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How’s it going everybody doesn’t beat the bush today i’m gonna talk about how i made my first million and what you can do to make your first million this video is brought to you by weeble you can get two free shares of stock valued at up to fourteen hundred dollars each just for signing up for this and depositing a hundred dollars joining this will be a great way
To support this channel without spending any of your own money and at the same time you’ll get some benefit yourself check out my referral link down in the video description below now i never explicitly said that i was a millionaire on this youtube channel although you can probably infer because every single time i said oh i own this house i live in the bay area of
California this is a very expensive place and automatically you would know that oh you probably a millionaire because the home prices over here is ridiculously high previously i try to not label myself as a millionaire because there’s just too much liability there’s also the issue of people knowing this it’s kind of like sensitive financial information so people
That i know do you watch my channel now they’re gonna know but i think little by little as i release more and more videos i got more and more comfortable with releasing this information along with saying that i paid off my house this says something already so in a way i i kind of already said this and a lot of my subscribers already know that you know i’m probably
Somewhere north of 1 million now this video is more about how you can amass your first 1 million as well so i’m gonna give an example just myself as an example of where this 1 million came from i went back to the 1 million dollar mark and i remember just very clearly i’m like yeah you know who it finally caused the million i just couldn’t believe it myself because
Not too long ago from that i was celebrating hitting half a million i’m like oh my gosh i cannot believe that i could even hit that point and then you know such a short time after then i hit the 1 million 38 percent of it came from home appreciation now this is quite a lot of money that means 3 $80,000 of it comes from you know just out of thin air just from me
Being invested in real estate i did not have to make three hundred eighty thousand dollars this is a lot of money for you know just being conjured up out of thin air so this gives you an idea that real estate played a pretty major part in me building up this net worth here now you might think right now the real estate is pretty hot it still is pretty hot it only
Went down about eight percent since this kovat madness’ thing happened i probably am more pessimistic about the real estate market than i should have been because based on my track record i’m like oh yeah it’s probably gonna go down but then because i have this place it’s not like i can easily sell it so i just have to just watch it go up and down sometimes even
Though i expect the real estate price to go down it just kept on going up higher and higher so you might want to ask is now a good time to buy if it drops by twenty to thirty percent it probably would be a very very good time to buy the thing is when that happens you need the cash to be able to make the down payment to be able to buy the place if you have the cash
Right now and you happen to be invested in the stock market and you don’t hold any cash at all then if the market plummets then your cash value will no longer be able to afford the down payment so you have to weigh these two things accordingly in my amassing of this 1 million i would say market appreciation did not play a major part of this first of all when you
Have less than 1 million right if a lot of assets are tied up in the home equity then you don’t have that much to invest anyway frankly if you think about it making money in the stock market is actually a very very slow process this is not to say that it’s not important it’s important for the long run for let’s say 30 years ahead of yourself but if you’re talking
About early retirement by the time you retire let’s say in five to ten years or so since the beginning of your working life this is not enough time to compound so you need to make more money than just investments themselves the rest of it 50 percent of this 1 million is essentially from me working as an engineer i would say five to ten percent of this might be
From my ebay sells so it’s not all that much but it does add up in talking about salary i’ve made a video about my salary appreciation every single year and this has a lot to do with your salary negotiation skills and the fact that i was working as a professional engineer contributed heavily to my total net worth 52 percent of it so this is five hundred twenty
Thousand dollars of it was from just salary alone in the silicon valley you switch jobs pretty frequently probably every three to five years or so and maybe even three years because every single time i switch i managed to get somewhere between fifteen to twenty-five percent pay raise and from my second-to-the-last job to my last job where it was my final engineering job
I actually received somewhere close to like 50 percent pay raise when you consider the total compensation package because my salary increased a little bit yes but because of the fact that they gave me stock options the stock options ended up being valued very very high and so when you take a look at the total compensation package it was like i couldn’t believe that
They increased my salary so much even if some of my ex co-workers whoever from my previous job saw this video it’s kind of okay it’s been a really long time since i’ve been in the industry the fact that 52% of that million came from salary reflects the fact that i saved a lot as well so in my financial life i have a very positive cash flow i minimize my expenses i
Maximize my income through salary negotiation so minimizing expenses i drove a modest car you could say that a porsche boxster is not a modest car but i only paid $20,000 for and i drove it for like ten years or so so to me it was relatively cheap and i think this is probably the same cost as if i bought a brand new civic another thing i want to highlight through
All of this is at the $1,000,000 mark i looked at how much assets i have like in terms of physical goods i actually had about only $25,000 worth of things so i looked around the house and i counted everything that you know was pretty expensive like a camera like a refrigerator like my car and then i add the current value of those things and at the time it was
Only $25,000 the car was about six thousand dollars worth frederator is like a thousand and then you got a tv like five hundred dollars or something so i tried to get market value or like we estimate the market value every time i do my network spreadsheet i wasn’t having a lot of money tied up in things that loses value i bought more things that appreciate in
Value the main thing being the home the second being equities and you guys would know that on this youtube channel i actually bought a gold coin to show you guys just to play with it right i can show that this is gold if i just kind of flick it right you can kind of hear that it is actual real gold this is a krugerrand i bought this mainly because a subscriber
Recommended krugerrands why what the heck are those oh i also wanted to like just kind of play with some gold and just kind of feel the weight of it right so this is just kind of like almost like a toy i guess and at the time that i bought this it was $1,350 right now this thing is worth one thousand eight hundred dollars or a high 850 so it appreciated about five
Hundred dollars this is five hundred dollars just from me buying appreciating assets i did not have to do anything to work for this five hundred dollars and how great is that right and i also bought about 100k of gld and right now today it just went up by one and a half percent so right there that is another thousand dollars or so i think it went up about by 3000
Or 4000 dollars since i bought it since i announced it on this channel so if you think about it these assets just just kind of mix me money without me doing anything at all i’m just you know just going about my own business you know enjoying myself how my milk tea really goes to show that making your first million really is the hardest i think making your first
Hundred thousand dollars is even harder after going from 100,000 to 200,000 it like takes much shorter amount of time so after this 1 million i can attest to the fact that every $100,000 after it becomes quicker and quicker if you’re doing it correctly of course so what’s my recommendation here for you to a master 1 million i would say that in my career path being
An engineer probably just set me up already to become a millionaire i just need to be frugal i did not have to actually own this home because i just got lucky in opening this home it made my process to go to 1 million that much quicker but let’s say i didn’t even buy the house i probably would reach it anyway if i just work a few more years so if you’re a typical
Worker bee and you go to your 95 job and if you have a professional degree i would say you know just having a very positive cashflow minimizing your expenses maximizing your income making sure that you do your salary negotiation right making sure that you get a really premium salary for whatever position that you’re working really really helps i know i talked about
Ebay sales being part of it it is part of it and i also talk about credit card churning you know so you can spend less money this is all part of the cash flow stuff i have the cash back stuff from credit cards is probably one or two percent of the factor the ebay sales is probably five to ten percent of the factor if you do all of these it just adds up and makes
It that much faster sure you can say i don’t want to do this credit card churning i don’t want to do this cash back stuff it’s just little money well yeah okay you can just go and not do those but then every single thing that you are not optimizing it’s just gonna make it that much slower for you to hit that 1 million mark thanks for watching this video i hope you
Guys enjoyed it and gives you some clarity on how to reach your personal 1 million mark don’t forget to give me a like check out my weeble referral link down in a video description below you can increase your networks a little bit by getting those two extra shares and depositing 100 comment down below let me know if you’d like to tell me that you’re a millionaire
Already and how you reach there are you one of those millionaire next door type of people like i am where you know i i didn’t strike it rich with lottery or anything i just worked and saved and as always push that subscribe button and ring that bell icon thanks for watching
Transcribed from video
How I Made My First Million By BeatTheBush
