What's the one thing that rich people buy that the poor and middle class don't? (upbeat music) So you see it on Instagram, you see it on Facebook and sometimes you'll see it on YouTube, that you see that rich people they have these nice watches and they have, and they drive the Lamborghini, the Ferrari, you know, the Bentley. They stay in luxurious hotels. They have huge houses. And all these things that they buy. And that's what people see rich people that's what they have. But that's not actually what got them there, right?
So what do they actually buy? Rich people, one thing that they buy is, they buy assets that the poor and the middle class don't. Now, what are assets? I'm talking about income producing assets. Assets that appreciate. Assets that will make them money. So example, it could be a piece of real estate. It could be an apartment building. It could be a company. It could be stock. Any assets, investments that would put money in their pocket versus poor and middle class. What do they buy? They buy liabilities.
If you study a little bit about what Robert Kiyosaki's Rich Dad Poor Dad, you know that the definition of assets. It's assets is things that put money in your pocket. And most middle class they buy liabilities, such as their home, their primary residence. That they think is asset. Which is not because the asset is supposed to make you money while you sleep. Versus liabilities is to eat you, it takes away money from you while you sleep. And you look at poor, middle class, you look at their financial statements, very often they have very little or no assets, zero assets and they have a lot of liabilities, their home, their car and all that stuff. But they have very little assets.
So rich people, they buy assets first. Then the assets buys our luxuries. Versus the other way around. I'll give you a perfect example, so instead of asking yourself, saying to yourself, "Oh I can't afford that, it's too expensive." Rich people, that's not how we think. That's a very low level poor person mentality. "I can't afford it." Right? Rich people, we ask the question, not only how could I afford it, but how can I make this make me money? How can I make this make me money? So instead of thinking, let's say for, this car, so I could have just buy this Bentley any time.
But I waited for a period of time because I set a goal and said, "OK instead of just buying "a liability, I need to buy the asset first. "So I need to buy an asset "that will throw off enough cash flow," in my case a piece of real estate, "enough cash flow, that I know that would cover "my monthly payment of my Bentley." Right? So instead of me just buying a Bentley which then I have to pay from myself from my own pocket.
I say, "OK let me go through a step, "let me buy the asset, that one thing, "buy the asset first, "when the asset throws enough cash flow "that pays for my luxuries." That pays for the car that we're filming in. So even though when this car, I'm a change two three years, when this car, when I no longer drive it, when I sell it, whatever it is. Guess what? I still have the asset that's working for me. That's the difference.
We buy, rich people, we buy nice things. We buy the nicest things. The difference is we don't want to use our own money. We buy the assets first, we invest first, we buy the investments first, then we buy liabilities. The definition of rich people, the rich is simple. Rich people we are entrepreneurs who invest. I'll say that again. We are the entrepreneurs who invest. Verus, even if you're a business owner, instead of just buying stuff for your business, make the money from your business first, right? And then you can put into investments.
If you watch my world triangle videos, you know I talk about the three stages, right? If you have not watched them, click on the I button, just watch them first and you know what I'm talking about. So high income skills and then on top of your scalable business and on top of your high return investments. So rich people we are entrepreneurs who invest. So that's the one thing that rich people buy that the poor and middle class do not. Let me give you one more tip. There's one thing, that we also buy, that the poor and middle class do not.
And that is, rich people buy time, poor people sell time. Rich people buy time, poor people sell time. The thing about people who are struggling financially or employees they sell their time. They get paid based on their time. How many hours I get, how many hours I work, how much do I get paid per hour, or how much do I get paid per month or bi-weekly that's how most people think. Rich people we don't do that, we buy time. We buy time because time is the one thing that you can not replace. This second that you're watching my video, that second is gone. That minute you're watching this video, that minute's gone.
*Notie: Full speech is in the video above!