Name: 7 Money Truths I Wish I knew Sooner
Uploaded: 2020-10-27T19:55:25.000Z
Duration: 10 min 7 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

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Like most of you, I grew up knowing nothing about money except that I can use it to buy

The only problem was that I didn't know how to make that money.

We grew up struggling financially, so my parents always had this idea that I should do my best

to get a high paying job in a respectable company to lift my self out of desperate financial

In fact, I didn't even know what the stock market was until I was like 17 years old.

And it took me sometimes to figure out how on earth does it works, and I learned it the

hard way where I lost money, but eventually, I figured everything out.

But there are certain things that I wish I just knew earlier.

I wish someone would have told me that when I was a little teenager.

I would have done a lot of things differently and saved a ton of money and time that I have

So what I am going to do in this video is share them with you and save you a ton of

Knowing these things will help you to get financially free sooner than you would otherwise.

1. leverage turns good deals into great deals

If someone told me Back when I was 19 that you could use debt to make a fortune, I would

say, "you are an idiot" I would never ever go into debt because I grew up having such

a negative opinion about debt, leave alone the interest you get charged on top of it.

But it turns out that debt isn't as bad as I imagined.

Take this case, for example; let's say you want to buy a house and you have 1 million

dollars in cash, if you have a really strong credit score, you can get a 3 percent mortgage

Of course, you can spend that million dollars to buy a house, or you get a mortgage and

invest that million dollars elsewhere like the stock market, for example, and get let

In the second scenario where you are using debt, you aren't just getting the house but

letting that money grow by an additional 4 percent (7-3).

This is, of course, a super simple example because we didn't take into account the downpayment

and the market fluctuations, but that's the idea in general.

Every successful real estate investor has used debt in some forms to be where they are.

Often they use their first mortgage as collateral to get the second one and rent it out and

Instead of saving to buy each property, you can use debt to save yourself decades worth

No one likes paying but the tax code isn't black and white, except the income tax where

it gets higher as you make more money, up to 37 percent.

But its filed with loopholes where you could be making millions of dollars and pay absolutely

no taxes because on paper, you could be showing loss.

Let's say you have a 300K mortgagee with a mortgage rate of 3 percent.

You can deduct your mortgage interest from your rental income, which means if you make

30K from that house, you can be deducing 9K from it (3% out of 300K).

Now instead of paying taxes on 30K dollars, out of a sudden, you only have to pay on 21K

That's why it's even better to get a mortgage even if you can afford to buy the property.

There is also something called depreciation, almost everything we buy depreciates over

time and tax codes usually allow you to use depreciation as an expense although you lost

nothing and further lower your income on paper and minimize taxes.

Companies use this strategy all the time.

If you just pick the financial statements of any company, you will realize that they

always have deprecations in their income statements.

You can even avoid taxes when you sell that property if you end up buying another one

We can talk forever about the loopholes in the tax code, but that's the idea in general.

The more money you make, the easier it gets

When you barely make ends meet, it's difficult to imagine making millions even hundreds of

If you work overtime, you might somehow double your income.

But the truth is wealth doesn't work like, earning your first 100K dollars is much more

harder than making your first million dollars.

Because as you make more money, more and more opportunities will open in front of you.

Saving to be able to get your first mortgage might take you a few years, at least, but

So don't be discouraged if you can't see yourself making more.

Focus first on saving your first 20, 50 or 100K dollars or on getting your first property.

Trust me; it gets way easier down the road.

Planing the first tree is the most difficult one.

A single opportunity can make you a fortune

The average return on an investment in the market is about 6 to 10 percent and the only

way to build a fortune is investing long term but there is another way, a faster way.

There is literally a shortcut in building wealth, and it exists but its not easy.

In 2008 when the market crashed, home prices fell dramatically, they were sold at a fraction

of their value and whoever was ready for that opportunity jumped in and purchased multiple

properties at a fraction of their real price.

A few years later made a fortune when home prices rose back to their value.

During crises, cash is the king, and this pandemic is proof.

In March, stock prices dropped by almost 50 percent and whoever was ready ended up making

a fortune, so if you want to be ready for the next crises, you have to save, save and

Don't explain your financial goals to anyone

One of the mistakes I made back when I was a little teenager is telling people my financial

People start arguing with you, telling you why that is not possible, why it is not a

The truth, you know yourself and your situation much better than others.

Keep your goals, especially financial goals within yourself.

Of course, be rational with them, but the truth is no one really cares.

Sometimes they want to discourage you, so just keep working in silence and let your