Full transcript of “How Fast Can You Make It To $1,000,000”. Click a timestamp to open the video at that moment. Need another video? Use the YouTube transcript generator.
0:00 You go to work to get paid. Doesn't matter if you're a doctor. Doesn't matter if you're an engineer. Doesn't matter if you're an executive. Doesn't matter if you're a teacher, a firefighter, working at McDonald's. I don't care what you do. You go to work to get paid and you're working to earn money and you're working to pay your bills. Now, if you want to build wealth, if you want to accumulate your way to a million dollars, that means you can't spend all your money, right? That's pretty obvious. If you spend all your money, you can't accumulate any money. But if we start by putting a little bit of money aside, I'm going to say you can put aside just $4 a day, which might not seem like a lot of money, but you see why this is so powerful. If you can put aside $4 a day, that's about $120 a month, assuming that there are 30 days in a month. If you do this, and you want to save your way to a million dollar, assuming your money doesn't grow, it's going to take you about 700 years to get
0:48 to that million dollars. not that difficult, but it's going to take you way longer than you have on this earth, which is not practical. Luckily, that's not the only way that you can accumulate that million dollars. Option number two is you take this money and instead of stuffing it under your mattress, you take this money and you invest it into some sort of fund, something like the S&P 500, which historically has grown by 10% a year on average. So, you want to put this money into a fund where you can ideally get something close to a 10% return a year. Now, if you take this $4 a day, $120 a month, and every month you're putting this money into a fund that's growing by 10% a year. Now, instead of taking 700 years for you to accumulate the million dollars, it is going to take you 44 years to accumulate that million dollars. But these aren't
1:33 your only two options either. Now, I got to give you a little bit of a disclaimer here because I'm just a random guy on YouTube. I'm not a financial adviser. Everything that I talk about is from my own experiences and my own mistakes. So, make sure you always do your own due diligence and never blindly trust a random guy on YouTube. And I'm not telling you what to invest in. I'm just giving you examples. The third option that you have now is you invest your money into some sort of fund. Kind of like we talked about here, but instead of just investing $4 a day for the rest of your life, you start by investing this $4 a day, but then next year you start investing 5% more. And the year after that, you invest 5% more as well. That means this year you invest $4 a day. Next year you invest $4.20 a day. The year after that you invest $441 a day and on and on and on. Now if you do
2:18 that and your fund can still grow by around 10% a year, that means it's going to take you 36 years to accumulate that million dollars. Now I already know what you're thinking. You're getting ready to type either one of two things. The first thing might be but just breathe. I don't want to wait 36 years to become a millionaire. I'll talk about that. Option number two that you might be typing is but just breathe. Where in the world am I going to find a 10% return? Let me answer that one right now because that's quicker and easier to answer. The markets go up and they go down. The S&P 500 has gone up and has gone down over the last century. It has seen booms. It has seen bust. We have seen market crashes pretty much every decade for the last century. But despite that, the S&P 500 has grown by around 10% a year on average for the last century. despite
3:04 the recessions, despite the market crashes. Yes, the market will crash again, but those are opportunities for you to go out and buy more because that's when good investments go on sale if you're financially savvy. So, make sure you're investing in your own financial education. Now that that part's answered, let me answer the first part that I said, which is how do you get to this million dollars? How do you accumulate this million dollars faster than 36 years? So, if you want to accumulate the million dollars faster, of course, you can work to get the better return like we talked about, but the other option is you can work to also invest more money. So, now we're going to talk about investing $500 a month as opposed to the $120 a month. If you can do that, now you can save your way there by stuffing this money under a mattress in 167 years. A whole lot faster than 700 years, but still not practical. But
3:49 take a look at this. If you take the $500 a month and instead of stuffing it under a mattress, you put this into something that is going to give you this 10% return a year. Something like the S&P 500 has done for the last century. Well, that means now if you can grow it at 10% a year, it's not going to take you 44 years, it's going to take you 30 years to accumulate the million dollars. And now, if instead of just investing $500 a month for the rest of your life, if you can invest $500 a month this year, increase it by 5% next year, that's $500 a month this year. $525 a month next year, $551 a month year after that if you keep growing your money that way. Now, instead of 36, you can get there in 25 years because you're increasing how much money you invest every single year. See, the nice thing about this way to accumulate your way to
4:36 a million dollars is it can be relatively passive, assuming that you don't get caught up in all the emotions of investing, that you focus on the financial education. It can be relatively passive because now you can just invest this money and forget about it and let the markets do their thing and you can work to grow this money while you're going to work and you don't have to really worry about this because now you just keep investing this $500 and the more money you invest the faster that you can accumulate that million dollars. I mean if you want to get there faster than this you can invest $1,000 a month, $2,000 a month. But the problem that a lot of people will have and I already know what you're getting ready to say here is something along the lines of but just how in the world am I going to find $500 a month? I already know what you're going to say. I know I see you behind the screen, but I also know what you're thinking behind that screen, too. Well, this is where you have two options. You can work to spend less or
5:22 you can work to earn more. Earning more kind of ties into how do you earn your way to a million dollars? So, I'm going to talk about that second. So, let me talk about the first part, which is how do you spend less? Because this is where the majority of people will say, "Huh, I like this investing thing. I like the idea of being a millionaire. So, I'm going to work to spend less money. I'm going to stop buying the extra guac and I'm not going to buy that Starbucks to see how much extra money I can put aside by sacrificing the guac and the Starbucks. And then after one month you realize that you saved an additional $9324 because you didn't buy the guac and the Starbucks because dang that guac at Chipotle got expensive and Starbucks puts a lot of sugar and a lot of dollars on your bill. But that's not going to make enough of a dent for you to get here. And this is where I want you to flip the script and I want you to take a
6:08 look at what are some of the biggest expenses that you have on your finances. From what I have seen, the three biggest expenses for the average person are number one, your house. Number two, your car. Number three, DSYCA. What is DSYCA? This stands for dumb stuff you can't afford. Starting with your house. If you can downsize your house, downsize your apartment, which I know is not fun. Nobody likes the idea of moving or downsizing, but this could be one of the easiest ways for you to find an additional $500 a month, maybe even an additional $1,000 a month depending on how you're living that if you're not spending this much money on your house, on your maintenance, on the extra property taxes, on the bigger insurance, and the bigger utilities, you can find that additional money and put this directly into your investments as a way for you to build your wealth instead of just making your banker and everybody
6:54 else richer. Everybody talks about how if you buy a home that you can build wealth and all these things. Well, for the majority of Americans, buying a home ends up becoming a money pit because they don't understand what the real cost of home ownership is. I love the idea of owning a home. I don't own my home yet. I rent my own place where I live. I own rental properties. I own stocks. I own my business. I own gold. I own startups. I mean, I invest my money in a lot of different places, but I rent where I live because I've been working to build my investments before I work to buy my own home. There's nothing wrong with buying a home. I love the idea of people buying their homes. I just want you to be able to afford the home that you purchased because the mistake that so many people make is they go out to buy a home thinking that buying a home is going to make them rich. But then you realize that the home that you bought is just a big money pit. Buy a home that you can afford. That way you have money to actually make yourself rich. If you
7:39 want, if you really want to do it in a way that's going to make you wealthy, buy a rental property before you buy a home. I know that's hard, but if you buy a rental property before you have a home to live in, that rental property can help pay for your mortgage. The second biggest expense for the average person is your car. Guess what? The average used car payment in America today is over $500 a month. Don't even get me started on the average new car payment in America because there are so many people driving around with Escalades that cost them over $1,000 a month that the majority of them cannot afford. But the average used car payment in America costs over $500 a month. Guess what? You can get rid of that. Instead of taking the $8,000 that you used as a down payment, take that $8,000, buy a used Toyota Corolla, which I get it, it's not
8:24 the same as a BMW 4 series. But if you take that used Toyota Corolla, you no longer have the $530 car payment, and now you take the $500 and you put it right here, and now you have money to invest. Not the easiest thing to do, not the funnest thing to do, not the nicest thing to do, but it works financially. The third thing is you get rid of some of the dumb stuff you can't afford. Stop going to the Gucci. If you have credit card debt, you should not have a Netflix subscription. If you don't have any investments, you shouldn't be eating at restaurants. Understand now what is important to you. You get out of life what you prioritize. You don't get out of life what you want. I know nowadays we live in this world of I deserve this. I want this. I feel like I like this. People live in their feelings. But the money doesn't care. The money is not emotional. Money is
9:10 just dollars. It's a piece of paper. It doesn't care how you feel. It doesn't care what you deserve. doesn't care what you want. It cares how much is in your bank account. I mean, that's the only thing that matters when it comes to your money. I'm not saying money is the only thing that matters in your life. That's never what I said and that's not what I'm saying. Now, money is one part of your life. You got to be physically healthy, mentally healthy, spiritually healthy, and financially healthy. But the reality is, if you're talking about your money, it doesn't care about all the other emotions. And so, when we're talking about money now, you got to get rid of some of the dumb stuff that's costing you money that you can't afford. When you buy the Gucci, when you buy the BMW, you're making Gucci rich, you're making BMW rich, but you're keeping yourself broke. I don't care if you buy Gucci if you buy BMW. What's interesting is I had a uh somebody apply for a job who in the last round asked me if I'd ever buy a BMW. I said, "Heck yeah. I
9:57 love BMWs. They're beautiful cars." And he's like, "Well, you talk all these these bad things about BMWs." I said, "No, I never said anything bad about a BMW. The only issue I have is when people buy BMWs when they don't have the money to afford it. That's the problem that I have because people are going into debt, deep debt, when you already have other debts when you don't have investments to finance a BMW. Your priorities are in the wrong place. I rather you buy investments before the BMW. If you have a BMW with a car payment before a stock market portfolio, without a rental portfolio, without any sort of cash flow, your priorities are in the wrong place. I want you to get rich first. Our economic system profits off of people that are dumb with their money. Our economic system profits off of people when you spend all your money. Our economic system profits even more
10:42 off of people when you go into debt to spend money you don't have on dumb stuff because then you keep the stock market high. You keep the economy strong and you stay broke. Well, guess what? America is a great country, but it's not your patriotic duty to live broke for the sake of somebody else's stock market portfolio. Okay? I want you to understand how the system works. That way you stop buy the dumb stuff that you can't afford with money that you don't have. Use the money to make yourself rich first, get rich, and then buy all the dumb stuff that you want without having to worry about the price. If you enjoyed this clip and you want to continue your financial education journey, I have another video that I think you'll love. All you got to do is click that button right over there. And for those of you who want to stay uptoate on the top finance and business news, you can join Market Briefs, my free financial newsletter, by clicking
11:28 that button below. Thank you for watching and I'll see you in the next
