Hey guys, it's sasha in this video i'm going to share seven important money tricks that can help you build wealth more quickly. Just a word of warning. These methods are not going to be the kind of things that you'll hear in other generic videos or read in your typical article. These are not your everyday bit of financial advice.

In fact, these tricks are pretty high risk. I personally use all of these and they work pretty well for me, but some people would probably say that these are actually really bad financial advice. Some of these will take a lot of guts. Others take a lot of effort of focus.

None of them are easy and all of them carry a lot of risk. So don't do these at home unless you really decide for yourself that you want to go against a grain of popular financial advice and understand the implications i thought i'd share them anyway. All right, the first one is about managing personal finance and specifically managing debt. Now i have worked in fast small growing companies and i've started my own business over time and i manage my own personal finance in the same way that i manage the finances of a young, fast growing company.

I assess my personal balance sheet by looking at my assets versus my liabilities. I have debt, but i also have assets at the same time, and this goes against everything you'll hear about managing your personal finance as well. I do not prioritize paying down cheap sustainable debt. I don't care for that.

Sometimes i will have personal free cash flow. That means i have more money coming into my budget than leaving on a monthly basis, and when that happens i go and take that free cash. I invest it into assets. I own my own house, i have investments, i treat investments as a current asset because they are fluid.

I can sell out of all of my investing positions at any time and have the money in my bank account within about a week, and i look at my finances in the same way that i'd look at the finances of a high growth company. That i would want to invest in. I want my current assets to be greater than my current liabilities. That is a good place to be.

That means at any one time i could go and take all of my investments out and repay all of my short-term debt. Immediately now i'm using the word current loosely here, i treat current debt as being anything other than mortgages, any short-term debt, but earlier on, i didn't even have that balance struck. I've been in positions before where my current assets were lower than my current debt, and i felt perfectly fine about it, because i was using that debt as a leverage instrument to enable me to grow revenue. It funded me being able to start my own business.

It funded me being able to learn, and i don't focus on repaying debt. I don't really care about becoming debt-free or becoming mortgage-free. Those are not my objectives. I care about growing my revenue and growing my assets and if those assets and revenues are growing at a rate that is substantially higher than that debt, preferably accelerating at the same time, i really don't care about the absolute debt figure.

It's the ratios. That really count now i did warn you. This is not going to be good financial advice. Let's move on to the second one.

The second strategy is to focus on investing time only in non-linear growth of assets and revenues. Now i'm going to explain exactly what that means. It kind of sounds simple in a way, but it really is an important factor that many people don't really consider fully. Most sensible people, unlike me, have a job and that job pays an amount of money per month and there are two ways that that revenue stream can grow one.

You can get a better paying job, so your salary will increase by some kind of percentage number two. You can work more hours or maybe get a second job. The hours will then increase by a percentage instead and as your revenue is basically your salary and salary multiplies by time. You will then be able to earn more money if either your salary or your time increase because of that formula, but that growth is linear.

The amount of time that you have to work is limited and you're, probably already working most of that time. Anyway. The amount of salary that you can earn also has natural caps. You might be able to earn 10 more, maybe you'll be able to earn 20 more.

Can you earn 200 more in your work, probably quite unlikely. Now i have been working for myself for about seven years running my own business and, more recently, i've been focusing on building new businesses that can deliver non-linear growth as well. This youtube channel the one that you're watching right now is one example. I started making videos on this channel at the end of march 2020.

This is my first foray into youtube and the first few months i made absolutely nothing. I earned nothing. Then, in september last year i was making about five hundred dollars a month from youtube by december. I was making about two thousand dollars per month and over the summer this year, i'm averaging about seventeen thousand dollars per month from youtube.

Now, as the revenues grow the time and money that i have spent to get to that revenue begin getting paid off and that growth in revenue is not linear because of how youtube and general online content work, i also run a few different websites and i'm working On building out systems that generate revenue in a non-linear way there as well, but that's a story for a little bit later, let's move on to number three and number three: is i don't carry any cash? This is another one that goes against all the advice that you're here and most people will probably agree that it's a bad approach, but i don't carry any cash. I don't have any cash sitting around. I only have just about enough money in the current account. For my upcoming regular expenses - and i don't have an emergency fund - and there is a reason for that - i always have a million different places where i can deploy cash to grow my assets or revenue and to focus on growing those things for the future.

Each of the businesses that i have can grow. If i put more cash into it, i can produce more content. If i hire more people to help, i have upgraded my kit, for example, for youtube, and i still want to make a lot of upgrades that i haven't made yet because they require cash. I want a new camera.

For example, i want to invest in a switcher and a bunch of other things that you probably don't care about, but i haven't got them yet for my youtube channel, i'm waiting for more cash, so i can prioritize it on those things when the time is right. Some of the spare cash that i have goes into different types of investments as well, because they also yield long-term growth through those assets appreciating in value. But i personally have next to no cash on me at any time now. Trick number four is to make sure that you are on the right side of the line between investing and speculation.

Now you might have figured out by now that i am relatively happy with taking on risk, but there is definitely a line that i do not want to cross when it comes to risk - and this comes from me working in risk management for a large part of My life and that line is when investments turn into speculation. Now i know that speculation could earn a lot of money, probably far more than i will be earning in terms of percentages, and sometimes they can earn that money really quickly. But speculation can also crash just as quickly as speculative investments have far more unknown unknowns and as a mathematician, i absolutely hate having unknown unknowns. I like maximizing my level of certainty, so this is why i do not play the short squeeze game against the hedge funds with gamestop or amc.

This is also why i do not generally invest in cryptocurrency at all times. I want to base my investing decisions on fundamentals on things that i can assess on things that i can work out things. I can genuinely place likelihoods on things where the majority of the future outcomes can be forecasted to some degree, and i know that i'll miss out on some opportunities, like bitcoin increasing value by 1 million 100 billion. But i'm okay with that.

There is no real link between mathematical fundamentals and the current state of crypto valuations and maybe they're going to go up in value. I'm not saying that they're not, but for me the outcomes are based more on gambling kind of theory and hey the odds could be good, but i don't like gambling, because there is no way to actually know what those odds are, or at least approximate them a Load of unknown unknowns can kill that speculative investment, and i don't like playing that game either for crypto. For example, banks could force legal changes, governments could enforce prohibited legislation, there can be undiscovered fundamental technical flaws in their structure or some unforeseen economic flaws, and they could all be fatal, and i'm not saying that any of these will play out. There probably won't but sure some of my investments are also speculative.

I hold positions, for example, in companies like lucid, which is a car company, valued at 36 billion dollars that hasn't actually sold a single car. Yet i am aware of the risk involved. I am aware that some people will claim that that is speculative, but that's about as close to the line as i personally get. I feel i can still assess those risks and make meaningful data-based projections for my investment, and i am happy with that now.

The fifth trick is to diversify income streams, to mitigate volatility and risk, and this is one that is a lot more difficult than it sounds. It means working on more than one thing at a time. It means maybe getting up at 5am to work on something before you start working on something else at 8 or 9am, or maybe it means working late into the night or the weekend, but if you want to have complete financial security, freedom, etc. This may be the step that you would need to take for my content, business.

For example, i diversify my income between platforms. I have content on youtube here and i also have websites, for example, in this business, and if one was to disappear overnight, for whatever reason i still have the others that will remain. I have different revenue streams and i'm working to add more there's ads, affiliates and direct sales, for example. If something happens to one of these, if ads, for example, suddenly for whatever reason start earning 50 less revenue, it doesn't hit my overall numbers that much.

I also diversify between industries. This channel talks about money, but i've also got another website. That is all about travel and you can imagine how that website is doing over the last two years because of the situation we find ourselves in, but because my revenue streams are diversified, i can weather that storm and i can wait it out. It's important, though, to not go too far.

You don't want to spread yourself in. You want some diversification to mitigate for major black swan events. Major setbacks major issues happening, but you want to give yourself enough time to pay enough attention to each of the projects so that that project can grow. So, let's move on to trick number six now, because i'm getting a bit carried away and the trick number six is always be prepared for sharp, turns and diving in at the deep end.

Now it is critical to be prepared to take advantage of opportunities or to make rapid moves when you have to. This is something that a lot of people actually find very difficult, because having this mindset can feel very uncomfortable, it can put you out of your comfort zone, but sometimes life will throw things at you and if you are not ready to jump, if you not ready To take action, you will miss it. Sometimes life will throw you an opportunity. Maybe you'll hear about that dream job, for example, being advertised, but you're too busy you're afraid that you won't get it.

It doesn't really make sense for you to apply. You don't want to move to a different city. You don't want to move to a different country. What, if you don't even like the job, and you give up the current job that you have, that you kind of think is.

Okay. People are often hesitant to grab an opportunity when it presents itself. Sometimes life will actually go and throw you a crisis, and if you don't move fast, you can get left behind. You might work in an industry that gets hit hard by the economy or changing times.

You can choose to stick it out and see what happens? Maybe things will change? Maybe things will actually improve in the future. Who knows, but things can actually not change. Instead, they can decay and it can send you down a spiral that becomes harder and harder to get out of like most people. I've had this happen several times to me as well.

I've worked for companies that have gone bust. I've lost my job in five minutes during the financial crisis. When i worked in the bank, i've been there. I've had all of these experiences.

I've had my company get crushed by brexit and the events that happened last year globally. Now i do know how it feels, but you do have to keep a cool head. You have to take a step back, you have to analyze the situation and you have to make your move. There was a reason why i started this youtube channel in march last year.

Now, let's move on to the next tip, and this one is really hard but also really effective, and it is to prioritize long-term growth over short-term profit. Now i'm talking in business times again because remember, i generally actually think about personal finance in the same way as managing a business when presented with a choice, i will always pick the long-term growth option over the short term. Profit choice: it's a bit like investing in an early stage company when that company is technically making a loss every single quarter, because they are investing all of their money that they have today will have and all of their effort into growing revenues in future years. Instead, rather than you know, taking the profits and paying dividends, these choices may not be very obvious and they can actually be quite difficult to make.

Now, after i lost my banking job during financial crisis, i had a few different job offers to join other banks. For example, and i could get a promotion, i could become a senior analyst while i was at it sounded pretty good, but instead i went and took a lower paid job in the energy sector instead because it was a manager, level role it. Let me get experience of managing a team of having people work for me for the first time, it taught me a lot of things that you can't learn from a book and those things. Let me move much faster up the career ladder after i had that job.

I chose to take less money at the time, because i knew that it would build a better trajectory in the future instead of pocketing a higher salary which would not have led me to have the same opportunities afterwards. I do the exact same thing today. I could be banking a lot of the revenue that i am making, but i don't need to prove anything to myself or to anybody else. So i constantly reinvest today's revenue into scaling my business for the future instead of feeling smug, that's just how i'm wired.

Now i hope you found this video useful. If you did, please don't forget to smash the like button for the youtube algorithm. I'd really appreciate it. Thank you so much for watching this video and i'll see you guys later.

You.