March 29, 2020
6 PROVEN Ways to Build Wealth Outside Stock Market (make money no stocks)

6 PROVEN Ways to Build Wealth Outside Stock Market (make money no stocks)

– So if you’re watching
my channel most likely you have some sort of
interest in building wealth. You want to become wealthy. And one of the most common ways
you hear in building wealth and growing your wealth, is
investing in the stock market. But a lot of people are nervous about the stock market right now. We are at near record highs. A lot of people are
predicting that another economic collapse is
just around the corner. Now we have another housing
bubble that could happen, could pop at any time. So if you want to build wealth, and you want to grow your money, and you want to avoid the stock market, how can you do it? Today, we’re going to talk about six ways that you can build your wealth outside of the stock market. So we’re going to find out what
are the six ways right now. (upbeat music) I’ve been a financial
advisor for over 16 years, so I get that investing
in the stock market is a sure fire way to build wealth. I’ve met so many people
that have invested, either be mutual funds, stocks, ETFs. Investing in the market
will build your wealth, will grow your wealth over time. But when it comes to
actually picking stocks it can be rather hard. It’s reported that the average lifespan of a stock is seven years. So in seven years a stock
that is created today, seven years from now,
there’s a 50/ 50 shot that it won’t be around. It’s also reported that the
top 4% of all companies, all publicly traded companies,
which comes out to about 1,000 different companies
or 1,000 different stocks, represent a majority of all the gains that are made in the market. So what does that mean? That means that if you want
to make money in the market, you have a 4% chance of
picking one of these stocks that are going to make you money. A 4% chance. So do you like your
odds, especially knowing that the market has reached a record high? Most likely not, or
maybe if you don’t wanna put all your money in the market and you still want to build your wealth, you want to look at other options. So what other options can you look at? All right, the first option is one that you hear all the time. That is investing into real estate. Now I’m not going to stand before you and tell you, or make the claim, that I am a real estate investor. That I am an expert in this
space because I am not. I actually have other
video where I talked about my failed real estate
investment experience that you can check out if you want. So how do you invest into real estate if you don’t know how, if
you’ve never done it before. Well first, let’s understand our options. You know, you can invest
into commercial real estate, which probably is not
where you’re going to start if you’ve never invested
into real estate before. Most likely you’re going
to look at rental property or maybe you’ll be buying
and flipping a house. It could be utilizing Airbnb to make some good money on the side. But if you don’t have any connections, and you don’t know where to start, a few options to consider, one is try to find a good realtor. If you have a good realtor friend, let me tell you, there
are realtors everywhere. It doesn’t matter where you live, there are realtors everywhere. Get connected with a
few different realtors and find out from them who are the true real estate players in your area. Offer some value to them. Offer to take them to lunch, offer to pay them for their time to learn how they make their money,
what they’ve learned. The experience that you can get from them by offering some value
and paying for their time is invaluable if this is
something you truly want to do. Another way you can learn
is just to get educated. There are tons of real estate videos that you can watch here on youtube. Some of the people that I watch are Graham Stephan, Meet Kevin,
Brandon from BiggerPockets. These guys have some great channels and are sharing some
behind the scenes look at what it looks like to become
a real estate investor. So you can learn a lot from
them and this is all free. I just mentioned Brandon
from BiggerPockets, so is the largest real estate investing
website in the country. They have tons of great content, they have a free forum
where you can learn a lot. Brandon is also a good friend. I’m connected with him just
through the blogging community. Brandon also wrote a book, a great book, on investing into rental property which you can check out on Amazon. I’ll have link in the description
so you can check that out. But just getting yourself educated on understanding what the options are. Now if you don’t want to go
out and buy a real property, or if you don’t want
to mess with the hassle of trying to manage a property, there’s another video I
did where I talked about the eight different
ways that you can invest into real estate without
managing any properties. And one of the ways I
mentioned in that video, is investing into a
company called Fundrise. So Fundrise is a crowd sharing platform where you are investing into real estate but you are investing with other peers. So you’re not putting all your money into one real estate investment. So with Fundrise, they are a real estate investment trust company
that they’re going to go out and find properties for
you and you can invest as little as $500 and
get a piece of all these different properties that they have. So if that’s an option you want to look at you can watch my other
video where I talk about how to invest with Fundrise, how it works, and why it might make sense for you. If you want to become
a real estate investor and not have the hassle
of managing that property, have to worry about all
those different properties. All right, the second option in growing your wealth outside the stock market is you can become a franchisee,
investing into a franchise. Now this is something that
isn’t really my cup of tea. I like to eat at franchises, I like to buy products and
consumer goods at franchises, but I just don’t see
myself running a franchise. But it doesn’t mean that
you can’t make good money. It’s reported that you can
make between 10 to 15% return on your money by becoming a franchisee. So that’s not a bad gig. So when I was starting my
career as a financial advisor, I had a friend of mine
who him and his brother wanted to open their first franchise. After a lot of research,
they decided that they wanted to open a Little Caesars Pizza franchise and I really didn’t understand because there are already a ton of
pizza places where we lived. But, nonetheless, he did his research and that’s what they wanted to do. In the next, I think it was three years, they had opened up three
Little Caesar’s locations and they were all profitable. They were making a killing
off of these franchises. And here’s the crazy part, so he had these Little Caesar franchises and from there he expanded
to another franchise and he started opening
Sport Clips franchises, which are basically a hair
cutting place for men. And then he opened up a third
franchise through Oxyclean, I think that’s the name of the company. And it was crazy because
I just saw an interview that him and his brother
did in Entrepreneur and they had three franchises
at 18 different locations across four different
states and this interview was a few years ago and I can only imagine how many more locations they have now. So my guess is they’re making more than their 10 to 15% on their
money becoming a franchisee for these different franchises. Now can anyone and everyone
become a franchisee? The answer is no. There are some strict
financial requirements that many of these franchises require before they’ll even allow
you to open a franchise. So here’s some examples, so Chick-fil-a, they require $10,000
to become a franchise. So $10,000, but you have
to go through a very strict application process before
they’ll even consider you. So Chick-fil-a is on the
lower end of the franchises, as far as their initial requirements. A franchise like McDonalds,
they require that you have at least $1-2 million dollars. That’s how much it’s going to
cost to open the franchise. They’re also going to
require that you have $750,000 of working capital that’s liquid when you have a franchise
and they’re going to charge you $45,000
for the franchise fee. So opening up a McDonalds
might not be an option for most people but there
are some other franchises, if this interest you, that could work. All right, the third option
is one that I don’t even want to say but I kinda have to
say it because this topic is building wealth out
of the stock market. So, what is number three? Number three is life insurance. (sighs) Okay so why do I have an
issue with life insurance? So if you watch another
video where I talk about five financial scams
that you should avoid, I talk about different
types of life insurance, whole life insurance, index
universal life insurance, that you should avoid. Now, should you avoid them in all cases? The answer is no. In that video where I
was mostly talking about is people that are life insurance agents, shady sales people,
that are trying to sell insurance products to
people that haven’t invested into a Roth IRA, or haven’t
invested into their 401(k), and these life insurance
agents are trying to lead in as the very first
thing that they invest into is a life insurance product
and that’s what I call BS. Oops, I said it. And if you look through the comments from all the life insurance agents that came out of the
woodworks on that video, a lot of them where just
making these claims like, Oh, you just need, life
insurance is great, “better than 401(k)s, and
it’s better than Roth IRAs. I mean, C’mon, get outta
here, get outta here. Go, go, go, just go, just go. But does that mean you can’t use life insurance to build wealth? The answer is no, but I would
say this, this is one caveat. So we’re talking about
building wealth here, so I’m assuming that you
have maxed out your 401(k), you have maxed out your Roth IRA, you have taken full advantage
of all your different tax deferred options that are out there. If that is the case, then you can look at some sort of permanent cash value life insurance policy
to maximize your wealth. Now with these there are
so many different types and I could do a 45 minute
video talking about all of them but just know you’re
going to want to find one that is with most likely
an independent company. If it’s by a big name, most
likely there are a lot of costs that are in that policy
that you’re not going to see that are going to jeopardize your returns. So if it’s an insurance
company that you’ve probably heard of and they have
commercials on the Super Bowl, then that would be one that
I would probably avoid. But if you’re working with an
independent financial planner, independent insurance agent
that is using companies that are stripping out
most of the commissions so that you’re getting more of the return, then those are the ones you can look at. Our option number four, building wealth outside the stock market. Now number four is one
that I love talking about. It’s one that has impacted my life a lot, especially most recently, which I will share at a later time. But number four is starting
an online business. So what options do you have
starting an online business? Well, here’s the cool thing, is that there are a ton
of different options. So one option could be
selling digital products. You know, this could be
courses, this could be eBooks, it could be a variety of things. Another option could be
a membership community where people are paying a monthly, recurring fee to be a part of a group, to be a part of a community
with a similar interest. The third option could
be an eCommerce store. So maybe you have a good, a
service, that you want to sell. This could be tshirts, it could be mugs, it could be dog collars, there
are so many different things that you could sell online
and there are so many tools nowadays that you can get an
online store set up easily. You just have to drive traffic to it. And the fourth option is you could become an affiliate marketer. So this is where you are
recommending a product or service that hopefully, that you trust, that you believe in,
that you use personally, and if somebody utilizes
that product or service, utilizing the link that
you shared with them, you get paid a small commission. So the cool thing about all of these is that I have a friend, or
know of somebody very close, that has made an amazing amount
of money with each of these. So we talk about digital products, so you can check out the interview where I have Joe Nicoletti
on and he talks about how he made $10,000 in an hour. I’m going to say that one more time, he made over 10 grand in one hour selling his first digital course. Selling a digital product. And he did that on his lunch break while he was still at
his nine to five job. I have two other friends that
have membership communities. One is a food blog membership community. These are food bloggers
that are looking to monetize their blogs and they pay to be a part of this membership community
of other food bloggers. Also have another friend
who has a community of online entrepreneurs that
are paying anywhere from $50 to $100 a month to be
a part of this community and they’re paying so every single month and they’re happy to do so because they’re around like minded people and they’re getting tremendous value that they want to be there,
they want to be a part of that, and they’re willing to pay it. And when I think about an eCommerce store, I think about my friend Steve Chou from Him and his wife started Bumblebee linens and in the first year of
launching this eCommerce store that sells hankerchiefs,
hankchiefs, they made over six figures, over $100,000
in their first year of launching this online store. And from there, he also
has digital courses, he has now a conference, so he
has taken his online business that initially was an eCommerce store that is still making a killing, and now he has other digital offerings that are making him that much more and he’s a good guy, I
like him, I like Steve. You can check out his podcast, check out his website, he’s
got tons of information. There are so many different ways that you can make money
online, it is ridiculous. We talked about having the eCommerce store that you can set up through Shopify. Shopify is a like a plug
and play software program that you can have your store
set up like this same day. You can have it set up in,
I think, less than an hour or if you wanna do Amazon FBA. So you can basically
have products created, have them shipped directly by Amazon, or you can do retail arbitrage
where you are buying things on clearance at different stores, like at Walmart or a Target, or maybe even buying them online, and you can resell them either on Amazon or you can sell them on eBay. There are just a ton of
options that you can look at. So with me personally, I started my blog back in July of 2008 and from the blog, initially, I was making
my money from advertising, utilizing Google AdSense. And then after a few years, I was able to incorporate affiliates. So I was recommending
different investment platforms, different online savings
accounts, life insurance. So these different affiliate partners that I recommended on my
site that I believed in, ’cause I wanted people to take action and start investing in themselves and start getting their
financial future on track by opening accounts at
these various places, I got a small commission
for those recommendations. And from there it has exploded
from making $1,000 a month to making over six figures
every single month now. And yes, it’s taken
some time to build that, but we have the time to
do it and the best part is you can do it from your laptop, you can do it from your computer, you can do it from your couch, you can do it while
you’re watching Netflix. That is the fun and beauty of
growing an online business. All right, the fifth option, and this one does take
a little bit more work. You gotta roll up your
sleeves a little bit and get to work but it is
building and selling a business. Now this is something that I don’t think that I ever thought that
I would be able to do. I didn’t come from an entrepreneur family, I didn’t come from
having friends or mentors when I was younger that
talked about any of this. You know, it wasn’t until I
started reading books like, “Rich Dad, Poor Dad” and “Crushed It” and Tim Ferriss’ “Four Hour Workweek”, where I started to get,
okay, building a business. I see it, oh you can sell a business? Oh, people will actually
pay for your business. Hmmm, that’s an interesting thought. Wasn’t until this year where
I finally got to a point where I could sell some of a business and all of another business and from that I walked away with a
decent amount of money that had a couple of
zeros and a few commas. Anyway. But it does take work. This is something that is not
going to happen overnight, but there are people that specialize in identifying businesses, identifying niches that they can build a
business and build it to sell. I mean, there are opportunities and you can also do this
in the online space. I’ve seen people create
just various niche sites in car insurance, in dog
training, in survival knives, and they’ve built these sites, which is basically an online business. And they built it not because it was a passion project or it was a hobby, it was something that they wanted to sell in three to five years
and they walked away with a good amount of money. Now one site that I was able to buy, I didn’t pay a lot of money for it. But I bought a site called, Dave Grant, who’s a financial planner, was transitioning out from, I
think, he moved out of state, and he didn’t want the site anymore. He spent a few years growing it as a marketing tool for his practice. I think I bought it from him
for between $2,500 and $3,000. So he walked away with a
decent amount of money. I bought an asset that is making me anywhere between $100 to $150 a month. So there’s an example of
somebody buying a business, by building something and selling it and walking away with it versus somebody buying a business and buying it in order to grow it. So there are different options to look at. It just depends where you wanna do it, how you want to do it, who you know, what your expertise in,
what your specialties are, but it is an option to look at. All right the last one, and this one is pretty
much the no brainer here but if you want to build wealth
outside of the stock market, pay off your debt, pay off
your debt, become debt free. Your net worth, which is
basically the metric to define how wealthy you are is
assets minus liabilities equals your net worth. Assets minus liabilities. Your liabilities are your debt. So paying of your debt, guess what, increases your assets,
increases your net worth, and boom, you are wealthier. Now does that mean that you need to just not invest into anything and go off and just pay off all your debt at once? I would actually be one of
the weirdos to argue no. I would say don’t do that. Invest some of that money. Maybe we’re not investing all of it, we’re investing some of it and reapplying the rest of
that of becoming debt free. Now, some people argue, well, I can make more in this investment. Why would I want to pay off my debt? So, here’s my argument to that, if you are in debt and you
recognize how you got into debt and you know, and you
have to know yourself to be able to do this, you
know how you got into debt and it’s not going to
get worse, then okay, pay off the debt moderately
and invest the rest. But if you’re in a situation where Oh, I can make more money in the market, I can make more money opening a franchise instead of paying off my debt, but you still haven’t got
your debt in control yet, like you still don’t
know why you’re in debt. You don’t know why, oh, I
should open another credit card, how’d that happen, I’ve
got $5,000 more in debt, oh, what’s going on here. So if you’re one of those
that makes sorry excuses for yourself why you debt and
why you can’t get out of debt and you keep incurring more debt, then don’t, this doesn’t apply to you, this doesn’t apply to you. If you are in control of your debt, if you a specific plan
in becoming debt free, and paying off all of your debt, then yes, you have permission,
you have my permission, to go out and invest into something that we talked about today. Are we clear, are we good? Good. Movin’ on. The biggest take away
that I want you to get from this video is that to become wealthy, to grow your wealth, to hack your wealth, there are so many different options. So many different people
have amassed amounts of wealth in different ways. Whether you look at Warren Buffet, Mark Zuckerberg, Micheal Dell. All of these guys, all these people, have achieved wealth but they’ve done so in a different fashion, a different way. So, one of these ways can
work, all of them can work. It just depends which one are you going to spend the most time in? Which one are you going to
invest yourself into resources, into education to understanding how to fully maximize all these different options because investing your
time, investing your energy, is going to give you the
biggest return on your money, the biggest return on your
investment out of anything. All right, so I want to know which wealth building strategy
are you excited about? Which one do you plan
on implementing today or which one have you already implemented? Let me know in the comments below. Let me know how you’re going
to build your wealth today. All right, this is Jeff
Rose reminding you that it’s your money, it’s your life, and only you can make it awesome. Until next time, peace. (upbeat music)

64 thoughts on “6 PROVEN Ways to Build Wealth Outside Stock Market (make money no stocks)

  1. People been saying the stock market was going to crash since last year. And it hasn’t. It’s almost impossible to predict a crash and I would’ve missed out on easy money if I tried to wait !

  2. I love to watch inspirational videos that put me in the mood to make money online! There are so many different ways to make money online, I explore them on my channel…expose scams….show what is working, what stopped working ect….subscribe as I try to grow my channel!

  3. Love the vid. Thanks for those 6 ways to building wealth outside of the stock market 🙂 And I have been looking at all of these options and even some other options with video games.

  4. Also I think you should try out discord. if you want a place to hang out and talk with the people who watch your videos. If you do try discord I would love to help you set it up so it looks clean and professional.

  5. This is great, Jeff! Thank you! I obviously love the stock market, but you're right, it helps me sleep at night knowing that I'm diversified (real estate, business).

    Also, because of the concerns you mentioned about the stock market, I think it's important that investors are intentional and careful about the way they invest. It's never been more important to fully understand why you're invested the way that you are – you shouldn't just invest a certain way because it's what someone (or some "expert") says. If the market starts to crash you need to understand each and every one of your positions and know how they'll react – that way, hopefully, you won't respond quite so emotionally! That's why I make sure all my stocks are asymmetrically skewed to the upside (ideally 100%), have limited downside risk, and have an identifiable catalyst or two to help wake the market up to their value!

    Best of luck to all of you out there in the market (or doing any of these things Jeff mentions)! Take care!

  6. I keep considering REITs, then for some reason I change my mind. I think I am concerned with rising interest rates, but I need to just do it!

  7. Jeff Rose, wouldn't it be better to stick with an annuity with the lowest fees possible instead of a whole life policy? Don't know if you would ever exceed the amount you could invest in a non-qualified account.

  8. Great video Jeff! Quick question, how did dropping certifications and licenses to be able to vlog/blog freely affect you strictly on your financial advisor duties? Would it be possible for someone starting out to be able to survive without those licenses?

  9. Thanks for your permission to take it easy on paying off my debt. I only have student loans but since I'm a teacher it'll be forgiven in 10 years. I'll look into paying off my debt in 5-10 years instead of the 2 years I thought of doing. I was willing to eat noodles and live like I was in poverty to do it too.

  10. *Dividend stocks beats the 4%
    *Peer to Peer Lending/Establish
    *Cardone Real estate>> 10 k starting

  11. Thanks for a great video Jeff, tons of great info.Going to be starting a Shopify Store or Amazon FBA and I will be documenting my progress from start to finish so others can see for themselves if these actually work. Anyone who would like to watch let me know.

  12. Jeff, love the videos. What are some ideas to make money if I was fluent in a few languages? Mandarin, Russian, Spanish, & (english).

  13. I am currently paying off debt. I own renal property, however I want to look into REITs and that chick-fil-a franchise is something I am interested in.

  14. Be a private lender, and charge a small but reasonable interest for small businesses. You just have to do all the work. I just don't know how to be a licensed lender in the U.S.

  15. Hey guys, I am inspired and I want to go very far in life! I am right at the start to build an online business so check out my channel if you want to follow my journey!! I am excited!!!

  16. Investing in Real Estate!! I've already begun my journey in learning about it! Looking at the viable ways to implement… Glad to hear about Fund Rise… that may be an excellent jumping off point for me!! Thanks for your AWESOME info!!

  17. You can create that 'Family Bank System' through a Whole Life Insurance product that protects your cash value that you can use as leverage anytime.

  18. Amazing Video my friend. I have a question. Why didn't you include Network Marketing Companies? And What is your opinion about them. Thank you for your response. God bless you 🙂

  19. I thought of starting my own retirement center lol… I might be too busy doing in-home care in the future or whatever else I decide to do.

  20. money is man-made. what God offers in the afterlife for those who worship and exalt his name and turn to his son for repentance is beyond any natural conception of happiness.

  21. Great information. The key is executing and taking action. Too many people watch and do little to nothing with the information.

  22. Great information. The key is executing and taking action. Too many people watch and do little to nothing with the information.

  23. Great video Jeff! I have made the majority of my money from the stock since 2007 but lately I’ve been taking some capital off the table and diversifying into multiple income streams.

    I’ve started investing in peer to peer lending using lending club and achieving a 21% ROI with No Defaults!

    I’ve invested in Fund Rise but haven’t had the best experience. Having an ROI of roughly 2%

    I’ve recently started working on getting my Real Estate License in order to start my own business and take advantage of all the tax benefits associated with being self employed.

    I’m also looking into accumulating rental properties. Using the BRRRR method, I’ll be able to pick up inexpensive properties, remodel them and increase the possible cash flow. I’ll use this cash flow to pay down the principal and accumulate equity in order to do a cash out refinance and repeat the process.

    I’ve always enjoyed videos like these that really get your mind going with many ideas of creating income.

    Thanks for this video Jeff! Keep them coming! 😁👌

  24. Thanks Jeff, I'm an avid fan! How about investing in insurance called 'Combined Insurance?' I'll appreciate your response

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