The 20 Rules of Money

I want you to think about this here. In your entire lifetime, how much money has gone through your hands? How much? Let me explain to you what I mean by this. Maybe you made $73,000 last year at 28 years old, and the first time you got a check was 14 years old, it was $100. Add that whole thing up, you'll come out with a number, $493,000, or $1.9 million, or $6.3 million, depending on who it is watching this video. The question is this, how much is left in your wallet? Truly, what is in your wallet? Not what's in your wallet with capital choice, I'm talking like really, what's in your wallet? What do you have left? How much savings do you have left? And if you're not too happy with this question, it's very simple. The reason why you don't have a lot of money left is because you don't know how to play the money game. Simple as that. So today in this video, I'm going to cover with you 20 rules of money. These are rules of money that I followed, and it's obviously from a lot of mistakes I made because there was a point in my life where I had made money and there was nothing left in my pocket. So I'm telling you from experiences. But rule number one is the most important one. And it's the one you have to buy into immediately. It's very simple. You can fight it, say whatever you want to do to it. It's a rule. And the rule is, it's a game. Money is a game. And the great thing about any game is the following thing. No matter what game you play, the most eventually get good at it. If I've never played chess, and I play you and you've played a hundred times chess, you're probably going to beat me. If I have played Monopoly a thousand times and you've played three times, I'm probably going to beat you because it's a game. So the great thing about the money game is, it can be learned. So many times people fight it, and they have problems with it. And they say, well, you know, that person became rich because they're smart. This person did this. No, no. They learn the game, and you can also take the time to learn the game. Rule number two is don't be a hater of money. If you hate money, you'll never get money. Because money doesn't like haters. So if you're a hater, and you constantly say things like, well, money doesn't grow on trees, and money is this, and money is that, and rich people are this, you're right. Money says, you're right. I'm not turned on by you. It's almost as if going on a date with an attractive girl, and telling the girl that you don't like attractive girls who don't know a lot about philosophy, and all they care about is their looks, and doing makeup, and doing this, and working out, and going to the gym. And this girl's like, dude, I put makeup on. I work out every day to stay in shape. But I also like other things in my life. But you know what? You're right. You're not attracted to me. I don't like you. She goes and finds another guy that says, I like a girl that takes care of her body. I like a girl that takes care of her skin. I like a girl that does makeup. I like a girl that works out five days a week. She's attracted to that guy. Keep that part of mind. Don't be a hater with money. Number three, it's a devil's game. Listen, you can stop watching the entire video. You've got the main things out of the way. It's a devil's game. And by the way, at the end of the video, I'm going to give you a free PDF. It's a devil's game. What is a devil's game? The entire game of money is about doubling your money. So what do you mean, Pat, doubling your money? Let me explain it to you this way. If you right now have $1,000 in your bank account, if you, you're watching this, you have $1,000 cash, you are ten doubles away from a million dollars. That's it. You're five doubles away from having $32,000. You're 13 doubles away from having $8.192 million. You're 14 doubles away from $16 million. It's a devil's game. So how soon can you double your money? That's truly the game. Can you take that $1,000 and double it to $2,000 in the next year? So the next thing is, now it's $2,000, you have an account, now you are nine steps away from a million dollars. You may say, Pat, I already have $100,000 in my account. Well guess what? You're four doubles, three doubles away from a million dollars. It's a devil's game. This is a piece of cake when you learn it's a devil's game. So the question then becomes what? How soon, this is the real game of doubles, it becomes two different things. Risk tolerance, because you've got to know yourself when it comes to money. Your risk tolerance, depending on the age you're at, if you're 65, your risk tolerance is going to be lower than you being 22 years old, right? So you have your risk tolerance, you need to know you. Then the other part is time horizon. What is your time horizon? So time horizon could be, I want to have a million dollars by ten years from now. Great. If it's ten years, what do you have right now? Then you have to play your devil's game. How many doubles do I have with the $17,000 to get to a million bucks? It's a simple game that you can learn what to do, as long as you know your risk tolerance, you know your time horizon, what it is and what the amount is, then you're playing the devil's game. Number four, seduction. Let me explain to you about seduction, okay? Listen, I use the analogy with ladies because it's just how it is, okay? Money likes to be seduced. Money's attracted to seducers. Just like a woman doesn't like a desperate man, money doesn't like desperate people. Money's not attracted to desperate people who want it so bad because they want to make this money and show it off to everybody. No, no. Money's seduced. You need to seduce money. Seduce money. And all of a sudden, money says, oof, I like this guy. I like this girl. Oh my gosh, I'm turned on to you. Don't let money seduce you. You seduce money. It's a seduction game. So whoever learns the seduction game with money, all of a sudden money starts coming from all over the place to you because money is turned on by people that know exactly what they're doing. Money likes investors who know what they're doing. Okay? A girl goes on a date with a guy that knows what he's doing, she's most likely to come back. And then there's experience. So learn how to seduce money. Once you learn this whole thing, you'll get better at this game as well. Next, timing. Timing. When it comes down to money. Let me explain about timing. I'm not talking timing like, this is the best time to invest into Snapchat or this is the best time to buy the IPO of Facebook and et cetera. I'm not talking that timing. Although that's a whole different conversation with timing. Timing I'm talking about running a business. I'll give you an idea. There was a time where logically, I have to cut down. Okay? In my business. And I have to get rid of two or three employees. Logically I have to cut down. But I knew what I was getting ready to do and I had access to all the information. I decided to double down and that helped expand the business to new areas, new territories. And then the other part is cutting down expenses is you knowing, maybe numbers are looking very good, but there's an area that needs to be cut down that no one else knows about the information. You need to cut down because you have access to all the information. So there's got to be a part where you need to know, and this is a thing that we can't teach you. This is not something I can teach you about. But this is going to be a part of it that you're going to learn from experience with timing. Timing with when you buy. Timing on when you invest. Timing on when you stay light. Timing on when you stay liquid. Timing on when you go. There's a timing aspect to all those decisions you'll make. Number six, boredom. Let me explain what boredom means. Money needs to be moved. Okay? Again, if a girl is bored with you, she leaves you because you're too boring. Same with men. If a man is bored with a girl, they're going to leave because it's boring. Money doesn't like to be bored. What do I mean? If money stays in a checking account, money's going to somebody else who knows how to use that money. If money is just staying somewhere and it's not working, it's too boring, it goes to somebody else that knows what to do with money. So you've got to make sure money's always moving. Money's always moving for you. Always moving for you. Always working for you. And always out there doing something to create more money for you. Next, secret account. You always got to have a secret account. Let me tell you what a secret account is. It's an account that no one knows about. Your wife, your husband, your boyfriend, girlfriend, mom, dad, brother, sister. No one knows about this account. What is this account? It's a crisis account. A crisis account could be cash. A crisis account could be somewhere sitting down that no one knows about. Now I know you mentioned pay. You just talked about boredom. You talked about this. Two complete different stories. You've got to have a crisis account that's not your emergency fund. I'm not talking emergency fund that this is the right thing to do. I'm talking a crisis account. What saved the business when we were going through difficult times, and our company's checking account went to $13,000, I have payroll, commissions, everything, $13,000, when we're about to shut down the company, it's this close, we're about to shut down the company, what saved us was the crisis account that I had. No one knew about it. That money showed up, put it back into the business, saved us, we lasted, we made it through the tough times, and now we're here where we are today. But it's because I had a secret crisis account no one else knew about. You always need to have a secret crisis account. Number eight, don't drive first class until you have $10 million in the bank account. I see so many people spending two grand on a flight where they can spend $400. Listen, I'm 6'4", 6'5", 240, and do you know how many times I've told you I've paid first class? Zero. I don't pay first class. Other people pay for my first class, but I don't pay first class. I've been paid first class, I've flown first class many, many times because I have the miles, or people pay for my flight. I don't pay first class. And why is that? Here's how I did the math. Now, obviously I can afford to do it, no problem. But here's how I did the math. You're trying to tell me $2,000 for a first class flight, and I can get $500 for the same flight. That's $1,500 times nine flights in a month. That's nine times what, $1,500 is $13,500, some number like that. You know what I can do with that number? That's four employees. That's marketing. That's expansion. Over a year, that's $200,000, $180,000. Why am I going to waste that money? That's an executive I can bring in. That's two incredible employees I can bring in. I don't pay first class. Other people pay first class. Once you get $10 million and you want to do it, that's great. At that point, you may want to get yourself a private jet, but don't fly first class. Next, comp plan. Let me explain to you what I mean by comp plan. So, no matter what country you live in, okay, I get emails from 100 plus countries around the world and some of you guys and I talk through your communistic system, how you're upset and you ask me what to do, and I tell you, if it's not going to change, you have to leave. You have to leave a communistic regime you're a part of. Some of you are in socialistic places, France, Texas, Spain, you're upset with the taxes being at where it's at. And I tell you, if you don't see the horizon changing, you need to adjust. But regardless of where you're at, rule number one about your comp plan. Your comp plan of whatever country you live in is your taxes. Study how you get taxed, because that's your comp plan. And let me explain to you why the comp plan in America does so well. A lot of people say things like this, they'll say, you know what, I can't believe the tax structure in America benefits business owners, and you know, why is it that they benefit business owners? Because business owners create jobs. If you created jobs, we'd give you a tax benefit. If there wasn't a tax benefit, an incentive for business owners, then who's going to create jobs for all these millions of people that need jobs? So you may say, well, Pat, if the incentives for business owners, shouldn't I be a business owner? Yes. Every single episode's about you becoming an entrepreneur. Yes, you ought to be a business owner. You ought to be an entrepreneur. Because it benefits you in your comp plan. It benefits you in your comp plan. And position yourself properly by knowing what your comp plan is. Rule number ten, end of the world mentality. Listen, CNN, MSNBC, Fox, Suze Orman, Dave Ramsey, whatever these names you want to go through, all of these names, put them all together. You know what they get paid to do? They get paid to sell crisis. Because if it happens, you've got to be ready for it. Okay? And so what happens a lot of times is, people get afraid. And they think it's the end of the world. And like 2008, when the market crisis took place, the market went all the way down to 6,000 some, Dow Jones did, everybody started pulling their money out. It's at $21,000 today, 21,000 points today. Imagine if you left the money in. How much compounding money was lost? Simply because you thought it was the end of the world. Simply because you thought it was a nuclear world that was going to happen all over the world. By the way, let me explain to you. If truly a nuclear war's going to happen, do you really think your money matters? Come on. We're not going to exist. So you've got to act as if there's no nuclear war that's going to take place and panic so much when everybody tells you everything, and you've got to learn how to manage those times when 90% of the world thinks it's the end of the world. You've got to be ready. So how do you do that? Let me explain. I was part of the community that thought it's always the end of the world, until I realized how you become wealthy is during this time. During this time when it's the end of the world, you know who wins? Those who have cash. This is why it's important to have cash set aside. And I'm not talking boredom money. I'm talking cash set aside when it's the end of the world for you to buy stuff. Every time crisis takes place, a lot of people become wealthy. A lot of people become wealthy. Because everything's on sale. Everything's on sale. When there's crisis. People sell their exotics because they can't afford it. People sell their artwork for one-fifth of a price. Homes sell for one-half of a price. Investments. All these things are for sale. During the time when there's the end of the world type of mentality. So you've got to have a strategy for this time. Some say, market's about to tank again in the next two, three years. I don't know if it is going to tank in the next two, three years. Here's what I do know. It's going to tank in the next 20 years. And I'm ready for it. I have to be ready for it. Because there's going to be opportunities. You also got to be ready for it. Number 11, study your politicians, especially your president. Let me explain to you why. You've got to know what your politician and your local community is going to do and what their philosophies are. Here's why you need to know their philosophies. If their philosophy is to do heavy duty taxing on you, you need to adjust accordingly. If their philosophy is to cut down taxes, you need to adjust accordingly. People ask me, Pat, what am I going to do with Trump? Start a business. Taxes are being cut. Go make your millions of dollars in the next four years. And if it's eight years, go make your money. And adjust. Everything's about adjustment. But you can't not know what their philosophies are. You need to know the philosophies of the politicians in your community. Number 12, study smart investors, but don't be too religious about them. Like, for instance, you ought to read everything Warren Buffett's got. Read every single thing Warren Buffett's got. Every single thing. Read any of the books that he's got. Go read them. Because what he's going to teach you is his way of thinking. His mindset. He's going to teach you the way he thinks. Like some people said, why did Warren Buffett spend $35 million to buy silver six years ago and why did he all of a sudden, why does he not do any technology and stays away with it? You know, why does he? These are philosophies. The thing that you've got to respect about Warren Buffett. When he says, I don't do technology, he didn't do technology. So he stuck to a philosophy long enough until it worked. Study smart investors. Number 13, play your game. Don't compare. Let me explain. This is extremely problematic to a lot of people because let's just say on this doubles game, you're here. And let's just say your cousin is here. Why are you comparing yourself to him? You need to play your doubles game. Let's say you're here. Let's say your best friend is here. It's not the same game. He's four doubles ahead of you. It's not the same game. You've just got to make sure you play your game. You can't say I'm going to play my game at the level of what the other guys are because when you do it that way, you make reckless decisions and you lose a double. You don't want to lose doubles. You want to gain doubles. I hope I'm making sense to you. You don't want to go backwards, and anytime you focus on this guy, you sometimes go backwards. Focus on your game. Focus on your strategies. Focus on your time horizon. Focus on your risk tolerance, and play according to that game. Your vision may not be to be a billionaire. Your vision may not be to go out there and do something very big. Your vision may not be to be a person that's got $150 million. Your vision may not be to be a deca-millionaire. Your vision may be, I want to one day have $2 million. That's all good. Play to that game. And put a plan next to it. Play to that game. But don't constantly compare yourself to other people. Next, index. A lot of people say, well, as long as you beat the index. Okay. As long as you beat the index. I am more concerned of beating my goals than I am about beating the index. I'm not worried about beating the index. I'm worried about beating my goals. What is my goal? What is the deadline? I want to beat that number. Because it's mine. That's what I'm committed to. What is my deadline? I'm committed to this. I'm not committed to the index. I'm committed to this. Maybe I need to do a lot more than what the index is doing. Because this is why I'm in business. In business, I can control the amount of growth I'm going to have on my income. I can't control it if I'm studying just the index and the index is going 11.9%. I beat it at 2.3%. But that's going to take a long time for me to get over here. No, no. Play your game. Beat your goals instead of trying to beat the index only. 15, befriend money makers. I'll tell you why befriend money makers, that you trust. If you're around other people that know how to make money, you're going to make money. Which is kind of how things work out. If you're around people that know how to make money, you're generally going to make money. If you're around people that don't even know how to make money, or don't even make a lot of money, you're not going to make a lot of money. So know who you're going into business with. Know who you're doing things with. Sometimes things seem too sweet or sexy and all this stuff, but you don't know the person. I don't touch any of that stuff. It's important for me to know who I'm going to be doing business with. I hire very slowly. I fire very fast. The moment I'm done with somebody, boom, gone. Four people we fired in a day, no problem. I can't do this. The tolerance is not in the right place. We can't do this. We need to move on. But I hire slowly. Especially the higher up it is. The more I travel with the person to get to know them, same exact thing when it comes down to here. Whoever you're going to do business with, befriend them. Travel with them. If somebody's extremely wealthy, go to dinner with them. Get to know their wives. See how they are around their kids. Kind of see their standards of living. See their discipline. See their behavior. And then say, I like this person. I like what their friends say about them. I like how it's cousin type. This is a person I can do money and business with. 16. Diversification is for absolute sissies. So if you're a sissy, and your risk tolerance is very low, it's okay. It's okay to be a sissy. A lot of people are sissies. But if you truly want to create wealth, and you're wondering why in your lifetime you've worked for 17 years and you don't have a single penny, and you've made $617,000, yet you only have $6,000 to show for it, there's a problem there. There's a problem there. What is the problem? Diversification is a great concept to sell for these expert financial advisors that are playing every single thing safe and all these other things. Yes. Now, for those of you that are watching this and you're 73 years old, diversification may be good for you. If you already have hit your goal of $6,000,000 and you're where you're at, you're 62 years old, I respect the fact that you've already hit your numbers, that's solid. Risk tolerance lower. Time horizon lower. You're playing a different game. I'm talking mainly for the people that are in the offensive mode of their lives. That you're trying to get here. Maybe you're around this market. I'm not talking to the people that are here. I'm talking to the people that are here. You're trying to get your doubles to go quickly, faster. If you just rely on diversification, 20, 30, 40 years, well, you've just got to know that it's going to take 40 years. It's going to take 30 years. Maybe. That's if everything goes the way it's supposed to be going. So I don't recommend just relying on diversification to take you to where you want to get to. 17, the game is about leverage. Everything is leverage. Now let me explain what leverage means. I'm not saying leverage going to death with everything. I'm not talking leverage like that. I'm talking leverage period. What could leverage be? Leverage your business. How can you grow your business if you're running a business? How can you leverage to have more support? How can you leverage to sell more? How can you leverage to expand more? How can you leverage to increase the value of your business more? How can you leverage to market yourself more? How can you leverage to get to the customer faster? How can you leverage to increase the speed of growth of your business? How can you leverage to get certain things going? How can you leverage? Everything is a leverage game. And the more you study the concept of leverage and the game how it works, the better it is for your wealth. Number 18, positioning. Positioning has to do with, for instance, I'll tell you what positioning is. We can do a whole thing on positioning, but I'm just going to give it to you in a shorter sense. Positioning. If I'm going to go work at a company, and I'm going to have a piece of the equity, and I'm going to position myself to own a piece of that company, and it's going to go public, that's smart positioning. That's very, very smart positioning. Tom over here, who's our president, Tom created his wealth by positioning. He went and positioned himself in certain places and participated in the victory by owning a piece, and he positioned himself. Sometimes it's positioning. Sometimes it's who you're running with. A lot of times people say, wow, you know, I'm making great income with this company I'm at. Yeah, but you haven't positioned yourself yet, because there's no backing on the equity. So it's positioning. You've got to also position yourself here to make sure you're taking care of that part. Right? Of course, you've got to take care of your credit. You've got to have high income savings, investments, but you've got to make sure you position yourself properly as well. Number 19, strategic partnerships. Strategic partnerships. The more you can create an environment, it's kind of similar to befriend money makers, but this is slightly different because it's intentional. If you can figure, like what we do with our company, is we have strategic partnerships where a lot of people make money. Okay? The more people make money, the more people continue to do business with you, if there's strategic partnerships. I have strategic partnerships with $400 billion companies, $200 billion companies, $60 billion companies. I have strategic partnerships with a lot of different companies that benefit them. Okay? Strategic partnership increases the value of making money, because a lot more people are making money with you when they go into business with you. Last but not least, big check syndrome. Let me tell you what the big check syndrome is. Oh my gosh, I've seen so many people screw this whole thing up, and I'll just explain to you what it is. So for instance, say you are doing real estate, hypothetically, okay? And all of a sudden, this one client wants you to sell their home. It's a $3 million home. I'm just throwing numbers out there. And you go and sell this $3 million home, and the check is a hundred and some thousand dollars that you get. And you say, oh my gosh, I made $100,000. And for two months, you live as if you made $100,000 in a month. What you don't realize is, that $100,000 check in a month, you need to look at it as an $8,300 a month income for that year. That's what that means. It's not $100,000. And I've seen so many people who treat this as $100,000 in a month, and they get cocky, arrogant, all this stuff, and then they go back to right here. And the double goes lower and lower and lower. And they don't realize, it's just the big payday. Let me explain. Would you rather have, right now, a half a million dollar cash I give you, watch this question you're going to answer. Would you rather take a half a million dollars, okay, given to you, up front I'm going to give you a half a million dollars, or would you rather take an income stream, guaranteed, okay, of $100,000 over 20 years? Which one would you take? Half a million up front, $100,000 over 20 years? Which one would you take? Do you know what, believe it or not, most people will say, well, I think the right answer is $100,000. Most people will take the half a million. Let me tell you why the $100,000 allows you to do more. The $100,000 is two million bucks. The half a million dollars is a half a million bucks. See, this gives me the opportunity to have a stronger backing to make bigger decisions to get bigger doubles. Now you may say, Pat, but half a million dollars, that already puts me here. It's irrelevant if you don't know how to play the money game. I want high income as well. I want income coming in that feeds my game so I can increase my network. This is a very, very important game. So don't get too crazy about big check syndrome and all of a sudden fall for it and lose everything that you got, because it can totally mess up with your network and you work all the way back to your doubles. So with that being said, this is what I'm going to do to you. This episode is obviously an episode that people would want to look at on a PDF. So we're going to give you a free PDF, but this is what you need to do. You need to visit PatrickBetDavid.com. We'll put the link on the bottom of the YouTube video as well so you can see it. But if you're not here, and you're seeing this video in a completely different place, because videos nowadays are being shared everywhere, you can go to PatrickBetDavid.com, okay? When you go to the website, the link for this is going to be there. Look for the link. And if you don't see it anywhere, just go on the search on the bottom of my website. Paul, show exactly where the search would be. Type in money, and this would come up. Rules of money. This would come up. Then get the free PDF. Print it out. And look at it. And start studying which of those 20 rules you follow and you do very well at, and which you don't. And start adjusting to it. And study the areas that you need to do to improve in those games. So with that being said, if you have any questions, any thoughts, any comments, comment on the bottom. And thanks for watching everybody. Take care. Bye bye. Hey, thanks for watching this video. Let me make a case to you why I believe you need to subscribe to Valuetainment. Also join the notification squad. Look, there's two ways you can learn about business. One of the ways is go to college. Learn a bunch of theories by professors who have probably never ran a business before. Or you can watch Valuetainment. 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