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

welcome welcome welcome welcome to day  4 of the 14 day passive income challenge   today we're going to talk about the second section  of the Passive Income plan strategy the first one   was Attract how to Attract money second is  going to be about Leverage how to maximize   the efficiency and the healthy leverage for  you to succeed and the third one is going to be   about Managing how to manage your passive income  plan which is the ALM model today is going to be   the first step in what we call the Leverage step  in the L of the 14 day Passive Income challenge   and today we're going to talk about the concept  of Velocity how to keep the money in motion stay   tuned looking forward hearing your comments on it  comment below and yes i look at every comment and   i reply to comments and subscribe to the channel  below this video to get any updates from us   on your Passive Income journey usually when you  talk about Rate of returns it goes like this   the higher the rate of return the higher the risk  that you have to take the lower the rate of return   the lower the risk so if you go to a bank where  they guarantee your money for you you're probably   gonna earn something like a one percent a half  a percent something like that you want to go   to a little bit higher risk then you can have a  bigger retail you want to get go to super high   risk then you talk about 10 20 plus percent  rate of return so when we talk about somebody   earning 20% on his money you know that we're  talking about somebody who's going to take a   big risk on his money which is not something i  want for you i don't want you to take a big risk   you can arrive to your Passive income plan  much much much more on a conservative basis   not with taking a lot of risk or as i'd like to  say take only calculated risk something that you   understand what's going on you understand what is  what needs to happen for you to succeed and also   what could happen in order for you not to succeed  Chas veshulem but at least you know what you're   going into you know how much you're investing  you know how much you're risking and you go in   with conscious eyes open to with an understanding  of what's going on everybody understands that in   order to be successful you need to have a good  return on your money now i want to introduce to   you two types of returns that you can look at the  first one is going to be let's speak about a 20%   rate on return on your money yes i know that 20%  sounds like a lot this 20% rate of return means   that you took a lot of risk now let's look if  there's another way to do this let's look how   about if we instead of taking a 20% rate of return  on our money which means a 20% risk in our money   let's see if we can do it a little bit different  here we have one two three four and let's say   that i'm succeeding i'm successful to take to  invest my money where i only earn five percent   on my money but what happens besides that is that  my money i can take my money back very very soon   and reinvest it somewhere else and simultaneously  i still earned my five percent of my money and i   invested in another place where i still earn five  percent on the second place now i have one five   percent return and a second five percent return  because even though i took out my money from   the first box i still earn my five percent but  here's what when it comes really interesting   is when i take out my money from the second  place i'm still earning the five percent   on the second strategy and now i earn another five  percent here and then i take it out and i in it in   the fourth place okay didn't i just create a 20%  rate of return as well the previous model that we   looked at yes you created a temp a twenty percent  rate of return but you had to invest your money   in a very high risky place where it justifies  the risk justifies the twenty percent return   versus where we're looking now you also earned  20 percent return on your money but now you do it   in a way that you only take a risk that associates  with that five percent on your money not with the   20 of your money but the money keeps being in  Motion which means you can do this a fifth time   a sixth time and so on and so forth which keeps  increasing your rate of return at the same time   still keeps your risk low because you only took  a five percent return on your money that's the   power of the velocity of money multiplier meaning  that you invest your money in a place where the   money keeps getting invested again and again and  again that is exactly how successful people create   their passive income plan and which is what i want  for you i would like you to comment below please   with ideas what you understand about the velocity  of money how to to keep the money emotion typical   idea that i think everybody understands is you  buy a piece of property and you take a mortgage   you have the money back you can do something else  with it does it make sense does it not make sense   we will talk about it in one of the other days but  open the discussion let me hear your idea on it   let me hear your feedback on it your opinion  on it if you did it whatever worked for you   whatever didn't work for you as well as other  ideas that you think we can all benefit from   thank you for joining me with this challenge  looking forward seeing you the future days of   the challenge comment below yes i read every  comment and i reply to every comment and make   sure you subscribe in order to be updated on all  the passive income strategy videos that we post