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Money Making Hacks for Financial Freedom and Security

Financial Freedom Through Strategic Investing and Leveraging Information

This briefing document summarizes key areas and actionable insights for Top 7 Money Making Hacks in 2025 That Are PROVEN to Work! It emphasizes financial freedom and security, promoting a mindset shift from being an "earner" to an "owner" through strategic, long-term investing, leveraging information, and understanding tax strategies.

I. The Core Philosophy: Financial Freedom and Security through Ownership

The central tenet of the source is that achieving financial freedom and security hinges on a fundamental shift in mindset: moving from being a "super earner" to a "super owner."

Mindset Shift & Information Value

This involves understanding that "the most expensive thing that all of us are paying for is the information that we don't know." The ultimate goal is to reach a point where "your money goals will come true in 2025," allowing individuals to "never have to worry about money again" and "live a rich life."

II. The Power of Simple, Automatic, Long-Term Investing

The source champions a simplified, highly effective approach to investing, accessible even to those at the very beginning of their financial journey.

Dispelling Investment Myths

Many believe "investing as something that rich people after the age of 40 do once you have a million dollars." This is a misconception, as anyone can start investing with small amounts.
The idea that the "only other way to invest we're taught is to buy a house" is also challenged, with housing purchases framed as lifestyle decisions, not primary wealth-building investments.

The Recommended Strategy: Target Date Funds and Index Funds

Simplicity is Key: For beginners, the "simplest simplest way" to start investing is a "Target date fund." These are "One Fund, just one and you pick it based on the year that you're going to retire."
Automatic Diversification: Target date funds are "automatically Diversified" and become "more conservative" as the investor ages.
Index Funds Explained: An index fund is "a single fund that owns hundreds or thousands of stocks within it," effectively owning "a slice of the global economy" or "a slice of capitalism."
How to Access: These funds can be found through "low-cost brokerage firm[s]" like Vanguard, Schwab, or Fidelity. Apps are discouraged if they "gamify you to try to invest," as "investing is boring and automatic."
The "Watching Paint Dry" Approach: "Investors treat investing like watching paint dry... investing is boring and automatic. That's how it should be." Investors should check their accounts infrequently (every "three to six months") and avoid "tweaking anything."

The Importance of Automation and Consistency

Once an account is opened, the crucial next step is to "set up an automatic transfer so that every single month you have a certain amount of money going in."
A guideline for investing is "5 to 10% of takehome" pay.
"Investing is even easier than brushing your teeth because you set it up automatically." This automation, combined with compounding over many years, is "how real wealth is created."
Dollar-Cost Averaging: This is the practice of buying "the same dollar amount of Investments every single month come hell high water." This mitigates market timing risk and is the strategy used by many 401K participants.

The Power of Compounding and Endurance

Historical stock market returns average "around 11%," or "about 7 to 8% per year" after inflation.
The true magic lies in "endurance." "All that matters are is what are the returns that you can sustain for the longest period of time."
Warren Buffett Example: "99% of Warren Buffett's net worth was accumulated after his 60th birthday." His success is due to being "a good investor for 80 years," demonstrating that "the real secret to his success is that he's been a good investor for 80 years."
Ronald James Reed Example: The janitor who died with "$8 million" by saving "very little money he could save from his job" and "put it in stocks and he left it alone for 70 years." This reinforces that "you don't need to be a genius stock picker" if you have endurance.

III. The Game of Leverage and Strategic Thinking

Beyond passive investing, the source highlights active strategies for wealth creation, particularly by understanding and applying "leverage."

Leverage Defined & Types of Leverage (Navaal's Framework)

Leverage Defined: Leverage is "the difference between what you put in and what you get out." High leverage means "you put a little bit in you get a lot out."
Types of Leverage (Navaal's Framework):
- Labor: Working for others, working for yourself, or having others work for you. Each step increases leverage.
- Media: Creating something once (e.g., a book, podcast, digital product) that can be "licensed it out Infinity."
- Capital: Using money to make more money without sacrificing time.
- Technology: Building code or systems once that "a million people can use it."

Maximizing Leverage

The goal is to "Stack as many types of Leverage as you can and as much of them as you can." Examples like Facebook and Amazon are cited for "us[ing] every element of Leverage and they maxed all of them out," demonstrating the power of combining different forms of leverage for exponential growth.

IV. Identifying Your "Unfair Bet" and Deal Making

The source encourages a proactive approach to identifying high-value opportunities by aligning personal skills with market needs.

Skills vs. Money Matrix & Solving Big Problems for Big Value

Skills vs. Money Matrix: A practical exercise involves listing personal "skills" on one side and "money" (potential earning opportunities) on the other.
Solving Big Problems for Big Value: To "figure out most money humanly possible," it comes down to "the size of the problem" and "the value of the solution."

Targeting High-Margin Industries & The Power of Deal Structuring

Targeting High-Margin Industries: Instead of focusing on businesses with low profit margins (e.g., Walmart at 6%), one should target industries with "50 to 80%" profit margins and "hundreds of millions" in potential revenue (e.g., biotech).
The Power of Deal Structuring: Beyond traditional salaries, negotiating a "percentage of The Upside" or "options in the IPO" can lead to significantly higher returns. The example of earning "$10 million" for "6 months work" in a biotech company through equity highlights this.

The Most Valuable Skill Set

"Learning how to do deals" is identified as "the most valuable skill set in the world" and "it's so unfair that people don't know about it." Resources like the book "Main Street Millionaire" and ContrarianThinking.com are recommended for learning deal-making.

V. The Unseen World of Tax Strategies

A crucial "curtain pulled back" moment is the revelation of how wealthy individuals strategically manage taxes to preserve and grow their wealth.

Tax Avoidance vs. Evasion & Strategies Used by the Wealthy

Tax Avoidance vs. Evasion: "Tax avoidance is a key skill to Building Wealth," and individuals have an "obligation to pay as little tax as possible" legally.
Strategies Used by the Wealthy:
- Borrowing Against Assets (Never Selling): Instead of selling appreciated stock and incurring capital gains tax, wealthy individuals "borrow against them" and let the "stock continue to grow." The strategy is "invest, borrow against it and die, put it into a trust and then pass it on to your kids."
- State Arbitrage: Moving to states with no income tax to avoid significant state taxes on large capital gains, as exemplified by Jeff Bezos moving to Florida.
- Qualified Small Business (QSB) Stock (US Example): Certain small business investments, if held for over five years, can result in "the first 10 million or 10 times the basis are tax-free."

Super Owner vs. Super Earner & Importance of Tax Advice

Super Owner vs. Super Earner: "You don't want to be a super earner you want to earn enough money to invest so you can become a super owner." Super earners (high-salary individuals) often pay a disproportionately high tax rate (45-52%), while super owners (those making money from assets) see their "tax rate plummets."
Importance of Tax Advice: Good tax advice leads to "shocking" variances in outcomes, from bankruptcy to multi-billionaire status. It's emphasized that "rich people talk about their taxes all the time," and this information is no longer gatekept. Seeking advice from tax professionals ("tax Yoda") is highly recommended.

VI. The Promise and Accessibility of Blockchain and Crypto

The source presents blockchain as a revolutionary technology with significant investment potential, particularly due to its decentralized and globally accessible nature.

Blockchain as a "Source of Truth" & Democratized Investment

Blockchain as a "Source of Truth": It's a "public database in the sky" checked by all participants, eliminating the need for intermediaries like governments or banks. It provides a "source of truth that everybody can agree on and everyone can see."
Democratized Investment: Unlike traditional investments (like AI companies or high-end real estate) often restricted to "accredited investors," blockchain allows fractional ownership (e.g., buying a fraction of a Bitcoin).

Global Homogeneity, Incentive-Based System & Use Cases

Global Homogeneity and Level Playing Field: It is the "only globally homogeneous asset on Earth," meaning "everybody is on an equal footing," regardless of location. This bypasses traditional banking and brokerage systems.
Incentive-Based System: Participants (miners, verifiers) are "rewarded for the role that they play in maintaining the blockchain," creating a self-sustaining ecosystem.
Use Cases and Value Appreciation: As more "use cases get built upon it" (e.g., Web3 gaming where in-game assets become tradable outside the game), the value of the underlying tokens (like Ethereum) increases.

Ease of Entry & Self-Custody (Ledger Devices)

Ease of Entry: Investing in crypto can be done simply by opening an account with major providers (Coinbase, Kraken, Crypto.com) or even through digital banks or PayPal, making it "easy to do" from a mobile phone.
Self-Custody (Ledger Devices): The ability to store crypto on a "Ledger device" (a small USB stick) protected by a "seed phrase" offers unparalleled security and control, unlike traditional bank accounts which can be frozen.

VII. Breaking the Paycheck-to-Paycheck Cycle and Mindset Shift

For those struggling with financial precarity, the source offers direct, albeit challenging, advice focused on radical behavioral change and mindset.

Understanding the System & "Seal the Holes" (Stop Spending)

Understanding the System: Being in the "paycheck to paycheck cycle" means "you are making everybody else Rich at your expense." Banks profit from debt, corporations from spending, and governments from high earner taxes.
"Seal the Holes" (Stop Spending): If in the "financial danger zone" (no $2,000 emergency savings, credit card debt), "you have to make drastic changes." This means "no more eating at restaurants, no more vacations, no more doing anything that doesn't put money in your pocket and no more Netflix."

Reclaiming Time and Earning More & Choosing Your "Hard"

Reclaiming Time and Earning More: The goal of cutting expenses is to "save two hours of your time a day" to "learn, work, and... make some extra dollar." This could involve selling unused items, downgrading living situations, and seeking additional income.
Choosing Your "Hard": Individuals must "pick your hard": "either life's going to be hard now or it's going to be hard for the rest of your life."

Sacrifice and Focus & "Minority Mindset"

Sacrifice and Focus: Achieving financial goals requires "sacrifices." For example, prioritizing business building over immediate social gratification. "Where you put your attention is where you get the results."
"Minority Mindset": The importance of "not doing what the majority of people do." This includes defying societal pressures to "look rich" through extravagant spending, which ironically "keeps so many people poor."

Emotional vs. Logical Decisions & Avoiding Get-Rich-Quick Schemes

Emotional vs. Logical Decisions: Recognizing that "many people are" making "emotional decisions" about money. To break the cycle, one must "understand the difference."
Avoiding Get-Rich-Quick Schemes: Those in the "financial danger zone" are "prime candidate[s]" for such schemes due to emotional desperation. Discipline and a long-term mindset are key to resisting these temptations.

VIII. Practical Takeaways and Actionable Steps

This section distills the core advice into actionable steps for achieving financial freedom.

Start Now: Begin investing, even with small amounts.
Automate Everything: Set up automatic transfers for investments and bill payments.
Prioritize Ownership: Shift focus from earning high salaries to acquiring and owning assets.
Learn About Deals: Explore deal-making as a powerful wealth creation skill.
Understand Tax Strategies: Seek expert tax advice and leverage legal tax avoidance methods.
Embrace Endurance: Patience and consistency in investing trump attempts to time the market or pick individual stocks.
Control Spending: For those in financial difficulty, make drastic cuts to non-essential spending.
Reframe Goals: View financial discipline as a temporary sacrifice for long-term freedom, rather than a permanent deprivation.

FAQ · Financial Freedom and Wealth Building

Frequently Asked Questions

Financial Freedom and Wealth Building

The core message for achieving financial security and wealth is to prioritize consistent, long-term investing, cultivate a disciplined money mindset, and focus on becoming an "owner" rather than just an "earner." A significant portion of people plan New Year's resolutions around finance, but true success comes from understanding key, basic investment principles and applying them consistently. This involves educating oneself, as "the most expensive thing that all of us are paying for is the information that we don't know." The aim is to build wealth by letting money "cook" for decades through automatic investments, rather than seeking quick returns or treating investment accounts like checking accounts.

For beginners, the simplest and most recommended way to start investing is through a "target date fund" or an "index fund." A target date fund is a single, automatically diversified fund chosen based on your projected retirement year (e.g., Vanguard 2065 fund). An index fund, such as one tracking the S&P 500, owns hundreds or thousands of stocks, providing automatic diversification. The key is to select a low-cost brokerage firm (like Vanguard, Schwab, or Fidelity) and set up automatic monthly transfers of a consistent amount, ideally 5-10% of your take-home pay. The emphasis is on long-term, passive investing, treating it like "watching paint dry," rather than actively trading or checking daily. Checking every three to six months on a desktop is sufficient.

The power of compounding is the central argument for long-term, consistent investing. It's explained through a compound interest calculator example: starting with a modest initial investment and consistent annual contributions (even $5,000 per year) with a conservative 7% annual return can lead to substantial wealth (e.g., $736,000 by age 50 from starting at 16). The "heavy lifting comes from the exponent" – time. Warren Buffett's wealth accumulation is highlighted as a prime example, with 99% of his net worth accumulated after age 60, demonstrating that "endurance" in investing for many decades is more critical than high annual returns or being a "genius stock picker." The story of janitor Ronald James Reed, who amassed over $8 million by consistently investing small amounts for 70 years, further reinforces this principle.

Wealthy individuals play a "tax game" by strategically minimizing their tax obligations through legal means. The core idea is to become a "super owner" rather than a "super earner." Instead of primarily earning high salaries (which are taxed heavily), the wealthy derive income from owning and selling assets. Key strategies include:

Borrowing against appreciated assets: Instead of selling stocks and incurring capital gains tax, they borrow money against their stock holdings, letting the principal continue to grow tax-free until death.
State arbitrage: Moving to states with no income tax (like Florida or Texas) to avoid state income taxes on significant capital gains.
Qualified Small Business Stock (QSBS): In the US, investing in a qualified small business for over five years can make the first $10 million (or 10 times the basis) in gains tax-free upon sale.
Leveraging complex tax codes: The tax code has expanded significantly, largely to benefit wealthy individuals and corporations through various loopholes and strategies. The importance of seeking expert tax advice is also stressed, as it can drastically alter financial outcomes.

Leverage is defined as the difference between input and output: putting in a little to get a lot out. Many people have "low leverage opportunities," putting in a lot of input for little output. To build wealth, one must understand and stack different types of leverage:

Labor: Working for oneself (more leverage than working for someone else), then having others work for you (even more leverage).
Media: Creating content once and licensing it infinitely (e.g., a podcast or digital product).
Capital: Using money to generate more money without sacrificing time.
Technology: Building code or systems once that can be used by millions.

The goal is to integrate as many of these types of leverage as possible and maximize them, as seen with companies like Facebook and Amazon, which utilized "other people's money, media, and other people's work" to achieve "max leverage."

To identify one's "unfair bet" or unique skill set for generating substantial income, a practical exercise is suggested: create a two-column chart with "Skills" on one side and "Money" on the other. List all core skills and then brainstorm how to apply them to solve the "size of the problem" and the "value of the solution." The key is to find sectors or businesses that have high profitability and can generate significant revenue, rather than low-margin businesses. For example, a writer might earn little at a local newspaper, but a medical or financial writer, or one who structures deals for a percentage of upside, can earn significantly more because they solve larger, higher-value problems in lucrative industries. This also involves understanding deal structuring and potentially gaining equity in high-growth companies.

Blockchain technology is presented as a "source of truth" and a global, decentralized database that facilitates secure transactions without intermediaries like banks or governments. It's emphasized as a technology about "truth and exchanging value and creating value in a digital age," not just money. Cryptocurrencies like Bitcoin and Ethereum serve as incentive systems, rewarding participants who maintain the blockchain and acting as scarce assets. Unlike traditional investments often limited to accredited investors, blockchain assets are "fractional" and "globally homogeneous," meaning anyone can invest in small amounts from anywhere. Investing in crypto (e.g., Ethereum) allows participation in a technological revolution, where the value of the token increases with network utility. One can invest by opening an account with major crypto providers (Coinbase, Kraken, etc.) or even through digital banks or PayPal to start. The importance of self-custody (using a Ledger device with a seed phrase) for security is also highlighted.

Breaking the "paycheck to paycheck" cycle requires drastic changes and a shift in mindset. The core advice is to "make yourself rich before you make everybody else rich" by stopping excessive spending. This involves:

Eliminating non-essential spending: Cutting out restaurants, vacations, non-essential entertainment (like Netflix) to save money and time.
Utilizing saved time: Investing the time previously spent on entertainment into learning new skills or earning extra income (e.g., selling unused possessions, working more).
Making sacrifices: Acknowledging that building wealth requires temporary sacrifices, particularly when young, to avoid a lifetime of financial struggle. This is framed as choosing your "hard" – either hard now or hard later.
Overcoming the fear of looking broke: Many go into debt to appear wealthy; ironically, this keeps them poor. Confidence in one's journey, regardless of current appearance, is crucial.
Avoiding get-rich-quick schemes: Emotional decision-making, often driven by a desire for immediate gratification, makes one vulnerable to scams. True wealth is built through discipline and long-term strategy.

The advice emphasizes that financial success is primarily about mindset and discipline before specific investment strategies.