The Untold Truth About Money: How to Build Wealth From Nothing.



Given below is the summary of the above video:

  1. Jeff Bezos has a net worth of $117.3 Billion! Such enormous wealth is beyond the imagination of most of us. For most of us, driving a sports car, buying a mansion or travelling around the world in a private plane will always remain just a dream. But, so many young millionaires are living this exact life.

  1. Contrary to popular perception, a 2018 report by Wealth-X published that 67.7% of the ultra-wealthy population(those having a net worth of $30 Million or more), were self-made millionaires e.g. Warren Buffet, Jeff Bezos, Oprah Winfrey, Elon Musk etc. Every other study seems to back up this conclusion. Only a minority had inherited their wealth.

  1. There are a lot of misconceptions in the society about how the money works and even our education system doesn't teach us much about this aspect. However, there's a proper science behind how people like Jeff Bezos get ultra-rich. Although the way to getting rich is not devoid of challenges. It's tough and only a few people manage to overcome all the ups and downs.

  1. In any job, you are paid only in proportion to your perceived value in the market. A cleaner's perceived value, no matter how hard he works, is not greater than that of an accountant sitting behind a desk saving taxes of his employers. If you earn $20 per hour and work 40 hours per week then it will take you nearly 24 years to make $1 Million. And that is without taking into account any taxes/expenses or inflation. Just imagine how many Billions someone like Jeff Bezos or Warren Buffet would make in the same time period.

  1. In order to get rich, you have to increase your perceived value and for that you have to solve bigger problems. The bigger the problem you solve, the more money you'll make e.g. Amazon solves a lot of the hassles associated with buying something offline. By finding a solution to a common problem faced by millions of people, they have been able to generate a huge amount of wealth. So if you want money, you should be going after the problems faced by a lot of people.

  1. After you've identified a problem worth your time, then you need to develop a scalable solution. This is very important. Without having a systematic and scalable process in place, it will just be another job disguised as a business. You need to automate/outsource as much as you can whenever it makes financial sense. In an ideal scenario, you wouldn't be required to take care of your business, rather the business would take care of itself. You need to make sure that your solution is easily accessible to everyone in the market.

  1. Once you've got a scalable system in place, you may attract the attention of larger firms who might be interested to acquire your business e.g. Instagram got acquired by Facebook for 1 Billion, Paypal got acquired by eBay for 1.5 Billion of which 165 Million went straight into the pocket of Elon Musk. Once you reach that stage, it might be the time to move on and reap what you had sown.

  1. Even if due to some reasons you choose to reject the acquisition offers, the bottom line will be that you were successful in solving a problem that the market wanted solving and you will be amply rewarded for that.

  1. The important thing to understand is that money is just a number. It gets its value only by our belief in its value. It's not exactly the money that you're after, rather it's the freedom, the ability to do what you want whenever you wanted without ever having to think if you can financially afford it or not. What's much more valuable is the time that you can never reclaim. So it's up to you, whether you want to give up a large chunk of this valuable resource doing a job that you probably know isn't worth it. If you desire liberty through never needing to worry about money ever again then let solving problems be the meaningful struggle in your life.

  1. For topics of business, money and entrepreneurship, read the works of M.J. Demarco.

Comments