Come on, how do you manage your money? This is one of the most important subjects there is, there are people who get rich because of it, there are people who get poor because they got it wrong, there are people who go wrong because of it, in short, it's a very important subject, I want you to pay attention to it. I'm going to share a little bit of what I've learned along the way and that you can apply as soon as you finish this video.
How do you manage your money? Here we go. Sixty-nine percent of people don't save any money, okay?
Here you have several little balls, you have sixty-nine percent of these little balls are red. This means that all the red balls are people who don't take care of their own money, don't save money, okay? So for every hundred people you know, there are sixty-nine people, that is, seven people out of ten who don't keep any money, only three people out of ten keep any money.
This means that of those three, they don't necessarily save a lot or invest. In other words, I'm saying here that the majority of Brazilians don't do this, many because they can't afford to. So at a time when it's very difficult, they need to get by, they need to get out from underwater, others simply because they don't know, they don't want to be motivated, they complain.
There's a bit of everything in here. Why is it important to take care of your money? Because people get into debt, they like to be bled rich, they like to look rich, they hate to look humbler, so to speak, they'd rather live momentary pleasures and a life of catastrophe and disaster than actually have an average life for a while so that you can be rich all your life.
What's the big deal? Anticipating dreams, so that you can experience a pleasure that isn't there at the time, often ends up becoming a curse, an anticipated blessing becomes a curse. So if you have a debt of ten thousand reais, look at that, ten thousand of debt, okay?
Then you have to use a revolving card, something crazy like that. ten thousand of debt at twelve percent a month, which is more or less, is worth a credit card debt, revolving, something like that. Let's turn ten thousand into R$eight million in sixty months, which is five years.
So R$ten,zero of debt becomes R$eight. nine million in five years. That's a lot of money.
If you invest ten thousand in five years, does it turn into R$eight,nine hundred? Of course not. That's why you always have to pay off your debts before you invest.
Why am I showing you this? Sometimes you don't have any debt, so I want you to keep it that way, don't go into debt, okay? Don't go into debt, especially when it's debt like this, high interest rates, bad debt.
Because the problem isn't debt, the problem isn't borrowing money, the problem is poor quality credit. So let's make that clear. So I don't want you to borrow money from a bad place, i.
e. I don't want you to take out your card to buy something you can't afford. I don't want you to forget to pay, I don't want you to get into debt for a momentary pleasure that won't make you grow.
That's the first lesson. Then there are three formats for managing resources. One, for those who have no idea what they're doing.
This is usually a person who is financially poor. A person who doesn't have any resources, who is going to get into debt, who is going to live on the edge. Here you have a person who would be more in the middle class, so to speak.
This would be a more middle-class person. Here is a rich person, in fact. Here is a person, I'm going to write it here, but with a lot of quotation marks, I'm going to call them a financially poor person.
And they have three ways of looking at it from here. All these people have options. And the decisions you make will get you to one place or another.
How does a person who is short on resources, who doesn't know how to manage their money very well, usually do it? They take their salary, so their salary is their only source of income. They take that salary and what do they do?
They use it to pay for expenses. So it's that person who's just starting out, you know? Money comes in, pays for food.
Money comes in, pays the electricity bill. Money comes in, pays for something they need to survive. So that person stays in this cycle here.
There's a little left over, because sometimes there's a little left over. There's an extra R$ten left over, R$ten thousand left over, R$two hundred left over, R$three hundred left over. What does she do?
She spends it on expenses. It's the mentality of spending on spending. The income came in, they spent it on expenses.
Middle-class people already earn a little more money. When you earn a bit more money, you start to have more options. So what does the middle-class person do?
They take their income here, which is just their salary as well. They usually have a salary here. What do they do?
They take it, they spend it on expenses, right? Because she has to pay her expenses. But she also has a slightly different mentality from here, because she spends on liabilities.
Liabilities are everything that takes money out of your pocket. But she, the middle-class person, thinks she's making an investment, but she's not. So they take their money and say, well, I've seen my parents all my life saying that they can take everything from me, except my assets.
At least I have my little car here, at least I have my little house here. And that speech may make sense, but in general it's wrong. Ah, so I want my car, there's my little car here, look, at least I have my car.
Dude, you're going to get your car, then you're going to buy a car, for example, that costs, I don't know, R$ eighty thousand, that car is going to depreciate, that car is going to be worth R$ forty thousand in a while. As well as losing value in that car, it's also going to cost you IPVA, insurance, one crash, another, you're going to have to pay for gas, but that's okay, because you need to get around. Sometimes you'll hit another car, you'll have to pay something there, insurance, etc.
You'll get a fine. Then the car, you'll say, no, hang on, I want to change the wheel, I need to wash the car so it looks nice, it needs to smell nice, let me change the seat, I'll put I don't know what in there. So you start having costs in the car.
So what is the car? It's a liability. A liability is anything that takes money out of your pocket.
When liabilities take money out of your pocket, what happens? It goes back into expenditure. So you have a salary, you spend your salary on expenses and you create liabilities.
But because you create liabilities, your liabilities create expenses. What happens then? You create expenses and you have to use more of your income to pay off these liabilities.
And then in a while you'll realize that you were on a straight line, you haven't prospered, you haven't grown. That's why so many people spend one, two, three, five, ten, twenty years and then look back and say, man, I worked so hard, where did my money go? Then you look and say, man, I didn't have any assets, I don't have any money.
Where did it go? Then you don't know. You don't know where you spent it, you don't know when you spent it, this is wrong.
This is a middle-class mentality. That's why you often don't get anywhere. And you have a different mentality, a mentality that is a little more abundant, with a little more financial knowledge, which is the rich mentality.
What is the rich person's mentality? Firstly, they have a salary. So they have a salary, they work.
And what do they do? When their money comes in, their mentality is, I need to take my money and make it turn into more money. How do I turn my money into more money?
I'll take the salary and send it to assets. Assets are what? Everything that puts money in your pocket.
What puts money in your pocket? Stocks, real estate funds, fixed-income securities, investments, investments in general. When you have, for example, a real estate fund, you buy it here, a real estate fund.
What will the real estate fund do? The real estate fund will pay you an income every month, you'll receive dividends every month. What are you going to do with that money?
That money becomes income. Now your income has increased. So now you don't just have income from your salary, you also have income from dividends.
Then what are you going to do with that income? You're going to buy more assets. What are you going to buy?
Stocks, fixed income, you buy various things. What does that do? It gives you more income.
So at first you use your salary to pay your expenses. Over time, you start using your dividends to pay your expenses. You no longer need to touch your salary.
So you start with an active income, which is the fruit of your labor. You work for your salary, i. e.
you sell your time, you use your arm strength and you receive money in return, which is active income. You take this active income and buy assets. When you buy assets, those assets will take away passive income.
Passive income increases your income without depending on your arm strength. And you use that income to buy more assets and to pay your expenses. And you'll have a cycle where you get richer and richer.
You receive more income, you invest more in assets. You receive more income, you invest more in assets. And then you'll have a cycle where you grow.
That's the difference. Here you have a cycle of impoverishment, where you take your income, buy liabilities, the liabilities increase your expenditure and then you have to consume more of your income. There comes a time when you're laid off, you have a gastronomic crisis, you go bankrupt.
Your vehicles are seized, your name is tarnished, you don't want to answer any more calls. So this is an important difference. Where does your salary go?
Does it just go to expenses, does it go to liabilities or does it go to assets? This will define the cycle of prosperity in your life. Has what I've told you made sense so far?
Let me know in the comments if it's making sense to you so far. It's very important for me to read your feedback. Please leave a comment below if it made sense to you.
Before I continue here, by the way, if you haven't already done so, click on the like button on the video, this is mega important. Click on the like button and subscribe to the channel if you haven't already. A pizza!
Wow! In fact, a pizza, something I haven't had in a long time. A delicious pizza like this with three large slices.
So a larger slice of fifty percent, a smaller slice of twenty percent and a middle slice of thirty percent. What use is that? That's your budget.
In other words, you're going to get your money, you have one hundred percent of what you earn. This will go somewhere. You can't let money control you.
You will control the money. This is very important, because if you let money control you, money will be your master. If you control money, money will be your servant.
But never forget, money is a great servant and a terrible master. Choose who controls whom. Don't be that person who says, I don't know what's happening with my money, I don't know where I'm spending it.
You will decide where your money goes. And here, of course, is a suggestion. But the idea is that you allocate fifty percent of your spending to one thing, thirty to another and twenty to another.
How are we going to distribute this? Fifty percent of your expenses are for survival. It's basically your housing, rent, electricity, food, it's for you to survive.
What we would call essential expenses. Essential expenses are what you need to survive with a certain quality. But what will give you greater comfort, a higher quality of life?
Non-essential spending, which is optional spending. What's in here? Your hobbies.
So, your hobbies are what you enjoy doing. I like going to the gym, I like, for example, I like video games, so I like buying games on the Nintendo Switch, on the PlayStation Five. Then I like to go to the movies, my hobbies are here.
With fraternization I like to have parties, I like to give presents, I like to eat in restaurants. These are your optional expenses. People today argue that this is mandatory.
Are you crazy? Am I going to cut my outgoings? No, you will, because you're not everyone.
First you have to make sure that you can afford it. Can you afford it? Now you can spend on it.
But if you stay here, if you spend up to this point and there's nothing left afterwards, you'll live in the cycle of poverty or the middle class that I wrote for you. It's no problem for you to be middle class, on the contrary, I was for a long time. In fact, I may have come up a little bit short at times, and that's fine, but wouldn't it be nice if it gave you a vision where you could grow more, have more comfort, have more freedom?
Wouldn't that be nice? That's why you can't limit yourself to this, that's why sometimes you have to give up some things here, because optional expenses can consume your whole life, because there's no end, there's no end, believe me, there's no end. Good taste doesn't come back.
You try good wine, you'll never want to drink bad wine again, you traveled first class, you'll never want to travel normally again, if you used an automatic car, you'll never want to use a manual car again, you went somewhere nice, to a nice hotel, you'll never want to stay in a bad hotel again, you wore quality clothes, you'll never want to wear poor quality clothes again, you ate in a good restaurant, you'll never want to eat in a bad restaurant again, because good taste doesn't go back. So you're going to have to somehow limit your desires here, because that's what's going to make you really rich. So, fifty percent of your spending should come here, thirty percent of your spending should come here and twenty percent of your spending should come here, because it will really make you rich.
What will enrich you here? Study, emergency reserves and investments. Study because knowledge is a source of power, if you do something out here, you can only do something out here because you first have knowledge in here.
So, if I studied video editing, now I can materialize that knowledge into power, because if I didn't have knowledge, I wouldn't be able to edit a video, I wouldn't be able to record a video. If I didn't have the knowledge, I wouldn't be able to sew clothes. If I didn't have knowledge, I wouldn't be able to operate a truck, I wouldn't be able, if I didn't have knowledge, to edit in C++, in Node.
So knowledge is a source of power and power materializes out here and turns into resources, because power allows you to generate value and you keep part of the value you generate. So you need to study. How?
Book, course, lecture, networking, everything here in study. Emergency reserve, you need a little money in the short term in case something goes wrong. Investment, because this is what will multiply you in the future.
When we talk about investment, why is it important for you to know about it now? Because our life has a cycle. This cycle goes through a phase of development, introduction, growth, reaching maturity.
Then it starts to decline and retires. But each phase has a different characteristic. So, when you're in the development phase, you're usually small, so you rely on other people to meet your needs and desires.
Dude, my dad pays for me, my mom pays for me, who pays for my school, who pays for my food? Well, I can't afford it yet. And then, after that, you can still count on your parents, who are responsible for providing for some things, sometimes they even put food on the table, but you're already starting to work, so you're starting to buy your own things, you've already got your own money, but it's still not enough to survive well.
You still can't afford your house and all that, but you can buy a little something or other. And then you're in the growth phase. Here, you continue to develop in your career and we become more established in our family and professional lives.
So now I'm really starting to pay my bills, I'm often starting to raise my family and I've reached maturity, when we reach the top of our career, both in terms of salary and time working, so I'm working a lot and here I already have a good salary, which is where I generally support my family very well. I've already passed this initial phase, so I'm well established in who I am and I'm in my maturity. After that comes decline.
Decline is when your health starts to become more compromised, you don't have that drive anymore, so your energy and productivity decrease and you start to think about retirement. And then you're in retirement, you stop working, your costs increase, your income decreases. Stop working, costs increase, income decreases.
What usually happens to people? People who start thinking about investment, here. So they're here in decline and they say, well, now I need to save a little money because I'm going to have to stop working.
What's the problem? People should think about that. Timing in life is everything.
When you're young, you have time, you're healthy and you don't have any money. When you're an adult, you have money, you have your health and you don't have time. When you're older, you have time, you have money and you don't have health, if you have money.
So you need to invert this logic of the world, okay? You need to start thinking about everything I'm saying now, because tomorrow is too late. The cost you pay is cheap here, but if you don't pay it cheaply, it becomes too expensive and it may no longer be possible.
Or maybe you'll have to make more of an effort, or maybe you'll have to work a lot longer, or you'll have to rely on donations, charity, family. Why do you have to start thinking about this as early as possible? Because of this.
Take twenty percent of this pizza, if you invest R$ten,zero reais with a twelve percent return per year, twelve percent per year, R$ten,zero reais, in fifty years you'll have R$two. eight million. So R$ten,zero reais in fifty years becomes R$two.
eight million, if you invest at two percent a year. Ah, Tiago, you're talking about fifty years, that's a long time. It's a long time, but you don't care, what does it matter?
What do I want to show you here, people? Don't take it out of context. I want to show you that if you invest for a long time, if you think about the future, you'll do well.
That's what I want to show you. If you start today, regardless of how old you are, and you invest better and better and you don't stop setting aside part of your budget for this, regardless of how long it takes, you'll reap the rewards, seed, fruit, seed, fruit. Take the seed, plant it, there's a fruit, eat some of the fruit, there'll be seed inside the fruit, plant it again and keep planting it again.
This is a single investment of R$ten,zero, now imagine if you invested it all the time. You'll get very far. Firstly, I hope this video has helped you a lot.
Secondly, I have my mentoring, the mentoring of my million, where I take you by the hand, we spend several weeks together planning your financial life, helping you to organize yourself in a family way, preparing you to choose good investments and empowering you so that you can invest with my method, my investment philosophy, which has already helped more than a hundred thousand students. We do this here through classes, teaching material, classes of this size, in this aesthetic, but with much more depth and, obviously, also with many lives, where we will participate in these moments together, okay? If you want to take part in this process with me, you can bring your family along.
Click on the link in the description or somewhere here on the screen, and pre-register for when new places open up, because we'll be opening a new class soon, okay? For mentoring from a thousand to a million. Big hug, see you in the next video and bye!
