Transcription
Okay. Now, why do rich people break rules? And here's what's interesting. If you look at how people actually get rich, not the fairy tales we're told, but how it actually happens, you'll notice that almost everyone who gets rich breaks rules. You cannot get rich by following the rules because the rules are designed to keep you poor. Okay?
Now what I mean is uh the rules society teaches you go to school, get good grades, get a job, retire at 65, these rules are designed to create obedient workers, not wealthy people. And today I'm going to explain to you exactly why this is the case. Does that make sense?
Okay. So, uh you're taught to get good grades. Why? Because good grades show that you can follow instructions. You can memorize information. But the problem is that these are all skills that make you a good employee. Entrepreneurs don't succeed because they got good grades. They succeed because they see opportunities that other people don't see. And they take risks that other people won't take. Okay? So, the rules we're taught are worker rules, not wealth buildinging rules. And if you follow worker rules, you'll become a worker.
Okay, so here's what you need to understand. There are two sets of rules in society. There are rules for poor people and there are rules for rich people and they're completely different. Okay, let's start with rules for poor people. What are poor people taught? Get a job and uh work hard. Do what your boss tells you and and don't question authority. Don't take risks. And this pay your taxes, follow the law. Okay, these are rules for obedience. These are rules that teach you to fit into the system, not to challenge it. And if you follow these rules, what happens? You survive. Maybe you're comfortable, but you never get rich. Okay? Because these rules are designed to create stable, predictable workers. Workers who show up every day. Workers who generate profit for the people who own things. Does that make sense?
Now, let's look at rules for rich people. What are rich kids taught? Take risks, ask questions, and uh challenge assumptions. Learn how money works. And uh learn how to negotiate. If something doesn't work, pivot, try something else. Authority is negotiable. Everything is negotiable. Okay? So, rich kids are taught to break the rules that poor kids are taught to follow. Rich kids are taught that rules are flexible, that you can work around rules, that you can change rules if you have enough power or money or influence. Okay? And here's the fundamental difference. Poor people are taught that the system is fixed. This is how the world works. These are the rules. Follow them. But rich people are taught that the system is flexible. These are the current rules. But rules can be changed. Rules can be bent. Rules can be negotiated. Okay? So, poor people see rules as walls. Rich people see rules as suggestions. And this mindset difference is huge. Because if you think rules are walls, you stay inside the walls. You limit yourself. You don't even try to get rich because you think the path to wealth requires following the same rules that everyone else follows. But it doesn't. The path to wealth requires breaking those rules. Does that make sense?
Okay. So, let's be more specific. Let's look at specific rules that you're taught and why following those rules keeps you poor. Rule number one, you're taught to get a stable job. Don't take risks. Stay with one company for 30 years and retire with a pension. But here's the problem. That world doesn't exist anymore. Pensions are gone. Companies lay people off all the time. There's no such thing as job security. And even if there was, a stable job will never make you rich. It'll make you comfortable at best. Okay? And here's what's really crazy. Poor people are told to avoid risk. Don't start a business. It's too risky. Get a stable job. But having a job is also risky. You can get fired any day. Your company can go bankrupt. There's no security in having a job. The only security is in owning things. But poor people are taught to fear risk while rich people are taught to manage risk. Completely different mindsets. Okay.
Rule number two, don't go into debt. You're taught that debt is bad. Live within your means. If you can't afford it, don't buy it. Okay. And for consumer debt, this is good advice. Don't go into credit card debt to buy stuff you don't need. But here's what they don't teach you. Rich people use debt all the time. They just use it differently. Okay? Rich people use debt to buy assets. They take out loans to buy rental properties. They take out loans to start businesses. And because they're buying assets that generate income, the debt pays for itself. Okay? You borrow $500,000 to buy a rental property. You rent it out for $3,000 a month. Your mortgage payment is $2,500. You're making $500 a month in profit. And the tenants are paying off your loan. After 30 years, you own a property worth $500,000 or more. That's how rich people use debt. Okay? But poor people are taught to fear all debt. So they never use debt to buy assets. They only use debt for consumption. credit cards, car loans, payday loans, and that debt makes them poorer. So, the rule, don't go into debt, keeps poor people from using one of the most powerful wealth buildinging tools available. Does that make sense?
Rule number three, work hard and you'll succeed. This is the biggest lie of all. You're taught that hard work leads to success. Just work hard, put in the hours, and you'll be rewarded. Okay? But as we've discussed before, this is not true. The hardest working people in America are some of the poorest. Hard work doesn't make you rich. Ownership makes you rich. Okay? But they teach you this rule because they need you to work hard. Capitalism needs workers. The system needs people to show up and generate profit for the owners. So they teach you that hard work is virtuous. Hard work is noble. Hard work is the path to success. And you internalize this. You work 60-hour weeks. You sacrifice your health, your family, your life. And for what? A paycheck. While the person who owns the company makes millions off your hard work.
How rich people actually break rules. Okay. So, let's look at concrete examples of how rich people break rules to get rich. Pay your taxes. If you don't pay your taxes, you go to jail. Okay? And this is true for ordinary people. If you're a wage worker and you don't pay your taxes, the IRS will come after you. They'll seize your assets. Okay? But rich people, that is not how it works, guys. Rich people have entire teams of accountants and lawyers whose job is to minimize taxes. And they do this legally. How? By using the tax code. Okay? The tax code is thousands of pages long and it's full of loopholes that benefit wealthy people. Deductions for business expenses, deductions for investment losses, tax-free accounts, offshore accounts, shell companies, real estate depreciation. Okay, so a rich person makes $10 million in a year, but they pay almost nothing in taxes. Meanwhile, a worker making $50,000 pays 20 to 30% in taxes. How is this fair? It's not. But it's legal because rich people write the taxes laws. They lobby Congress. They donate to politicians. And they make sure the tax code benefits them. Okay? So, they're not breaking the law, but they're definitely breaking the spirit of the rule that says everyone should pay their fair share. Does that make sense?
Breaking ethical boundaries. And then there are rich people who break ethical rules, not laws necessarily, but ethical boundaries. Let me give you examples. Pharmaceutical companies that jack up the price of life-saving drugs 5,000%. Is this illegal? No. Is it deeply immoral? Yes. But they do it because they can. Because the rule is maximize profit and morality is negotiable. Okay. Tech companies that design addictive products to hook children. Is this illegal? No. Is it harmful? Yes. But they do it because engagement drives profit and harm is just an externality. Okay. Real estate investors who buy up all the houses in a neighborhood and jack up rents, forcing poor families out. Is this illegal? No. Is it ethical? Questionable. But they do it because profit matters more than people. Okay? And this is what I mean when I say getting rich requires breaking rules. You have to be willing to do things that ordinary people won't do. You have to be willing to prioritize profit over people, over ethics, over fairness. Now, does this mean all rich people are evil? No. But it does mean that getting rich often requires making choices that most people would find uncomfortable. Does that make sense?
Okay. So, now let's talk about why we're taught to follow rules in the first place. Because there's a myth that society operates on fair play. that everyone plays by the same rules. That if you work hard and follow the rules, you'll be rewarded. Okay? But this is not true. Society does not operate on fair play. Society operates on power. And the people with power make the rules. And they make rules that benefit themselves. Does that make sense?
Now, who makes the rules? The entire legal system is designed to protect the interests of the powerful. Okay? So, when you're taught to follow the rules, what you're really being taught is stay in your place. Don't challenge the system. Accept the hierarchy. Because the rules exist to maintain the hierarchy. The rules exist to keep rich people rich and poor people poor. Does that make sense?
So, why do poor people follow rules? Because they have to. Okay? If you're poor and you break the rules, you get punished. You break a minor law, you go to jail. You cheat on your taxes, the IRS destroys you. You steal something small, you get arrested. Okay? Poor people can't afford to break rules because they don't have protection. They don't have lawyers. They don't have money to pay fines. They don't have connections to get out of trouble. So, they follow rules because the consequences of breaking rules are devastating. Does that make sense? A poor person steals $500 from a store, they go to jail for 5 years. A rich person commits fraud and steals $500 million from investors, they pay a fine and admit no wrongdoing. Does that sound fair? It's not, but that's how the system works. The rules apply differently depending on how much money you have. Okay? So rich people learn that rules are flexible, that rules can be bent or broken if you have enough resources. And this gives them a huge advantage because they're not constrained by the same rules that constrain everyone else. Does that make sense?
Okay. So if you want to get rich, you need a mindset shift. You need to stop thinking like a rule follower and start thinking like a rule breaker. Let me explain what this means. First, you need to shift from obedience to strategy. Don't just follow rules because you're supposed to. Ask why the rule exists. Who does it benefit? Who does it harm? And then decide strategically whether following that rule serves your interests. Okay? For example, the rule says go to college and get a degree. Why does this rule exist? Because society needs educated workers. But does going to college serve your interests? Maybe, maybe not. If you want to be a doctor, yes. If you want to start a tech company, maybe not. Steve Jobs and Bill Gates didn't need degrees. They dropped out and started companies. Okay? So, think strategically. Don't follow rules blindly. Follow rules when they serve you. Break rules when breaking them serves you better. Does that make sense?
Second, you need to shift from risk aversion to risk management. Don't avoid risk. Learn to manage risk. Okay? Poor people are taught to avoid risk. Don't take chances. Play it safe. Get a stable job. But rich people understand that all of life is risk. Having a job is risky. Starting a business is risky. Investing is risky. Everything is risky. So the question is not how to avoid risk. The question is how to take calculated risks that have high potential rewards. Okay? Rich people take risks all the time. But they don't take stupid risks. They take calculated risks. They assess the downside. They have backup plans. They protect themselves. But they're willing to take risks because they understand that without risk there's no reward. Does that make sense?
Third, you need to shift from a scarcity mindset to an abundance mindset. Don't think there's not enough for everyone. Think there are opportunities everywhere. Okay? Poor people are taught scarcity. Money is limited. Jobs are limited. Success is limited. If someone else succeeds, that's one less spot for you. This creates a zero sum mentality where you're competing against everyone for limited resources. Okay. But rich people think abundance. There's enough for everyone. If someone else succeeds, that creates more opportunities. Success breeds success. And this mindset opens up possibilities because you're not afraid of competition. You're looking for collaboration, for partnerships, for ways to create value together. Does that make sense?
Fourth, you need to shift from asking for permission to asking for forgiveness. Don't wait for someone to tell you it's okay to do something. Just do it and deal with the consequences later. Okay? Poor people ask for permission. Is it okay if I do this? Can I have your approval? They wait for authority to give them permission, but by the time you get permission, the opportunity is gone. someone else already took it. Okay, rich people ask for forgiveness. They do what they want and if someone complains, they apologize and move on. This is how startups work. Move fast and break things. Don't wait for permission. Just build it, launch it. If it breaks rules, deal with it later. By the time regulators catch up, you're already established and too big to stop. Does that make sense?
Okay. But I want to be clear about something. Breaking rules comes with risks. You can lose money. You can lose reputation. You can face legal consequences. I'm not saying you should break laws and expect no consequences. What I'm saying is that getting rich often requires doing things that are unconventional, that push boundaries, that challenge norms. Okay? And you have to be smart about it. You have to know which rules you can break and which rules you can't. You have to manage the risks. You have to have a backup plan. Does that make sense?
But there are lots of rules you should break. Social rules, cultural norms, educational expectations, career paths, financial conventions. These are the rules that keep you trapped in mediocrity. These are the rules that keep you poor. And breaking these rules is how you create opportunities for yourself. Okay? Don't go to college if it doesn't serve you. Don't get a traditional job if you can build something better. Don't save money in a savings account if you can invest it for higher returns. Don't follow the conventional career path if there's a better path for you. Don't be polite and humble if being assertive and self-promotional gets you better results. Okay? These are rules that society teaches you to follow, but they're not laws. They're just norms. And norms can be broken without serious consequences. You might face social disapproval. People might think you're weird or arrogant or risky. But so what? You're trying to get rich, not win a popularity contest. Does that make sense?
Okay. So, here's the really important part. The system protects itself by teaching you to follow rules. by teaching you that rule breakers are bad people, criminals, troublemakers, rebels. Okay? And this is social control. If everyone followed all the rules, nobody would challenge the system. Nobody would question why things are the way they are. Nobody would try to change things. Everyone would just accept their place in the hierarchy. Workers would stay workers. Poor people would stay poor. Rich people would stay rich. Okay? But when people break rules, they disrupt the system. They create new possibilities. They shift power. And the system doesn't like this. So the system teaches you from childhood that rulebreaking is bad. That you should be obedient. That you should respect authority. That you should follow the path that's laid out for you. Does that make sense?
And when you do break rules, the system punishes you. Not just with legal consequences, but with social consequences. People will criticize you. They'll say, "You're irresponsible. You're reckless. You're greedy. You're a bad person." Okay. And this social pressure is powerful. Most people can't handle it. Most people need approval from others. They need to fit in. They need to be accepted so they conform. They follow the rules even when following the rules keeps them poor. Does that make sense? But if you want to get rich, you have to be okay with social disapproval. You have to be okay with people thinking you're crazy or stupid or arrogant. You have to be willing to stand apart from the crowd because the crowd follows rules and following rules keeps you average. Okay?
Okay. So, let's bring this all together. Why does becoming rich require breaking their rules? Because the rules are designed to create workers, not wealth builders. Because the rules benefit the people who are already rich and keep poor people poor. Because the rules teach you to be obedient, riskaverse, and conventional. And none of those traits lead to wealth. Okay? To get rich, you need to think differently. You need to see rules as flexible, not fixed. You need to take risks that others won't take. You need to do things that others are afraid to do. You need to challenge assumptions, question authority, and forge your own path. Does that make sense?
Now, does this mean you should break every rule? No. You need to be strategic. Break the rules that hold you back. Follow the rules that protect you. But don't follow rules blindly just because you're supposed to. Think for yourself. Act in your own interest. And understand that the path to wealth is not the conventional path. It's the path that most people are too afraid to take. Okay? And here's the hardest part. You have to be willing to be uncomfortable. You have to be willing to face criticism. You have to be willing to fail because breaking rules means going against the grain. And going against the grain is hard. Most people can't do it. Most people don't want to do it. They'd rather follow the rules and be comfortable and poor than break the rules and be uncomfortable and maybe maybe get rich. Does that make sense?
But if you want to get rich, you don't have a choice. You have to break their rules. You have to reject the conventional path. You have to think like a rich person, not a worker. And you have to be okay with the fact that this will make you different, that people will judge you, that you'll face resistance. But that's the price. That's what it takes. And if you're not willing to pay that price, then you won't get rich. You'll follow the rules and you'll stay exactly where you are. Okay? The choice is yours. Follow the rules and stay poor or break the rules and take your shot at wealth. But understand that these are the only two options. There is no third path. Does that make sense, guys? Okay.