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Income

How to started on this path of passive income

Make money good, but why do you want to make money for what?  For happiness. For happiness, good. Hang out with my friends. Hang out with your friends, a little bit more free time yes. Help people. Help people good, make a difference. Travel the world. Travel the world very nicely. Security. Security, good. For my kids, for my kids. For your kids, to provide for your family, great. So I can say F-U government. To say F-U to the government, good, good.  How many of you got into business in the first place because you saw there’s maybe a problem. And you would like to solve their problem? Can I see a show of hands, okay?

How many of you got into a business because maybe you saw a product or service whatever it might be and you thought you know what I can do better than that. And you started your business just because of that? Interesting interesting. So the first, by the way, this is going to be a more interactive experience. I don’t believe me just lecturing and stuff like that. So I just don’t just want to be talking and lecturing we’re gonna be doing shit here okay. Is that okay? So the first things I want you to do, I want you to find a partner, find a what? Partner. And preferably someone you don’t know, so go ahead and find a partner first. Find a partner you don’t know.

Yep, yep two, you got it, you got it.  Can we have threesomes? It’s up to you, somehow I kinda get a different picture in my mind now. Yes, you could yes that’s fine. Everybody has a partner, everybody’s got a partner, yes okay, good. So what I want you to do, I want you to discuss for two minutes. What does passive income mean to you, and what does financial freedom mean to you. I’ll give you two minutes, just among your partners go. Give your partner a high five and say thank you for sharing. Thank you for sharing. So you know what does it mean to you and it’s very personal, everybody means. It means different things of course, and tonight.

I’m gonna share some things with you, well first of all the truth will set you, what. Free. But first, it will Piss you off.  piss you off. And I’m gonna say some things tonight that I think will shock you and I know that why you came here. And I also now know what you came here to learn. But I think what you walk away with from tonight, might be quite different than what you expect. You might think you’re coming for one thing, but I think you’ll walk away with something way more valuable. You might think tonight is a money conversation, but then at the end, you might realize, it might be a lively conversation.

So it would be quite interesting, and I think last time I did this, it was extremely powerful, and people were blown away by what I shared, and some people were pissed off. And it’s normal because sometimes it piss you off first and then you’re like damn. That is the truth and it might take a while for you to digest but if you actually you are if you’re open what’s the word?  Open. Opened. I think you’ll find it incredibly liberating but let’s see what happens okay. Let me tell you a little bit about my journey and how I started on this path of passive income. How I generate passive income, I first came to Canada years ago with no money, no connections. And not a word of the English language on my lips you can tell from my accent.

I was born in Hong Kong I came here when I was 14 years old, and my mom and dad got divorced when I was 16 years old. So I was the only child my family, so at an early age, at first, my dad was you know, sending us some little bit of money. But later on, because his company went bankrupt, in Hong Kong so he stopped sending us money. And all we had is whatever we brought to Canada. So as a young boy then I had to mature very quickly because then I had to provide for my mom, I had to take care of my mom. At an early age, to me, I was never interested in money, it wasn’t, it was never my thing. I was, I thought you know at the time I was very much into a martial art, I thought my biggest dream in the world would just be a martial art instructor, that was it.

But then I realize at the time my martial instructor, was broke. He had five students, and only two were paying him, and I was one of them. So I thought maybe that’s not a good way to make a living and I couldn’t provide for my mom but what’s interesting is looking back. What I realize is that I have I’ve always had a teacher’s heart, I like to teach. So now the difference is I’m not teaching the martial art. But I’m teaching entrepreneurship and business, that’s my passion, and you see I’m very passionate about what I do. So through that experience, I started my first business when I was in high school with a couple of my buddies a lawn mowing business.

Now let me tell you about lawn mowing business, we start off with you know. We had a lawn mowing machine, and a couple of buddies and the business was okay. It was doing quite well, except we just didn’t have any customers, everything else was good. So now in business, when you don’t have customers what happens? You go broke. Go broke. And then when you go broke do you still have a business, no. So I learned my lesson there, so you know we failed very quickly and then I started another business. And I thought to myself, you know what, learned my lesson and dust myself off, learn from my mistakes, started the second business. And I said to myself, “This is it, I can feel it.

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Income

What are the different types of income

Yeah all the marketers and business people right, wasn’t my intention. It was not my intention. So I wrote a book and I printed like a hundred copies of it. And it cost me five bucks each, and physical copy. And I remember at the time, I post on an on a business forum or something. I post it and you know after a couple of days, nobody buys, and this is I’m talking before PayPal, before merchant account. So one day, my phone rings, I picked up the phone and this this gentleman from the States, he said “I saw your posts on this forum, “do you still have any of those books available?”

About 100 of them. Yes I still have a couple copies, yeah I’ve got a couple copies, they’re selling well but I’ve got a couple of copies. Well, can you send me one of those, sure like how would I pay you, I don’t know well can I send you a money order, okay sure so he sent me a money order. And I ship him the book, and when I first got the check, that money order in the mail. It was the most incredible experience I’ve ever had because it was a validation. That hey you know what I’ve got something. Here that might work if it’s 20 bucks doesn’t matter because at the time I was trading hours for dollars. I was making high dollars, but still, it’s time for money,

So I thought to myself, this is interesting. I sold out a hundred copies in about 30 days, so I made about 1,500 bucks. Now if you were me, what’s going through your mind now? I would do that again. Do that again, yes. What’s going through my mind. More books. More books, I could do more like it what if I put this, because it’s just part-time, what if I do more. I do more marketing can I sell you know 200 copies, 500 copies. What if I had more books, I don’t know, that was it because I want at a time. My intention was just to make enough money so that I could just spend less time working with clients one-on-one. Because I want to spend more time with my mom because I was working all the time although she’s home.

But I’m just in my room working all the time, I didn’t like that. So that was my intention and from there, make very good money, launch the next book, the next product. And I love that, I talked about that in my book, FU Money. And maybe timing, you can say luck, the internet took off. I was getting now a little bit of money, I went into different niches, different industries, more products, and affiliate marketing, and at one point was making a ridiculous amount of money. I’m talking ridiculous amounts of money. And I was, I would let’s say go out for dinner with my friends and we would blow three grand on a night. Just like that, and I don’t even drink. I don’t drink, and we blow like three grand like I was stupid, I was getting a new car every year.

It was stupid stuff, I did stupid stuff, and I’m not proud of it, but you know as a young guy, you went through that, you got that right. You went through that, and but looking back what’s interesting is. Why was I doing that, buying my friends, taking them on vacation, buying them drinks, buying them dinners and this and that, why was I doing that?  It’s fun. It’s fun, no, but why was I doing that? Because it’s good. Yes but it’s but deep down, what was I craving, what was I looking for. Recognition. Validation. Recognition, validation, I was trying to buy approval, I was trying to buy love, attention because my mom and dad got divorced. So that what’s lacking in my life.

Now but let me ask you a question. If my friends were coming me for, coming to me for that, are they, true friends, no. So when I stopped buying them dinners and stuff like that, are they gonna show up, no they’re not true friends. Then I learned, later on, it’s they’re not true friends. But I was, it had the illusion of, well it’s great, I got a bunch of people and it feels good, and this and that, but it was stupid, very stupid. So you know with internet marketing, that’s how I made most of my money, so what I want to do tonight, is share, maybe two key lessons. That I’ve learned throughout the way.

During that process and before and after, and hopefully, you don’t have to make the same mistake that I made and you don’t. And you can take from it, and you can apply anywhere you want, whatever state you’re in right now. How many of you would be interested, yes?  Yes. So here’s another exercise, so what I want you to do, just to yourself. I want you to write down your total annual income, just from the last year 2014. And this is personal. Whatever the number is write down your total annual income.

According to me or according to income tax. No sometimes, last time when I did this, there was an accountant, well is it pre-tax, after-tax. Just how much you made last year, keep it simple. Put up your hand if you have that number, okay. Give you a couple more minutes, how many have no idea what that number is? Okay good, good, guess that would not be a good sign, well actually it might be a good sign. Because either you don’t make enough money you don’t want to look at it, or you make so much money you don’t even care. So who knows. So write down your totally annual income.

Now step two I’m gonna get into in just a sec. I want you to categorize your source of income, but before getting into that, let me talk about the different types of income. So there are basically four types of income, how many types? Four. Four types. The first type is what I call linear income, now what is linear income, linear income means you do a little bit of work, you get paid, you do a buck worth of work, you get a buck, you’re trading hours for dollars. Linear income.

So you could be, you make a sale, you get a buck, you do a deal, you make a buck, linear income, or a job, a the end of the of month paycheck, linear income. So with linear income, it’s what I consider most of the time it’s bad income, but that’s what most people know how to. And so these are just some examples of different types of income, I mean I could give you way more example but it would be very very long, but you’ll get an idea. So an example is salary, overtime, commission, consulting fees, professional services, those is what I consider linear income.

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Income

Meaning of linear, leverage, passive and windfall income

What kind of income? – Linear. Linear income, okay linear income. And then you have what I call leveraged income. What kind of income? Leveraged. Leveraged income means you are now leveraging, O.P. other people, other people’s time, other people’s talents, other people’s resources, other people. So with the leveraged income, we’re talking strategic alliances, subcontractors, goodwill and client contracts, or maybe salary staff or sell space network marketing.

Different types of leveraged income, but you’re leveraging other people. So now you’ve got a little team, maybe you have a little system in place. You’re no longer just relying on yourself, okay, leveraged income. And then you have passive income, an example would be let’s say commission staff or buying base network marketing, or renewals, or interest income, or dividend income and so on. So passive income. And then you have what I call windfall income, what is it? Windfall. Windfall income. so windfall it’s an appreciation of stocks, appreciation of real estate, appreciation of RSP. You know the inheritance, lottery, large bonus, selling a business, that type of, so windfall, a windfall income.

So the four types of income. So you have your numbers example would be, so let’s say last year you made let’s say a 100 grand okay. And let’s say you would categorize it. Let’s say you had it’s eighty percent of that, so 80 grand is let’s say it’s linear right, and then let’s say you have ten percent leverage. And let’s say yes zero percent passive, and you have ten percent windfall. How many following this so far yes? Yes. So I want you to categorize your income, I’m gonna and give you let’s say a minute to do that just take a minute to categorize your income for now.

Okay now next what I want you to do is this, I want you to draw a chart kind of like this, Linear, leverage, passive and windfall. So I want you to draw a chart, so for example, use the example again. Let’s say we use 80%, so we would look something like this, and then you have 10% here right, no passive and that’s what it looks. Now I want you to draw a graph like that, and you can see the pattern. So take a moment and do that. So linear, leverage, passive and windfall. So according to your percentage. What have you learned so far, tell me?

Looking in your photo, looking at your chart, what have you learned so far, yell the answer. I’m working way too hard.  Working way too hard, good. Linear.  It’s all. Too much linear. Too much linear, okay yes. It’s a dead end. It’s a dead-end good, it’s a good thing, it’s not a bad thing, yes. To shift, I need to shift.  You need to shift, good okay, anything else, good. So with myself, I have very little linear, very like maybe a few percent there. I have a lot of leverage, a lot of passive income from time to time.

A little bit of windfall. So that’s the cash flow pattern that I have right now, took me a number of years to get there, but that’s what I have now. Now by the way, how many recognize that looks awfully similar to my book. Now, Hmmm.  Hmmm, hmmm, now what does that mean? It means when you get to this cash flow pattern, then you can say FU to people, to people you don’t like. Or things you don’t want to do. That’s called hidden message okay, okay, a hidden message. So let me share with you, the three myths that I believe are blocking you from earning the massive passive income that you want there are three myths. Now what are myths, by the way, tell me, what are myths, things that people believe in, that may not be true yes, okay.

So the first myth is this, the first myth is financial freedom. The first myth is financial freedom. What Dan, what, what, what do you mean? Yes, the first myth is financial freedom. Let me go back to my story. So I was making a lot of money. And I set a goal to myself that at the time I was gonna retire at the age of 30. I actually accomplished that by the age of 27, so I retired, became a millionaire. Not only millionaire status but also had massive passive income coming in, don’t have to work I said that’s it. I’m done not gonna work another day in my life, so I’m gonna do what most people do right.

And by the way, the financial freedom, how many of you have read Rich Dad, Poor Dad? Yeah okay, and what’s the definition. Does the book talk about financial freedom occurs when your passive income exceeds your expense, how many of you have heard that before? Yeah okay, and nothing wrong with that, I mean I like Robert and everything he talks about, here’s the problem. Here’s the problem, when I got to the point where I don’t have to work at a time, and it’s kind of like this right.

When your passive income, exceeds your expense that’s the graph and that’s the picture. I have in my mind, and I did it, and I did it, so I went to English Bay, and I said to myself, this is cool, this is nice. Looking at the beach, and looking at the wave, and holding my fruit punch and just drinking it. I was like this is nice, this is nice, the second day I go back there, this is nice. The third day you go back there, and after four or five fruit punch, like okay after 30 days of that, I was bored out of my mind. And I thought wow this is crazy and that’s taught me a lesson, that most people they say they want to get to a point where they are financially free so they don’t have to work, they want to retire.

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Income

Passive income doesn’t mean it’s permanent.

What I’ve learned is this, most people actually don’t want to retire. They just want to be able to do what retired people do. They still want to get, they want to go on vacation, they want to buy the things they want to buy, they want to provide them for their family. But most people don’t actually want to do anything. And staying at home not feeling alive, and I did that so I was gonna after the 30s. This is nuts I can’t do this, this is. I worked so hard to get to this point when I got here. Looking was looking at the beach, I’m like, this is not what I signed up for, this is not what I wanted, this is not how life is supposed to be. So I went into a different path, I said well you know what, I love movies.

How many of you love movies? I love movies, so let’s instead of doing that, let’s watch some movies at home. Why don’t we do that, okay? So I was renting all these movies, DVDs at a time. And I was watching, five, six movies a day. Let me tell you something, when you watch, five-six movies a day. You don’t like movies so much unless you’re a movie reviewer or something but that’s not good either. After 30 days of that, I called up my mentor, and he was just laughing on the other end. I said “I don’t get it, like what should I do. I feel, how come this is my goal, and I got here, and how come I’m so depressed.

How come I’m so empty I don’t understand, he was just laughing on the other end. He said, “well you know what, “I was expecting three months, “you couldn’t even last two months.” I said, “what do you mean?” Well ’cause you’re a businessman. You are a creator, that’s what businessmen are, you create stuff, you use your creativity to create value in the marketplace. And now you’re sitting at home you’re going to the beach, you’re watching movies. It’s not creating anything, you feel, you’re so dead, you feel so dead, it’s just not the way to go. I said “You don’t understand, I’m done. “Like I’m not gonna do anything, “I’m not gonna start another thing, nothing. He said, “You have to.”

He said you have to because now, right now you’re not happy. He said, “Are you happy now?” I said, “No I feel miserable.” He said, “That’s not good.” “So go back to business”, but he said this time, “You start a business “from a different place.” Because I’ve made my money, now I can start from a place of well you know what. I can do stuff that I want to do, I think getting involved with projects I want to get involved with.

I can work with the people I want to work with. Because before it was just, money, money, money and I want to make the money I want to be done. I want to retire, got there now, okay. Now I can just do it for the sake of doing it, I could do stuff, I could show up and speak if I want to. I can not show up and speak if I don’t want to.

Nobody can point a gun to my head and ask me to do anything if I don’t want to do it. I’m here because I want to be here. If I don’t want to be here, I’m not here. So I can do whatever I want, so you know I said. You know to spend a couple of days with me and just writing down in my private journal. You know Dan if you could do anything, what would you want to do. So I write down all this stuff that, what would it look like and what my business would look like. What my life would look like and I mapped out everything, mapped out everything. So then before going into that, let me tell you another story. I have trained a number of young guys.

And I helped them, you know young guys and you know set up the ebooks, and sell stuff online digital products. And their goal was to make three, four grand a month. Then just go to Thailand and live their life, and I’ve helped a number of young guys to do that. And once I help them accomplish that, and I called them up and sometimes see how they’re doing, guess what, none of them are happy, none of them. In fact they’re all totally lost. They’re in the early 20s, they don’t have to work, they’re in Thailand. I mean they’re drinking, they’re partying, they all thing doing all this shit, and partially I feel I’m responsible for that as well. Because I taught them the profit path, but I never gave them the purpose path.

I just said hey you know, they just, hey you want to make enough money to be free. I’ll teach you to do that and that’s it, and you do your thing. And now they all lost, and so I feel like I gotta bring them back. That’s a lesson that I’ve learned that with passive income. listen to this, just because it’s passive, write this down, doesn’t mean it’s permanent, just because it’s passive doesn’t mean it’s permanent. it does not mean it’s permanent, because I’ve had this experience when I had these multiple 20, 30 sites selling these ebooks through Clickbank. I was using pay-per-click and I was, could be one ebook making 500 bucks a month in passive income.

The other book could be making 3,000 a month in passive income. Then I hold 20, 30 of these sites, and I was making good money, and suddenly in Google. The AdWords, the cost, everything changed, so my profit went from this, to this, it was very passive for a period of time. But then my just my expenses kept getting more and more and my profit keeps getting like this.

So then I learned well just because it’s passive, doesn’t mean it lasts forever, it does not mean it’s permanent. So people might think have this picture, well if I make enough passive income. Then I don’t have to work, I can retire, and I can just, don’t have to spend any time to maintain it and leave it as it is. It does not work that way, it does not work that way, that’s not how it works. You do need to spend the time to maintain it.

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Income

Detail about passive income

Think of the moment in your life. Any moment where you were the most passionate. You were the most excited, you were the most alive were you like passively sitting there doing nothing. Or were you doing stuff or were you challenging yourself or were you stepping out of your comfort zone?  Stepping out of my comfort zone. You were doing new stuff like this is cool I’ve never done this before this is now you’re active right? You’re not passive, it’s the same in business. It’s the same in business, you cannot create meaning, passion or purpose in your life passively.

So every time I’ve seen someone create a business whatever business he’s in. With the ultimate intention of getting away from that business and its customers as quickly as possible instead of moving towards that business. And its customers, it fails. Because when you say the word passive income to your brain, what signal does it send to your brain? It sends the signal to your brain this, how can I get the most with the least amount of work? Because you want passive. How can I do the least amount of effort, but the least amount of effort and get the most out of this deal? Think about it.

In other words, you’re saying what can I get away with? What can I get away with? You know it, what can I get away with? So instead of going with that intention. And you don’t give a damn about the customers. I just want to make some money. Make enough so I can go on vacation and stuff like that. Now if you’re with that intention going to a business, are you gonna do well? No.

Just no way but what if we change that up? What if you go into with an intention, purpose, and meaning and say you know what. I’m here to impact people’s lives, I’m here to help somebody, I’m here to make a difference. I want to make money I want to make a profit but I could do that in a way that’s gonna be nobody’s ever done this before. What if you go with that intention?

Now is your business more likely to be successful? Yes.  And are your customers gonna feel the difference? You bet. They are not just some digits. They’re not just a credit card number They know that they’re people yes?  Yes. – So at the end of the day, think about that. So if your intention is to make enough so I can get away from it, no move towards it. Hold your customers and engage, interact with the customers. Go and meet, if (yells) just want to make especially internet guys right.

Oh, just this and do this and automate this and. I always say to them you know you cannot automate and systemize something that’s not worth anything. If you have not created value in the first place then what the hell are you automating? What are you automating? Once you create value on a big scale and now you need people. You build a team. Now you can automate, now you can systemize so we can serve more people.

Does that make sense? There’s a big difference in mindset. So the business you’re investing in or creating doesn’t tend to be creating value for its customers or for anyone. So it doesn’t tend to spit off the cash that you’re hoping it will, of course. So many times I’ve seen people pursue passive income and end up having active losses instead. How many of you have been there? End up having active losses instead. So here’s the truth, don’t aim for a passive income, aim for leverage income.

What kind of income?  Leverage income, aim for that, don’t aim for passive. Aim for leverage, aim for leverage and as you build it. Now you’re having a team, now you have some systems in place. The income keeps going up and up and you notice my pattern, I have a lot of leverage. I don’t have all passive, I’m mostly leveraged through my business, through my people, leveraged. Now with this mindset, with this new understanding, are you still gonna be buying all those get-rich-quick crap out there? Better not. But it’s your choice. So if not, now but then are you saying that I shouldn’t invest in myself?

Are you saying that I shouldn’t invest in my own education? Is that what I’m saying?  No. That’s not what I’m saying but how do you differentiate? So these programs and this and things and compared to maybe a workshop or a book. How would I know when should I invest or not invest? Let me give you a very simple, simple solution. Anything you want to invest in could be any education. Ask yourself this question, if I learn this skill, if I go to this thing. If I buy this program, is this gonna help me to generate more leverage income within what I do? Not let me buy this magic pill or bullet so it solves all my problems. So then I don’t have to deal with this anymore.

You’re not looking for an escape. You’re looking for can I add this to what I’m doing that would enhance what I’m doing right now? You have this skill set or maybe cells. May be smoking what the other skill that you might need but is this gonna help me generate more leverage income? Do you see the distinction yes or no? Yeah, so that’s how you make the decision. Is this gonna help me generate more average income? By all means, go for it. This is a distraction, it’s a magic pill, it’s poisoned, snake oil, stay away from it.

In fact, how many of you are, in your email box you get a lot of different offers. And subscribe to the different teachers and stuff like how many of you how many have that? Okay the first recommendation, go home, unsubscribe yourself from all that crap. So you can focus. So it’s not today to buy this, tomorrow it’s buy something else, the next day it’s buy something else and buy something else never ends. It never ends unsubscribe yourself from all those just think of the peace you’ll have when you open your email box. Oh actually now I can read an email from my friend instead of all those offers.

Yeah, unsubscribe, you don’t need it. You do not need it. How many are gonna do that? Yeah just unsubscribe, liberating, freedom! That’s freedom. Then no more of the shiny object syndrome no it’s not one thing and buys the next thing and the next thing and the next thing. Now he said what’s interesting Why do people do that though?

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Income

What is the meaning of return on investment (ROI)

That’s one of the words that you’ve got to learn, ROI. We think in terms of return on investment. Your assets, your liability. But we also think in terms of return on time invested. Return on, ROTI, return on time invested. That I invest this time doing this thing, what’s my return? Right? So I know if I spend two hours watching the movie, that movie then doesn’t just cost me $20, $30, $40. That movie cost me thousands of dollars, if not tens of thousands of dollars. Then I know that when I watch a movie, I have to ask myself, and not that I don’t watch movies.

I love watching movies. But I know also a practice that is not a $40 thing. That cost me tens of thousands of dollars. So then I need to ask myself, “OK, it’s the escape, it’s the experience, is that worth that kind of money?” And I look at and I say, “OK you know what? It is. It is.” If I take the time off and spending with my family that hour costs me money but I’m willing to spend that. Very consciously, versus people who have a concept. I know that I’m investing my time, that’s worth X amount of dollars, with spending, I’m not trying to make money from this hour, two hours, I am spending with them. I am investing at that time. And when you think of it that way, guess what? You’ll be more present.

That’s why every time I watch a movie, rarely I say a movie is so bad. No, it’s OK, at least I can justify a little bit mentally that shit this movie just cost me fucking $20,000 it’s pretty good. Right, it’s $20,000 of my time, right? So joking aside, that’s what it is. You’ve got to think of it that way, how you value your time. So that’s what rich people do, rich people buy time. If you don’t value your time you’re not going to be successful. You have to value your time.

Everything, Bill Gates has appointment, booking, six-minute increment. Six-minute increment in his calendar. That’s a billionaire, right? My mentor has his in 15-minute increments. Now I also have my thing, sometimes 30 sometimes 15-minute increments. How you manage your time, how you invest your time, your most valuable investment that you have. So there you go, that’s what rich people buy, the one thing that they buy that the poor and middle class don’t. Don’t look at just what they have, their fancy car and that’s the thing.

Before we go. Because maybe when you have no money, you’ve been struggling for so long, you have been working hard for so long. And suddenly when you make a little bit of money and all the images that you have about rich people. All the nice things, the nice car, all the things that they have. Suddenly you make a little bit of money, I’m not talking about a lot of money, a little bit of money. And you say I want a fucking, I’ve worked 15, I waited 10 to 20 to 30 years for this. Fuck it, I want that life. And you go spend your money and you think by spending that money that makes you rich. That makes you poor. That doesn’t make you rich.

You only see the surface, you see the result, you see the outcome, you don’t look at the fucking process. Look at how they got rich. They buy the assets first. Before they buy their fancy watch, they buy the investment. The investment makes them money, then they buy the fancy watch. But you don’t want to do that, suddenly you make a little bit of money because you’re so insecure. You gotta big ego, you want to show the world, you want to show your family that you’ve fucking quote-unquote made it. Which you haven’t, you want to look rich versus be rich. You go to buy that watch and you know what? You wear that watch and you thought you fucking made it.

Everybody thought you made it. You did not make it, you just made yourself poorer. That’s not what makes you rich. But if you can have the self-discipline and self-control and say you know what I’m gonna buy the assets first. I’m gonna buy the assets first, once you buy that and the assets you can buy all the fucking luxuries you want. Your assets pay for it. It’s OK, buy the nice things you want. It doesn’t quote-unquote cost you because you’re investments are providing for you. Investments are feeding you. It’s making you money. That’s the difference. So think about that. Don’t just look at, “Oh I want the nice things.”

The nice thing is the result that’s the next step. First, you gotta build a portfolio, I didn’t have nice things for the first 10 years of my life. It’s only now I quote-unquote after all these years. OK, now I have people say, “Oh Dan, you’ve got the.” I didn’t have the over-night. I was driving, you know, Mazda for a number of years. And Audi, not that Audi’s a bad company, it’s OK but it’s not a Bentley.

For a number of years. Only recently, now I’m enjoying life. And people look at they look at where you are today but they don’t look at where you came from. Comment below, share with me what’s one thing that you think poor and middle-class boy. I’m curious to hear your thoughts. The people that you see, the poor and middle class buy. Share with us, share it with me. Also, give me a thumbs-up as well.

Subscribe to my channel, turn on notification, we upload a new video every single day on business. On relationship, also on martial arts. That’s what my channel’s about, it’s my life it’s what I do, just like this, going to downtown. Getting stuck in traffic and answer your questions, that’s a good return on time invested. Even in the car and stuck in traffic, I’m making a video for you, right? That’s how you utilize your time that’s how you’re being smart with your time. Check out my other Boss in the Bentley video, right there. We have a lot of videos you can check out. A lot of interesting questions, a lot of interesting insights. Until next time, I’ll see you in my Bentley.

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Income

How to start with no money?

That’s probably one of the most common questions I get from YouTube. That Dan how do I start with no money? How do I get started when I am in high school? How do I get started when I’m in my 20’s. Or what should I do, I have limited resources? When you have no money, how do you get started? Very simple, you get a job. Get a job. You need some money coming in to do anything. You wanna improve your skills? You wanna buy that book? You wanna get an education? You need money.

Even to survive, just to eat, you need money. You can’t just wait around and watch a video and bitch and complain and say oh what should I do? Do something, get a fucking job. I don’t care what job it is, just to get some money coming in. A little bit of money, nothing wrong with that. I was working in a supermarket, making minimum wage. Washing fucking, like cleaning toilets and stacking cans on the shelves. I went through that period of time, what’s wrong with that? You cannot just say oh I got so much pride, I’m gonna be a businessman. Get a job. You can’t even get a job to forget being an entrepreneur.

Do that first. Then, in your spare time, a side hustle. On the side, then you can start something on the side. Now, if you have not watched my other videos on high-income skills. Make sure you watch that. In that video, I talk about the importance of high-income skills. Now, what is a high-income skill? I define a high-income skill is a skill that can make you $10,000 or more per month. It is not a business, it is a skill set that you can develop. That you can sell, you can offer to the marketplace in exchange for money. You are trading hours for dollars, however, you’re trading hours for high dollars. And I give you plenty of examples in that video, so I’m not gonna go into that here.

You can go here to watch that. So, in your spare time. You’re working your day job, whatever it is that you do. Nighttime, you develop your high-income skill. You start earning and earning more money. When your high-income skill. Let’s say you’re making $2K a month from your job, $2K a month. And, in your spare time, you’re learning and developing a high-income skill. Whatever it is, the skill that you choose to develop. Then as your high-income skills producing making you more money. It could be $2,000, $3,000, $4,000. Then, you can quit your job, and now just pursue this full time.

Get it up to the $5, $6, $10, $15K a month. From there, you’re making money, you’re paying the bills. You are eating, it’s a good idea to eat. You are taking care of your family, you’ve got a roof over your head, you’re making a good living, a decent living. Then from there, if you want to, you can think about if you wanna start a business. What is it, other options that you can pursue? But, you need to get to that point first. The problem is, with you guys, watching videos on YouTube.

You see all these people talking about business. You want to get to this point overnight. Or you want to get to this point without going through these steps. It doesn’t fucking work and this paralyzes you. Because from where you are to where you wanna go. You’re making fucking no money, you wanna buy a Rolls Royce. Give me a break, who the fuck are you? You need to go from here. Just get a job. Let’s just go from here to here. Get a job making a $1,000, $2,000 a month. From there, side hustle. High income skill, go to $2,000, $3,000, $4,000, $5,000, $10,000. Get to that $100K a year, $200K a year.

Now you are at a different place. From there, you start your business. You grow, your market, your sale. Then from there, you scale with your team. You get closer and closer. And then you do invest. Now you invest, you have your money work for you. Don’t ask questions at this level, when you’re at this level. Ask questions at this level, and go through this first. The problem is, with social media, that you don’t know how to filter. You don’t know how to think independently, and you don’t know what is the right advice for you at this given time for you.

And that’s why you’re confused. That’s why you’re because everybody’s saying different things and you don’t know okay what’s the right thing for me? What is the right thing for you is from here. If this is where you’re starting or if you’re here then take the advice from this. And then utilize exactly what I’m teaching you. Go to that next level, and the next level, and then eventually. If you’re fucking good, and you’re persistent you’ll get to here someday. But you’re not gonna get there overnight.

So, don’t daydream about oh people on Instagram. They are driving this car, they go on their vacation, they’re living in their big mansion or whatever. And you’re making like nothing. Don’t do that, don’t do that. Start with here, get that fucking job. A baby step, as long as you’re getting closer. Every single month, every single year, you’re getting closer to your goal, you’re doing fucking good. Does that make sense? Comment below.

It’s the best because there’s an invested interest. Or even a subscription model. Have them pay on a monthly basis, which is, I love that model, paid events, subscription. All of those ways you can your customer funds your business. And you get that going first. And you prove your model. Once you have a proven model, then you can take it to the dolphins or even the fish. They say you know what, I’ve got a good thing going on. I’ve done as much as I could with my ability. I’ve got it to this point. But now I’ve got the proven thing, I want to scale.

Now when you talk to the sharks, when you talk to the dolphins. They’re more likely to listen to you and say, hey, you know what, hmmm. You’ve got a good thing going on. You’ve already got revenue, they love to see, before they even make the damn thing, you’re making money. Before you even do anything, you’ve got reoccurring coming in every single month. Hey, this guy, not so bad after all. Maybe he’s a decent business, maybe he’s got half a brain. Maybe let’s bet on this guy.

That’s what I’m talking about, that how you. It’s never about the money. Money goes to the people who don’t need it. Money goes to the people who know how to multiply. It is not a lack of money, it’s lack of, it’s you, it’s you lacking the ability to attract money. I’ll say that again, it’s not about a lack of money. There’s so much money out there. Banks, investors, they are flooded with cash, they want to put their money out there. Because every single bit of money that’s sitting in a bank, they’re not putting to work, it’s costing them money.

They want to invest in good deals and good business. But the problem is they’re so few of them out there. There’re so few of them out there. When you approach them when you have the right mindset, the right skill. They would fund your deal. Your customers would fund your deal. This just makes sense, comment below. So don’t be telling me, I don’t have the money to expand my business, I don’t have the money to start a business, because you’re a lousy business person, that’s why, so think about that.

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Income

You can be very wealthy with high income skills and you make your money

Let me go buy the course for $69.95. Two easy payments. I buy that, I learn that I’m gonna buy real estate, and they buy a couple of pieces of real estate. suddenly, the tenant moves out, the toilet broke, now what? Their fucked. They don’t even have enough money to fix the toilet. Now they’ll be going into preventing. And they lost everything and they say now, real estate doesn’t work. That’s why it doesn’t work. Because you don’t have the first piece. You don’t have that first piece. You got to get to that first piece first, and here’s what’s very, very interesting. I know a lot of people who do very well. They don’t even have a scalable business.

You can be very wealthy with high-income skills and you make your money and then you put it into high return investments. You could do very, very well. I don’t believe. I truly don’t believe everybody should have a scalable business. It’s not for everyone, not everyone is cut out for that. And you don’t have to be that to do very well. Like a friend of mine who is a photographer. Just a photographer. In the very high end, I mean he takes photos for Jim Pattison’s He has a whole team. He charges a lot of money, makes six-figure income a year. And he started investing in real estate 20, 20 somewhat years ago. Today he has a story of about 250 units that’s worth about 20, 25 million dollars.

High income skills, put money aside, invest long term, 20, 30 years. He’s got huge popularity, yes? Doesn’t have a scalable business Yes, Nathan? So is a scalable business only a product or is it that you have employees and they’re making money for you? It’s not the business type, it’s how you do your business. So let’s say if you are doing SEO as a sole owner, not as by yourself. Let’s say you’re making 10K a month, that’s a high-income skill, right? But suddenly, let’s say, you know what? I’m going to transition that into, I’m gonna do reputation management for a company. I’m gonna take on different type of clients. So you build your business model where you have a team that you’re not doing so much of the work.

You’re holding the team system, technology, suddenly, it becomes a scalable business. So it could be that, hey you know, if you want me, it’s gonna be five grand a month to do SEO. Me. But if you want my team it’s two grand a month. So now you’re both going on. Does that make sense? So it all depends on, not. It’s not what you do, it’s how you do it. Yes? So do your high income skills have to be your job? Or Did I say high-income jobs? The difference is, a job, you’re dictated by somebody else to say how much you’re worth.

A skill you’re dictated to by the market place, and you can increase that. So one of your goals should be increasing that every year. I don’t care if it’s five percent, I don’t care if it’s 10 percent, I’m making a 100K last year. This year I want to make a 110K, I wanna make 120K. Keep increasing that, increasing your value, yes? Now let me give you one more example. Sometimes people say to me and say, Well you know Dan. Let me give you an example, let me say you’re in marketing, it’s not a scalable business. I’m right, now we’re marketing. You know some people like it, some don’t like it, it’s a scalable business. The challenge is, 99% of people don’t make money in network marketing. Because they are using that as an escape.

Please write this down. You can’t escape from something, you’ve got to escape to something. You can’t escape from your job and say I’ll jump into something. Or maybe that will help me get rid of my job. It’s not like that, because they don’t have the skills in the first place. And they jump to something and that’s why, Oh, it’s so hard, I talked to my friends and family. I get a rejection, I’m done and this MLM shit sucks. It has nothing to do with that. Other people are making a lot of money with MLM marketing, yes? Some people make a lot of money with real estate. Other people making no money with real estate. It’s the same, there’s nothing to do with that.

There’s nothing do to with that. So, with this, now here’s what happens, when your business doing very well. You’re making, generating a lot of cash, a lot of cash. Now you put into your high return investments, so you make it. You grow it, now you kind of park it here as a high return investment. You put it in there, you don’t touch it. You just let it grow. It grows your net worth, it grows your net worth. And every month you look at your net worth statement and it’s getting better and better and better and better. That’s stability. Income, net worth, here is the thing. Here’s the thing. When you skip and people start jumping to that and you skip that. With this triangle, now you know where you stand and what you should focus on.

Actually, you know what? Let me give you two minutes. How long?  Two minutes. To discuss around the table, what you’ve learned so far. Okay? Go. Let’s take a little deeper here. Let’s take a little bit deeper. Now why is it important you have the high income skill, before your scalable business? Because here’s what happens. Let’s say you start an eCommerce business and it’s growing. And you’re acquiring customers and your driving traffic and it’s doing well. And now you’re like, you know what? It’s good.

I can scale this thing. My question is where the fuck do you come up with the money to scale it? Because all your money is put in the business, the marketing, the inventory. You have a model that works, you have no money to scale it. Now at this point can you bring in an outside investor? You could give them percentages of your equity and all that stuff, you could. But when you have your scalable business first, now you have money to scale.

Categories
Income

Three money principles that you must know to get rich

So, let’s talk about the only three money principles that you must know, need to know to get rich and?  Stay rich. The name of the game is not to get rich but to? Stay rich. There are a number of principles. You know, when I look through my own private journal. All the mistakes that I’ve made. I have about roughly probably 29, 30 of them. But I picked the three that I believe are the most critical, which is what I’m gonna share with you today. The king of high ticket sales, world’s highest-paid consultant, media celebrity, acclaimed TEDx speaker, international bestselling author, Dan Lok.

So money principle number one and that is what I call mastering the wealth triangle. Mastering what? The Wealth Triangle. For my inner circle members, I’ve been beating this concept on a million times but this might be new for you. It’s very simple but incredibly profound. You’ll see why in a moment. This is not some theory or philosophy. You will not get this from a book. I develop this, I created this. Basically it’s the essence of my 15-plus years of financial business experience. Experience gained down and dirty, in the channel, roll up my sleeves in the world. This will give you the who, what, why, and when of money.

Here’s how it works. The wealth triangle has three pieces. How many? – Three.  The first piece is what I call high-income skills. What is it? High-income skills. How I define high-income skills is a skill that has the potential to make you over $100,000 a year. $100,000 or sometimes 10 grand a month. However, you want to use it, but $100,000 a year, has the potential to make you $100,000 a year or more per year. In this case, you are trading your hours for dollars or you’re trading your hours for high dollars. You’re turning your skills, your experience, your talents, and you’re delivering value to the marketplace in exchange of money. So, you are selling your time, but for good money.

High-income skills. A number of skills, I’d say my facility, you have Hassan, hard-copy writing, you could be consulting, you could be doing social media management. I have a friend of mine who is actually a ballroom dance instructor and he makes over 100K a year. That’s considered a high-income skill, too. So whatever high-income skill you might be thinking of. Now, why is that important? With your high-income skill it gives income and it gives you comfort. It provides that stability in your wealth triangle. In your wealth triangle.

Now the second piece of the puzzle, the second step is what I call the Scalable business. What is it? – Scalable business. Now, what is a scalable business? Tell me. Something that you can? Repeat. Something that you could grow. Something that you could grow without a lot of infrastructures. Is the restaurant a scalable business? No. No, because every time you want to open a second location. I’ve got to sign a long lease, I’ve got to put in a lot of money, I’ve got to renovate a place. I’ve got to hire a lot of people. Yes? Yeah, break-even funnel, maybe, maybe it’s an internet type business, it could be an eCommerce business. But something you could grow without a lot of infrastructure, or without hiring a lot of people without a lot of overhead.

Now, why is a scalable business important? Because your high-income skills provide you with income. Yes? Your scalable business provides you with cashflow. It provides you with cash flow. That was the second step. Now we can grow it. The third component, that’s what I call high return investment. High return what? – Investment. Now how do I define high return investment? I define high return investment as an investment that will provide you with a 10% annual return, year in and year out.

A minimum of 10%. Minimum 10% year in, not the first year, but year in and year out I consider that a high return investment. In some cases, it could be more. Now, high return investment doesn’t provide you with income, but it builds your net worth. What is it? Your net worth. Your net worth. Here’s the triangle and here’s why it’s profound, so I’ll go into a little bit of detail.

High-income skills you make your money. How many of you got that? Yes? You make your money. This scalable business is now people or systems making your money. Yes? Hello? Yes. High return investments now are making your money. Yes? So, three very, very different things. Now here is the challenge. This will solve all your– You’ve asked me what should I do? What should I invest? A lot of people sometimes come up to me, what business should I start? This will answer all the questions today.

Question number one. Dan, I am just getting started. What business should I start? My reply is none. Don’t start a business when you have no clue and no business plan. Because what is the very first step you should do? Hello? – Develop a high-income skill. Develop a high-income skill first. Make that 10K a month first. Trade hours for dollars, there’s nothing wrong with that. Trade hours for high dollars, because this gives us stability. How most entrepreneurs. They don’t have high-income skills, they just jump into you. They think it’s a scalable business. They sink their life savings into it. You see it a lot on Dragon’s Den or Shark Tank.

I don’t know anything about business, I came up with this amazing idea, I change my house, I put up everything I got, I borrowed from my family and friends. And I have now 2 000 board games in my garage. Dragon, please give me some money. And the Dragon says? No. Which is a joint venture broker? Very good, very good. So what happens is, in business, the same thing with my own career, and over now so many years. Do you have ups and downs in business? Yes? What I said, your cash flow pattern.

Some year you’re good, some year you’re not good. But very early on, since I was back in my early 20s as a copywriter and then moving to consult and coaching and speaking. My high-income skills. Every year I strive to increase my earning ability, with my high-income skills. So although I made some bad investments. I’ve done like 10 tech ventures as an angel investor, lost money on all 10. That tells me I’m not a very good tech investor, right? I thought I’d go into the marketing, but shit, right? So I learned my lesson there like you can’t know why. All 10 lost money. And I’ll share some lessons with you from that.