructively? All right. So now, I mean, it's pretty evident to see that the central banks are going to keep printing money. It's going to keep pushing asset prices higher. And if you sell those assets— buying low and selling high— if you sell those assets, you give up all that future compounding. You can unlock your wealth just like Elon Musk was trying to do to buy Twitter, just like I've done to buy my assets. And you can do the same thing. Now, if you want to understand how that's one of 3 major engines that build your wealth. You might want to go watch the other 2 in this video right here, and I'll see you over there.