The Game the Rich Play to Be Rich

Anytime someone saves up a few million – the next question I hear is ‘’What should I invest X amount of money in?’’

Or say someone advises you to ‘’invest’’ – BUT you have NO IDEA what they mean.

Maybe sometimes you try to ‘’invest’’ and lose the entire money, or you want to invest in land but don’t have enough funds to do so, making you wonder how people who do invest manage to do it.

This is because no one explains what investing is or how to do it, so you make grave mistakes.

This post will be the most important thing you will read this year because I’ll explain how to invest.

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Ready?

Let me explain this using my friend as an example –

He drives a 2016 Mercedes Benz GLE.

It cost him about 22 Million naira, and the first thing you’d ask when you see him is ‘’How did he afford that?’’

He is a young businessman, and it is absolutely normal to wonder what he did to afford a car like that.

I will explain how he did it, and then I’ll explain what buying a car can teach you about investing.

Let’s go –

He bought his first car from his first business, a Rav4 – 3M.

He drove it for 3 years, sold it for 3.5M, and added the money he saved to buy a 2015 model.

Then he sold that after a year, added money & bought something higher.

Then he repeated that same process – and voila he has a 22 Million naira car.

This means he used his old cars to get to the car he drives now – but what everyone sees on the outside is ‘’this guy spent a full 22 Million naira ($13,589) on a car – at once.’’

–The exact method used to procure a liability can also be used in investing–

Investing simply means – buying & staking up cash flow.

The more cash flow you buy, the more cash you have coming in for you to invest with –

The more cash flow you get, the bigger your pile of cash and the bigger your investment moves. Just as was the case for my friend who sold his old cars (cash flow) until he could buy a big car.

Let me break this down.

Don’t ask – ‘’What should I invest in?’’ – Instead, ask; What cash flow should I buy.

Here is what I mean.

Which would be a better and faster move for a starter?

Option 1: Buy land for 2M ($2k) and wait for 3 years for it to appreciate to 5M ($5k) so you can sell

Option 2: Buy products with the 2M ($2k), sell it off – buy more, and repeat the same process within a year.

Option 2 is a cash flow game.

Option 1 is what most people think investment is (and it is not the best for your stage if you are starting out in wealth creation. That should be a move you make when you want to store wealth).

Option 2 can make you more than 5M ($5k) in a single year, so why lock your cash down for 3 years when you can use 2M ($2k) to buy more cash flow – over and over again?

Every stage of your journey requires a different investment vehicle and strategy, and for your stage (where you make less than 30 Million naira ($30k) a year) – your focus should be on buying CASH FLOW and not tying money down.

Tying money down is a game for people who are already rich and now want to secure their wealth, or if you are very risk averse (I am not; I want to get MORE – so I keep swinging)

This is why buying cash flow is powerful, and this is how the rich people you see end up rich from scratch (and leave you wondering how they did it or suspecting they did something bad to get to the top)

Most of them simply played a cash flow game.

They set up little cashflow sources here and there that they save from, and the more cash flow sources they have – the more cash they have to save BIGGER AMOUNTS and make even bigger investments.

Watch this – there are better examples than this, but it should give you the picture.

Say I own ONE barbing saloon that makes 30k ($30) monthly.

And I keep setting up more till they get to 10 barbing saloons –

Cashflow goes from N30k from one shop to N300k from 10 shops.

If I save 50% of what I make, I’d save 15k from one shop – and N150k from 10 shops.

The more cash you have, the more you can save, which means more cash can be used to buy more cash.

… Would it be easy? No, if it was – everyone will be doing it.

But is it possible? Yes, that is how people who get big do it.