5 Secrets To NEVER Be Broke Again

if you want to know exactly what you should not be doing that way you never have to worry about being broke again you are in the right place because in this video i'm gonna be going over the five secrets to never being broke again what's up everybody i am just pretty sing from the minoritymindset.com where money minds read the rich it's no surprise that the majority people are not very good with their money i mean right now something like 6 out of 10 americans are living paycheck to paycheck which means if you did not get your next paycheck you wouldn't have money to keep your lights on now i know there's a lot of different issues that are causing these financial problems some people may not be making enough money you have a higher cost of living you have a higher standard of living but we also have the factors that we create ourselves which is causing a lot of people to be broke the thing that separates a wealthy person from a broke person is not just what job you have or how much money you make or what degree you have or who your mom your daddy are it's what you do with the money that you earn that's why in this video i'm going to be going over the five secrets that you need to understand to never be broke again but before we get into that i need you to do me a quick favor and smash that thumbs up button below the first secret to never be broke again is you gotta stop playing the flex game back in the day this used to be called keeping up with the joneses but now with the whole social media age people call it flexing on social media the whole idea behind the social media flex is you are buying things out of your pay range that way you can look cool and you can look rich to all of your other friends who are also broke some of the most fun but also the most expensive places to put your money right now are in homes cars vacations and watches these things are very nice they can be a lot of fun they can give you a lot of status and a lot of street cred but they're also very expensive because these things are not putting money in your pocket unless you're buying them as an investment but i'll save that topic for a later video here's what happens to a lot of people you graduate college with a whole bunch of student loans and now you got your first big boy or big girl job and now you entered the workforce and the first thing you need to get to and from work is a nice car and then you need a place to live and now as you start working you want to go out and travel with your friends because you want to go on vacations and as soon as you get your first big promotion you want to celebrate with a nice watch now when you go out and buy these things you kind of compare yourself to your friends right you want to size yourself up what kind of house did my friends get did they buy a 1 000 square foot condo or did they buy a 2 500 square foot home did they buy a nice toyota camry or did my friends buy a nice 4 series beamer do my friends want to go on a nice day trip somewhere or do we want to take a week vacation to europe and what type of watch ever buying are we talking about a nice 100 fossil or we're talking about a 15 000 rolly one of the easiest ways to have more money is just to not spend your money so one deal that i kind of made with myself was i was not going to spend any money or as little money as possible and all of these things until i could settle myself financially so when it comes to homes the first home that i bought was not a home for myself it was a rental property so i lived small during my entire time at law school i slept on the living room floor of an apartment i was making pretty decent money i was making more than six figures a year but i was paying less than four hundred dollars a month in rent because i slept on the living room floor had a mattress in the hallway and anytime it was time for me to sleep i would drag my mattress out into the hallway into the living room put it on the ground and then i would put my sheets on it go to sleep wake up the next morning fold my sheets and put the mattress back why because i don't want to blow any money here i wanted to keep that money in my pocket when it came to cars i drove my used beat up toyota solara into the ground because i didn't want to blow any money here i know a car is not putting any money in my pocket i wanted to put all this money that i wasn't putting towards my car payment into my investments because my investments are things that are going to make me wealthy my cars are things that just make me look rich but they don't actually make me rich so you got to understand the discrepancy here i like nice cars i love luxury cars i love sports cars but i didn't want to put any money here until i knew that i was settled financially and so i knew that i don't want to put money here here until i was ready to same with vocations i had this running joke for probably five to seven years but i would tell all my friends i don't go on vacation unless i get paid to go on vacation the reason i used to say that is back when i was in college i used to work in the wedding business and in the wedding business i played an instrument called the dole it's a punjabi instrument and so i played this drama i would work with a lot of djs and sometimes we would get paid to go to different states and sometimes even different countries and so i didn't go on vacation unless i was getting paid to go on vacation and so i would try to cut this out because i didn't want to have this cost right now because this was more money that i could put towards my investments when it came to watches this was kind of funny i also really like nice watches but the interesting thing about watches was back when i was in high school it was my senior year in high school i was finally starting to make some money a little bit of money i finally had a few thousand dollars in my own bank account and i was like oh i got a lot of money let me go celebrate so when i had a few thousand dollars in my account i went out and i bought myself a brand new 1 000 watch i don't even know what brand it was but it was this really flashy looking watch i got to show it on youtube one day i still have it and it has these crystals everywhere and it just looks so blingy so flashy and i spent a thousand dollars on this watch this is before i created my rule of five which says if you can't buy five of them you can't afford one of them but i spent all this money on this watch and after i did that i started to ask myself what is this watch doing for me i mean yeah it's a kind of a luxury piece it's a time piece more than it tells time but it really didn't do much for me it didn't really create much value for me and this is where i had to start thinking a little bit differently these things are not putting money in my pocket so if you want to buy these nice things that's fine you want to buy a nice home fine you want to buy a luxury car fine you want to buy a nice vacation fine you want to buy a rolex fine just make sure you can afford it first understand that these are things that are not putting money in your pocket if you're going to buy these things understand that they are liabilities make sure you can afford them first the way you can afford them is settle yourself financially make sure you're financially secure build your wealth and then buy whatever you want once you're wealthy then spend as much money you want here because now you can afford to the reason why this is so hard for so many people is because when other people know that you're making money and then they see you driving out in a beat-up car or they see you not traveling as much as they think you should be traveling or they see that you don't have the nice watch or they see you kind of living small for some time they're gonna start wondering what is wrong with you because you're not spending money like everybody else but this is where you got to really have the inner confidence and remember hey i don't got the majority mindset that's why i follow the minority mindset the second secret to never being broke again is you do not want to fall into the penny trap we've all heard the saying a penny saved is a penny earned right but the issue what they're saying is we're just talking about pennies because at the end of the day a penny saved is just a penny here's a news flash you are not going to become rich by pinching pennies now i know this might seem like i'm contradicting what i said just a minute ago because a minute ago i was talking about how one of the easiest and best ways to have our money in your pocket is just by not spending any money and now i'm talking about the kind of issues with pinching pennies well there's a difference between the two i don't want you to spend money on things that you don't need if you can keep more money in your pocket do it but i also don't want you to be a penny pincher because penny pinchers tend to just not spend any money because they just want to keep this money in their pocket without understanding the value of what they're buying there's a lot more that goes into becoming wealthy than just not spending their money in starbucks see the reason why pinching pennies is so popular is because a lot of people have a scarcity and limited mindset where they're always trying to see how they can squeeze the most pennies out of a limited sized pie so let me give an example let's assume that you make 40 000 a year and you want to save and invest let's just say 10 for the sake of this example so in this case 10 is four thousand dollars a year and now a penny picture the majority people are going to see how can i squeeze the most out of this how can i take this from 10 to maybe 20 how can i save instead of 4 thousand eight thousand dollars now if you do that you're gonna double the amount of money that you're saving and investing the downfall with that is you're gonna have less money here that you can use to go and have fun with it to buy nice things with but you're gonna have a little bit more money to save and invest now it's always good to save and invest more money but the thing is you're also having a limited mindset because you're not trying to grow the pie at all this is where i want you to not just be a penny pincher but to think a little bit bigger i want you to have a growth mindset because the first thing i want you to do is understand yes you have to know how to live below your means this is what we just talked about number one you have to know what it means to afford something you got to be putting money aside towards your savings and your investments that is something that you have to do if you do not know how to do that it doesn't matter how much money you make you were always going to be broke but then the next thing that i want you to do with this growth mindset is i want you to understand okay how do i take this pie and make it bigger because now if instead of making 40 000 a year you made four hundred thousand dollars a year and i know a lot of you might be thinking how in the world do i go from forty thousand dollars a year to four hundred thousand dollars a year well it is possible if you can start developing the growth mindset because if you don't have the mindset where you believe that you can do it you're never going to be able to do it but if you believe you can do it then you're going to put steps in place to understand how to do it so now if you go from forty thousand to four hundred thousand dollars a year and now you're saving and investing ten percent well now you're saving the same amount as before but instead of four thousand dollars you're saving and investing forty thousand dollars because you're still only saving and investing ten percent if we did twenty percent it's eighty thousand dollars but now you can understand the difference with the growth mindset you have the ability to save and invest a whole lot more because now you're thinking bigger you don't have this kind of limiting beliefs telling you that you cannot earn more or grow the size of the pie you're trying to grow the size of the pie with the understanding that you need to live below your means and when you do that you were able to live much bigger and have more money towards your savings and have more money towards your investments now here's the secret sauce the way you get from here to here is not just by avoiding starbucks and avoid paying for extra guac just by being smart sure you need to live below your means that we have some extra cash but you also need to work to grow your income that might mean getting a second job that might mean starting aside so that might be in starting a side business that might mean asking for a raise asking for a promotion doing things that we can grow your income and now maybe even supplementing your income that way you can create more than one income stream and using your money as a tool to grow your income this is what growing the pie is all about because what you need to understand is now how can i use my money here to make my pie bigger because if you're spending all of your money on just clothes cars shoes vacations then your money is just going out it's not making you richer it might make you look richer but it's not actually making you richer but if now you're using your money to buy classes you're using money to buy investments you're using your money to start businesses you're using your money to invest in businesses now you're using money as a tool to grow your pie and make your pie bigger that way you have more money coming into your pocket the third secret to never being broke again is to prepare for the worst i'm a real estate investor and so one of the things about real estate that i like to talk about on a channel is that the thing about investing in real estate is that things break and so in order to protect yourself from this you want to make sure you always have some cash in reserves to protect you from that and you also want to make sure you have insurance against your rental properties because if something big goes wrong you want to make sure you have insurance to protect you from that you want to do the same thing for your own personal finances that were protected from worst case scenario type of situations on the front side that means you got to make sure you have a savings cushion the minimum you got to have in your savings account is 2 000 and the max you want to have in your savings account is something like 12 months worth of expenses in your savings account in cash liquid that you can access whenever you want that way in case something goes wrong in case your kid's arm breaks in case your ac goes out you have cash that you can dip into that we don't got to go into debt to fund these costs the thing that you have to understand about your savings that many of us were taught wrong for our entire lives is that your savings are not there to make you wealthy we are in a new day and age where right now our savings are not growing so when we talk about your savings you have to understand that your cash in your bank account is not there to make you wealthy that cash is there just to protect you from an emergency so you want to make sure you have some cash aside not to make you wealthy but to protect you from an emergency the second way that you want to protect yourself from a worst case scenario situation is about having life insurance because life insurance is a way for you to protect your family from a worst case scenario tragedy the way life insurance works is you can go out and buy a 1 million life insurance policy and if you were to die during this life insurance term then the life insurance company would come and they would give your family a one million dollar check the reason why this is so important is because if you are a breadwinner for your family and you were to tragically die unexpectedly and now your family would lose your income stream already it'd be hard enough because they lost you but if they lose your income stream now if they do not have other investments or other assets to fall back on then they're going to have a really tough time being able to maintain a lifestyle so the whole idea behind life insurance is it is a way for you to protect your family from a worst-case scenario type of situation because if something were to happen to you your life insurance would kick in they would give your family a big check and now at least it'd be okay financially now as a financially educated person your goal should not be to rely on life insurance to take care of your family your goal should be to build your wealth build investments build assets that way your family has assets and investments to fall back on but until you get to the point life insurance is kind of like a bridge that way if something were to happen to you your family would at least have your life insurance policy to fall back on that way they would have cash in order to survive if you are interested in learning more about life insurance what the different options are and see how much life insurance will cost you you can get a free quote thanks to our sponsor policy genius using our link in the description below all you have to do is go onto their website and enter in a few pieces of information which just takes a few minutes and the policy genius will present you with different quotes for the same policy from different insurers that way you can make sure you're getting the lowest price possible the reason why i like policy genius is because they don't charge you any additional fees and they stand by what they do if you can go and find a cheaper life insurance quote anywhere else they will pay you 100 for wasting your time remember the whole idea behind life insurance is you want to use this as a bridge that way this is a protection that you have for your family as you're building your wealth and the good news is life insurance doesn't have to cost you an arm and a leg like if you are a healthy 30 year old guy you can go and buy a million dollar life insurance policy for less than 30 a month and if you do have specific questions about your own life insurance needs they have unbiased questions that you can talk to that are not incentivized to upsell you anything so if you want to learn more and get a free life insurance quote i've got the link to how you can do that with our sponsor policy genius in the description below the fourth secret to never being broke again is to stop complaining you know sometimes the best way to understand something is just to see it happen and this was something that i really saw firsthand because my parents are immigrants from a state in india called punjab and my dad came to this country not knowing the language he didn't know anybody he didn't know the culture he didn't know the people he didn't know how to get from one place to the other but he came here and he hustled with less than a hundred dollars and made it work my parents are some of the hardest working people that i know and when i go and ask my dad how in the world were you able to come to a new country where you don't know the people the culture the language with less than 100 and then go out and raise a family like how is that possible my dad's answer is simple you just got to work your butt off and he usually substitutes the word but for a different word but i'll let you guess what that word is yourself if my dad had two days off in a row like a saturday and a sunday that was considered a long vacation and my dad used to have this thing where he would tell me that there's no such thing as sick days because if you take a sick day you're not working if you're not working you're not getting paid if you're not getting paid you don't have money to eat so you got to work and so you got to start kind of building this mentality where you got to do whatever it takes if you're comfortable if you've got this kind of cushion behind you then you don't got that fire on you because you don't have that kind of motivation the fire to succeed but if you have no other option except working your butt off to succeed you're going to find a way to succeed right now a lot of people in america are comfortable a lot of people in america are complacent a lot of people in america have the ability to complain because they're comfortable the reason why you have people literally risking their lives to come to this country is because people understand that america is the land of opportunity and so now if you are already in a country a first world country if you can already understand what i'm saying if you have the resources to watch what i'm saying you're blessed now you got to stop complaining and do something about it look i'm just going to keep it very honest with you if you are not where you want to be financially if you are not happy with the way your finances look right now and at the same time you're spending every evening playing fortnight with your friends and you're spending your weekends watching netflix with your other friends well you're doing something wrong here the first step to any sort of success is having the right mindset because if your mind is your limiting factor you're not going to be able to do anything because all you're going to see is negativity and the lack of opportunity but if you open your mind and you start to see this growth mindset and you start to see this positivity now all of a sudden the same world is full of opportunity and possibility the whole world is yours for the taking and you just got to decide what is it worth to you if something is important to you you will find a way if it's not you're not going to do it it was very important for me to become financially successful that way i could take care of my family my parents and give back to my community these things were important to me and that's why i do everything that i do because i know what's important to me when i was in law school not only did i go to law school and study and take all of my exams but at the same time i was also working on a separate business and at the same time i was also making youtube videos i was starting minority mindset and because i never knew how to make videos at night i went to night school for acting i did all of these things because this was what was important to me and i was willing to make sacrifices to do that and so this is where again you got to stop complaining and just understand that your success your financial success is in your hands it's not controlled by the government it's not controlled by somebody else it's controlled by you and if you believe is controlled by somebody else you're always going to be kind of in that state where you're stuck and this is where you got to break away and understand that it is you that's in control and if you really want to be the one that's in control you got to understand what does it take for you to take control and make your life the way you want it to be financially and the fifth secret to never being broke again is now you got to put your money to work listen anytime you get paid from now on you need to create a system for your money where some of your money is being saved until you hit your savings goal some of your money is going to be invested every time you get paid and the rest of your money is spent the thing that differentiates the majority of people from wealthy people is the majority people make money they spend it and then they wonder where all that money went the minority of people people who are wealthy what they do is they make money they save their money they invest their money and then they spend whatever is left it's a difference in thinking it's a difference in way of how you use your money and this is what financial education is all about because when you put your money to work and you invest your money now your money is going out and it's working hard to earn you more money because at the end of the day there is a limit to how many hours each one of us can work i don't care how hard of a worker you are at the end of the day each one of us only got 24 hours we all have to sleep we all got to go to the shower we all got to drive all these things are taking time away from us physically working none of us can work around the clock every single day and that's exhausting at the same time but what you can do is you can take your money put it to work now when your money is going to work your money can work hard 24 hours a day seven days a week and it is scalable because you can just keep adding more fuel to the fire you just keep adding more money into the fire and when you throw more money into the fire now you have more money working for you earning you more money a couple of the most common ways for you to invest your money are through stocks we're investing in actual companies and through real estate where now you're buying properties that are generating cash flow because now you can go out and buy a home not free to live in yourself but for you to rent out to somebody else and now this other person is living in your home they're paying you money to live there and this money that you're getting a rent should cover your mortgage your taxes insurance your fees and put some money in your pocket every single month now what you're doing is you're not using your money just to save because again your savings are not making you wealthy they're just there to protect you from an emergency and you're not using your money to go and buy a whole bunch of nice things nice cars not shoes next clothes you're using your money as a tool to buy things that are going to pay you more money the reason why this is hard for a lot of people is because when you go out and you buy stocks or you go and you buy an investment property you can't show it off the way you can a gucci belt and so now when you have these investment properties you're building real wealth you're building real richness but a gucci belt makes you look rich and so the reason why this is hard is because well you can't show off your investments the way you can a gucci belt and so if you really want to be wealthy you've got to stop taking all your cash and buying nice things that you can show off and you got to start buying the nice things that are going to pay you with cash flow and income now i'm not going to go too deep into investing in this video but we do have a free guide on money management and investing that you can read for free when you subscribe for our daily newsletter if you do want to read this guide you'll learn more about investing in stocks and real estate and all kinds of investing and building wealth if you want to learn more about this guide and get it for free i got the link to how you can download our free guide in the description below thank you for watching if you enjoyed this video here's a video on building wealth that i think you'll love and while you're at it download a free money management pdf and as always keep hustling it's the same with real estate if you buy a home you can rent out this home for a thousand dollars a month and now every single month your tenants are gonna pay you a thousand dollars a month for living in your property

Channel: Minority Mindset

Views: 58,452

Keywords: minoritymindset, minority mindset, minority123, jaspreet singh, rethink rich, financial education, financial literacy, good money habits, building wealth, build wealth, make money 2021, Spending habits, how to build a business, money habits of the rich, wealth, money management, personal finance, investing, invest, investing money, investing in stocks, stock market, real estate, real estate investing, how to invest, financial freedom

Id: kb-Io7A5Sfc

Length: 22min 9sec (1329 seconds)

Published: Wed Jul 14 2021