How the 1% Build Wealth in Layers While You Stay Broke

That's when I learned the hard way how the wealthy actually used money. And once I applied their strategies, my wealth grew five times even ten times faster. So today I want to show you exactly how they do it so you can start stacking your wealth just like the top one percent. I'm going to break down the math.

I'm going to show you real world examples that you could do this year to make five hundred percent more on your money with just three simple moves, and by the end you're going to see exactly why most people stay broke while the top one percent keep getting richer. This is not about working harder, it's about using your money differently. But before I show you the system, you need to understand the three money mindsets. Because if you don't get this part right, you'll never build lasting wealth.

So let's go Okay, most people follow the same broken formula for money, because we've all been taught the same wrong things. You know, go to school, get a good job, save for retirement, you know, for forty years, and then hope that there's enough money to retire one day. Well, unfortunately we can see that this doesn't work because today half of the baby boomers that are facing retirement have no savings, and of those that do, the average balance

is just about one hundred thousand dollars. Now, one hundred thousand dollars is not going to be enough to retire. The problem, that's not how the one percent build wealth. The traditional model tells you, you know, to work hard, save money, invest in in your four to one k, you know, invest in your house, which it sounds smart, right, that's what Dave Ramsey tells us. But here's the problem. Your money only does one job. You put a dollar

into the stock market, it's locked up. You buy real estate, the money is tied down until you sell the house. But the rich, they don't let their money sit. They put it to work in multiple places at the same time. That's why they get rich faster and they stay rich longer. Now, if you're only using your money once, you're already going to be behind. It's why most people spend their entire lives working only to end up broke. Anyway, Now, let me show you why that happens and how the one

percent do it differently. Okay, so here's what most people don't realize. It's not how much money you make that matters, it's how you use the money. Now you can make ten dollars an hour, you can make ten thousand an hour, and if you have the wrong money mindset, you're still gonna end up broke. Because at the end of the day, there are really just three types of people, and only one of them builds lasting wealth. Now, the first group is the poor mindset group, and they see money as

something that they need just to survive. Right, they work, they get paid, and then every dollar they make just disappears immediately, and that's just to cover their rent, their food, and their basic expenses. And then the way they use credits differently, because when they don't make enough money, then they rely on credit just to survive. Now, the problem with this is it creates a permanent cycle, because every month they're starting at zero or worse, they're falling further

into debt. Now, this isn't an income problem, it's a money mindset problem, because even if they suddenly make more money, they'd still be in the same trap, spending every dollar as soon as they get it. Now, the second group, this is what I call them middle class mindset, and it's different, right, but it's just as dangerous. Now. They don't think about wealth. They think about comfort. And here's

why this is dangerous. No matter how much they make, they're still stuck because every time their income increases, they're spending increases with it. This is why sixty percent of those making one hundred thousand dollars salary report still living paycheck to paycheck. They look rich, but they have no real wealth. All right. Now, the way they use credit is also different as well. So they use credit to increase their lifestyle by the bigger houses, by the bigger cars.

All right. Now that we understand that, let's talk about the third group. All right, This is the wealthy mindset. Now, these are the people who actually build wealth instead of just looking like they have it. The biggest difference they don't work for money. They make their money work for them. How do they do that, Well, they don't make money to pay for their living expenses. Instead, they make money to pay for assets and they use the assets to then pay for their life. Right, So it's a different

way to do that. Now, what happens is these assets appreciate over time and they can be leveraged into more wealth and allows those investments to pay for their lifestyle. And the way they use credit is completely different as well. They don't use credit because they don't have the money or they can't afford things. They use credit because it's

cheaper to use somebody else's money than their own. Now you can see that the way that they use money and the way they think about money and the way they use credit is completely different, which is why they end up in a different place. Now. I tell you all this because if you want to build wealth in layers like the one percent, then you have to understand one thing. Because we're going to be using debt. We're going to be using leverage to build wealth, and that

means that you have to have the right mindset. If you're still thinking about credit the way a poor or middle class mindset does is something to avoid. Then you're never going to be able to use money the way the wealthy do. But if you start thinking like an investor, if you start seeing credit as a tool, not a trap, then you'll finally be able to unlock the true power of wealth building. All right, Now, let me tell you how I learned this the hard way first, and then

I'm going to break down the math. Now, I had to learn this the hard way, and I don't want you to because I didn't even I didn't always understand this. In fact, I learned the really hard way. Now. Back in two thousand and eight, I thought I had it all figured out. I'd built up a couple of businesses. I had sold a couple of businesses. I made a lot of money. I had just turned twenty eight years old. I thought I was set for life. So I did

what I thought the wealthy did, right. I took all the money and I poured it all into real estate. Now I was in southern California. I was fully invested into the market, and I thought I was pretty smart. I had like a sixty five percent loan to value ratio, which I thought was pretty safe. I had the properties, I had the leverage. I had the plan, and then the market collapsed. So Mike Tyson said, everyone has a plan to they get punched in the face. And I

got punched in the face. Overnight. My property values collapsed. I had a few big developments that were going on at the time. I was trying to sell those and they fell through, and I had mortgages to pay. But here's the kicker. I had sold my businesses, so I had no active income. So that same leverage that had made me feel rich was now squashing me. Now. I remember sitting there. I remember staring at my numbers, realizing

I can't afford this. But I was stuck. I had tens of millions of dollars in real estate, but I was broke. Everything I had worked for was slipping away. And it took years to unwind everything, to get everything dealt with with the banks. And then I swore that I would never touch credit again, and maybe I don't know. Five six years I did everything in cash. I refused to borrow. I told myself, you know, leverage is too risky, and for a while it felt safe, right. But here's

what I didn't realize at the time. I wasn't actually building wealth. I was just avoiding risk. Now, my business, luckily was making plenty of money, but I was still stuck in that scarcity mindset. So instead of making my money work for me, I was playing defense. But then, one day, as I was always invested into my own education, I joined a high level master my group. I met someone who completely changed the way that I thought about money, and he showed me how the wealthy actually used leverage.

And that's when I saw it. I'd been doing it all wrong. I had thought about it all wrong. See, I wasn't supposed to take on debt to buy assets. I needed to structure my wealth in layers. I needed to build cash flow, I needed to learn how to leverage it correctly, and then I had to learn how to make every dollar do multiple jobs. Now, look, I don't look back with any regrets of that today, all right, because I believe that, unfortunately, we only learn from our

defeats and our mistakes. And it's because of that experience, the pain of two thousand and eight, the crash, that's why I make these videos today. Now. During that time, I vowed to myself, I vowed to my wife that we are never going to get caught off sides again. So I spent the next decade studying financial system, macroeconomics, and how the wealthy actually build and protect their wealth.

I invested hundreds of thousands of dollars into my own education, my mentors, the masterminds, because I was never going to let that happen to us again. And that's why I started making these videos to help you learn from my mistakes and avoid the same pain I went through. So now let me show you what I learned and how

you can structure your wealth just like the one percent. Right, So you know why the traditional system is broken, you know why most people stay stuck, and you know the wealthy use money differently, So let me show you exactly how they do it. Now, Remember we talked about the wealthy mindset and how they use their income to buy assets, and then they leverage credit strategically instead of fearing it. Right now, that's important because this entire system that we're

going to break down is built on that mindset. So if you think about credit like the poor or the middle class does, as something to avoid, then you're never going to be able to build wealth the way the one percent do. But when you learn to control, leverage. Every dollar you earn can do multiple jobs like the wealthy. And here's how they do it. They don't just invest randomly. Again, they build it in layers by stacking assets strategically. Stir

money moves, it multiplies, and it never sits idle. Now, before I break all this down, understand this. This is not a one size fits all system. Right. You don't need to use every single layer right away. Some of you might already have, you know, one or two of these in place. Others might be starting, you know, completely from scratch. Some of you may not even like the layers I suggest, and you can make your own. But the goal here is simple, make every dollar work multiple

times in different ways. Right. So these are the layers that I personally use and I recommend, But again, don't use these, use whatever, mix and match them however you want. But this is what I do. Okay, So we start number one with layer number one, which is the foundation, which is liquidity. Now, this is where most people get stuck. They don't have a system for stacking their money. Right.

That's actually why I built the Wealth Engine assessment to help you see exactly how many jobs your dollars are doing. And where you can optimize, because if your money is only doing more job right now, you're already behind. Now, if you want this wealth assessment, you can grab it for free. I'll put a link down to the description down below. Just use it, do a test. It'll show you exactly how to map this out. But let me show you how I do this. Let's start with the

base layer. So for me, layer number one is life insurance. So let me just go ahead and lay that out here. Now, the first thing the wealthy do differently is they don't keep cash in a bank. Why because it does two things your bank never will. First, it compounds tax free over time. Second, you can borrow against it without stopping the growth. Now most people don't realize this, but when you put money in a bank, that make immediately lends it out to make money off of you. Meanwhile, they

pay almost nothing. But the wealthy, of course, they flip the script and they store their cash in a properly structured life insurance policy where it earns interest and they can borrow against it. Now, let me give you an example of how the one percent do this. So let's say that you have this life insurance policy and you

put let's say one hundred thousand dollars into this account. Okay, there's a high cash value life insurance and it's let's say it's compounding at five percent per year, So I'm gonna put it in there, and they're gonna pay me five percent a year. Now it's compounding at five percent a year, and that is tax free, all right. Now, then what can happen is I can borrow. I can take that one hundred thousand dollars out and I would borrow,

and I would pay five percent to borrow it. Now you might go, wait a minute, if I borrow, if I'm earning five percent, but then I borrow at five percent, Like, isn't that a wash? Well, no, not even close. Because let's say let's say I borrowed this a for a car, one hundred thousand dollars car. So let's say over a six year loan, let's say time six years or seventy two months. Let's say, well, let's let's do the math

and see what actually happens during this time. What I would pay interest this five percent on one hundred thousand is about fifteen thousand, nine hundred and fifty five dollars. So let's call it sixteen thousand dollars. All right, But during that same time period, this earning five percent compounding on one hundred thousand is thirty four thousand nine. A small business owner, are you buried in all types of work keeping you from the real thing that makes you money?

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part yet. Right. If you had this extra eighteen thousand dollars now over the life of the loan, and you put it into an account and it continues to compound at five percent, let's say over twenty years, that turns some real money. As a matter of fact, that turns into forty seven thousand, nine hundred and two dollars, almost fifty thousand dollars, which is more than some people saved. As a matter of fact, As I said, most baby

boomers today don't even have any money saved. And you can do that just by one simple trick of putting the money in first, taking it back out, buying whatever you're going to buy. That alone could get you fifty thousand dollars. Now what would you do with this money, Well, you can do all types of things. You could invest it into real estate, you could invest it into bitcoin, you could invest it into businesses or whatever. We're going

to talk about how you can layer that next. Okay, so now that we've got layer one taken care of, and now that we have liquidity, let's talk about the next wealth layer. And for me, that's real estate. So let's go ahead and put that out here. So now we have layer to real estate, and let's break down the math of how this works for a second, because most people don't understand this. Now, of course, the wealthy love real estate, but it's not for the reasons that

most people think. They don't just buy houses. They use real estate as a financial tool to build wealth through leverage and most importantly, tax efficiency. Now why is real estate so powerful Because it builds wealth in multiple ways at once. So the first way is we get cash flow, so we buy the piece of real estate and it generates cash rental income. Number two, we get the appreciation, so the property is going to go up over a

long period of time. Number three, we get leverage. We get loan leverage, so we can buy a property for ten percent down or twenty percent down. But my favorite one the wealthy is favorite one most people don't even think about, they don't even understand, is the tax advantages, depreciation. It's the ride us. This is why the wealthy get richer because their money is working in multiple ways at

the same time. And this is where leverage becomes a game change, because this is where the layered stacking begins. So let me give you an example of how the wealthy use leverage in real estate. So let's break it down. Okay, So we first started with one hundred thousand dollars in layer one, and we put that into our high cash value life insurance policy, right, and we're getting compounding in a five percent. Then we take that one hundred thousand back out. We don't let us sit there. We borrow

against it and we use that money. Now, let's say one hundred thousand has a down payment on five hundred thousand dollars worth of real estate, so that's two hundred dow. So we take the h hundred k that we got from our life insurance and we put it into an apartment complex or a series of houses or whatever worth about five hundred k. Let's say, right, it's twenty percent down all right. So now we have the money doing two jobs. One job over here in life insurance, the

second job over here in real estate. That's pretty good, right, This is the first one hundred thousand dollars. Now over here in life insurance layer one, it's still compounding. Right, So just during the time of this let's call it twenty years, during the life of this that money compounding is going to add forty seven K right here, just because I left it there in the meantime while I have also had the house. Now, think about that forty

seven K on my one hundred thousand. That's almost a fifty percent return right there, just by having to do the second job. All right. Second, over here, we have this five hundred thousand dollars property, and the tenants are paying down the real estate loan for me, and it's giving me cash flow. It's given me equity growth. At the same time, also, the property is going up in time. Now, we don't always plan for appreciation, but of course it's

going to appreciate. Let's call it super conservative. Let's say it's going up at three percent a year. Okay, so three percent a year. What happens is now at five hundred thousand, let's say times the three percent over the twenty years means that this property is now worth nine

hundred and three thousand dollars. That means that if we take the new value nine hundred thousand divided by the five hundred thousand, means my equity is now four hundred and three thousand dollars on the original one hundred thousand I put in. That means I've now made a four hundred percent ROI. So over here, my one hundred thousand dollars is sitting here, and I've earned forty seven thousand

over here. It's about a fifty percent return. And then I took that one hundred thousand, put it over here in this five hundred thousand dollars property growing at three percent, and it's made me a four hundred percent ROI, not to mention the cash flow I've made over time, not to mention the equity that I've gained over all time. But we are still not done because not on top of all this, you also get up to five hundred thousand in tax rideoffs even against W two income if

you structure this correctly. So let's say that you're a thirty five percent tax bracket, that's about another one hundred and seventy five thousand dollars of tax savings. That you get. Let me total all this up for you. Let let's think about this real quickly. Okay, So let's total this up so we can compare. Let's compare two different people. So person one over here has their one hundred thousand dollars,

all right, Person two over here has one hundred thousand dollars. Okay, Now over here, person one saves one hundred thousand all right. Over here, person two stacks. So let's just put that here. Person one saves Person two stacks. Now, Option one, I leave the one hundred thousand dollars in savings. The final balance times let's say twenty years, is you know, earning at zero point five percent interest, ends up with about one

hundred and ten thousand dollars. Good job, So we went from ten thousand to one hundred and ten thousand, so we made about ten K over twenty years. Okay, Option number two over here. Option number two does something a little bit different. Number one. They stack their wealth in layers. So they first put the one hundred thousand into a

life insurance policy. Number one. Then that right there makes them about forty seven K. Number two, they take that same hundred thousand and put it down into five hundred thousand dollars of real estate. Okay, and then with the appreciation they get about four hundred k from that, all right, Then they get the tax savings and the write off. So let's just say at a thirty five percent tax rate, they're going to get another one hundred and seventy five

thousand in tax breaks right there. So we'll add that up here, one hundred and seventy five thousand dollars. So now the total wealth created here is six one hundred and twelve thousand dollars. So person one, save the money they made ten thousand. Person two, same money, the same dollar, the same hundred thousand, ended up six hundred and twelve thousand dollars. It's a pretty big difference. This is why wealth isn't built by working harder. It's built by using

money the right way. And we're still not even done. All right, that's only two layers. Imagine three layers, five layers, imagine ten layers. All right, Next, let's add another layer. I'll show you what I like to do. Now, what's your best move from here? Where should you be stacking? If you don't like these, well, that's exactly what the wealth Engine Assessment that I put together is for it helps you figure all this out so you're not just

guessing your way through wealth building. So go ahead and grab the Wealth Engine Assessment for free. There's a link in the description. Right now, it's going to show you where you're at today. It's going to show you how fast you can hit your financial freedom number. All right, But now now that we've stacked our whole life insurance policy, and we've now stacked it in the layer two, which is real estate, let's take it to the next level.

Let's take it to level three, which for me, that's bitcoin. All right. Now, most people buy bitcoin the wrong way. They treat it like a lottery ticket. They hope that the price is going to go up so they can cash out for a quick profit. The wealthy they don't sell bitcoin. They hold it and hold it forever because just like real estate and life insurance, it's not the asset, it's also a financial tool. Now why is bitcoin so

powerful in this way? Well, one, bitcoin is a scarce asset, right there's only twenty one million that's ever going to exist. Number Two, it's a high growth investment. Bitcoin's outperformed every other asset class over the last decade. Three. It's easily something that you can just borrow against. Right, You can take a low interest bitcoin back loan without selling your bitcoin. And this is exactly how the wealthy multiply their wealth with bitcoin. Okay, So here's how we keep stacking our

wealth layers, all right. So let's go back to the stacked example. Okay, So number one over here, we had the life insurance right with one hundred k in it. Two we had real estate, right, and now we have about five hundred k in real estate here, all right. And then level three we're gonna put some bitcoin here, bitcoin right there, all right. Now, remember we started with one hundred k in the whole life insurance, right, we borrowed against that to get the five hundred k in

real estate. Now, remember as that grew as it appreciated, it gave us four hundred thousand inequity. It gave us one hundred and seventy five thousand in tax depreciation and write offs, meaning that we earned more income to invest into bitcoin. If you don't have to pay tax on your income because you have write offs, that gives you more money to invest in the bitcoin. Right. So instead of spending that one seventy five, we can invest that

one seventy five in tax savings into bitcoin. Now, let's say that bitcoin goes up by twenty five percent of a year for the next twenty years. Now that number is half of its most recent, like five year average, so it's half of that. So I'm trying to be conservative here. So let's say that it goes up, that one seventy five goes up at twenty five percent a year for the next twenty years. Times twenty years, that number ready for it is going to be fifteen point

one eight million. Right now, we can borrow against that. So let's say that I borrow at a fifty percent loan to value, which means I can pull out about seven point five million, and uh total interest paid on the loans. Let's say that's at ten percent interest per year, So that's about you know, one point five million in an interest that I'm going to have to pay. Now

that's even have to borrow against it. The bitcoin is still growing exponentially versus if I had sold it, right, So now instead of just holding bitcoin, we take the borrowed money to seven point five and we reinvest that over again. So we can go to a fourth layer, where do we go. Well, we can go into real estate and that gives us more tax rite offs so we don't have to pay any more taxes. We can invest it into businesses, we can invest it even into

more bitcoin. Okay, this is how the wealthy play the game. They layer the assets, it compounds the wealth. They write off their taxes so they keep more money, and they keep that money in motion. Now you can see how powerful this is. Right, and we've only stacked three layers so far. But the real secret the wealthy don't just do this once. They do it over and over again

with all different types of assets. Now, in five years, that same dollar could be doing five jobs, easy, ten jobs, even fifteen jobs each one, compounding your wealth faster and faster. I mean, this is the real money game here. You keep stacking, you keep multiplying, and then you just watch

how fast you can escape the rat race. And once you've got the system running, the next wealth layer is business ownership, because now you're in a position to create a high cash flow of business that keeps feeding this system so you never run out of capital to invest. All right. Now, again, that's why I created the Wealth Engine Assessment to find out what's your number now. It's a free tool that can help you measure your wealth building potential. See how fast you can hit that financial

freedom number. And it's going to calculate where you're at today, what layers you need to add next. It's going to give you a clear path to start tracking assets and multiplying your money. And it includes a free training video where I'm going to break it all down step by step by step. Okay, like I said, you can grab it all for free. There's a link in the description down below. But remember wealth isn't just about how much you make. It's about how many jobs your money is

doing for you. So start stacking, keep compounding, and I'll see inside the training