Welcome, everyone, thanks for joining today.
On the Joseph Carlson show, we have a very special show.
In fact, I don't say this often at all.
I really don't, but I think this one is going to be a special
show. And I think you might want to
bookmark this video. In fact, out of the hundreds of
videos I've done, this is probably one of the only ones
that I think you should bookmark to eventually share with a
friend or someone else. That is getting started on the
Journey of Building Wealth or getting started on investing.
I think it will be highly. E applicable either way.
Now, the reason I say that is because what we're going to be
doing in this video is doing a basic overview of wealth
building principles. We do so many things on YouTube,
where we get a little into the weeds, we talk about different
news subjects and current events.
We talk about different stocks and holdings in our portfolio.
I've done multiple episodes deep.
Dives on companies, like, apple analysis on them and their
valuation or Microsoft. I've done entire episodes,
dedicated to Disney Nike. Target Costco.
I've overviewed all of these companies in depth and while I
think it's good to do in-depth analysis on different companies
that you're investing in and realize the portfolio that
you're building. I also think it's good to take a
step back and just go over some of the basics here.
What I want to cover in this video, are some of the most
basic foundational principles of wealth building.
And I think this is both highly applicable to people that are
far along in their investment journey and they're far along
into Building Wealth, and people just getting started.
And I think in any phase, it's really good to revisit this
topic. So in this video, we're going to
be looking at three different Graphics.
These are flows cash flows, money flows and how they affect
the different ways that people build wealth.
And I firmly believe that this is the most accurate
representation of how you build wealth on YouTube.
I literally believe that. These three images, really
boiled down. What's the difference between
wealthy households? Poor households, and those that
get kind of stuck in the in between, All right, Tory, this
is it. So having said that, we have a
lot of good stuff to jump into. So let's go ahead and start
right off. First of all, my name is Joseph
Carlson. I upload videos every single
week of my portfolio. I give commentary on current
events in my opinions, on various subjects as well as I do
in-depth research on different companies that I'm buying into
and I give my bull case in bear case for different Investments
that people are talking about. Now, I've been doing this for
quite a while. In fact, I uploaded my first
video in February of 2009. Teen.
It was a portfolio update that simply all it was at the time I
had a 25 thousand dollar dividend growth portfolio and at
that point in time and social media, it was incredibly rare to
show your entire portfolio transparently week by week.
In fact, I don't know of anyone doing that very thing and I
thought, you know what? I bet.
A lot of people would like to see real investing complete
transparency. No gimmicks, no hiding behind
different walls. I thought that bringing This
level of transparency to General Finance would be a very positive
thing. Well it turns out my assumptions
on that was correct. A lot of people turned up to
really value seeing someone's Financial Journey tracked every
single week and so I kept doing it, I kept creating videos
sharing my opinion and sharing how I view finance and investing
in general. Now, the channel has grown
significantly. We've reached a size of over 240
thousand subscribers and along that process in all 230 videos,
I've shown you, my portfolio transparently.
A single time, both the portfolio, value the gains, and
the money weighted return, which is the internal rate of return
in that. You can see the breakdown of my
market gains, which is capital appreciation, and the earn
dividends. So, this is what I show and what
you get to see week by week. And this makes a lot of fun for
me because I get to go through my investment Journey not alone.
I get a go through it with a lot of other people.
So, I have a ton of support and a ton of help from both the
community and the commenters here, as well as the many people
on my Discord in. Patreon.
I can firmly say that I'm both a better investor and investing is
a lot more fun in general because of social media.
Now, having said that I've stated many times previously,
that the purpose of this portfolio is to grow a stream of
passive income. Passive income is completely
different than active income. Active income is income.
You have to clock in for you have to go to work.
You have to respond to a job. You have a boss, lecturing you,
on doing things. That's active income passive
income, is a stream of income that You do nothing for it's
completely passive, Warren Buffett famously said.
If you do not find a way to earn money while you sleep, you will
work until you die. That's a little bit Grim of a
statement, but that's his way of saying, you need to find a way
to gain passive income. Now, there's multiple ways of
gaining passive income, dividends aren't the only way,
but Dividends are certainly a great way to earn passive
income. That's exactly what I did.
Three years ago, I started building my portfolio and my
first deposit was two thousand dollars.
Actually sold a little bit of my portfolio early on to pay down
debt, I owed on a car. So I've grown this portfolio
from five, six, seven thousand dollars back in 2018, all the
way up to the value. It's at right now and I want to
help give context and explain how this happened with three
different graphics and the first one that we're going to look at
is the graphic showing the cash flows of poor households.
Now, the first thing that I want to address is, nobody picks the
circumstances, you grow up in that is just roll of the dice.
Ice, some of us grow up in wealthy households.
Most of us might grow up in Middle income households, right
somewhere in between. And then some people
unfortunately grew up in very poor households, very
disadvantaged. You might have divorced parents,
you might have only one parent, working a single job at minimum
wage. You might be struggling to get
by in your family. There's people that can identify
with that. Now, everybody circumstances
differ when they're growing up and that is something that you
can't control the circumstances you grow up in.
But the big lie here, the big thing that gets shared, that's
extremely discouraging. Is that?
Because you grew up in a poor household?
You can't transition to a wealthy household.
I think you can do it even if it's a more difficult task that
has more hurdles. So, let's go ahead and break
this down. If you were to look at the
financial cash, flows of most people in poor households, this
is what it would look like. You have right here off to the
left. The earned income, this is not
passive income. This is active income.
Meaning, this is what you do. When you go.
To your work. You try to earn income and the
reason that you get income in most cases, if you're a poor
household is to afford the expenses.
Rent utilities cable Fuel and insurance entertainment and any
unexpected expenses that's where the huge majority of your money
goes and then if you have a dollar beyond that almost always
it will go to liabilities liabilities are things that also
just suck money right, out of your bank account, cars are one
of the biggest liabilities that you could ever buy Dave Ramsey.
Isn't correct on everything he says.
But this is one thing that I certainly agree with him on
cars, end up keeping a lot of people poor.
There's households that are already struggling with income.
They make 35,000 a year, 40,000 a year for a family, right?
That's not really enough to have a comfortable living, but then
those same families in many cases will by seventy thousand
dollar trucks. It'll be more than their annual
salary. I think it's actually crazy.
The amount that people spend on a car, I've made hundreds of
thousands of dollars in a single year.
R and the most expensive car I've ever purchased is twenty
seven thousand dollars. That's how I view vehicles.
I view them as black holes for money and poor households.
Unfortunately, in many cases by cars that are extremely
expensive and of course they don't pay for them in cash.
They either lease them or they take out a big loan on them and
they pay monthly payments for sometimes up to seven years.
Do you want to know where all that car?
Money ends up. Let me go ahead and look at one
of my Holdings here. It's called JP Morgan I've made.
$100 on this holding. This is where all that interest
on. These car loans is going right
here. I have a dividend payment back
in 2019 for two dollars and eighty six cents, not a lot of
money, but I bought a little bit more of JP Morgan as time went
on and I bought a lot of it during the dip in 2020.
Once I increased my Holdings in it now I'm getting $150 from JP
Morgan $150 $150 $133 is. I sold a little bit when it
really peaked out at a high price and $133 My next dividend
payment is going to be quite a bit more because I bought more
of JPMorgan on a dip but either way, you see, these dividend
payments coming in every single quarter, every three months, I'm
getting paid hundreds of dollars.
I'm not paying the bank money, they're paying me money.
And part of the reason is, is because of all the interest,
they get off of auto loans. Ally Bank is another company
that makes a fortune based off of auto loans.
Here's Ally Financial. We can actually look at the
amount of dividends they're paying and where this money's
coming from Scroll down and look at their dividends over time.
You can see that this number is aggressively crawling Ally.
Financial is the biggest Auto lender in the country they make
virtually all of their money on lending out money to people,
buying expensive vehicles and they return that to shareholders
in the form of dividends these massive dividends that they pay
every single quarter and they're aggressively.
Raising every single quarter are in many cases being extracted
from poor households that are buying more car than they can
really afford realize the relationship.
Relationship here, the poor households are giving their
money to Rich investors, buying these Bank stocks.
That's the relationship here. Now that might paint an ugly
picture, you might look at that and blame capitalism but it's
not a problem. If you understand the
relationship here, if you actually know what's going on,
it makes it so that you can transition from this side of
things, to the other side of things, once you actually
understand how money works in the US and in the world, it
makes it so that you actually Your behavior because you better
understand where your cash flows should go.
I understand that liabilities are not good for generating
wealth. In fact, they're the biggest
thing that deters people from accumulating wealth.
They put money from your pocket into the pockets of wealthy
investors and just like we see the example of an expensive
truck and the high interest payments, you have to pay on it.
We also see the flip side of that where people are earning
tons of money through dividends from stocks, like, JPMorgan
Chase. And I'll also mention the
dividends aren't the only way that That they're returning cash
to the shareholder. See, you might only see this and
say, all right. Well, he's getting $150 every
quarter. That's pretty cool.
But you got to remember JP Morgan.
Doesn't just do dividends. They also do an incredible
amount of share BuyBacks. They buy back billions, and
billions of their stock, which has the effect of pushing up the
stock price. This again, is another tool they
use with all the cash. They're extracting from many
people. Paying interest that makes
investors wealthy. This is the reason why Only do I
make money in dividends from JPMorgan but I'm also six
thousand dollars in the green and capital appreciation on both
sides. I'm making money with this
company. If you look at the poor
household cash flow. It is a very difficult one to
break. I think this is by far the most
difficult because unfortunately the people that are in poor
households typically have a low earned income.
They're not earning a lot of money to begin with and so most
of that money has eaten up by basic expenses.
So you don't have a lot of discretionary money to work.
With and then in almost every case, beyond the expenses,
beyond the basic, things to survive, the extra cash is added
to liabilities in this type of situation.
Like I said, it is the most difficult one to break out of,
but I still think it can happen. The big thing that needs to
happen is first of all, in any way, possible, trying to
increase the earned income, whether that means going to a
coding bootcamp, whether that means trying to get into a job
or you have some upward potential, even Low-income jobs
in many cases, have some type of upward potential for instance,
almost everyone. That owns a Domino's franchise
has worked at Domino's. Almost every one of them of the
tens of thousands. So there are some opportunities
always look for a job that has upward room for growth.
If you're working in a job that has no room for growth anywhere,
you're never going to make more money, you're never going to
grow your income. And you're not already at a very
high income with that job. It's not worth it, you should
move job. Jobs even taking a little bit
less current income if it has an upward trajectory.
When you're working especially early on in your career, you
always want to work at a job that has some kind of upward
potential. Never stay complacent with your
job. If you're doing that and you're
already on a track to have some type of upward potential and you
also want to earn extra income, you can look for other type of
side gigs. I know lots of people that do
doordash, they do ubereats, you know, there's lots of different
things in the gig economy that you can earn.
Extra cash. But once you've tried to
increase your cash flow at all as much as possible, that won't
solve this issue. Because if you increase cash
flow, and then you let that cash flow, go to liabilities, you
haven't done anything, you haven't accomplished anything
there, the earned income needs to increase and it needs to be
redirected towards assets. That is how you break out of
this cycle. You have to start directing
earned income to assets. If you have a lower income and
you don't have a stock portfolio then, Fifty thousand dollars in
that scenario is going to look insurmountable.
It'll look like, you can never achieve this type of portfolio
but that's not the attitude that you should have.
If you start investing in any capacity, you'll eventually get
to this point. I can almost guarantee that with
enough time, you will get to this point and far surpass it.
Remember that I started my portfolio with a 100 dollar
deposit back in 2017. Then I started to put in more
money as I got more excited about investing.
I remember the feeling when I First getting these dividend
payments, 69 cents from Visa. That was one of the first
dividend payments 69 cents. Then I got 64 cents, 30 cents,
35 cents. I got one cent 36 Cents and so
on I was getting pennies but it struck me.
This was something special. I was getting paid money,
passively real money, real cash that I could use for whatever I
want. That was passive.
And even though the actual Values were were minuscule.
These are tiny values. It was the principle that struck
me. I realized that this is real.
These companies are powerful economic machines that will
return money to you over and over and over again.
And all you have to do is take this same principle and do it
more and more. You have to find ways to deposit
money into your portfolio and buy these assets.
And luckily now almost every brokerage has some form of
fractional shares meaning that even if you have $50 a month, 50
bucks a month to spare. You could start a portfolio.
So there's not really any excuses anymore.
If you have any earned income whatsoever, you can put a little
bit of that into assets and whether or not that's $50 a
month that you earn from doing doordash whether or not it's a
hundred dollars a week. But at any degree I recommend
getting started starting to build up assets at any degree
because establishing that pattern and that behavior early
on of continually Depositing money into assets.
I think, is vital to be able to break this Loop.
If I kept my first job in never grew my earned income, I would
likely still be in the poor household loop.
I would have a very difficult time breaking this cycle because
my earned income was very low. At the time I had an earned
income of $12 an hour and my first job was working as a
customer support agent where I answered phone calls and emails
was not a glamorous job, it didn't come with good benefits
and the twelve dollars an hour I think was okay, pal.
A time. I remember getting a 50-cent
raise to 1250 and being very excited about that.
In my mind, I thought that pays for my lunch every day, that was
my first job out of high school about 12 years ago.
Now, I've been able to dramatically increase my earned
income over time through a lot of maneuvering, from job, to job
and learning different skill sets.
The big skill set that I learned the most valuable one was how to
code learning to code is an extremely valuable skill set in
the future and I think it will continue to be for at least the
next 30 Years. So, if you're considering a way
to dramatically increase your income and you like, working on,
computers learning to code, is certainly something you can do
and all the information to do it is available for free online.
All you have to have is a laptop and internet connection, and an
incredible drive to learn how to code.
Those are the three necessary ingredients.
But once I learned how to code, my income started to go up.
Then I started the YouTube channel and did both of those at
the same time. And the income has since
increased, this is how you move from this phase to the next
phase. You try to find any way possible
to increase your earned income. Now, we're on to the next phase,
the quote-unquote rich households.
You might notice that rich is within those quotation marks
because they're rich, but they're not wealthy.
And in many cases people in this phase of life or in this
category of cash flow are no better than the poor households.
They are not in much better of a financial situation.
Let me go ahead and explain why. First of all they have a higher
earned income. So you might be saying Joseph
how are they know better? Better if they have a higher
earned income. Well again let me explain why
even though they're earning more money, so they might have gotten
a raise or they might have switched jobs or let's say they
learned how to code and now they're making a hundred
thousand dollars a year. They're no longer making 40,000
a year now, you're making 85 100 120 thousand dollars a year and
you feel good about yourself. You're raking in all kinds of
money, that money though. Unfortunately is doing what most
people do. It's being spent in a very
stupid way. We'll never grow wealth.
The majority of people in this category that are high income
earners have some of their money, go to expenses, they have
a home, they have maintenance, they have utilities and Fuel and
insurance, and entertainment and some unexpected expenses.
Those are the basic expenses to live.
Will they make a lot of money? So the expense is really don't
eat away at the majority of their budget, but just like the
poor households, whenever they get extra cash, which they now
have they maintain that same mentality of having a poor
house. Household all the extra income
instead of going to assets, is funneled into liabilities and
the liabilities grow exponentially instead of just
having a basic home or a small place that they live at with a
mortgage and a cheap car to be able to get them from their work
and back, they buy a huge expensive home, they buy an
extra home, they buy multiple Vehicles, they're buying the new
Tesla's, they're talking about their new models of all the
different Tesla's. They're getting the highest
models that are the most expensive.
And they're showing them off on social media.
This is what Rich households do they show off all of their toys?
They have boats, they have RVs, they have lots of stuff.
Unfortunately, these are all in the liability categories.
Every single one of these things depreciates overtime Autos, are
very expensive. As you can see, just from the
price of them. If you're buying an
old-fashioned vehicle, not one of the newer electric vehicles.
Then those cars depreciate, very quickly and seven years, they
just lose their value like crazy.
When he was one of the only unique years where they went up
in value outside of that, anomaly cars are incredibly
expensive to lease and to maintain and in terms of Evie's
being so much cheaper than ice Vehicles, that's not really true
people that are buying Tesla's are paying a lot for them.
And to buy the full self driving feature is like an extra twelve
thousand dollars cars. Again, I believe are the biggest
culprit and eating away at your wealth but they're not.
The only thing there's other liabilities people buy other
things that go down. Value.
They have one time, use people spend a fortune on them and
unfortunately, they create zero wealth this way.
So you may have made the assumption that it's the poor
households that are funding all the dividends and all the
BuyBacks of all these different companies that end up, making
investors very wealthy and that is true to some extent or
household, certainly do that but it's far more the case with Rich
households because as you can see from the cash flows here,
Rich households have the exact same cash flows except they're
King with far more money. So they're basically using the
exact same blueprint as poor households, but now, they have
an upgrade and pay their money's not working for them.
It's working against them. And unfortunately, with all the
liabilities that they're paying for all of that stuff.
Again, makes investors incredibly wealthy people in
Rich households, buy huge homes and they do lots of home
projects will take a look at this.
I own a company called Home Depot, that takes advantage of
all the rich households that love to do their home projects
and that company returns that To me in the form of dividends.
I get paid a quarterly dividend from Home Depot, that's
continually growing without me actually.
Contributing any more money. Do you know a rich people tend
to shop. They love this place called
Costco. You may have heard of it.
The average home income for someone that shops at Costco, is
above 100,000 a year. It has a very wealthy Shopper
base Costco. Also happens to be one of my
biggest Holdings that contain only pays me dividends and
occasionally these huge special dividends.
You can also see that I've made some money and capital
appreciation on this. P'nay nearly ten thousand
dollars just on this holding alone.
Rich households aren't really rich at all.
What they do is they fund wealthy investors?
That's what happens with their money.
And since they have a higher income level since they're
making over 100,000 a year, they're just funding wealthy
investors at a much higher Pace than poor households.
But in reality, their cash flows match.
They're doing the exact same thing that poor households do.
They're stuck in the exact same Loop and if they continue this
way, they will never be able to retire.
They Always 100% be reliant on earned income and they'll always
be Shackled to their High earned income.
That's an extremely stressful situation to be in always being
forced to earn a ton of money to pay for all your liabilities and
expenses and my opinion. I'd rather just earn less money
and own less stuff. So obviously we don't want to be
in the poor household category and we also don't want to be in
the quote-unquote rich household category and that's a little bit
of a contrarian thing to say because this is opposed to be
the category that you envy that you're supposed to want to be in
and it's really not this is not the category you want to be in
this next category of the wealthy households.
I think is the single best illustration of the fundamental
shift that needs to take place in your cash flows the way that
your money flows in order for you to generate and grow and
sustain wealth. This is truly wealthy households
on first appearance. These people might not even look
wealthy but in reality, They have way more wealth than the
rich households. Look at the way that their cash
flows work. First of all, they do earn an
income but notice the line going from earned income to expenses
is very small. There's only one dollar symbol
here suggesting that they keep their expenses.
Minimal people that are truly wealthy, they keep their
expenses minimal, they don't like paying for homes, they
don't like paying for maintenance.
They don't like expensive things because they understand the
relationship of finance. And the biggest single
distinguishment here is that people that are wealthy truly
wealthy. Do not put their extra earned
income into liabilities. They don't like buying new cars.
They use old used cars. They don't like buying second
homes and vacation homes and three different, high-end trucks
and Tesla's and that type of things because they understand
money, they understand the relationship here, they know
that the extra homes go to fund wealthy investors for JPMorgan,
they know that the three auto loans for the big trucks and
Tesla go to fund Ally Bank. You know, that spending all
their money at Costco or Amazon is return to shareholders of
Costco and Amazon and the forms of dividends or capital
appreciation. They know that when they do
extensive remodelings of their home or yard projects, its
return to shareholders in the form of dividends from Home,
Depot and Lowe's wealthy. People understand this
relationship. So they do not pour their earned
income into liabilities. Rather the earned income by and
large flows into assets assets are things that gain value over
time And they have a tendency to pay current income, the two best
asset categories by far, our real estate in stocks.
Those are the two biggest ones. Real estate.
Everyone knows has a tendency to make people wealthier over long
periods of time. If you own rental properties,
you have so many benefits. You have the benefits of
depreciation, which helps attacks'.
You have the benefits of them. Being real assets, that work as
an inflation hedge. You have the benefits of capital
appreciation. Meaning they go up in value over
time and you have the benefits of current income.
As you collect rent from them. So real estate and rental
properties. Have an incredible amount of
benefits all packed into one investment and they have a
tendency to make people very, very wealthy.
You probably haven't met too many people that have been doing
real estate investing for a long period of time that haven't made
a lot of money doing it. The other category is stocks and
stocks is another way of saying Equity ownership, having
ownership in a company everybody.
That becomes extremely wealthy either has done it hipoly
through real estate or through owning a business.
You look at people like Bill Gates with Microsoft, Mark
Zuckerberg with Facebook Jeff Bezos with Amazon and so on and
so forth. The way that people grow wealth
is by having a steak, an ownership in a company and
stocks are just a name, a term to be able to describe the
public being able to buy ownership and Company's stocks.
Like real estate are both assets.
They both generate wealth. Over time, but they do it in a
very different way. For instance, real estate is
typically concentrated. You spend a lot of money on one
single place. Well, stocks can be incredibly
Diversified. You can buy a variety of steaks
in different companies so that if anything happens to one of
them it doesn't damage. Your overall portfolio stocks
are also incredibly liquid meaning that you can buy and
sell them every single day, five days a week where real estate
really isn't as liquid you can't buy and sell it every single day
every hour. So stocks have different
benefits and different downsides.
But overall they're both assets and they both play an important
role and many stocks like rental properties pay you current
income that's in the form of dividends.
That income is incredibly important.
I refer to that income as passive income, unlike your
active income that you have to work for in clock in for
passive, income means that you make it while you sleep and even
though you might have to work a little bit to manage a rental
property in the form of a dividend portfolio.
You really don't have to work at all.
You really don't have to do anything.
You buy a steak and a good dividend paying company and you
just hold it. That is true passive income and
it's completely real. So far, I've earned almost
13,000 dollars in this passive income just over the course of
the past three years and that amount is accelerating every
single year. It goes up.
And up. The biggest distinction that
wealthy households do is they don't spend any of their active
income on liabilities. They avoid this entirely, they
funnel all of their earned income into a Assets, whether
that's buying rental properties or dividend paying stocks or
stocks that are doing aggressive BuyBacks and have a high return
on invested Capital, whatever the case may be the things they
buy differ for every wealthy household, but in aggregate,
they all have this in common. They're all funneling, all of
their discretionary income into assets, those assets, pay
passive income and the forms of rent and dividends and that
passive income gets funneled right back into assets.
And that is where you get a dramatic compounding effect.
When you have this compounding effect of the assets, generating
passive income and then that passive income being reinvested
back into buying more assets, that is a snowball that gets
formed and then you have an additional stream of income
funding. These assets, which works as an
extra Catalyst, that's your earned income.
So now you have dual streams of income fund in your assets.
And that's really where you get this snowball working over and
over again. The cycle goes assets.
Generating passive, income passive income, buying more
assets earned income. You're working for buying more
assets, which helps generate more passive income, so on and
so forth. Eventually this cycle leads to a
lot of wealth. That is the end outcome every
single time when it happens or how it happens.
Can vary from investor to investor, it differs because
earned incomes are different and investment decisions are
different. But if you have any earned
income that you can put into Investments and you make wise
investment decisions and you get attractive returns, this will
eventually happen for every single person.
Will eventually happen. And once the assets grow to a
large enough size, you start actually surpassing your earned
income with your passive income. You might notice that in this
illustration, the passive income has three dollar symbols and
their active income has two dollar symbols, that is typical
in a really wealthy household. You might ask them, where do you
get your money from? Where does it come from?
They're going to say, I have a lot of money that comes in
through this business. I own.
I have a lot of employees. They're going to say, I have a
big portfolio of dividend-paying assets.
The I pay me out every single month and every quarter they're
going to say I have a lot of real estate properties that I
collect rent from once they get to this point of being truly
wealthy. And having so much assets, that
it generates an enormous amount of passive income, they no
longer have to answer. I get the majority of my money
from my nine-to-five. So when I look through these
three different cash flows, I really think this is the best
illustration. That separates poor households
from quote unquote Rich households from the truly
wealthy households, the true wealthy Still enjoys not having
to work every single day for the money that they spend.
This is the biggest thing that separates it.
And I really think that the more we understand the fundamentals
of how this works, the better shot, we have of moving from the
poor and the rich households into the wealthy household,
everyone has different situations and circumstances.
Some people are more advantage in this scenario.
Some people are more disadvantaged, but I truly
believe that most of us have a very good shot of transitioning
to this wealthy household. Cory.
We have a huge support system here with YouTube and social
media. There's lots of people willing
to support and help other people understand this and be able to
make this transition. Whether it comes with earning
higher amounts at your job, finding different ways to earn
money, lowering your liabilities and transitioning, your cash
flows from liabilities to assets.
There's people that can help with every phase of it.
So on my channel on my videos, week by week.
You see me building my portfolio and depositing income.
I also do In depth analysis. On the companies that I'm
buying, I'm trying to get very attractive Returns on my capital
and make my money work as hard for me as possible.
So I do extensive research on every single investment that I'm
investing in. I've done multiple videos on
Apple and Microsoft and done in-depth analysis, so that I
make sure I understand these companies.
And I share that information publicly for free.
I've also done in depth analysis on all of these companies entire
videos on Costco and Disney and Home Depot and understanding
their our business model and how they generate wealth.
And while all that information is good, I think it's important
from time to time to step back and realize the most important
thing going on here. The most important thing I'm
doing by far is my cash flows. I'm putting my money in my
portfolios. I'm choosing to buy productive
assets instead of tacking on liability.
After liability, I'm not buying Tesla's.
I'm not buying seventy thousand dollar trucks.
Like I said the most expensive vehicle I've ever bought is
twenty seven thousand dollars. The reason why is because I'm
laser focused on moving into that wealthy category.
That is my goal. I want to get to the point where
this passive income pays for my lifestyle where I earn enough
money and dividends and I have a big enough portfolio.
That that's what I'm reliant on to be able to go on enjoy the
things I want to do. Because in my opinion, the
people in the rich household category are not rich at all.
Being reliant on your active income, is not a fun situation
to be in and truly rich people. The ones in the wealthy category
are the ones that have it made. They're the Ones that have
freedom, they have autonomy, they can do whatever they want
with their time. They wake up and decide what
they want to do during the day, and that's the goal of where I
want to be. So that's my thoughts for today
and I hope you don't mind me. Not sharing news on current
events or anything like that. I wanted to revisit these basic
wealth building principles because I really think that this
has the most impact and can change people's lives.
The most out of everything that we basically talked about here.
So that's my thoughts. I hope you enjoy it and I'll see
you in the next one.