5 Reasons Why You Are Poor | Vaibhav Kadnar

[00:01] or start your own business from next month. You've been telling yourself all these things for the past two years. Your family always tells you to study son, you will get a job and your life will be set. But in real life,

[00:15] only after getting a job do we realize that life is not set there. The bus is settled. And even your own family members have been doing the same for many years. And you will do the same in future and your children will also do the same. And this loop is called The

[00:27] Middle Class Trap. This is a trap in which your entire youth gets wasted. First of all, to get a degree, then to find a secure job and then to relax a bit on the weekends. But by the time you realize that life is

[00:39] not built only in your comfort zone, your comfort zone itself has become your cage. And do you i.e. getting good marks. You will be job. Still, you will never get that luxurious peace in life.

[00:53] Because this loop system was never meant to make you rich. It was actually made to keep you dependent. This is a perfect trap that you can never break. At 18, you go to college,

[01:05] dream, take an education loan. At 22, you get a job. Then you pay the first EMI of that education loan. Then by the time you turn 25, that friend, I will save a little , I will invest a little, then

[01:19] this society tells you that now you should get married, buy a house and a car. People should also have some status value of their own. Then you get married at the age of 28 , buy a car and a house and that too on loan and that loan is for 20 years. Now you will be

[01:33] called settled in the eyes of this society. Settled means your next 20 years' salary is already with the to stop. First comes the EMA of the house , then comes the EMA of the car. EMI of children's education loan comes. Friend, you will earn all your life but you will never

[01:47] earn for yourself. And after doing all this, people in the society will start calling you successful. People will say look how successful he is. I have my own house, car and job. But no one sees that your house is not actually yours. It belongs to the bank for the next 20

[02:01] years. Even your car is not your own. That is the bank's for the next 5 years. And if you ever default on this loan by mistake, the bank will put both the house and the car on the option. And look at your own condition too. You are just an asset to your company.

[02:14] Whom they can kick away whenever they want and you will not be able to do anything. Look, the rule of this entire system is very simple. Keep them educated enough to work but not wise enough to question. All this is a game of do good and move ahead, it is a

[02:28] basically a perfect formula to keep you in the middle class. Now the question is not how much are you earning? The question is, for whom are you earning? Because if money comes and goes every month, then what is the use of that money to you?

[02:42] That's why today I will tell you five reasons that keep you broke, stressed and average. These are the same mistakes that your parents made and you may also make in future. And unless you break yourself from this vicious cycle,

[02:55] So let's start. And remember to play this video at 1.25x remember to play this video at 1.25x for a better experience.

[03:07] middle class trap does n't seem dangerous when you're actually in it. He actually starts appearing dangerous to you when you come to know about him. All the things I am going to tell you in this video,

[03:20] You just keep thinking that I am safe but in reality you are in an invisible prison where comfort is called stability and fear is called responsibility. Just take a look around you. Everyone is just surviving here. No one is

[03:33] living here. Some have money but no time, some have time but no purpose. And this middle class trap is exactly what he is doing. He gives you just enough money so that you can survive and breathe. But he never gives you enough

[03:47] I am able to say this with so much conviction because I have too used to think that I should just work a little harder. Just have a little more patience. But then I understood that brother, hard work without any direction is just like slavery.

[04:02] someone. And when these five reasons came out which keep you middle class. I had written these reasons in this diary 3 years ago. Recently, while cleaning the house, I

[04:15] saw this and thought that it is very important for you to understand these things today. So without any further do let's start with the first one. Reason number one you think hard work equals success. Your entire school and college life was built on this one line that if you work hard then you will

[04:29] become successful. But in this real world the equation is a little different. Here smart work ranks above hard work. Let me give you a simple example of this. Look, your father worked hard for 30 years but his boss

[04:42] earned more money than him. Why? Because the boss created the system and your father just worked within that system. Look, every successful person in the world has automated their own growth. Either through people or through technology. Remember this

[04:55] simple line. Pore ​​People Work in the System and Rich People Work on the System. And here a very interesting concept of finance called leverage. Now basically there are two main things in leverage. OPM & OPT. This boss used OPM

[05:11] i.e. Other People's Money and OPT i.e. Other People's Time. And that's why he became so successful. Let me explain this concept of OPM and OPT to you with a simple example. Suppose a Zomato delivery boy earns ₹15,000 per month

[05:24] by working for 12 hours. And Zomato has ₹1,80,000 such delivery partners. Now let me tell you a fun fact here that remember Zomato delivers 1500 orders every minute. Now suppose after cutting everything behind every order,

[05:38] Zomato as a platform earns only ₹10. So they are generating ₹15,000 per minute which amounts to ₹2.16 crore every single day. And that's why Zomato founder Deepinder

[05:50] Goyal has a net worth of $2 billion. That is approximately ₹6,000 crore. He leveraged ₹1,80,000 delivery partners of Zomato to make a business. So, if you start anything in life in future, then definitely remember this concept of leverage i.e. OPM and OPT.

[06:05] Now let's move to reason number two, risk phobia. Look, this dialogue is very common among middle class people that do not take risks, always stay safe. But I want to ask you a question. Has anyone ever done something extraordinary while staying safe

[06:17] ? Look, after college, not everyone looks for a stable job. But no one asks what I actually want to do? What do I want to want to give you my own example. I had 9.3 CGPA in college and I did

[06:30] software engineering and with such a high CGPA, if I had gone into the market, I would have easily got a job of Rs 20 to 25 lakh. But friend, at that moment I did not feel like sitting in those campus interviews. There was only one voice coming from inside that

[06:43] if I do it then I will do my own startup, otherwise forget about living. All my friends used to tell me that brother, you are crazy, what are you doing in life? Look, he is getting a job worth this much. He is getting a package of this much. But let me tell you that decision was the

[06:55] biggest turning point in my life. Because whenever you rise above your fear and take action, growth is automatically attracted. And I am a living example of it. I always tell you one thing that always take calculated risks. That means,

[07:09] learn some skill and start freelancing or just give one hour daily to your side hustle. Do just give one hour daily to your side hustle. Do simple life hack which I also use myself. Which is, whatever you do in life,

[07:22] Which is, whatever you do in life, perspective towards life will completely change. ROI means Return on Investment. For Return on Investment. For example, if I take a course of ₹5,000, will

[07:34] I be able to learn some skills from it which can help me earn 10x ROI i.e. ₹50,000 and in life, start calculating not only money but Here your mind will always tell you that there is no time now, let's see

[07:50] in terms of ROI that this 10 minute video or those five pages of the book that I read daily can somewhere set the future 10 years of my life. In this way, your risk phobia will gradually

[08:04] reduce and you will start thinking with the mindset of return on investment i.e. ROI. Now let's move to reason number three: You save but never invest. There is one thing in finance which is non-age compound interest. John Einstein has also called it the Eighth Wonder of the

[08:17] World. But are you using it or is it working against you? Let me explain this to you with a simple example. Suppose you drink coffee worth ₹100 daily, which means 30 days of the month amount to ₹3000. Now suppose you invest the same ₹3000 every month

[08:32] And roughly you are also getting a return of 12%. So in just 10 years you will earn ₹5 lakh due to compound interest and in just 20 years you will earn ₹1 lakh. That means in simple words, ₹100 compounded daily and

[08:46] became ₹30 lakh in 20 years and you did not even know about it. This compound interest formula works very beautifully in the stock market. And that is why every one of you must know the basics of the stock market.

[09:00] already made many videos on this stock market concept. But I have my own favorite video which you must watch by clicking on the i button above. By watching this simple video, all the basics of stock market will become also a playlist of stock market on the channel

[09:12] and it is so important to understand investing because we middle class people feel so proud of our savings as if it is an Olympic medal. But the truth is, saving without investing is slow death of money. Inflation is increasing so rapidly

[09:27] that all your saved money is going to become worthless after some time. That's why rich people don't save money. They grow money by investing in stocks, mutual funds and assets. Look, it is possible that today you may not have less money

[09:39] but you have a lot of time and the not on your money. All of you who are watching this video today are much younger than me. You have that precious 5 to 10 extra years that I probably do

[09:54] n't have today. And that is your other leverage over me. So you need to plan your investments right now. Even if you invest only ₹2 to ₹4000 per month, at least start. Now let's move to reason number four. The Hidden Cost. Now let

[10:07] example. Suppose there are two people, Akash and Arjun. After college, both of them are offered a job at ₹15,000 per month. Akash thinks, come on friend, I will do this job. And Arjun thinks that remove him, I will not work for such a low salary. On the

[10:20] contrary, I prepare for a government job. After 3 years and many failed attempts, Arjun finally gets that government job and that too at ₹30,000 per month. Now

[10:32] who was more successful among the two? Just think and tell me. Look, Akash took up a job of ₹15,000 3 years ago and kept claiming bare minimum 20% every year. That means his salary in year one was ₹15,000. His salary in year two was ₹18,000 and in year three his salary was

[10:47] ₹21.6,000. Now according to this calculation you people will think that according to this, Arjun was more successful. He completely wrong. And this is where the concept of hidden cost comes in. Now there are basically two types of this hidden cost.

[11:00] Number one is direct cost which was ₹3 lakh for coaching for 3 years. And the second and most important cost is opportunity cost. That means, if he had become smart like Akash and taken up a basic job, then today,

[11:13] like Akash, he would have earned ₹1.8 lakh in the first year, ₹2.16 lakh in the second year and ₹2.59 lakh in the third year from salary. Now the total of all this is ₹6.52 lakh. That means,

[11:27] if we add this direct cost and opportunity cost, the total comes out to be ₹9.52 lakh i.e. around ₹1 lakh. This is the hidden cost that Arjun has paid for that government job. Now explain this concept to you. Now from this example you have to learn only one thing

[11:43] whether you are spending time with friends , doing a job or even starting a business. There is , doing a job or even starting a business. There is must consider it. Now let's move to reason number five. You depend on one source of

[11:57] income only. One salary, one job and one source of income. And you feel that your life is secure. Once your boss announces budget cuts, all goes bankrupt, the employees will have no option other than finding another job.

[12:10] That's why rich people always make money not from one source but from multiple sources. business, royalties, extra. Look, many of you are students and you many of you are students and you

[12:24] not have that much capital to invest in business, but there is one thing that you can do and that is to build a side skill, be it copywriting, editing, designing, coding, anything. You have literally no idea which skill of yours will bring you money and when, that is why

[12:37] try to learn and explore everything when you are young. Here I want to and you can understand it from my example. When Vaibhav Kadnar started this channel, That's why Web of Kerner knows the basics of graphic design. So he

[12:52] can give the designer the exact idea for the thumbnail. If he understands script writing then he can create the structure of the content himself. He has a basic sense of editing and can guide the editor as to where and how the editing should be done and if he knows the basics of shooting

[13:04] then he can suggest camera angles and lighting. Now all these things are horizontal skills of this T shape. Now these are all the skills that he knows, the basics of which he knows but he is not an expert in them. This vertical line in the T shape

[13:17] actually represents his real power skills which is speaking i.e. confidence in front of the camera, story telling with emotions, how to hook the audience , how to explain complex ideas by simplifying them. These skills are his

[13:30] vertical depth i.e. his expertise. And this combination is so powerful because if he was just a speaker, he would not know anything else and would never be able to guide his team properly. But because he knows the basics of everything and

[13:42] is a master at speaking, he becomes a complete content creator and this is the magic of this T-shaped skill. You just have to become an expert in one thing and just be aware of everything else. You will see this same combination in every entrepreneur. Be it

[13:55] Steve Jobs or Elon Muskie. Now before we move ahead, just pause for a moment and honestly think about how many times you have told yourself that you will save for next month. I will become serious from the next semester. Next year I will

[14:07] set my life. And also consider that every time that next one never came. Look, if your age is between 18 to 24 years, then this is the phase where you can become two types of people. The first one who just gives excuses every time in life. And the second one which

[14:21] breaks this loop and creates something. So to get out of this loop, remember this fire formula. FIRE stands for Financial Independence and Retire Early Formula. This gives you a freedom number.

[14:35] you will get a freedom number. I mean, suppose you think that if I earn ₹5 lakh per month then my life will be set. So just multiply this number of ₹5 lakh by ₹300 which gives us ₹15 crore. So this ₹15 crore has become that number after which

[14:49] you will never need to work for money in your life. Suppose you take this ₹15 crore and invest it somewhere and you are earning even a bare minimum of 5% from that investment, then you will

[15:06] power of this fire number. So decide your goal now and start working towards that goal. overnight. You wo n't even get results in a month. But if you do all the n't even get results in a month. But if you do all the

[15:21] then I guarantee that both your thinking and your direction will change. month disappearance plan. people started asking me, brother, how did you do all this ? This story of 180 days has been the

[15:36] most interesting and happening story of my life. , in knowing this story, then click here and watch it. I will see you in the next video. Till then keep hustling, keep

[15:51] hustling, keep learning and as always keep inspiring.