➡ Mark Moss, a successful investor and business coach, explains that traditional financial advice may not lead to wealth. He argues that the wealthy use a different system, turning every dollar into multiple dollars over time, rather than letting money sit idle. He criticizes common advice like avoiding debt and saving in index or mutual funds, stating that these strategies don’t account for inflation and fees. Instead, he suggests a strategy called the “velocity of wealth,” which involves making money work harder through smart investments.
➡ The article discusses the concept of ‘velocity of money’ and how it can be used to build wealth. It suggests that instead of letting money sit idle in a single investment, it should be moved through multiple investments to generate more returns. The author also introduces the concepts of leveraging assets, arbitrage, and managing cash flows. He provides an example of how he used these strategies to buy a car and invest in Bitcoin, resulting in a significant net gain.
➡ This text explains how investing money and using the power of compound interest can lead to significant financial gains, rather than spending cash outright. It emphasizes the importance of understanding and managing risk, and suggests that with the right strategies, one can become financially free in less than 10 years. The author also highlights the tax benefits of this approach and encourages readers to learn more about these wealth-building strategies.

What if I told you the way you’ve been taught to save and invest is actually keeping you broke? You know, the wealthy don’t play by those rules. Instead, they’ve mastered a system that turns every $1 into $5 or into $10 or even $20 over time. Now, while most people let their money sit idle, losing value every second, the rich have unlocked a hidden wealth engine. It’s a system that grows their money exponentially without working harder or cutting back. So today, I’m going to pull back the curtain on this powerful strategy. I’m going to show you how to use it to make your money work harder than you ever could.

And by the end of this video, you’ll know exactly how to invest $1 into 3, 5, or even 10 investments, turning your dollars into unstoppable wealth. Now, my name is Mark Moss. I’ve built and invested businesses through now three boom and bust markets. I’ve exited two of them for high value exits. I’m a partner at a leading venture capital tech fund, and I’ve coached thousands of people on leveraging these exact strategies to build wealth and time freedom. So let’s go. All right, so the wealthy are playing a different game. Well, before we get into the wealthy game, let’s think about what game you’re playing.

Now, you’ve seen me probably use this graphic before if you watch my videos on a regular basis. And the premise of this that you have to just grasp this premise before we get into the rest of this is that if I came over to your house with a game, a board game, let’s say, and I said, hey, let’s play this board game. And you’ve never seen the board game. Well, you’d want to know like, well, what’s the objective of the game? What’s the strategy of the game? What are the rules of the game? Who are the players of the game? What are the mechanics of the game? All these things, right? You have to figure those out before you can play the game.

And imagine if I’d been playing this video game, Call of Duty or whatever. I’ve been playing this game for years and you’ve never have. Wouldn’t you imagine that I would have some tips and tricks and strategies that you wouldn’t understand? Okay, so keep an open mind as we go about this. Now, first of all, what game are you playing? Because you’ve been told this mantra your whole life of go to school, get good grades, get a good job, save for retirement. Now, it’s not just that you’ve been told that your whole life. We have some of the most famous money managers, financial gurus like Dave Ramsey telling you this stuff that we should do things a certain way.

Let’s play this first clip from Dave Ramsey. The debt snowball. You list your debts, smallest to largest. You pay minimum payments on everything but the little one. You attack the little one with a vengeance. Scorched earth lifestyle. Sell so much stuff the kids think they’re next. Take 16 extra jobs. We’re getting out of debt. All right, so what Dave Ramsey, again, probably the number one financial guru, millions of people, tens of millions, I don’t know, hundreds of millions of people are listening to him, is debt is bad. Don’t have debt. If you have debt, get rid of your debt as fast as possible.

Okay, now, look, that’s not a bad strategy. Okay, I call debt like fire. Now, fire is very useful and is very important. I use fire to warm up my house, fire to cook my food, but I could also burn my house down. Now, kids shouldn’t play with fire because they don’t know how to manage fire. They could burn the house down. But as you grew up as to be an adult, you learn how to cook with fire and warm your house, warm your water. Now, what Dave Ramsey is saying is that he thinks you’re a baby and you shouldn’t play with fire.

You shouldn’t play with debt. But as we grow up, the rich, the wealthy, they play a different game. They leverage debt. We’re going to talk about that in a second. Now, let’s play this other clip of Dave Ramsey. Again, this is traditional advice that tens of millions of people are following. Let’s play this clip. The best thing I can do is get you to save money. If I can get you to do your Roth IRAs, get you to do your 401Ks, get you out of debt so that you can do that. Get your emergency fund in place so you don’t go and cash the stupid thing out once it’s going.

Keep you investing and investing and investing and investing and investing and investing and investing and investing and investing and investing. If I can do that for you as your teacher. All right, so what everyone’s favorite wealth guru is saying is just save, save, save. If I could tell one person one thing, all you have to do is just save, save, save. Forget everything else. Just save, save, save. Not just saving your bank account. He’s saying to save in either an index fund like the S&P 500 Index or into mutual funds. Okay, so let’s just take this advice.

One, never use debt. Number two, save, save, save. Number three, put it into S&P 500 or mutual funds. Why doesn’t that work? Well, let me show you why it doesn’t work. Now, what happens is you follow his vice. You work for 40 years. You save, save, save into your index fund or your mutual fund. And on paper, when you look back 40 years later at your statement, you’re like, oh, my gosh, I’m rich. I started with 50,000. Now I have $2 million, $5 million, whatever. But I don’t feel more rich. Why does that feel like my quality of life actually went down? And here’s why.

This is a chart showing the S&P 500, your index fund, and the global liquidity, or basically the amount of money that’s created in the world. What we can see here is the orange line being global equity. The black line is the S&P 500. And what you can see is that the stock market, the real estate market, are basically perfect proxies for inflation. As the money supply grows, the S&P 500 and your home goes up in value at about the same rate. So on paper, it looks like that. But you’ve heard the term like, it’s a million dollars, but adjusted for inflation, it’s really 20,000.

Right? So what happens is it’s going up at the rate of inflation. Now, this is the S&P 500. Now you get the mutual funds like the around he talks about, and you’re getting eaten alive by fees. A lot of times, your advisor, your fund administrator, might get two thirds of the amount of profit in fees, and you get what’s left over. So that’s why it doesn’t work. Now, I want to show you one more chart, and we’ll talk about what you should be doing. But I want to show you another chart. And this is the S&P 500.

Now it’s adjusted. We can price the S&P 500 in dollars, or in Bitcoin, or in oil or gold, or you want it in, or oranges or rice. And this is priced in a basket of commodities, the CRB. It’s the biggest, most commonly used basket of commodities, real things. What we can see is the S&P 500 made a high here in the year 2000. And as of today, it’s never made a new all-time high. As a matter of fact, priced in real things, commodities, things you need, it’s down 22% since the year 2000. That means the price of commodities, real things, rice, gold, oil, energy, things like that, have gone up.

But you’ve lost 22% of your purchasing power if you sat in the S&P 500 versus what the cost of things are today. Not good. Now, again, the wealthy have their own set of rules. They play with, and they have a hack. And that’s what we’re going to talk about today, is the wealth hack. Now, I call this the velocity of wealth. Now, this concept is a concept I’ve taken from one that we use in economics, and it’s called the velocity of money. So when you hear about economists talking about the economy, like in the year 2020, during the pandemic, the velocity of money slowed down.

That’s the problem. They want to get the velocity back up. So here’s the velocity of money from an economic terms. The velocity of money is the amount of money going through the GDP. So basically, what this means is the GDP is the gross domestic product of the economy, measures the economy, how much productivity or how much wealth is created in the economy. So if I give $1 to the tire repair shop guy, and the tire repair shop goes and gives the dollar to his supply guy. And the supply guy goes and gives the dollar to the taco guy.

Well, that’s one, two, $3 of economic activity, $3 of GDP, but only $1 actually went through that. So it measures how fast $1 moves through an economy. And for economists, again, the faster a dollar moves to the economy, the better, right? When we’re spending, spending, spending those dollars are moving really fast. That’s good. During the pandemic, everybody hoards, nobody spends, and it slows down. That’s really bad. So we use that concept, but we can adopt it for our own wealth using the velocity of money. How fast can we get $1 to move through 3, 5, or 10 investments? The slower your money moves through your investments, the worse it is, just like in the economy.

Now, the poor, they use money this way. The poor use money to do one job, is what Dave Ramsey’s telling you. Never use debt, just save, get $1, put it into account, and leave it there. Your dollar’s doing one job, it’s sitting in a fund, and that’s it. That’s what the poor do. But the wealthy, they build wealth engines and they rev those up. So they get their money, they build an engine, and they’re trying to get their wealth to go faster and faster instead of doing the one job like Dave Ramsey’s talking about.

All right, so what are these wealth engines and helping you build one? It’s really not that hard. Now, if you really want to know how I’m building these, and you can build out two, three, or four of these, like right away, like in months, I’m going to be doing a three-day live event. I’m going to be live in the studio for three full days, and I’m going to be teaching you all the good stuff, all the best stuff on how to reclaim more of your time, how to accelerate your wealth through these wealth assets and these engines, and how to keep more of the wealth that you create using some of these strategies.

If you’d like to come check it out, like I said, I’ll be going live from this studio. I’m going to teach all of this to you. I’m not holding anything back. I want to give it all two actionable strategies. There’s a link down below or on the screen right here. Check it out, the Wealth Accelerator Event. If you want to accelerate your wealth in 2024, check out that event. Okay, now let me give you three different terms that you need to know, and then I’m going to actually draw some out for you, and I’m going to show you some numbers.

Okay, so number one is leveraging assets. So we need leverage. Leverage is like if I have a lever long enough I can move the world. Leverage is like fire. It can be dangerous. It can do great things. It can be bad. So we have to learn about leveraging assets, number one. Number two, we have to learn about arbitrage. That means I can get something from one market and take it to another market and make more money. I can buy something here in the United States, drive it down to Mexico, and sell it for more money, buying one market selling.

I can buy on Alibaba in China, and I can sell on Amazon in the United States. So we want to learn arbitrage, and then we want to learn how to manage cash flows, manage debt, and equity in our investments. So these are the terms that we have to learn. Hopefully that makes sense to you. Now let me show you a couple examples of how we can do this. So I’m going to draw some out, and then I’m going to show you some actual data. So for example, I have $1. Now I can take this dollar, and I can put it into an account that let’s say makes me 5% forever.

So as long as that dollar sits there, it’s making me 5% over time. So that dollar is now doing one job. I’m making 5%, like sitting in a treasury, like in a dividend stock. But what if I wanted to go faster? Well, what I could do is I could borrow that money out, that $1 back, and to get that dollar back, I have to pay interest. So let’s say that I have to pay 5% interest to borrow the money. So I’m making 5% on the dollar, but then when I borrow it, I also have to pay 5%.

And not only do I have to pay 5% interest, I also have to pay back the principle of the $1. But how would that make me any money? Well, it’s because the interest moves non-interrupted and exponential while this moves linear. So that’d be job number one. I’m going to break this math down for you. Number two, now I have this money I’ve borrowed out. I can put it into another asset. I could put it into a piece of real estate that’s making me somewhere between 8% to 15%. I could put it into an asset like Bitcoin that’s making me 60%.

I could put it into my business where I buy some new equipment and that makes me 100%. So now I’m making 5%. I’ve got the money back out and now I’m in another asset making me 60% or 8, 10, 100%. Does that make sense? Now I can keep going. So now I put it into Bitcoin. I borrow it out and then I put it into my business. That business now makes me money and I put it into real estate. So we can mix and match and we can stack these assets. Now the order in which we stack them is very important because some of them get me better tax treatment.

Some of them are more liquid and we’ll talk about that. But let me show you a couple examples so you can understand how the numbers work because I get it like this sounds really weird. So let me give you an actual example. So if I were to take $1 and put it in an account and earn 5%, okay, now we’re going to use $50,000 and if I put $50,000 into account that’s earning 5%, but it’s compounding. So it’s earning interest on the interest of a year and I’m going to let that $50,000 sit in the account for only seven years, not that long.

Seven years, that $50,000 turns into $67,000. Now, as soon as I put the $50,000 in the account, I also borrowed the $50,000 back out and I’m paying 5% and I’m earning 5%. But here’s what happens. I’m not only am I again paying the interest, I’m paying the debt back. So over the same 72 month period, I’ve now paid the $50,000 back, but it cost me money. So that $50,000 now cost me $57,977. So it cost me $7,000 in interest plus I paid the $50,000 back. And now at the end of the seven years, I have a net gain of almost $10,000.

As a matter of fact, it’s $9,027. So by doing this, if I put $50,000 in, made five, borrowed it back out, I came up almost $10,000 difference. Now, this is a picture that I put on Instagram and Twitter just about a week ago. This is my daughter. Happy birthday to my daughter. I went and I got her a new car and I had option one. The reason why I put $50,000 is it was a new Bronco. And I had option one. Should I pay cash for the car? I have no debt.

I have no interest like Dave Ramsey would recommend or I could take the $50,000 and buy something else with it and then instead get a loan for the car. So the dealer offered me, as I said, zero down 4.9% interest for five years. So why not borrow that and pay the interest 5%? This is a real example. And instead buy an asset that’s going up by more than 5% like Bitcoin. So that’s what we did. I went ahead and did that. And let me show you some math of how this works.

An actual real example. If we start stacking these. So now I have the initial investment of $50,000. It goes into an account earning 5%. Now I borrow the $50,000 back at 5% rate. So now I have the $50,000 back and then I invest the borrowed $50,000 into Bitcoin. So I’m putting that into Bitcoin. Assuming that it’s going to go up by 50% per year. Now it’s been going up by 60% a year over the last four years. It’s gone up 4,000% a year if I go back further. But just the last four years it’s gone up about 60%.

So let’s take it down to 50%. So then I purchased a $50,000 car with a loan at 5% interest rate amortized over the five years. So that’s what I did. I’m breaking down the math for you. Now the interest rates and investment returns remain constant over this investment period. Loan payments are made monthly. Compounding investment returns occur annually. So this is what I’m expecting over the course of five years and how this works out. So what we do now is we have our money doing multiple jobs. And you can see that our net gain is now almost $700,000.

So option one, I could have paid cash for the car. I had the cash. I could have done that. That’s what Dave Ramsey would tell you to do. Option two, I put the money in. I borrowed it back out. I borrowed the money. I put it into another asset. And now we’re talking a difference of about $700,000. Let me break down how that math works for you. So the financial outcomes in this given scenario, the future value of account number one, I put the $50,000 in. I’m earning 5% compound annual growth rate over six years.

I earn that $50,000 goes into $67,000. The future value of Bitcoin investments at the 50% compound annual growth rate is now 560. Total repayment for the loan, the 50K at 5% interest because I have to pay that money back that I borrowed. Cost me $57,000 or $7,000 interest. The total repayment of loan number two, the car, $40K at 10% interest over five years is $50,000. But the net gain is now over half a million dollars. I have to pay the debt back. Half a million dollars on the head instead of just paying cash for the car.

Do you see how this works? Now, this is only going to two jobs or three jobs. But imagine when I go to four jobs, five jobs, six jobs, seven jobs, 10 jobs, you can see how instead of buying cash, like Dave Ramsey said for a $50,000 car, now I could have $600,000, $800,000, a million dollars very easily, and we haven’t even got into the tax benefits of doing this. Now, really, this takes into a couple things into account. Number one, the law of compounding. It’s why I can put $50,000 in and earn 5%.

Borrow $50,000 and pay 5% but still come out ahead because of the compounding, which means I earn on top of what I earn, on top of what I earn, on top of what I earn. It’s what Einstein called the eighth wonder of the world. He said, those who know what it is, receive it, and those who don’t know what it is, they pay it. Now, you don’t want to be paying it. So it’s nonlinear. Most people think wealth grows like this. Instead, it’s exponential. And even better, all of this is tax advantaged.

You see, when I took Dave Ramsey’s advice and paid the $50,000 for the car, I had to pay tax on that money. So in California, I needed $100,000, pay the tax on $50,000, and I have $50,000 left over. But in the other example, every time I get the money back, I don’t have to pay tax. So now, my money is growing faster and faster and faster. Now, I already know what you’re saying. I can hear the grumbling. You guys are already leaving comments before I’ve even gotten there. But Mark, Mark, isn’t this super risky? It sounds really risky.

I mean, what if I can’t afford the payment? And what if the value of the real estate or the business or the Bitcoin goes down? And what if it sounds really risky, Mark? Sure, it is risky. But here’s what I have to say about that. We understand what the risk is. We understand the potential risk that could pose to us, and then we learn to mitigate those risks. It’s what I say that the risk is in the investor, not the investment. Let me give an example here. If someone asked me, I’m a surfer, they said, hey, Mark, what’s the best wave I should surf? I’d say, well, pipeline in Hawaii is the best wave.

But here’s the thing. If you’ve never surfed before, you certainly should not go out there, right? You’ll probably die. But yet, there’s hundreds of people out there every day that don’t die. It’s because they’ve learned how to mitigate their risk. They’ve learned how to hold their breath for long periods of time. They go out there with safety equipment, a vest and a helmet. They may bring a partner out there on a jet ski. They’ve also worked their way up from when waves were tiny all the way to big over years and years and years.

So they learn how to manage these situations. And so are these things risky? They do carry risk, but you can learn to mitigate them. So, for example, number one, if you have debt, that means there’s probably payments. And so you need to figure out, how am I going to make those payments? There’s a couple ways that you can do this. Number one, you should have income. So you should have a job covering that, covering that income. Number two, when you borrow money, you could borrow more than you need to put into the interest reserve account.

So, for example, when I was building real estate, I built this building that we’re in here right now, I would borrow hard money. The bank would give me a million dollars, or in this case, like seven million dollars to build this. Now, I couldn’t make the payment on the seven million for a year, so I’d borrow extra money that I would need, and that money would sit into what’s called an interest reserve account. And then they would just pull from the interest reserve account directly to make the loan. So there’s ways that we can mitigate this, and these are the strategies that you have to grow into.

Now, the goal is not to just go from one to 10 investments overnight, but if you take the right strategy, you implement the right way, and you account for the risks, then you can manage this properly. Now, this really is about, do I want to play the game because I like to play the game, or am I playing to win the game? There’s a big difference in that, and what I would say is that this is if you want to play the win. If you want to be like Dave Ramsey and work in a cubicle for 40 years and get your two weeks of vacation and save without ever taking debt and put that money into an account like the S&P 500 that I showed you is not actually making you any more wealthy, you can play the game.

That’s what most people do. But if you want to play to win the game, most people could win the game being financially free in less than 10 years. And the thing is that, I think it was Bill Gates, he said that most of us tend to overestimate what we can get done in a year, but we underestimate what we can get done in 10. And that’s exactly what I’m talking about. So right now, everyone’s chasing meme stocks or crypto coins or option strategy. I need to get rich in six months, and they don’t.

Instead of thinking, hey, if I start building this type of a strategy today in probably four, five, six years, I can achieve my goal. And this is taking this long-term advantage because as I said, the game is exponential. It might start small, but then it starts growing really, really fast. When you build this wealth engine, and the engines start going faster and faster and faster. Now, if this sounds complicated, it’s not, but there’s a lot of intricacies as to how you would apply this based off of your skill set, what you have experience in, and how you mitigate the risk based off your personal circumstances.

So if you’d like to learn more about how to build these, how the wealthy do this, then come check out my live event. It’s called the Wealth Accelerator. It’s about kicking off 2025, right? We’re gonna talk about reclaiming more of your time almost instantly. I want keeping more of the wealth that you create instead of giving so much away to taxes. Then once you have more time and you have more income, then how do I multiply that wealth using wealth engine strategies just like this to make 2025 and really hit your goals before 2030? Check it out.

There’s a link down below if you’d like to come check it out. Otherwise, take this information, use it. You can listen to Dave Ramsey, but you’ll end up like everybody else. If you wanna go somewhere different, you gotta use different strategies. All right, that’s what I got. Let me know what you think about this down in the comments down below. Is it too risky or can you mitigate that risk? Say yes or no down below, and that’s what I got. All right, to your success. I’m out. [tr:trw].

See more of Mark Moss on their Public Channel and the MPN Mark Moss channel.