Most people are trapped into a financial cycle that is designed to keep them working forever but the top 5% play by a completely different set of rules in this video I’m breaking down the three levels of money management to paycheck survival to building real wealth if you’re stuck trading time for money ready to learn passive income Secrets stick around this could change how you think about money so the money secrets of the poor the middle class and the wealthy are very very different I would know cuz I started on the Poor Side just

like probably some of you so in the very beginning when we’re all trading our time for money I call it poor habit you must work to pay things like for rent and maybe your car and of course food those kinds of things you have to cover those expenses and so over here on the left side you’re working 40 50 60 maybe even more hours per week some of you are even working multiple jobs just to try to be able to cover your expens now that’s what we call Active income in other words you’re training your time

for money physically have to show up somewhere to get a paycheck these people are in the most vulnerable position because they are subject to things like inflation and savings rates and of course they typically don’t have a lot of money left over to invest because they’re just trying to tread water this is where I started this is where a lot of people start of course the difference with between poor habits and middle class habits are very slight we’re all in the exact same sandbox we make money

we spend money maybe we invest money and we all pay tax the question is how do you do it so the key thing here is the bank account so the poor have a personal bank account and and inside of that bank account all their money goes into it and all their personal expenses come out so just like so many of us that work butts off and work hard all our active money goes into our personal bank accounts and all of that covers our personal expenses and maybe we have income left over most of the people in this category do not

invest because they need a safety net in the event some of their active income is not consistent so what we find here is that people have to work harder get second jobs and all of the money goes into the bank accounts and of course their personal expenses take up most of their money and then when they start to maybe make a little bit more money what they end up doing is they start to upgrade things like their cars or go on a vacation or whatever it might be but these people typically are just Treading

Water the difference between this habit and the middle class which is the next category is not that much the interesting thing is is that we all start right here in this category most of us did not come from a lot of money if you want to learn how to get rich you got to study the habits of the rich so the next category is the middle class and this of course is the next progression for most of us and this is exactly the progression that I went through I started to make more money simply by working more by working

weekends working evenings and working a lot but I was still working for someone else in the form of a W2 and that of course was still active income which means that I had to show up somewhere to get a paycheck I was only as good as the hours I worked or the pay that I was getting I was completely vulnerable to the success of that particular employer but then a wealth manager tapped me on the shoulder he said you need to start investing in passive income and that’s when I started investing in things like

gold and stocks and those kinds of things and it takes a while to get to this point even when I was there I did not completely understand on what I was investing and why it was working I was simply turning my money over to a third party so that’s the natural progression is turning your money over to a financial planner or a wealth manager to buy things like stocks and gold and cryp doing all of those things that might be available from a passive income strategy from there a lot of people in the middle

class a side hustle or a second business now you don’t necessarily have to quit your job in order to do this a lot of people in this situation create second and third sources of income which I highly recommend because what you want is you want an active business that’s producing passive income so what you want is to create here a business bank account this is pro tip number one first when you start making money you turn it over to a wealth manager and you don’t really know what they’re doing with it

but second you start to realize that the only way for you to get ahead is to create a second or third source of income through some kind of active business that produces passive income now that can be as simple as buying a duplex and renting it out and having $500 to $1,000 a month in passive income and then using the Tax Strategies that are available to you to be a to reduce your taxable income or could be something that’s a little more Hands-On like a business that actually requires people to be employed and you’re selling

something it doesn’t really matter what it is but it’s active and it produces passive income hopefully but the key thing here is the middle class is now starting to understand that they can now open business bank accounts and business bank accounts are very different than a personal bank account so with a business bank account account there are business expenses that you can legally run through your business things like your car or percentage of your car and gas going to and from and child care

expenses and personal development you can now start to take things that you might be paying for personally and legally run them through your business of course you need to check on this the tax laws are always changing you need to qualifi CPA to be able to tell you what you can and can’t do but once you have a business bank account there’s a lot of things you could do legally to run through here which now of course you have another option rather than running everything through your personal bank

account so many of you are already doing this and it might look something like this you have lots of different kinds of active income maybe have two or three jobs and maybe even have some passive income and they go into your business bank accounts and you could have two three four of these and from there you have your business expenses and over here here you of course got your home office you have your internet you have your gas you have your mobile phone you have your health insurance your child

care your personal development expenses these are all things that you can do to help grow your business because you’re employing people and the tax laws give you the ability to be able to write things off and then what happens is the passive money that comes out of these accounts goes into your personal bank account and of course you pay your personal expenses and then you have hopefully you’re net positive here and you have more money to invest in maybe another business or maybe another piece of real estate or gold silver crypto

stocks it doesn’t really matter but you now are in control because you have businesses producing income for you as opposed to you just working actively and walking in and going to a job each and every day and relying on how many hours you work or how much you make per hour or your salary or whatever it might be and certainly you’re not relying on the success of some other company that provides you that W2 income you’re now relying on yourself so in this particular case you’re starting to bet on yourself you’re starting to invest on

yourself through starting businesses that generate passive income now eventually where we all can end up and certainly this is where I ended up after I started studying the habits of the wealthy they have a choice to work where in the other two categories the poor and the middle class they have to work but what I’ve realized from the wealthy is that most people work 20 to 30 hours a week because they have the ability to do that they’re financially free at this point so in other words money is not a

claim on their time they use money to generate more passive income so the strategy of the wealthy is to entirely focus on passive income so they have multiple bank accounts as many as six seven8 I personally have over 10 different businesses that provide passive income each every month I also have a W2 job which is the company that I own but I do take a small salary out of that company one of these businesses like my company MC companies I actually don’t even take a paycheck I have no active income coming out of my company

what I do is I survive completely based on the passive income of the company in other words I take money out of MC companies based on how it’s doing and I don’t do it in the form of a paycheck I do it in the form of passive income now I do that with our construction company with our development company I do that with our internet company I do that with my publishing company I do that with kare.com all of those different businesses all produce passive income we have a collections company we have sub

contractor companies we have all these different things that we have formed over time that generate passive income and from the passive income I take an owner distribution it’s very different but what’s interesting is after I pay all the business expenses from those companies then I can now invest that back into more businesses or to grow my current business or I could just take it personally here in my own personal bank account but like all of you all my personal expenses the ones that are allowable through the IRS you got to

make sure that you don’t run your personal expenses through the business you’re going to want to check with a quality ified CPA or your tax person to make sure that you’re doing the strategy correctly I’ll give you an example I just flew this weekend on a jet with my kids to a personal development seminar calls goal strategies put on by the real estate guys and I wanted my kids to set their goals for 2025 and so we did that but I spoke there and I didn’t get paid but I actually ended up speaking there

and before that we had our Mastermind which is the collective Inner Circle which of course is another one one of the businesses and so the company the collective Mastermind paid for me to go and I attended the goals Retreat and I flew back all generated by the business I was able to pass through most of my business expenses for that entire trip this whole week through the companies that I’m managing because I had to be there as a partner to run the event so there’s all kinds of Publications that

say most wealthy people have at least seven different income strategies and of course all those go into to these different business accounts and of course they pay these different business expenses the one thing I do want to point out is the poor almost has no Tax Strategies I certainly didn’t because I was just trying to survive the middle class has some but of course they’re turning their money generally over to a financial planner or a wealth manager and they’re now not even taking an active role in their own investing

they’re turning it over to somebody else where the wealthy is actually taking a very active role in their own investing and how things are being done so the Tax Strategies really come into play and of course you guys all know that I started with real estate investing and I started with a single family house so if you’re interested in the single family due diligence checklist just click on the link here you can have that for free but that is one of the strategies when you buy that house you’re going to set up a

business account you’re going to rent it you’re going to have passive income which is exactly what you want which is going to to funnel right back into being able to pay for your expenses and have enough cash flow to be financially free there’s lots of other things you can do and these are just some of the strategies that I have so I do have money in retirement plans I have cash I have stocks I have crypto I have gold of course I have heavy in real estate but I also have a number of businesses as well

that produce passive income the key is when one ball Falls and it will then you have the others propping it up that’s why we like to have at least seven income streams at all times because not all seven are producing cash at all times sometimes they’re shrinking sometimes they’re growing sometimes you lose a big client sometimes the market just changes all this really does is give you diversification and the passive income strategy it makes you not rely on that active income which comes from that

paycheck which puts you in the worst position ever so while this might be the high watermark for a lot of you just understand understand that even I started with just one paycheck from an employer and I just started working more and more and more so the system that I just rolled out for you is exactly what I did it’s exactly what you could do because you’re not going to be able to generate seven incomes overnight but you do have to learn what the market wants and what businesses that you can create

and that could be all around real estate like how I started but now of course I have real estate I have businesses I have gold I have crypto I have money in retirement I have a lot of cash I’ve got stocks I’ve got all those kinds of things and it’s super confusing this is all super confusing because now I have lots of balls in the air but as gold goes up and down as businesses go up and down as real estate markets go up and down I’m Diversified but I still have passive income coming in from all these

businesses at all times what if I told you the biggest difference between rich and poor is not how much money they have in this next video I break down five key strategies the wealthy use to build and protect their wealth and more importantly how you can start to apply them today you can watch that video here