poor people are bad at making and keeping money otherwise they wouldn't be poor and this should come as no shock to anybody today you're going to find answers to questions you didn't know you had but for that you need to put your feelings aside and be honest with what's actually happening in your life here are 15 things poor people don't know about making money welcome to alux the place where future billionaires come to get inspired number one you can pay little to no money in tax if you start a business this should be common knowledge among everyone but just to make sure we're going to say it again businesses do not pay taxes on income they pay taxes on what's left after you subtract expenses if you spend the money the business has generated on goods and services that benefit the business you will not pay any taxes at all the more business expenses you have the less amount of money is left to be taxed that's why people spend Millions on a private jet it's a business expense because it allows you to meet with your clients the private jet is a deductible so is the jet fuel meals with your clients in restaurants traveling for work and so on now this is the fundamental difference between businesses and individuals Illustrated in the simplest way the average American pays somewhere around 27% in income tax while in Europe it's closer to 50% the average Corporation pays between 0 and 3% in taxes you see most people just don't think about this this there's a whole list of benefits with owning a business that are not obvious right from the start number two making money is about system solving not working hard you make money when you're able to solve and put together all of the pieces in the puzzle the only way poor people know how to make money is to work for it exchange time and effort and someone else will pay you for it the value comes from your ability to create a chain of systems that transform in put into money and here's what we mean by that in the simplest way poor people earn money by being a salesperson at a lemonade stand the owner of the stand is paying you by the hour in this case you're just a piece of the puzzle the lemonade stand owner has the following pieces one they identify the product or service in our case lemonade it's the good that gets exchanged for money at the end of the chain now let's see what happens before the sale of the lemonade two you have the stand where the lemonade is sold three the person selling the lemonade and now that you think about it this person needs to receive the ingredients and in our case cups lemons water sugar and so on four transport the ingredients to that lemonade stand and five the actual ingredients that need to be purchased from what is called A supplier so to put the process into business terms you've got your supplier to distribution to processing to sales to the consumer see how that lemonade seller is only a piece of that puzzle while the owner needs to think about all of the different elements so as a rule of thumb the employee gets $1 for every $10 of value they're able to generate for the owner the reward for solving that process is a lot bigger than being a wheel in the machine the moment you're able to solve the puzzle of processes you can begin to take full advantage of the marketplace number three make money while you sleep or you will never be Rich listen and listen very carefully okay as long as you're trading your time for money you will never be rich because there's a limited number of hours in a day that you could possibly trade even if you traded all of them you would still hit an earnings wall your ability to generate income should not be tied to you don't be the machine that makes money build the machine that makes money for you this is why the previous point of solving the system is so damn important unless you take back control of your time you'll always be poor 8 hours of your day you sleep 8 hours you spend at work around 2 hours are wasted in traffic going back and forth from work you're left with 6 hours in a day to eat do chores invest in yourself figure out who you are date and have a social life there's not enough time for all of these things so what do people do well they sacrifice some of them without realizing that these are actually the the things that make life worth living you're not just here to wake up go to work pay your bills until one day you die number four it takes the same amount of effort to make $50,000 or 1 million this one gets people confused it took us over 5 years to understand this concept because it felt so disconnected from where we were sitting in our earlier days a mentor of ours gave us the following compliment and advice wow congratulations on the effort quality and amount of work you're putting in it's a shame you're focused on the wrong thing imagine our shock hearing that once you're able to solve puzzles you might as well try to solve the ones with the biggest rewards because what's the point of working as hard for a fraction of the reward now here's a clear example of what we mean by this if you're earning $2,000 a month selling Telecom subscriptions over the phone you could earn over $20,000 a month by selling cars or real estate the process is quite similar but the reward is much greater the sales process is the same but your focus isn't right you might have all the skills required but you're missing out by putting them to use in the wrong place number five ideas are worthless without extended execution an idea is worth a million dollars only after it's made $1 million everyone's got ideas all right you can stop anyone on the street and they'll be able to vomit out one or two business ideas that they think are worth quite a fortune please okay pay attention because what we're about to tell you will change the way you think about ideas for as long as you live an idea is a multiplier to your execution even if you've got a killer idea that's worth a 100x multiplier if your execution is zero do the math okay 0 * 100 equals 0 your ability to execute is multiplied by the quality of your idea which means you could take any mediocre idea and simply execute better on it that is how you win that's why Google crushed Yahoo Facebook crushed Myspace that's why Tik Tok won where Vine failed that's why McDonald's won over the other Burger franchises at the time this is why Starbucks is still winning the coffee game making coffee with milk isn't a billion dooll idea but the way the idea was executed well that is Success comes from being able to execute at a high level for extended periods of time and please okay don't neglect the extended periods of time part it is really important everything most people start is trash at the beginning the difference is made by how long you're willing to stick with it number six instead of cutting down costs focus on increasing income poor people clip coupons they spend hours figuring out ways to save a couple of pennies a penny saved isn't a penny earned okay it is just a penny and do we even use those anymore it doesn't matter if you're worth $11,000 an hour or $750 why are you wasting 2 hours of your life driving to three different supermarkets just to save $10 on some detergent the return on your time is whack okay some people spend an ungodly amount of time trying to cut down personal costs when that time could have gone toward increasing their income if you're earning 750 an hour and have time to go to three different supermarkets well you've got time to learn Microsoft Excel here on YouTube and find a different job that pays three times that amount instead of wasting time cutting costs invest the time into becoming more valuable and the reasoning behind this is very simple to understand you can only cut costs by so much there's nothing else to cut once you reach Rock Bottom you're stuck there now there's nowhere else to go and you can't go up well because you've designed your entire life around cutting lower and lower number seven $100 in passive income is worth more than 1,000 of worked income now this is something kind of counterintuitive to most people and we're glad we get the opportunity to finally address it and maybe light the path forward a bit that $1,000 is dependent on you being able to show up to perform to secure clients Etc while the 100 isn't that 100 will come to you no matter what what happens if you get hit by a car or you get sick and your ability to perform goes away passive income also frees up your life ready to have your mind blown $40,000 a year in passive income is worth more than a $200,000 a year salary a $200,000 salary per year will require your time effort your attention at least 5 days a week you know you would be working weekends as well in some form or another it also chains you to a desk to a location to a country or an office for $200,000 you'll be stressed the hell out and have to put up with a shitty boss with $40,000 per year you could live almost anywhere in the world and have 100% of your time to yourself you want to learn to tango sure my friend you want to raise bees in the wilderness more power to you maybe write that book you've been planning to or spend as much time as you want with your kids passive income revenue is Multiplied in value by the time it frees up number eight over 50% of your income should go toward Investments you cannot escape the rat race if you're saving 5 or 10% you just can't you might be able to have enough funds to overcome a hurdle but that's not enough to buy yourself Freedom want to hear something that's going to blow your mind away on average rich people save and invest a minimum of 50 or up to even 90% of their income the only time saving money is a viable financial decision is if one you already earn a lot and that amount saved is significant for example if you save 10% of your yearly income but make a million dollar a year well that's 100K right there or two if it's done with a clear and well- defined purpose like a six-month emergency fund that it's just being smart and responsible the average American has about $8,000 saved now let's be real for a second okay that will buy you pretty much nothing of real value and it won't save you from any significant curveball that life might throw your way especially in the US and you have a medical issue you're like one ambulance ride away from losing all of your life savings the saving mentality also tends to put you in a cutting cost scenario where you try to save more and more but like we said already there's only so much you can put aside until you're capped out money saved is money not invested you don't save money to buy a penthouse the return on your Investments are worth a penthouse imagine this is your earning power line let's say you make $3,000 a month with $250 to spare at the end of it if you save those $250 with no particular purpose in which direction are you moving just something to think think about number nine $1 million per year isn't a lot of money we all grew up with this idea of a Millionaire right that $1 million was good enough to set you up for life because it used to be true back in the 60s maybe it still feels true in some parts of the world but money is getting devalued every single year let's just put this into perspective for you for a second with the us as a main example as of the beginning of 2020 there were $1. 75 trillion worth of notes in circulation that's actual money bills out there in the marketplace but scared the economy would tank because of the covid-19 pandemic the FED decided to print another 2. 3 trillion dollar out of thin air and simply give it to people and businesses to avoid Financial collapse but look okay value comes from scarcity the more something is to be found in the marketplace the less valuable it is congratulations every dollar you have is now worth less than half of what it used to be this devaluation of currency is called inflation every year the government prints new money and the stash you have in your Nike shoe box is worth less and less that's just another reason why saving money is keeping you poor $1 million per year in 2020 is roughly the equivalent of $250,000 just 30 years ago not because of inflation but also the buying power real estate is a great barometer of this here's why $1 million a year isn't that much money to begin with the average person will work for approximately 40 years right between the ages of 25 to 65 give or take if you make $1 million a year every year of your working life completely ignoring inflation and you didn't spend a penny you still wouldn't have enough money to purchase this Rothco painting that sold for 46 million or this one by Newman that sold for 43.
8 Imagine working for your entire life for $1 million a year and you're still unable to buy a piece of canvas with two colors on it yet these types of paintings sell every single year the point is the meaning of the phrase a lot of money keeps changing every year which in turn makes decent money lose its value every year to make decent money right now well you would have been a high income earner 30 years ago number 10 a wall gets built Brick by Brick the same with wealth most people have no problem spending $10 to $50 on random unnecessary things but then scoff at the idea of earning 10 or 50 or $100 more that's too little money for them but when they have it they're quick to throw it away on vices or things they don't need the average person doesn't understand that you can build passive income with as little as 10 $10 to $50 and this has always been possible the simplest and cheapest way to create passive income is through investing in dividend paying companies write this down in your notebook okay so how do you do this well you use any investment platform like Robin Hood revolute eoro whatever purchase the companies that are paying dividends every quarter these companies split the profit between shareholders there are three dividend paying stocks that are super accessible to begin ERS Toronto Dominion Bank that's 5. 32% realy income 5. 37% and Chevron Corp 4.
26% you start off small move some of that money into dividend paying companies that you know and trust this way your wealth grows you'll store value but when these companies make some money you get paid as well but building this wall it requires you to put one brick down at a time every single day and that's exactly what our subscribers are doing inside the alux app every single day they're delivered a brand new coaching session from what we call the five pillars of a good life these sessions are designed to give you the most valuable insights and actionable steps to help you with your finances your relationships your intellect as well as emotional and physical health and these efforts compound over time the knowledge compounds over time before you know it you've got one hell of a strong brick wall in place if you're ready to level up download the app and come back here to scan this QR code on screen and you'll get 25% off the yearly membership it's not cheap because we've created a premium learning experience just for you but trust us okay the app pays for itself in the first month alone sign up for the 7-Day free trial and see for yourself alux.
