a new property in which you can do a mortgage for $500 a month anywhere in the world. And then move into making $500 a day.
That's where it really comes into making more money coming in, than they know how to spend.
Jewels: After a period of time you are becoming so successful with that small amount that you're believing that you can make more
and more and more because it is getting easier. Psychologically, it's much easier to reach higher.
Ver meeren:Yes. You Just duplicate what you've already done. In fact, one of the things that I love to do (even though its a really
strange idea), I don't know of any other passive income people talking
about this. You got a few ways you can build your passive income. One of
them is you build the stream yourself. In other words you create an asset,
you build a vehicle, and you start generating funds. There you go.
One of the ways that I actually advise that is even quicker, is you find
assets that are already cash flowing and you buy them. So the truth of the
matter is, if you look at anyone you'll never ever save your way to
wealth...you just can't do it. There's no way you put money in a bank
account you're going to save it to to reach your wealth. You'll always
purchase your way to wealth. In all reality, you need OPM (other people's
money) to make money. Well, maybe you do, maybe you don't, but this is
OPM and we use it all the time to build assets or to build things like real
estate. Here's the thing about when we buy things. Remember, I said you
can't save your way to wealth...BUT you can buy your way to wealth.
So when you buy your way to wealth, for example, you cannot collect rent monies on a property unless you own it. You can't collect
dividends on an investment you don't owe. You have to buy it. You also cannot collect royalties on Intellectual Properties that you
don't own and haven't created.
I want people to start viewing a credit card as an investment card. And you need to revise the way you use a credit card. Banks
specifically trust you that they have given you money with OPM. So many people that have a product ask, how do I find investors?
The truth is, you already have a vehicle which represents your ticket to freedom.
The problem is most people jump over that line for the wrong reasons. They may buy shoes, or go to the movies or go to dinner.
They're always using the OPM to buy things that diminish in value and don't create value back. Instead, people should be using their
credit cards as investment cards. So let me just ask you, if I were to give you ten dollars would you give me four dollars for ten
dollars. O.K., Would you give me $40 for $100. So would you give me $40,000 for $100,000? Of course!
But notice that the more zeroes we put in, the scarier it gets for people, even though it's the same equation. We just haven't seen the
zeros before. I think a lot of time, when people look at these kind of things, they don't understand that this can be used to create
assets but also bigger money borrowing from the bank or another lender.
Unfortunately, most people say O.K., but then I'll be in debt and that's bad. Our ideas of bad debt came from where either your
parents or other people who did not have money. If you think about all wealthy people, they will use the cash and leverage debt.
They just understand the difference between good debt and bad debt. Most people aren't willing to experiment or explore it. That is
letting our fear take control and because they have never experienced wealth, they are afraid of seeing how it can actually reward
Jewels: This is a really powerful lesson. One reason is because the TV advertises everything we desire to buy. You're saying...don't
buy the shoes...don't buy the dinner, but do use it strictly for an investment. That is really a new concept!
Ver meeren: Well, I maybe should qualify this a bit because I'd be a hypocrite to say that I don't buy the nice things occasionally.
But one of the things that I think is important is to PRIORITIZE how you buy and when you buy. Actually one of the things that
comes to my mind, is that I still actually meet with a lot of the mentors that I had originally interviewed. We talked about
networking at the beginning.
One of them is a very close friend of mine. I meet with him about every Friday. His name's Brian. He's worth about Eight hundred
million dollars. He's a really wonderful man and he's got some wise things to say. We were chatting over lunch probably about three
weeks ago and I asked him about this principle that we see in all these wealth books. It says to pay yourself first, right?
Well, there's a difference between how broke people understand 'pay yourself first' and how wealthy people understand 'Pay yourself
first.' Broke people think, put it in an account and when you get enough, maybe invest. Or put in an account, pay myself first
meaning I take care myself, which means purchase the shoes or the movies. Well, when I asked Brian about this idea, he used a
really good analogy. He said, 'Let's talk about the movie Titanic. You remember the Titanic was going along and all of a sudden it
hit that iceberg. The ship starts to go down and also the lifeboats go out. He says, Hey... pay yourself first. Well, for most people
would get into a lifeboat, and I'll be in the middle of the Atlantic.