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  • 63 percent of Americans have been living paycheck to paycheck since the Covid pandemic started.

  • The ratio wasn't that different before the pandemic, where over 60 percent of Americans

  • did not have an extra thousand dollars in case of an emergency.

  • And that's not because people don't want to save but rather because they are in that desperate

  • financial situation where they have no other option, especially the young people.

  • You get out of college, and you already have a huge burden on your shoulders (student debt)

  • that will most likely keep you in that poor financial position, no matter how hard you

  • work.

  • A student debt, some credit card debts, maybe a car loan if you purchased a car while you

  • are still in college.

  • The question is, how are you suppose to build wealth when every passing day that you are

  • not paying your debts, your debts are growing.

  • And if 2020 taught us something, nothing is guaranteed.

  • You can graduate with a 200K dollar degree and yet you won't find a job because the world

  • is changing.

  • Even if you work hard enough to pay all of your debts, you are probably going to have

  • a family and kids and a mortgage by then, which means more financial responsibilities

  • and less savings.

  • It seems like the system is designed in such a way to lock you in that position where you

  • have no other choice but to keep working your entire life.

  • You see, when you are a kid.

  • You are not much worried about that because you have to go to school, then to college,

  • and you imagine that once you graduate, everything will be sorted out

  • You will find a good job, and that will be the end of your financial miseries; however,

  • once you graduate and find yourself in that workplace, you understand that was just wishful

  • thinking.

  • That's why here in this video, we will find out how to break that system?

  • How to get out of the rat race?

  • How to start building wealth?

  • And what is the 5/25 Rule?

  • So give this video a thumbs up and lets' get right into it.

  • don't let the snowball effect destroy you

  • This is literally the main reason why a lot of people are struggling financially.

  • And people who understand this concept usually do pretty well financially.

  • When a snowball starts falling from the hillside.

  • As it rolls, the ball will pick up more snow, gaining more mass and surface area, and picking

  • up even more snow and momentum as it rolls down.

  • When you are a kid, you don't have many expenses, but once you graduate and find a job, your

  • expenses slowly start rising.

  • You want to move into a slightly better house, get a slightly better car, you start eating

  • out more often.

  • As long as you can afford that, that's not a big deal!

  • Right?

  • However, what happens usually is that your income doesn't always rise as much as your

  • expenses, so you are forced to get a credit card debt, which is not a big deal, but then

  • you get into a second debt, then a third and at some point you find yourself in a station

  • where no matter how hard you work, you just can't pay your debts

  • While you are paying one of your debts, the second and the third is rising day by day

  • since it accumulates interest like a snowball effect.

  • Your debt is simply getting bigger and bigger day by day.

  • So if you are in your 20s, don't get into unnecessary debt, and if you are already in

  • one, getting rid of your debts should be your first priority.

  • 
 2.

  • follow Buffett's 5/25 rule

  • This exercise is simple but very effective.

  • It is practiced by the legendary warren buffet who built a net worth of around 100 billion

  • dollars without inventing anything says a lot about the effectiveness of this rule.

  • Over his career, he has made consistently great decisions that brought him to where

  • he is now.

  • Take a piece of paper and write down the 25 most important things you would want to accomplish

  • in your life.

  • It doesn't matter, whether it's career goals, traveling around the world, or learning a

  • new language.

  • List all the 25 things in order of importance.

  • If it's something super important, let be number 1.

  • If it's the least important, let be somewhere down the list.

  • And then circle the top five most important things

  • Now the question is, what are you going to do with the remaining 20 things that you did

  • not circle?

  • That's the challenge.

  • Most people try to balance between all these things, which is one of the main reasons why

  • they can't get out of that desperate financial position.

  • Everything you didn't circle just became your Avoid-At-All-Cost list.

  • No matter what, these things get no attention from you until you've succeeded with your

  • top 5.

  • We live in such an age where we have to make a million decisions a day, our attention has

  • become the most precious resource, so corporations spend fortunes just to find out how to grab

  • our attention as much as they can and your job is to stay focused on what's important.

  • I get it, you want to do all these cool things, such as learning how to play the guitar or

  • travel around the world, but if you want to do better financially, you have to focus on

  • either mastering one craft or starting your own business.

  • But you might say, I don't have the time, I have to work to pay all my bills.

  • That's why step  


  • 3.

  • Delay gratification

  • If you take a look at your expenses, I am pretty confident that half of your expenses

  • are wants and not needs which means you can survive if you get rid of them.

  • That Netflix subscription, your car loan, unnecessary expensive hang out with friends,

  • a coffee that you could be making at home but instead, you chose to pay 3 bucks for.

  • Whatever it might!

  • Find out how much you need to survive and only work enough hours just to pay your basic

  • bills so you will have enough free time that you can spend mastering your craft or building

  • that business.

  • Especially with the rise of the internet, you can start a million other businesses just

  • by having an internet connection and a computer.

  • The point isn't to live super frugally your entire life.

  • Life is going to become boring then.

  • But if you want to get out of that rat race, you have to sacrifice a few years of your

  • life and delay gratification.

  • What's more important to you?

  • living your entire life Paycheck to paycheck?

  • Or living frugally for a few years and escape that rat race for good?

  • Or you can do it the other way around, where you will work at least 12 hours a day for

  • a few years but spend a minimum amount of money while saving most of your paycheck for

  • a few years until you have saved for at least 12 months of expenses.

  • Then you can use that money to invest, which is why you need step number 4.

  • 
 4.

  • Focus on finding one great opportunity

  • Let me ask you a simple question?

  • What do you think is the best investment you can make

  • Real estate?

  • Stock market?

  • Cryptos?

  • The answer is simple, the best investment you can make is the investment you understand?

  • It's not just about understanding how the stock market works?

  • Or being qualified for a mortgage or anything like that but rather being so good in that

  • field that you can spot one in a lifetime opportunity.

  • Remember, you just need to be right once.

  • You don't have to predict the next trillion-dollar company, the next bitcoin and the next real

  • estate crash.

  • All you have to do is be so good in one field that you can clearly see how this particular

  • technology or a company is going to dominate a certain industry and go all in.

  • A thousand dollars invested in bitcoin in 2016 would worth around $148K today.

  • This means if you invested in bitcoin just 7K dollars in 2016, you could be walking with

  • over a million dollars today.

  • That kind of opportunities I am talking about.

  • Those who understood cryptocurrencies better than everyone else had a clear idea of how

  • they are going to change the world.

  • The same goes for the stock market, or the internet, or the real estate.

  • It doesn't matter!

  • The next opportunity is right around the corner.

  • All you have to do is be soo good in that field to be able to spot.

  • 
 5.

  • Focusing on producing instead of consuming

  • No matter who you are, rich or poor, old or young.

  • We all have 24 hours a day; the question is, do you spend that time consuming what others

  • are producing or producing what others will consume.

  • Those who contribute the most to society are making most of the money and vice versa.

  • People who make Netflix shows probably make more money than those who binge-watch them

  • all day.

  • People who sell online products are making more money than those who use their credit

  • cards to buy these things.

  • We are all divided into consumers and producers; if you are consuming more than you are contributing,

  • then you shouldn't be surprised if you are barely making ends meet

  • That's why entrepreneurs usually make most of their money.

  • They come up with one innovation that has the ability to help millions of people.

  • The more people it helps, the more money they make.

  • I get it, it's not easy, you are constantly getting distracted, but start making that

  • shift in your life, start spending most of your time producing instead of consuming,

  • and you will realize how slowly your financial situation will get better.

  • If you have enjoyed this video, you will most

  • definitely enjoy this custom playlist that I have created specifically for you that has

  • our most popular videos on business, investing, and the stock market that can potentially

  • change your life.

  • And now give this video the thumbs up that it deserves and make sure to subscribe if

  • you haven't done that yet.

  • Thanks for watching and until next. 


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63 percent of Americans have been living paycheck to paycheck since the Covid pandemic started.

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Broke at 25? - 5 Steps To Force Your Way Out of Poverty

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    Summer posted on 2021/05/04
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