How to make your first R1 million Video

How to make your first R1 million Video

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00:18
lots of personal finance books are
00:21
incredibly boring they tell you what you
00:24
can’t do don’t do this don’t do that cut
00:26
back on cappuccino cut back on fun cut
00:28
back cut back cut back how about being
00:31
told how to actually make your first
00:34
million well you don’t have to wonder
00:36
anymore because my next guest book is an
00:39
easy-to-understand guide to financial
00:41
freedom only what five out of every
00:43
hundred people will reach a point where
00:45
they can live off the income of their
00:47
savings and investments in retirement
00:49
five percent is it you your neighbor was
00:52
it somebody down the road who’s getting
00:54
it right this is the money makers I’m
00:55
Bruce Whitaker and I’m joined by Galileo
00:57
capital director financial advisor and
00:59
author twice Warren Ingram to talk about
01:02
his brand-new book how to make your
01:04
first million and I wrote the foreword
01:06
sir masters say I am NOT captured but I
01:09
do have read the book and I have a deep
01:11
insight into it educate us on how to
01:13
make the first million Warren Ingram
01:15
while I go and have a beer thanks Bruce
01:17
I think the the secret is is to make it
01:21
your way and that’s the starting point
01:23
so as you were saying a lot of the time
01:24
we create a formula and say that you
01:26
have to do it exactly this way there’s
01:28
no other way and it’s all about cutting
01:30
back and cutting back and and and yes
01:32
that is unfortunately part of the deal
01:34
you can’t spend more than what you and
01:35
for forever and expect to get rich but
01:37
at the same time if you’re a little bit
01:39
disciplined and and you set some kind of
01:41
a game plan for yourself there are many
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different ways of making your first
01:45
million
01:45
whether it be in property and you know
01:47
how much I love making money out of
01:49
property when you talk about property
01:50
and this is important for people who
01:51
don’t know you there’s the cantankerous
01:54
and loving reluctant residential
01:57
property investor you don’t believe that
01:59
residential property is an investment
02:01
entry costs are too high exit costs are
02:04
too high taxes on the one side estate
02:06
agents on the other if you don’t stay
02:07
there long enough yeah best you come out
02:09
flat if you if you sell within five or
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seven years
02:13
so property to your mind is not a great
02:16
investment not listed property over you
02:18
know you’re not a virgin yes so in in in
02:21
the book though we have case studies of
02:23
eight different people real people here
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in the living breathing human being and
02:27
and people that are not sort of you know
02:29
the bull Gates is in the warren
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buffett’s and they’re mark zuckerberg
02:31
these are these are people that have
02:33
sustained sustained able money and
02:35
they’ve done it in very different ways
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so we’ve got we there are people in
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there that affect that have done it in
02:39
property serb lying mop you know or
02:41
guess making not alive my point but i
02:43
think maybe maybe by exception proving
02:45
the rule and and then we’ve got people
02:47
that have started life with you know
02:49
actually backwards with real you know
02:50
really tough times and and they found
02:53
ways to build up their capital and I
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think probably the common thread through
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all of them is they’ve got some kind of
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a vision in terms of what they’re doing
03:00
why they’re doing this why they’re
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willing to make sacrifices whether it be
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financial or working harder etc etc and
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then they’re willing to stick to to that
03:08
whatever their game plan is and I think
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that’s really what makes all these
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peoples are so exceptional but it’s
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something that any of us can do even
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even I can do it you know even you even
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I can do it it’s not that difficult and
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if I can do it that means anybody can do
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now okay when you say anybody there’s a
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homeless guy on the corner my way to
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work he’s not going to do this so I mean
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we say anybody please call qualify
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anybody anybody earning three and a half
03:31
thousand rand a month is not gonna make
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their personally and anytime soon people
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only thirty five thousand around a month
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are gonna struggle if you’re earning a
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hundred thousand rand I’m sure I get it
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you’ve got an opportunity to invest and
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get to a million rand at some point in
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the next decade so I think I agree on
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the hundred thousand and I agree on the
03:47
on the on the person who has no he has
03:49
nothing know is on the on the street
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corner but but the thirty five thousand
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no job I mean they can definitely do it
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so I disagree okay give me right let’s
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do thirty five thousand somebody who
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earns thirty five thousand rand probably
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takes home what 22,000 rand come around
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it and their four kids and okay let’s
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not make it come they take out 20 mm
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there’s rent or a bond there’s a car
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payment to make there may be a family to
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sustain it’s not very much money upon
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which to do that so I agree but but you
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can you it’s possible that’s the point
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here is it how would you do it well
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number one difficulty start rinsing
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don’t don’t go out and
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and buy a property that you know have a
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huge financial obligation – unless
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you’re gonna stay in their property as
04:33
we said you know 10 years or longer and
04:35
even then think about it carefully but
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but for example if you need to buy a car
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be really careful about that you know
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you buy sort of a three or four year old
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car that yes you if you’ve got family
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you need to transport them around but
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buy something small I mean you know the
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praetorium air is given us all the all
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the lead of hard to do this don’t go and
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spend on the big in a luxury cars but
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buy something that’s more than
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sustainable and then very first pointers
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pay pay money away to your savings first
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that actually needs to be the starting
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point that needs to be your priority you
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can do it in your retirement friend you
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know most people forget about that and
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and and if it’s not a retirement fund if
05:07
your company doesn’t have one do it into
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a low-cost retirement annuity the best
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part about this book how to make your
05:13
first million is the case studies
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because these are case studies of real
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breathing individuals people who have
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fallen on hard times people who have
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lost spouses either death or divorce and
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who have found themselves in desperate
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circumstances because they’re going out
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to work for the first time in 10 or 15
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or 20 years they may have been the the
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spouse and the relationship who didn’t
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work while the kids were growing up and
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they come to you and they say help they
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follow the basic principles that are put
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forward in this book
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best-case example that is most
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well-known is the story of one called
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Julia who at the age of 27 and a capital
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amount of 60,000 ran invested a third
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old on a third and lived and paid about
05:52
a third in tax and she has sustainably
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done that for a decade now and she’s
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earned well she’s lived as well she
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travels overseas but her husband drives
06:02
her old course alight and they’re very
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just regional and they’ve only just
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recently bought a house they lived the
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principles of not robbing themselves but
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of an element of frugality and I think
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someone like Julia is probably the
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reason why this book exists because in
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the beginning it was an inspiring story
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and then we started to get feedback from
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people saying hang on but I mean she’s
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exceptional and you know there’s no one
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else like Julia and and I kept saying
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they are there lots of people like like
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Julia and that have done it in lots of
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ways
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and and so here are the real people that
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have done it in many different ways and
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I think the one thing I find that we
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have in common is we all give ourselves
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excuses not to do things we give
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ourselves great reasons as to why we
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can’t save
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we can’t get Fred to whatever the deal
06:43
is and and I think these case studies
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really show you that actually if you
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read their stories you really can’t give
06:49
yourself excuses because a lot of people
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here that have had you know devastating
06:52
setbacks but they’re bounced that their
06:54
farm they they they grieve in life and
06:56
and they stuck to their nursing now one
06:59
of the criticisms of a book like this
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might be that this is a typical end of
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cycle book we’ve seen markets perform
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spectacularly from the advent of
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democracy up until about three years ago
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there’s twenty years there of
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spectacular market growth where you
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could throw money at virtually any index
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on the JSE and you would have made money
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markets a pretty much flatlined over the
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last three years do the rules still
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apply for the last three years and the
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next three five and ten have applied on
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the history you’ve looked at which is a
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player twenty a history well in fact the
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the part of the history here goes back
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to nineteen hundred we’ve been through
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enough cycles in nineteen hundred that
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that this always applies and and I think
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the second point is it’s not really just
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about stock markets you know I mean you
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know as I feel like I’m talking about
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property all the time now but but there
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we’re talking about property in the book
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as well and and surely that’s long after
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a bull market in the property market in
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South Africa so so I think there are
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many different ways you know there many
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approaches that you can follow and to me
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there are timeless you know some of this
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is really about principles and in some
08:00
of it’s about practical steps that you
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take to take control but you have to
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have a you have to have the discipline
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you have to find something that drives
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you to say this I’m willing to do this
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every day there’s something that’s as
08:10
important enough for me to do this as it
08:12
is to give up that cappuccino we were
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talking about now what strikes me about
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the case studies in this book is you are
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almost as blown away by your clients who
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come to you with a commitment as they
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are by some of the results that they get
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and I think because that that hundred
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nine hundred people example that you’re
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talking about you know it’s a five out
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of that out of 100 people make it and to
08:33
me that already is devastating because I
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think it’s actually it’s really not I
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know it’s difficult but that’s not
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that’s not the same as being as being
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complicated and etcetera so so to me
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that’s a starting point so when you meet
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these people that have got it right and
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then and often I’ve got it right despite
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so many different things it is a
08:50
standing and and then you talk to them
08:53
and they don’t even believe there
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exceptional very often you know you’d
08:55
Satan this is this is incredible and I
08:57
remember the one lady in the book you
08:59
know whose husband I don’t know when she
09:01
was very young with two young kids you
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know saying to me and she’s in her 60s
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now I said – you’re amazing and she said
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I I don’t I don’t agree I’m surely there
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lots of people like me and and and the
09:11
numbers don’t tell us that you know now
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miss teller she’s five out of a hundred
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and also the rules are universal I mean
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any personal finance book you read in
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the world will say start young invest a
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substantial proportion of your earnings
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from a young age keep at it in good
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times and in bad
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reinvest the dividends and growth over
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time will follow
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they’ll be hiccups they’ll be blips
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there’ll be moments of sheer terror and
09:36
abandonment and angst and pain and
09:39
anguish but try and ignore those and I
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think that’s you know that’s where
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investment success comes in is when you
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when you can with good logical reasons
09:48
act differently – to the herd mentality
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of markets whatever those markets are so
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you don’t get too excited when everyone
09:54
else is telling you that you know things
09:56
are fantastic and you should commit all
09:57
your money to the next Ponzi scheme or
09:59
whatever the deal is and and I guess on
10:02
the flip side we’re in the mark when
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people are panicking and they’re
10:04
predicting as we’re talking about now
10:05
that it’s going to be flat growth for
10:07
the next few years and then investing is
10:09
kind of a waste of time that’s pretty
10:10
much the time you should be saying to
10:11
yourself hang on if everybody’s saying
10:13
that that’s probably a great time to
10:15
ratchet up my savings to really gear it
10:17
up because everyone else is running for
10:18
the door I’m gonna go in and take
10:20
advantage capitalism is dead markets are
10:22
dead markets are a casino and I think
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people will be saying that in 50 years
10:26
time in in the capitalist system now I
10:29
think you need to find a way to allow
10:31
people to be rewarded for their efforts
10:33
and and so capitalism is not it maybe
10:36
now maybe it’s got a few warts which
10:38
need to be need to be burnt off now but
10:40
that’s not the same as saying you know
10:41
let’s abandon the system and come up
10:43
with the next version of socialism we
10:45
know it doesn’t work I mean please know
10:46
that that’s surely a debate that’s now
10:48
long dear that’s like saying do you
10:49
investing in shares or in indices it’s
10:52
not one or the other anymore surely
10:53
there you know there’s a way forward
10:55
your first book how to become your own
10:57
financial adviser and now this book how
10:59
to make your first million I would
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almost argue that one needs to read this
11:03
first before the one that you wrote
11:04
first I mean you did do this back to
11:06
front well well
11:08
the book was this book it didn’t wasn’t
11:11
going to be a plane there wasn’t a plan
11:13
to write this book you didn’t have a
11:14
plan for that plan the first one was the
11:17
plan right and and I thought that was it
11:18
I thought the job was done and then I
11:20
started getting more and more feedback
11:21
from people saying hang on you know this
11:22
is great but the investment side you
11:24
didn’t give us enough detail in enough
11:25
examples of how we can do it and and you
11:28
know obviously any authors kind of
11:29
touchy to you to criticism but but I
11:32
sucked for about six months and then got
11:34
over myself and and this is the result
11:36
is you know saying okay great so if
11:38
you’ve got all the principles on how to
11:39
become your own financial adviser that
11:41
covers everything you know insurances
11:42
you will et cetera et cetera
11:44
then there’s there is space and demand
11:46
for a more investment focus book and and
11:48
that’s why why it exists there we get
11:50
Warren Ingram who is the author of how
11:52
to make your first million it’s a go to
11:54
South African guide on how to do it
11:57
local stories local examples is no Suze
12:01
Orman he doesn’t have her hair or her
12:03
teeth but he does have expertise he does
12:06
have advice and he does have some very
12:08
real-world examples also
12:09
this isn’t his path to riches either if
12:13
you bothered to read the foreword which
12:15
I wrote and I’m gonna ask him about this
12:17
cuz your blush and it’s all embarrassing
12:18
but he’s not gonna make a cent out of
12:19
this book blush no can’t do it on cue
12:21
he’s not gonna he’s not gonna make a
12:23
simple sense out of this book he set up
12:24
a trust called the serendipity trust
12:26
with these spoils from the first book
12:28
going to educate young people and the
12:32
spoils from this book and from any
12:33
future books if you started the next one
12:35
no no not if I get there and the spoils
12:37
from future books will go into the
12:39
serendipity trust and that money will be
12:41
used to educate young South Africans
12:42
it’s about sustainability it’s about
12:44
paying it forward
12:44
Galileo capital financial adviser
12:46
director and now author second time
12:49
around Warren Ingram more money making
12:51
of us and lessons to impart on future
12:53
money makers till next time thank you
12:54
for watching good night and sleep well

How to make your first R1 million Video