Ever since learning about compound interest and reading books like Rich Dad Poor Dad, my outlook on money forever changed. And If you view money the same way, you can pretty much guarantee you’ll never run out of money and you can make it generate cashflow to last a lifetime. Enjoy! Add me on Snapcaht/Instagram: GPStephan
Without the clickbait:
Here’s what it is. Let’s say I have $10,000 in my account. I don’t see that as just $10,000…instead, I see that as $700 per year, for life. Or almost $60 per month that I can live off of for as long as I’m alive.
For me, I might get about a 10% return by investing in real estate. Inflation eats away about 3% per year, leaving me with a net 7% return on my invested money. Meaning that for every $100 I invest in real estate, I’ll make $7 per year in profit, while still having my original $100.
Now everything I do and think about is calculated in future monthly profits. So that $20,000 car is really worth $116 per month in profit. If I’m making $50,000 per month, I don’t see that as $50,000 per month…that’s $291 per month for life, PER MONTH. Basically one month of that will pay for a lifetime of my Toyota Prius lease payment without me ever having to come out of pocket.
It’s even more impressive if you decide to reinvest your money. If you just decided to re-invest the 7% income that $10,000 generates, over 25 years that 10,000 will have grown to almost $55,000 at the same 7% return.
So now when I see something that costs $1000…I think, it’s that really worth $70 per year for life? Or is that really worth almost $5500 in future money? And usually for me the answer is no, I’d rather the $70 per year and just continue growing that $70 per year until I can afford whatever costs $1000 without ever having to come out of pocket. My investments should be able to cover anything I want to buy, and at that point, you know you’ve made it.
Now that you see it, it’s hard to view things the same way. I can look at almost anything and imagine what that would generate me monthly. It’s pretty ridiculous.
Because people always want to know what to invest in, I invest in rental property where a cash on cash return would generate about a 10% return, and I also invest in an SP500 index fund where it has historically returned about a 7.2% return adjusted for inflation. There are plenty of investments out there to chose from depending on your risk tolerance and how much you want to make…. Bitconnect 😉
For business inquiries, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Without the clickbait:
Here’s what it is. Let’s say I have $10,000 in my account. I don’t see that as just $10,000…instead, I see that as $700 per year, for life. Or almost $60 per month that I can live off of for as long as I’m alive.
For me, I might get about a 10% return by investing in real estate. Inflation eats away about 3% per year, leaving me with a net 7% return on my invested money. Meaning that for every $100 I invest in real estate, I’ll make $7 per year in profit, while still having my original $100.
Now everything I do and think about is calculated in future monthly profits. So that $20,000 car is really worth $116 per month in profit. If I’m making $50,000 per month, I don’t see that as $50,000 per month…that’s $291 per month for life, PER MONTH. Basically one month of that will pay for a lifetime of my Toyota Prius lease payment without me ever having to come out of pocket.
It’s even more impressive if you decide to reinvest your money. If you just decided to re-invest the 7% income that $10,000 generates, over 25 years that 10,000 will have grown to almost $55,000 at the same 7% return.
So now when I see something that costs $1000…I think, it’s that really worth $70 per year for life? Or is that really worth almost $5500 in future money? And usually for me the answer is no, I’d rather the $70 per year and just continue growing that $70 per year until I can afford whatever costs $1000 without ever having to come out of pocket. My investments should be able to cover anything I want to buy, and at that point, you know you’ve made it.
Now that you see it, it’s hard to view things the same way. I can look at almost anything and imagine what that would generate me monthly. It’s pretty ridiculous.
Because people always want to know what to invest in, I invest in rental property where a cash on cash return would generate about a 10% return, and I also invest in an SP500 index fund where it has historically returned about a 7.2% return adjusted for inflation. There are plenty of investments out there to chose from depending on your risk tolerance and how much you want to make…. Bitconnect 😉
For business inquiries, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
“SunCor Financial MPI review” "
A real eye opener, thank you 😊
How do you personally balance out not going too extreme with this? To the point that you can't enjoy life now?
in that logic I would also be able to use this money to pay bills right and such right?
Invest invest invest ….. invest into what exactly ? Where does one start without owning a property or a house to rent out ?
brb gonna buy 10 duplex's in winnipeg
Hey Graham great video! I love your content! I am currently paying off debt and saving for a house, which is not easy to do simultaneously lol. I just started learning about the concept of Volocity Banking as a way to pay off debt faster and leverage your available credit line. Do you have any videos on that subject? Thanks man!
It’s an old vid but I love it anyway! I can no longer unsee it. 👍🏽😱
How could anybody not like this video, Unless it is making people feel guilty for not saving. Great job Graham keep the hits coming. Have a supper great and profitable day Dave.
Yes…
Bitconnecttt hahaha JK – TM
I would like your advice. I have 120 I in cash. I have a condominium I prayed off last year. I'm afraid. I'm disabled. I'm locked in my group. What do you think?
“Money makes money. And the money that money makes, makes money.” ~ Benjamin Franklin
Please more videos like that please!!
Gold👌
Robert kiyosaki CHANGED my life man and so have YOU
I can live off of $1.50 every day for the rest of my life from what I've saved so far!
Most of what people buy is just "stuff" that doesn't provide value. This is why house cleaning tv shows are now part of the cultural mainstream. Waaaaay too much crap out there in the world!
Graham Stephan … great video, thanks love your videos. I have a good income, however, I have to travel in order to keep that cash coming in. I am very tired of traveling and want to finally settle down in one city with my family. I managed to save $200k cash and have excellent credit too. I was originally thinking of buying a franchise but after watching your videos I am more interested in purchasing properties and getting in "good debt". I love San Diego, CA but it's very expensive … I was thinking of maybe settling down in Houston as properties are much more inexpensive. Do you think I'm pretty much obligated to settle down in a much inexpensive city like Houston (assuming I settled own now) or do you think $200k cash and good credit are good enough to start doing rental properties in SD? Thanks in advance
Hahahaha bit…..co…nneeeeeeect
mate.. thats the best video i have ever seen about simple financial literacy.. great job… keep going mate .. thanks for all u do for us.. appreciate.
10% return in real state? Man, please, how? Can you shoot a video about that?
I love all your videos because you get right to the point I like that. Other people’s channel just ramble with a long intro I literally am dying after 3-4 mins, but yours is really good, thank you.
I think exactly the same way… once you start seeing great returns, it's hard to spend money…
You can slave for money or you can have money slave for you. Money = employees = increased leverage = increased cashflow/income. The name of the game is to have as much "employees" working for you as much as possible.