You’ll NEVER look at money the same way again…in under 4 minutes

Because at some point, my investment should be able to cover anything I want to buy. And that's the point when you realize you've made it.

What's up, you guys? It's Graham here. So ever since learning about compound interest and reading the book "Rich Dad Poor Dad" as a teenager, it forever changed my outlook on money. I will never view a dollar the same way ever again. And this is also something where once you see it, you're not gonna be able to unsee it. So you have been warned. If you view money the same way, you could pretty much guarantee you're never gonna run out of money and you can make that money generate cash flow for the rest of your life.

So here's the way I see it. Let's say I have $10,000 in my bank account. Most normal people would just see that as $10,000. But not me. I see that $10,000 as not $10,000, but instead I see that as $700 per year for the rest of my life, without ever touching that original $10,000. That also works out to be almost $60 per month for the rest of my life without ever touching that original $10,000.

So a little background here for my reasoning behind this: I can get about a 10% cash-on-cash return when I invest my money in real estate. When you account for about a 3% inflation per year, that brings us down to an average of 7% net return on whatever money I invest in real estate. This means that for every $100 I invest in real estate, I will make a profit of $7 per year for as long as I live, and even beyond. Meanwhile, I still have my original $100.

Now, anytime I look at money or think of something or do something, it's just calculated in my head: its future monthly profits. So if you're thinking about going and buying a $20,000 car, the way I see that $20,000 is something that will bring me $116 every single month for life.

So if I'm making $50,000 per month, I don't see that as me making $50,000 per month. Instead, I see that as me making $291 profit per month for life, every single month. That's basically my Toyota lease payment for life, every single month that I earn $50,000. And that lease payment is without me ever having to dip into my own pocket to pay it.

Now, this is even more impressive if you just decide to reinvest your money. So an original $10,000 investment, if you invest it over 25 years, will on average, at a 7% return, be worth $55,000, 25 years from now, adjusted for inflation. So it's almost as if, would you rather have $10,000 now or $55,000 in future money 25 years from now?

So if there's something out there that costs $1,000, I think to myself: Is this really worth $70 per year for life? Or is this $1,000 really worth $5,500 if I just invest this long term? And the answer for me is usually no. I would rather have the $70 per year for life or continually reinvest that and have $5,500 in future money instead.

I would rather my passive income be able to afford that thousand-dollar thing without me ever having to come out of pocket. Because at some point, my investment should be able to cover anything I want to buy. And that's the point when you realize you've made it.

And now that you see it, it's very hard to see money the same way again. I could look at anything now, and I just see it in terms of what it's gonna be generating me every single month. It's honestly pretty ridiculous.

And because everyone always wants to know what to invest in, I personally invest in rental real estate where I like at minimum a 10 percent cash-on-cash return on my investments. I also do a Vanguard S&P index fund that historically has averaged a little bit over 7% return adjusted for inflation. So both of these on average generate above 7% net return, and that's how I'm coming up with these calculations.

There are also plenty of other investments out there that you can choose from depending on your risk tolerance and how much money you want to make. Like bits, kittens—just kidding.

So as always, you guys, thank you so much for watching. I really hope you enjoyed this video. It's a bit of a mind screw the way I think about money and stuff like that, but I hope you guys enjoyed it and maybe learned something from it. If you liked it and you haven't subscribed yet, feel free to subscribe. And also feel free to add me on Snapchat and Instagram. I post pretty much daily, so if you want to be a part of it there, feel free to add me. Thank you again for watching and until next time.