Day 4 of The 14-day Passive Income Challenge - Keep the money in motion - Chaim Ekstein

[Music] welcome to number four day number four of the 14 day passive income challenge my name is ryan maxton i'm super excited to have you with me today where we're going to discuss the first element in the leverage part of the alm model attract leverage manage and we're going to discuss about liquidity and the concept called velocity of money come with me and let's have fun velocity of money multiplier is a concept that if you understand how this works it's a game changer it's something that can help you tremendously it's basically the idea of having your money work for you again and again and again and again not only once i'm sure you all heard of the concept high risk high reward low risk low reward which basically means if you want to accomplish high returns on your money it usually comes together with the price of taking high risk if you are only willing to accept low risk on your money it usually comes on the price of giving up on the rewards that's possible so when i tell you that i invest my money and i earn 20 return immediately and your brand you calculate it probably means that you take a risk associated with a 20 rate of return if i tell you that i invest my money and i earn a 5 return in your mind you're probably calculating immediately that i probably take a risk that involves taking a risk associated with the five percent return and you might be right but the only thing that could be that you're not getting is that there's a concept called velocity of money and that basically means that i can take a lower risk on my money if i can have that money work again and again and again and again and i'll give you an example let's say person a is investing his money on a 20 rate of return so that means his risk is also on a scale that should come for somebody earning twenty percent on his money person b on the other side is earning only five percent on his money but he has a mechanism how the five percent vehicle should let him take out the money again and invest it again as another place earning him five percent on his money while they're still working for him and then doing the same thing again and then again and then again so if we do that four times isn't this the same equivalent to a 20 that person a has it's mama's the same thing but from the other side who has more risk of course person a has more risk because he is associated with a 20 return risk versus person b only associates himself with some risk that's associated to a five percent return so not only does it give it to you much more stability for your funds so to speak but also it allows you to work to have your money work for you again and again and again i showed you four times that's 20 but what about eight times what about 15 times unlimited in such a way you can have more gain less risk and much more diversification which can help you building your passive income life foundation thanks for being with me looking forward seeing you throughout the 14 day passive income challenge you