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.


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Thanks for watching and until next.