DO THESE 3 Things When You GET PAID In 2023 To BUILD WEALTH | Jaspreet Singh

if you want to know exactly what you need to do step by step when you get paid that way you can become wealthy or become a millionaire you're in the right place because that's what I'm going to be covering in this video but let's start by you answering this question would you rather look rich or be rich and you might say of course I'd rather be rich but if your lifestyle doesn't align with the words that you say well somebody's getting rich it's just not you if you own Gucci or Louis Vuitton or a beamer or a Benz or a Rolex but you don't own an Investment Portfolio worth at least as much as your designer or you don't own enough cash flowing real estate to cover your expensive car payments well you look rich but you're making somebody else actually rich what every millionaire and what every wealthy person does is as soon as they get paid the first thing that they do is they pay themselves first they buy these assets which make them more money but what every broke person does is they make money and then they spend this money they go to Gucci they go to Louis Vuitton they go to the Beamer store they pay for their bends they go to the Hilton they go to the Marriott they go on a nice vacation they spend this money and then this money is gone and then if there's any money left that's when they'll use whatever is left to buy some of these if any this is where you got to understand the mindset difference between a broke person and a wealthy person because you have to be wealthy here before you can actually be wealthy in your bank account but what every wealthy person does is they prioritize paying themselves first and that means buying these assets buying Investments things that actually make you money and if you prioritize that before you buy these the luxury the expensive the things that don't make you any money well you're never going to become wealthy with these you might look rich especially in the short term because you have the nice expensive stuff but the stuff that makes you look rich is making somebody else Rich you're making Gucci Rich you're making Louis Vuitton Conrich you're making the BMW dealership Rich you're making the Benz salesperson rich but you're keeping yourself broke because anytime you get paid you're going to make the payments and who's working to make the payments well you got to go to work every single day to get paid but what wealthy people are doing is they're working to own these to own assets which pay them and then these assets then pay for the liabilities this is what every wealthy person is working towards they're not working to buy these they're working to buy these and then their assets are paying for all their nice stuff their assets are buying the expensive cars their assets are paying for the expensive occasions their assets are paying for the name brand clothes they're not going to work every single day to buy the name brand stuff they're working every single day to buy the assets because the assets will then work 24 hours a day which will keep paying for your designer and nice stuff or whatever lifestyle you want day after day after day but you have to change your mindset of buying these versus working to buy these first the very first thing that I want you to do before you even get paid is I want you to go to the bank can open up at least three different bank accounts one of these bank accounts is going to hold your spending money one of these bank accounts is gonna hold your investing money and one of these bank accounts is going to hold your savings you wanna have these bank accounts separate that way your money is separated so you don't accidentally use your savings money to spend and so you don't accidentally use your investment money to buy a TV once you create these three different bank accounts What You ideally want to do is create an automatic deposit or an automatic bill pay or an automatic transfer every Bank calls it something different where essentially you get paid from your job or your business or whatever your money is going to go here into your spendings account and then you want automatically some of this money to go here and some of this money to go here the day you get paid or the day after you get paid that way you don't have to worry about it that we don't have to manually do it and that way you don't even see the money because when you see the cash in your spending bank account you're going to be more likely to spend it and what you want to do is move that cash out of dramatically out of your spending account and allocated into Investments and your savings that way now your money can automatically start being put to work and go into a place that's going to actually make you money now you're going to want to create a percentage that works with you and you might have to gradually work up in this percentage depending on where you are financially but one of the simplest things that you can do is start with something like this 75 15 10 so not every dollar that you earn is going to be split up this way the money goes here and then 15 cents of every dollar that you earn is going to move towards your investment account and 10 cents of every dollar that you earn is going to go towards your savings account now what you're doing is you're paying yourself first this is the money that's going to make you wealthy this is the money that's going to protect you against an emergency and this is the money that you can now afford to spend on things that make you look rich ideally you want to put more money here but this is a place for you to start because now no matter how much money you make you're always paying yourself first and this is the money that's going to be grown going to earn you even more money now if you're in a place where you're struggling with your money or you're not happy with the amount of money that you're making then what I want you to do here is not just take this investment money and put it into the stock market or the real estate market because over there you're trying to get a seven to ten percent return on your money which is a good way to build long-term wealth if you can keep investing your money consistently but if you want to see that wealth sooner and you have that drive and you want to achieve more for yourself then what I want you to do with this money is take it and invest it in yourself that means investing in your own education start by watching YouTube videos then start by buying books I want you to go out and buy 20 business books some of the top business books out there just go to Amazon go to Barnes and Noble really go anywhere and find 20 of the top business books and read them this can be books in entrepreneurship books and starting a business biographies this can be books and marketing books on scaling books on operations go out and read some of the best business books that you get your hands on some of the ones with the most reviews some of the ones that are the most popular if you read 20 of the top business books out there you're going to have an MBA level education without paying the price for an MBA and then I want you to start applying what you learned now you can actually start investing in your own side business idea you can start investing in your own business idea and then I want you to invest even more into yourself invest in your own business idea or invest in more education this might mean business classes business Consulting business coaching these things get more pricey but this money that you invest in yourself is going to give you the most return because you have to be willing to invest in your business education your earning money education and your financial education because these are the things that will allow you to amplify how much money you earn because if you want a 10x how much money you earn you want a 20x how much money you earn it is possible there are people that go from making a hundred thousand dollars a year to a hundred thousand dollars a month to a hundred thousand dollars a day and sometimes these people never imagined that they'd even be able to make a hundred thousand dollars in a year but it requires that education and you have to constantly be willing to invest in yourself and if you're not willing to spend that money if you're not willing to spend that time well that's going to be very difficult and possible for you to achieve that success because you have to be willing to invest in yourself and this money now that you're putting aside is money that you can invest in yourself and this is where you have to understand what type of risk are you willing to take investing your money in the stock market or the real estate market has less risk than investing in yourself but less upside investing this money into the bank into a savings account has even less risk but less upside you're going to get no interest in the bank but that hundred dollars you put in the bank is going to stay a hundred dollars next year but the 100 isn't going to be able to buy you as much the 100 in the stock market in a few years will hopefully be worth more than a hundred dollars but it's not going to be as much as if you take the hundred dollars and you invest in the class and then you're going to actually do something with it there are many times where I have invested a thousand dollars or ten thousand dollars or a hundred thousand dollars into my own education and I've been able to many times my money back because I learned something that will allow me to amplify my income and this is where you got to understand how active you want to be with your Investments if you don't want to be that active if you don't like the idea of starting your own side hustle starting your own business and you just want to passively invest your money fine then you take this cash and you passively put it into something like the stock market or the real estate market potentially cryptocurrency maybe even startups and so you have to decide how active that you want to be with your Investments do you want to run a business or do you want to just invest in the business passively if you want to be passive then you just go to the stock market and you just passively invest your money I have videos on my channel where I go over how to invest your money in ETFs if you want to be more active well you have to have more of the entrepreneurial bug and that's where now you can really scale your income into something a whole lot bigger now if you are a business owner and you want to see how you can run your business better you want to be more aware of what's happening in the business markets you want to be aware of what's happening with Innovation and Trends you can join business briefs it's a completely free resource that I created is a free newsletter where every day my team is breaking down what's going on in the business World in terms of business Trends and Innovation and funding that way now you have all the research of what's happening in the business world that way you can run your business Better Business briefs is completely free so if you haven't joined business briefs yet I'll put the link to how you can join down in the description below if you want to be a completely passive investor and not have to worry about your Investments then what you can do is instead of opening up a separate bank account for investment money you can open up a brokerage account a stock brokerage account which specializes in passive investing and now what you can do is create a direct deposit where instead of this money going into your investment bank account this money can directly be invested into the market every time you get paid and that's where this money directly goes so you can create a portfolio of ETFs ETF is an exchange traded fund it's a group of stocks so you create a number of different Investments that you want to own and now anytime this money gets pulled out instead of going into a bank account it's going to automatically be invested and this is something that you want to do whether the Market's up or down no matter what it's going to be consistent it's going to be passive and it's going to be automatic now I do have some brokerages that I use down in the description there are affiliate partners with mine so if you want to see a passive investing account you can check out my description to find a company that will help you with that now when it comes to your spending money there's a couple different things that I want to talk about because there's a reason why convenience stores and liquor stores and gas station owners love payday it's not that they're so happy that you get paid it's because when you get paid they get paid these convenience stores and businesses that run on convenience shops these businesses profit when people get paid because when people get paid they run over to the convenience store or the liquor store or the gas station and then they blow their money on dumb stuff I know this because I know a number of people who own convenience stores who own gas stations who own liquor stores they love payday because that's the day they get paid as soon as people get paid they run over over to the store and they start impulse spending because you see this new cash in your bank account and when people see this cash in their bank account they feel like they have this need to spend money because now when you have a hundred dollars or a thousand dollars or ten thousand dollars you feel like you have all the spending power and you need to go out and spend this money so people go out and impulse spend so what I want you to do now is when you get paid stop the impulse spending you might get paid on a Friday now take that Friday to just soak it in and not go out and spend money treat it just like any other day don't go out and just spend money because you got money treat it like any other day where now you want to be smart with your money that way you can keep your money in your account even longer and this also goes to really separating your needs and your wants because a lot of times we do this impulse buying we go to the store we go to the mall we see something that we like we buy it and then we never use it and one of the simplest things that you can do is just stop buying the things that you never are going to use or that you don't really need and one thing that you can do to help you with that is follow something like a 24-hour rule where when you go to the store you go to the mall you go hang out and you see something that you like and you really want to buy it before you actually buy it give yourself 24 hours let yourself sleep on it think about it and if after 24 hours you still really want that sweater you still really want the handbag you really want this thing and you can afford it then you go out and buy it but after 24 hours if you change your mind and you're like you know maybe I will never wear that I don't think I really want that well then you don't buy it it's a simple way to now still let yourself buy the things that you want but now not buy things that you don't really want and the third thing that you can do to stop yourself from the impulse spending is before you go to the store to Shop create a list make a list of the things that you want to buy and then when you go to store only buy the things on that list and what this is going to do is immediately you're going to stop spending a whole lot of money on things that you you don't need and you're not even going to realize that you're spending money on these things until you go to the store and then you start picking up random things and now you don't put them in your cart because you realize it's not on the list this is a simple way for you to save a lot of money when you're going to grocery shopping especially if you're struggling with money if you're one of those people who's saying I don't know how I'm going to invest my money or save my money because I'm struggling just getting by with the spending you need to start limiting your spending by knowing how do you spend now of course I want you to know how to increase your income as well this is you investing your money in yourself your education and your own income strategies but you also have to know how to live below your means and control your spending and that can easily start by just making a list before you go out and shop and then stick to the list when you're actually shopping on the flip side of the spending side because we just discussed all of your impulse purchases now what I want you to review are the other non-impulse purchases look at the purchases that you've already made and see which ones you can negotiate see which ones you don't need and see which ones you can cut down because there's a lot of companies out there from your cable bill to your internet bill to potentially your phone bill where these utility companies will lower your bill if you just ask and so this is where you want to be renegotiating look at your insurance bills see which ones can be renegotiated see what your competitors are charging and then call up your company and see if they're willing to work with you on the price this is a simple way that a lot of people can save anywhere from 20 to 200 300 a month on their bills just by making a few phone calls because now you're not overpaying on some of the bills that you have then review your bills and make sure that you're not paying for a subscription that you don't need anymore everything is a subscription now your TV your movies your gym your music everything is on some sort of month-to-month payment and if you are still paying for something that you don't need well that's what you want to cancel like even my gym put me on some 2.99 a month Magazine subscription I don't know when they put me on this but I've been paying this monthly magazine subscription for for I don't know how many months to pay for some digital magazine that I did not even know that I had access to and apparently they just put everybody on it because they were hoping that nobody would notice this small little three dollar a month subscription I noticed it and I told them to cancel it but this is where you want to pay attention to your bills because sometimes companies hope that these little subscriptions just are never going to get caught that way they can just keep charging you a little bit of money every single month forever and this is where you don't want to let that happen protect your bills and take a look at what you're paying for and make sure you're paying for the things that you're using next on the savings side I don't want you to save your money forever what I want you to do here is save somewhere between 3 to 12 months worth of expenses depending on your risk tolerance if right now you're in a state where you want to be more risky you want to grow your income you want to achieve the wealth and you don't have a lot of financial responsibilities so you can be riskier maybe you only need a few months worth of savings saved up but if you're in a state where you have a lot of financial responsibilities you got kids to take care of you got a spouse you want to take care of and you don't like the idea of taking on a lot of risk you're very risk-averse then maybe you want to have closer to 12 months worth of expenses put aside that way if something bad were to happen like you lost your job well you're not going to have to stress because you have cash to fall back on and this is where you got to figure out where on the spectrum that you lie and then save that amount of money now once you've saved this amount of money I want you to stop saving your money and then redirect your saving money into your investment money because remember these savings are not there to make you wealthy these savings are there just to protect you against an emergency but there's an investment money this is what's going to actually make you wealthy so I don't want you to just spend that money now once you build your savings cushion I want you to start investing that money because this is what's going to make you wealthy this is what's going to allow you to have that Financial Freedom and this is where now the next thing that I want to talk about is you can invest in earning more money because now that you have the system you have the framework of how do you actually use your money after you get paid it's all about amplifying it how do you achieve this wealth quicker because once you realize this once you realize the game that the game is to invest more money if you want to become wealthy then your next question is how could I invest more aggressively and most people at this point are going to say well instead of me doing 25 75 what I could do is 30 70. I can try to squeeze more pennies out of my pie and that's good to an extent where you are controlling your expenses to invest more aggressively but there's going to be a limit to how much money you can invest because there's a limit to how much money you're earning right now but there's no limit to how much money you can earn tomorrow because if you start investing more money and time and effort into your mind into your financial education well then you can work on scaling and growing your income because then what you can do if you can 10x your income you can 10x how much money you're investing and also 10x how much money you're spending at the same time and this is where it's all about reframing your mindset and understanding that you can earn money that you can earn more money and you can achieve that type of Financial Freedom for yourself but it requires you to make that investment into yourself because if you just say yeah I want to become rich but you're not willing to put your money where your mouth is or you're not willing to put in the time to do that well you're never going to be able to achieve that and this is where understanding that is possible but if you really want to amplify this system you need to be investing this money into your mind and into your education that way you can achieve that sort of financial success sooner because now you're investing your money in yourself and now you're going to be working to increase your income and then your income is going to flow through here and if you have more dollars flowing through here yeah you're spending more money which makes you look richer but you're also investing your money which actually makes you richer if you're living the double guac lifestyle when you can't afford it meaning you're buying the Gucci the Louis Vuitton the Apple airpods the BMWs the Mercedes when you have no Investments no savings and no actual wealth you're not going to become wealthy you're going to live broke while trying to look rich because all your money is going out to make other people rich but what I want to do today is a little bit different because today I want to take it one step further and talk about now how do you actually spend your money to get the most value from your money because money only has value if you spend it if you don't use your money then it's just dead cash sitting in a bank somewhere it's not doing anything for you so today I want to talk about how do you actually spend your money to get the most value with seven different ways to spend your money number one is you gotta buy a time back because the reality is if you spend all your time working you're never going to have any time to make any money now when you hear that that might not make any sense what do you mean just split when I'm working I'm getting a paycheck what do you mean if I'm not working I'm not making any money but what I'm trying to say is if you spend all your time constantly just working for a paycheck you're never going to have time to build any true wealth because you're never going to become wealthy just from your paycheck alone I don't care how big your salary is you will never ever ever be able to become actually wealthy just because of your salary you have to be able to use your mind but if you want to be able to use your mind to build that wealth you need time in order to do that and this is where you have to start valuing your time and understand what your time is worth there's two things that you can do about buying your time back either you can buy Freedom or you can buy the opportunity to make more money so if I talk about the freedom one example of this is let's say you hate mowing the lawn you hate buying groceries there's something that you don't like doing and it's just a time waste for you and you value you your time at twenty five dollars an hour well if you can hire somebody at say eighteen dollars an hour to mow your lawn for you well you just bought your time back because your time is worth twenty five dollars an hour and you can pay somebody 18 to mow your lawn and now you just save that hour and you just save that time as well the second thing that you should spend money on is buying more income now the first way that everybody knows to generate an income is you go and work and you get a paycheck you're working and you're getting paid but the second way that you can make money is by buying that income so think of it this way imagine that this is a magic box that produces money every month this box pays you a thousand dollars a month you can go out and purchase these types of magic boxes that are paying you a thousand dollars a month but now you have to understand how do you buy it because there's many different ways to find these types of Magic Money printing boxes and they're all gonna come at a different price I mean the safest and the most expensive is going to be through a savings account or a high interest savings account because nowadays the high interest savings account is paying you maybe one percent or something on your savings so it's very little but you're getting some sort of cash flow from your investment if you want to take a little bit more risk and earn some more return you can look at investing in stocks now you can invest in companies that are paying out dividends and depending on how big the dividend is you have to put in a certain amount of cash buy this box and then it'll pay you that thousand dollars a month I mean you can start with as little as ten dollars but you're not going to make a thousand dollars a month with a ten dollar investment but as you grow you can continue building up your Investments keep buying more of these boxes that keep paying you every single month or then you can go out and buy real estate this is one of my favorite ways to generate cash flow because now when you buy a property you buy a house you buy an apartment complex you're buying it for the sole purpose of making money and for me when I buy real estate I don't care about how much this property is going to be worth in a year or 10 years I'm looking at the cash flow I'm looking at how much money do I have to put in and how much cash can I get out and this is where now you're buying property to produce cash flow and if you do it right this property that you buy this magic box that you buy will produce rent and this rent will cover your property taxes your insurance your maintenance your mortgage and all your management fees and then put some money in your pocket so your rent will cover all the expenses and pay you just for owning the asset if you want to take it one step further you can also buy businesses this could be maybe a franchise but this is going to require some work on your end this could be an actual business that you buy that you don't have to work in where now you're just buying the ownership of a company and now you're getting the profits without having to work there this could be a startup that you invest in and over time the startup grows and starts paying you this type of cash flow but the whole idea here is you're investing your money in assets these are all assets things that you're buying for the sole purpose of making money as opposed to liabilities because most of the time when we think of spending money we think of what I talked about in the beginning of the video we think about going to the Gucci store we think about buying a BMW we think about going on a vacation all these things are nice but they don't pay you none of them are giving you a thousand dollars a month and so now what I'm saying saying is if you want to make more money you can use your money your income to buy more income and there's many different ways that you can do this and you got to figure out what's interesting to you what you are passionate about and what's going to give you the best risk to reward ratio because obviously here starting a business or buying a business it's going to be some of the most risky things that you can do but you can also get the most cash flow for every dollar that you invest here on your savings this is almost no risk but you're gonna get the lowest cash flow for every dollar that you invest these are somewhere in the middle and so you have to figure out how much risk tolerance are you willing to take how much return do you need and what do you actually enjoy doing and before I move on to number three if you do want to learn more about how to be a better stock market investor or a real estate investor or a cryptocurrency investor you can check on Market insiders it's an app that I created where every week you get access to coaching sessions live coaching sessions on stock market investing real estate investing and cryptocurrency investing you can try out Market insiders for free with a 10-day free trial where you can go through everything go through all the previous classes and go through the actual live coaching sessions so if you want to try out Market insiders for free I'll put the link to hike and do that down in the description below third you should spend money on your skills and your education one thing that I love spending money on are books mainly audiobooks because I don't like reading physical books but I love spending money on audiobooks because I try to read a little bit of an audiobook every single day when I go on my morning walks for most of us the tool that's going to make us the most money make us the most success make us the most happy make us live the most fulfilled life is our mind and you have to be willing to sharpen your mind in all aspects of Life physically mentally spiritually financially if you want to be able to succeed and thrive in each areas of your life like LeBron James spends over a million dollars a year on his body alone because that's his tool on the court to be able to perform to be able to produce and to be able to make money now obviously he's very smart as well which is why he's been investing his money in so many different places but you don't know what you don't know and if you're ignorant to the physical side the mental side the spiritual side or the financial side well you're probably not going to be able to succeed let alone thrive in any of these areas and so I try to educate myself in all four of them I'm not an expert in physical health or mental health or spiritual health I don't even like to call myself an expert in Financial Health but I like learning in each one of these things every single day and you got to be willing to invest in your skills that's investing time and maybe even investing money depending on where you are in your life and so I invest my money obviously in audiobooks I buy classes I buy coaching I mean I spend tons of money on each one of these things and as you grow each one of this education levels is going to become more expensive like coaching is very expensive all of my business Consultants cost probably six figures a year and it's an investment for me but it allows me to learn more and get into the minds of people who are very experienced who know more than 94th you have to be willing to invest in your health Warren Buffett gives the story where he goes into a school and he tells people what would you do if when you were 16 you got one car and you were told you can have any car that you want any car that you dream of but the one stipulation is this is the only car that you'll be able to drive for the rest of your life what would you do well you're going to take good care of that car you're going to make sure you put in the right gas you're going to get the right oil changes you're going to drive it carefully you're going to make sure you maintain the car make sure it's okay because this is the only car that you're gonna get but that's how it works for us with our bodies and our minds we only get one body one mind one Health so you want to make sure you're taking care of that and this is so important and one of those things that easily gets overlooked especially when you're entrepreneur because I can tell you from personal experience when you're so on that grind of trying to build something you can easily ignore this part of life you don't sleep enough you're not eating the good foods but what you want to do especially as you become more successful is really remember the importance of your health obviously doing the right exercise get a gym membership maybe get a trainer get a nutritionist get somebody to help you making sure that you're putting the right Foods in your body because a lot of times we're told this is what's right to eat from our school system or whatever but most of the times all that stuff that you're told is crap but there's a lot of bad food out there and at the very least get out the processed food get out the sugary Foods get out all that crap and start eating real foods actual foods and invest in your mental health as well maybe that means start reading books on Mental Health even if you feel like you're happy even if you feel like you're fine start reading books about the basics of how to live in a happy life how to live in a happy relationship how to live a fulfilled life how to find your purpose read books about self-development because then maybe you'll realize oh I can improve on this or that and you don't know until you start learning and it allows you to live more of a fulfilled life yes sometimes ignorance is bliss but you always want to make sure that you're thriving not just surviving number five pay somebody to help you manage your finances and protect your finances because this is an investment that will pay you dividends for the rest of your life so the first way that you can understand this has to do with your taxes now all of us understand that you have to file a tax return and pay taxes and a CPA tax accountant can help you file your taxes but more than just having somebody to help you file your taxes you need the help of actually how do you manage your taxes this is where a Tax Advisor can help a Tax Advisor can file your taxes but they can also guide you on how do you use your money sometimes the CPA is just going to be focused on just filing taxes I've had this experience before with my previous CPA where all they did was just file taxes file taxes and I would try to ask for advice on how do I use my money how do I legally pay less money in taxes and they're so focused on just filing everybody's tax returns that they can't really give me good advice on monitoring my businesses finances is my personal finances now I have a Tax Advisor that I meet with multiple times throughout the year at least at the very least once a quarter where we talk about here's how much cash we have here are some of the new tax regulations here are some of the new tax rules for this year these are things that you can do with your money to help you spend your money and potentially pay less money in taxes now this doesn't mean you should spend all of your money so you don't pay money in taxes this means knowing the different strategies out there that way you can legally pay less money in taxes so this is having a good Tax Advisor not just somebody who's going to file your taxes and then on the other hand this has to do with not protecting your finances with something like an estate planning attorney now I am a licensed attorney however I'm not your attorney but one of the things that you'll realize is most people are so focused on making that money that they never think about how do you protect your money what happens if you were to die unexpectedly where would your money go now these are things that you want to start thinking about because you want to start protecting your money and this can also protect you in case you get sued because now if he gets sued you want to make sure that your personal assets your home your bank accounts your cash your Investments That these things are not going to be taken away in a lawsuit this is what wealthy people are doing and the way that you can do that is by having a good estate planning attorney that can help you protect your assets who can help you put your assets in different places maybe a trust maybe different entities maybe having different types of insurance that way you can protect yourself from when you die so you know how your assets will be passed on but even when you're live to how do you protect your assets and these are things that you need to be doing because what will happen is when people realize you have money they're going to try to take their hand put it in your pocket and grab some of your money for themselves and so these are things that you want to be protecting yourself when times are good because when things go bad if you get sued or if there's an emergency that happens and it's typically too late so you want to start planning for this and start spending money to protect your finances and take care of your finances because it's almost like Insurance of how you take care of yourself number six Buy find the things that are most important to you that you value the most that way you can spend more money on these things and cut back on the other things for me I don't really spend money on a lot of things I don't need a lot of things I'm not a materialistic person but two things that I enjoy spending money on are comfort and convenience these things provide me with a lot of value and I am willing to pay a premium for these things because they provide a lot of value for me in terms of comfort this means if I'm going to be traveling let's just say from America to India and I have to go on a plane ride for 15 hours I don't want to be sitting like a sardine an economy class and I know this because my whole life growing up I sat in the back an economy class for 20 hours on a plane where you sit like this you barely have room to turn trying to sleep is a nightmare the food is horrible but you know it was what it is but now the comfort for me would be me buying a business class seat where now I have a whole pod for myself I can lay down all the way I I have nicer food I get a whole menu and now the ride is so much more comfortable where it's not even something that I dread it's something that I enjoy it's now an experience yes it costs a whole lot more for me to fly business class than economy class but that is something that is important to me and because I have the ability to afford it that's something that I'm willing to spend my money on and I'm willing to cut back on things that I don't need that's why I don't buy designer clothes because it's not important to me the second thing that I will spend money on is convenience and the quickest and easiest example that I can give you of this is just recently I went to California for another business trip and when I was there I had to get a rental car because I needed to get around and I was looking at different rental car companies and some of them were actually super cheap some of them were saying that I could have a car for a week for just a hundred dollars but hurts the company that I went through was charging I think 250 to 300 for the same time period it was costing me two or three times more however with Hertz I have that gold membership or whatever it's called where now I can just walk right past the line go right into the lot pick the car that I want and drive off so I don't have to talk with anybody and I've got to stand in line and I don't got to worry about really wasting any of my time I go right to the car and get out so it takes me no time from when I get there take into my car to out versus with the other companies I was reading the reviews and they kept talking about how they would have to wait an hour to two hours in line before they got a rental car I don't like that I don't like waiting I don't like wasting my time I don't like waiting in lines my time is more valuable than that so for me that convenience was paying the extra money even though it's probably a similar car getting a similar car for much more but for me it was the convenience of knowing I don't have to stand in line I don't have to worry about all that other crap I can go right to the car and get out and the seventh place that you should spend money is on giving back and this can be in many different shapes and forms for me growing up I always knew that I wanted to become successful that way I could take care of my family because of all the hardships and struggles that I saw them go through and so one of the things that I did as it started to grow was I gave my parents a little piece of ownership in the minority mindset companies now anytime we give a profit distribution my parents get a little bit of it that way I know that they are financially okay second is giving back to the communities and organizations people that you want to take care of I like taking care of my family for me this can be a lot of different things back when I was in Detroit I was living in the city of Detroit I used to keep a stack of five dollar or seven Dollar coupons or gift cards for small different restaurants and eateries near me that way anytime I saw a homeless person who was asking for money instead of giving them cash because many times that cash was used to purchase drugs in some instances I would give them a gift card that way now they can actually eat so that was one of the things that I used to do and then when we hit a million subscribers here on YouTube we did a big giving spree one of the things that we did is I took our team and we went to a teacher store and we went and bought a whole bunch of inventory from the actual store that way we could support the local business owners and then we took this stuff that we bought from the store we gave it to a local Detroit school that way now they have more supplies and then I went to the Detroit school I asked the principal how many teachers do they have there I gave each teacher a 500 check that way they have more cash to help support their students and then I also looked at some of the other organizations that are very close to me that are helping to support people that I gave a big check to so there's many different things that you can do and if you do not have the financial means to give that's okay you can also give with your time you can give with your resources if you have a skill or a talent there are many different ways to give but it's just something that you can do that as you grow you want to remember that sometimes giving people the helping hand can go a long way having good money habits today is very difficult because for one we are in a very tough economy with the economy slowing down and inflation running hot and then on top of that we have this culture where it is very normal and glorified to almost be bad with money people like complaining about money problems on social media they love flexing all the nice stuff that they can't afford on social media and so what I want to do today is talk about some of the most important money habits that you have to have before you turn 40 because now until that time you want to be making sure you're working on these money habits to get it all in place that way you can really set yourself up for financial success and wealth and it all starts with number one stop bleeding cash and in this case knowing how to pay down your debts because when you have consumer debts that it can assuming you which are your student loans your credit card debts your home equity lines of credit your hard money loans your payday loans your buy now pay laters these types of debts are where you're spending your income today to pay off all the liabilities all the luxuries all the consumer expenses that you couldn't afford yesterday when you get stuck in this type of rat race all you're doing is you're going to work today to pay off your Banker for the things that you bought yesterday I was watching a podcast yesterday and what they were saying was the number one way for you to become wealthy and set yourself up for financial success is to pay off your student loans before you turn 30 and that's a great thing to do but what happens now if you have half a million dollars with the student loans because you went to medical school and you didn't graduate until you're 28 or 29 or what happens now if you're 22 years old and you have 40 000 worth of student loans and you don't really start paying it off until you're 28 or 29 or 30. and so yes if you get paid under student loans ASAP that's great but by the time you're 40 you have to know how to pay it off if not paid off completely because this is where it's not just your student loans it's your student loans the credit card debt all those debts that are for your consumer liabilities the things that are not putting money in your pocket if your debt isn't paying for itself because even student loans fall under this category if your debt isn't paying it off through its own asset you need to pay it off as soon as possible now as much as people try to strategize the best way to pay down debt at the end of the day the debt strategy method ultimately comes down to this this is your debt that you have and if you want to pay it off you need to have cash to throw at your debt to pay it off and there are two ways to get this extra cash either you can spend less money or you can earn more money in either of these cases this is going to give you a bigger margin because now you have your income and your expenses either you can increase your income or you can cut your expenses or you can do both at the same time this is going to give you a margin which means you're going to have cash that you can use to attack this debt and pay it off and the faster you paid off the less debt that you're going to have to pay because well the less interest that you pay because now the more you pay today the smaller your principal balance will get and the smaller the interest that you're going to have to pay now because their balance is getting smaller so it literally pays off to attack your debt sooner rather than later this is where people try to get into the Nitty Gritty should you follow the Dave Ramsey model which is the snowball model where you're paying off the smallest debt balances first and then you're gradually getting bigger and bigger and bigger or do you follow the debt Avalanche method which is now really paying off the highest interest rates first it really doesn't matter the key here is the more money you put in towards your debt I don't really care which method you follow the more money put in towards your debt the faster you're going to be able to pay this off and once you stop having this debt once you stop bleeding cash now you could take this extra money this margin that you have now and put it to work to make you wealthy because when you get stuck in this system of constantly just having all of your money going out to pay your Banker your Banker is the one that's getting rich but you are now working to keep your Banker Rich so you want to pay this off as fast as possible that way you can use your money to make yourself rich the second money habit that you have to master if you want to become wealthy is you have to know how do you spend the money that you have because we live in a society where you don't have to be able to afford something to be able to buy it because you can buy pretty much whatever you want thanks to the help of credit cards and lines of credit and buy now pay later but that's going to put you right back into the problem that we just solved is how do you pay down the debt because now when you're just buying things that you can't afford well now you are going to spend tomorrow's income paying off your yesterday's expenses so what you want to do now is you want to understand the difference between able to buy something and being able to afford something and then spend your money based off of that Dave Ramsey said that the best he says that you need to act your wage and the way that you can do that the simplest thing that you can understand is my rule of five when it comes to liabilities which are not necessary to you living your life and that means in the rule of five if you cannot buy five of them you cannot afford one of them it's a very simple rule of thumb that will help you understand what you can afford and what you can't afford and this also means that you have to understand how do you spend money on things like your car because pretty much everybody thinks it's normal to have a car payment because now when you want to buy a car who is going to pay for a car in cash because now you can either lease it or you can have a car payment now leasing can work for some people or business owners in some situations for the tax purposes the tax advantages but I want you to think of leasing like flying first class it is not the cost effective way to fly it is a luxury and you're paying extra for that luxury that's what you get when you lease a car so leasing is buying that extra luxury it's flying first class you're buying the extra luxury of being able to now switch cars and and do everything that you get with a lease now when it comes to actually buying the car if you want to buy a car and you can't afford to fly first class you shouldn't be leasing now you're comparing okay do I buy it with a car payment or do I buy a car outright right now at the time I'm recording this video the average car payment for a new car is 644 dollars a month and the average payment on a used car is 488 dollars a month now not only do you have this car payment but then you have to pay for your insurance you have to pay for your car registration you're gonna have to pay for your maintenance and if you got the nice car you also got to pay for your premium gas and then what happens to so many people is you get into this car payment game where now you buy this car you own it for four to six years and then you pay it off and then as soon as you pay it off you feel a little weird because now you have a car with no car payment so what happens that's when people go out they sell this car and then they go and buy a new car and then they start this car payment game all over again so you just finally paid off the car but then you started all over again so then people keep these car payments going for ever because it's so normal to have these types of car payments but let's do the opposite now what if instead of having a car payment your car payment was going to invest in you that way you can become wealthy so let's just assume now that you took 550 a month and you instead of buying a car uses money to buy you Investments whether it's on the stock market maybe you're building up a real estate fund because now with a real estate crowdfunded you can invest 500 a month but you're investing 550 a month and you would get just a seven percent average return on your money and you do this from the time you turn 21 but just when many people start this car payment game and you do this until you retire and you don't increase the amount of money that you're investing every month even though your car payments are probably going to go up every five or six years because you're going to keep buying more and more expensive cars but I'm gonna assume now that you're only going to pay 550 a month into your Investment Portfolio every month from 21 until retirement well if you do that for 45 years guess what you're going to have a retirement portfolio of over 2 million dollars versus if you just pay this five six hundred dollars a month for your car every single month after you get to retirement age guess what you're going to have a car worth next to nothing cars lose value each and every day sure maybe your car if you have a nice car will be worth twenty thousand thirty thousand forty thousand maybe 50 Grand but that's not two million dollars because here you're buying assets here you're investing this money into yourself to buy an asset here you're taking this cash and you're paying interest on it to buy a depreciating liability something that's dropping value each and every day and then you're paying interest to the bank on top of that now you might be saying but just put it I need a card to get to and from work yeah you're right but do you really need a 40 or 50 or 60 000 car I like nice cars I want you to have a nice car but the thing that I want you to understand is that your car is a liability it's not making you any money I still today drive a car that's worth about 500 actually two days ago I got a call from my Homeowner Association because my car doesn't have a bumper on it anymore and they called me and they said hey uh we got a couple of complaints from your neighbors saying that there's a black car in your driveway that's an unusable car that's just sitting there because they thought that it was a junk car sitting in my driveway and they said that I should put my car into a storage unit and I said excuse me well this car takes me to my office every single day I've been in California for a little while so I guess that's probably why they were getting these complaints but I drive my car to work every day and it takes me everywhere and yeah while I don't have a bumper everything else is working now look I make a good income and yeah I probably will buy a very nice car someday but for me I understand that my car is a depreciating liability and right now I'm investing very aggressively I don't want to spend a hundred grand or 200 Grand on the car today because I know that I'm going to take this cash and I can reinvest it I can put it back into my business Market briefs I can take this money and go out and buy stocks and go out and buy real estate I can find the other opportunities because I am so focused I am laser focused on building this thing that I never had this wealth that I never had before because I know how important it is for me and I'm willing to sacrifice that nice car today I will buy a nice car okay I'm not saying you got to drive a junk car for your whole life I'm gonna buy a nice car but I understand how it plays a part in my life because I understand the difference between an asset and a liability and I'm more focused on building this that I am focused this this is my number one priority this well my cars has taken me from A to B and uh when I'm ready I will buy another car the third thing that you have to understand is how do you invest your money and when I say how do you invest your money I don't mean putting your money into your 401k or your IRA if you're doing that fine but that should be the very base that should not be the tip and end of your Investments you need to be investing your money yourself now if by this time you realize okay I suck at investing my money I hate investing my money then maybe you can consider getting some sort of financial advisor or money manager to help you with that but if you don't now you got to figure out how you're going to be investing your money yourself and what you're going to realize is maybe you're gonna like stock market investing maybe you're going to like real estate investing maybe you're gonna like cryptocurrency maybe you're gonna hate stocks but love real estate maybe you're gonna do something like that but you have to understand how do you invest your money and this starts with the basic education of understanding how you get paid because the way you get paid is going to dictate how you invest your money because you can get paid from cash flow which are liberal CF or you can get paid through appreciation and this is when your investment value goes up the reason why I love investing in real estate is because I can get predictable cash flow from my real estate so the way it works is once you buy a property whether it's a home an apartment complex whatever it is you buy this property you own it and now you're going to rent it out to somebody else and somebody else is going to be living here let me drive this person right here drop them a nice mustache or as we like to call it in my native language Punjabi a much this person is going to be living in this property and then they're going to be paying you rent every single month for living in your home now the nice thing is once you understand the ropes once you understand how it works it's going to be very passive on your end like I don't know who my tenants are I don't get involved with the day-to-day maintenance I'm not involved with paying the bills I have a property management company who the tenants deal with and they do all of that work A to Z but what they also do is make sure that I get paid they deposit this money into my bank account now of course the property management company takes the fee right they're going to charge you money so your rents are going to go down a little bit but it gives me back my peace of mind it gives me back my time because now that I own the asset this asset can generate me cash flow forever as long as I own the asset and as long as the asset exists and now I'm getting this cash flow because now if you can think about it in terms of stacking assets well for me I know that every house that I buy it might put between 500 and 700 into my pocket of profit every single month and so now it's just a game how do I stack more if I have 10 that's five to seven Grand of cash flow every single month essentially passive that I don't have to go and work for if I can get a hundred I know it's going to seem really far away how in the world can you get a hundred because you know that's very hard but that would be 50 to 70 000 worth of cash flow every single month now the question is how do you put it in action how can you buy one a year and then as you start to grow maybe two a year and it's all about putting the plan in action because the hardest one is the first one but this is one way that you can get paid is through cash flow the second way is through appreciation appreciation is when the value of your asset goes up now you can do the same thing in real estate where people will go out and buy a home for say two hundred thousand dollars and then hope that this home will be one day worth three hundred thousand dollars and then sell it for a profit but I don't like to do that with real estate because with real estate I'm buying this cash flow the people that get burned the most in real estate are the people that do this they start looking for these speculative properties they're hoping that they're going to be able to sell it for a quick profit I don't like the way that I'm at a Trader I'm not a flipper I like to be a long-term investor which is why I want to invest in real estate I don't care what's happening with housing prices the only thing I'm looking at is how much cash flow that I'm getting however you can build this appreciation as a long-term investor because remember there's a difference between trading and investing trading is now when you're trying to flip something you buy something for a hundred grand or one grand or a hundred dollars today and then you hope that you can sell it for fifty percent more in the next six months I don't play that game so when it comes to appreciation I'm looking for now Investments that I believe in for the long-term value this can be stocks on the stock market it could be my real estate where I'm not buying it for the depreciation but if I get appreciation that's icing on the top or it can also be cryptocurrency if you believe in crypto if you don't believe in crypto don't buy crypto but now the whole idea here is you want to look for these Investments that you can hold on to for the long term and by long term I don't mean six months I don't even mean a year I'm talking about multiple years if not decades so now this is something that you believe in that you want to hold on to for the long term and in the stock market if you don't want to get into the business now finding researching and investing in individual companies well then they can also invest in ETFs and ETF is an exchange traded fund that gives the exposure to a lot of different stocks so now you can invest in ETFs to give you exposure to the 500 biggest companies on the stock market the S P 500 you can invest in ETS to give you exposure to tech stocks you can invest in ETS they give you exposure to energy stocks you can invest ETFs they give you exposure to Health Care stocks so if you know what it is that you want to invest in but you don't know the best company to invest in then you can just invest in ETF and now if you're still like I don't know how to go by doing that well then what you can do is set up a passive and automated system where now every week you have some money that's automatically leaving your bank account and automatically being invested into the ETFs that you want to invest in I have one of these set up where every single week for me it's on a Wednesday it doesn't matter what day you pick but every Wednesday money gets pulled out of my bank account and it gets automatically invested into my portfolio of ETFs so that is my passive strategy but then I also have an active strategy where now I'm looking for good Investments whether it's in the stock market or the real estate market or the crypto Market or with startups I'm looking for these good Investments and then when I see a good buying opportunity because prices go down well that's going to come in and buy typically now it's becoming a little bit more awareness of this on YouTube thanks to education on these platforms but typically what happens is when these asset prices go down people get scared they run away and then they sell but for me that's a great opportunity to buy like I was buying when the 2020 crash happened I was buying pretty aggressively I was buying real estate after the 2008 crash happened I was buying cryptocurrencies when we saw the last cryptocurrency crashes so for me crashes and down markets are opportunities for me to buy instead of opportunities for me to panic and sell and that's where you want to find the right opportunities there now you can also generate cash flow from the stock market like if you invest in a dividend paying company some companies have a big profit at the end of the year and they'll just give it away or most of it away or some of it away in the form of dividends which is literally just like a cash payment to you because automatically deposited in your account many companies pay a dividend every quarter meaning every three months and so if you invest in these dividend paying companies your goal is again seeing this appreciation meaning seeing the long-term value of your stock investment go up but in the meantime you're getting paid while you wait because you're getting this sort of cash flow so if your goal is just to build another stream of income you want to have another stream of income coming in that's passive well then what you can do is you take that passive investment strategy that I was telling you about and now look for either dividend paying stocks or dividend ETFs that way now you're just working over the years to build up another stream of income because if you do that and you stay consistent with it and you do it for years you do it for a decade what you're going to see is now all of a sudden you have just built a brand new stream of income and the goal is for your stream of income to replace your job income that way now you're working for your job income but then you also have your passive income from your dividends or your real estate that's paying free lifestyle so now you just doubled your income without doubling your work because now your dividend income is paying you without you working and then your job income is paying you whether you're working and then whenever you're ready you can either cut down hours from your job or you can keep working the job that way keep building up your investment assets but the key here is you need to know what your goal is do you want this do you want this and know where it is that you want to invest the fourth habit that you have to understand is now how do you save money and where do you save money so the basic end of this is you got to know how to live below your means by the time you're forwarded you have to know how to spend less money than you make but you got to understand then when and how do you save money and when is it right for you to spend money because when you save your money well there should be a reason and what I like to say is that you should be saving money for one of three reasons you should be saving your money for an emergency you should be saving your money for an investment and you should be saving your money for big purchases and that's it if you're not saving your money for one of these three reasons then you are not saving your money smartly so every saving dollar that you put aside needs to have a strategy and a reason to be saved now when it comes to your emergency savings you want to have somewhere between three months and years worth of expenses saved depending on what your risk tolerance is if you hate the idea of taking risks if you don't like the idea of investing then put aside a Year's worth of expenses in your savings because that will even cover you through the worst case scenario and then invest everything after that but if you have a higher risk tolerance then maybe you only need three months worth of savings put aside but then this also goes to know how do you now save strategically when it comes to your spending because in the beginning we talked about spending your money when it comes to multiple expenses but now as you start to become a little bit more financially Savvy as you start to build wealth you want to be spending your money the smart way and not just saving every penny because well you can because the ultimate goal of having money is to be able to use the money because if you don't use your money it doesn't give you any value so now the question is how can you put your money to work and use this in a way that's going to give you the most benefit like one thing that you can do which is what wealthy people do is they use their money to buy back their time so if there are things that you hate doing maybe you don't like going to get groceries I hate going to the store if you don't like going to groceries or getting groceries you don't like cooking your own food well then now you can use your money to pay somebody to do that now there's an added cost there you've got to pay somebody to get your groceries you're going to pay a premium for that if you're going to hire someone to cook for you there's a cost to that but you're buying your time back and now as you're on that journey to build wealth you have to start value your time if you can pay somebody 25 an hour to cook for you and your time is worth 50 an hour well you just bought your time back and made a profit it's also means you got to understand what's important to you for me name brand stuff and a nice car aren't on the top of my list however I do like comfort and I do like certain luxuries like if I fly International if I'm going to India to visit family that is a 20-hour journey on a plane well on that plane ride for the most bulk of my life I was flying economy in the back seat sitting like a sardine I don't like doing that anymore so now I'm willing to pay for that added comfort of sitting in business class or first class which costs significantly more I mean it costs like five times more to sit in a business class or first class seat when you're going International but it's worth it to me so I will pay a lot more money for that because that value gives me value something that I want and when I travel I like to be able to travel so I spend money in traveling I want to have a nice hotel room I used to be the one that would fit 10 people into a 24 or 44 dollar a night hotel or motel room now I'm getting nicer rooms I want that nicer Comfort there because that provides more value for me and you got to understand now how do you save strategically so we talked about the three places right the reasons why you save your money but now don't just save all of your money to save it as you start to get deeper into your wealth Journey figure out what's important to you spend money on the things that provide value to you and the things that don't provide value well yeah you can make those sacrifices because it's not that important to you if you keep living that life where all you're worried about is what other people will think well you're going to be spending your money to make other people who don't care really care about you and people you don't really care about you're doing it just impress them but no one really cares you're blowing your money on the things that don't matter but this is where you got to know how to do it the right way and this brings me to number five which is you need to know how to protect your wealth because now as you start to build more wealth what you're going to realize is when people realize that you have money they're going to try to take their hand put it in your pocket and take some of your money for them and you will see this in a number of different ways maybe people will try to sue you maybe it'll be in the form of taxes maybe it'll be something else but this is where you have to know how to protect yourself legally and financially by building Shields around yourself and I'm telling you this from personal experience like my first real estate deal ever was the most difficult and probably one of the biggest headaches now it was a profitable deal I still owned that property today but I learned a lot from it and my first tenant also sued my real estate company because the claim was that my bathtub in that property was too slippery when the water was on so the claim was that because they would turn the water on the bathtub would get so slippery that it caused this person one of the tenants there to slip and fall and because of that they were suing my real estate company now the interesting thing was then the reason why I have a property management company is because they document everything they refused to let my contractors in after that happened because they said that there was a chip in the paint on the bathtub which was about the size of a quarter so that chip of paint they said contributed to the bathtub being slippery however they did not let us make that repair and second they had also admitted that the reason why they don't want anyone to make a repair there is because the person who slipped fell at a barbecue playing some games and that's where he got hurt and so because he fell out the barbecue that we can't come in there so we had all this documented so it was a frivolous lawsuit the judge threw it out however it was something that I had to go through and learn because in America you can sue anyone for anything it's just the way the system works so how do you protect yourself well for one if you're investing in real estate or if you have a business you want to have a Legal Shield maybe you create an LLC or an S corp or maybe a C Corp depending on what your company is you got to talk to a tax professional or an attorney in your area most of the time probably an lrc or a S Corp is going to do the job for you and then once you have your business entity set up you also want to make sure you have insurance you got to have insurance for your property your properties you got to have insurance for your business if you own a business and you have employees you got to have separate insurance for that so you want to make sure you have your different assurances set up have health insurance for yourself have health insurance for your family have your insurances for your property your personal property your car your home you know all these things are not fun to have maybe you have life insurance as they're working to build your wealth life insurance is something that can provide you the sort of bridge insurance as you're building your wealth and owning assets because your goal should not be to rely on your life insurance to take care of you or your family your goal should be for your assets to take care of you and your family so that's one of the things that you can have set up and then you want to make sure that you talk to an attorney an estate planning attorney an estate planning attorney is going to help you now understand how do you put all of your assets together that way whenever your time comes because all of us have a limited time on this Earth how will you your assets get passed on maybe you have a will maybe you create a trust maybe you do some other sort of fancy estate planning depending on how much wealth you have on how you can start planning and to pass your assets down to somebody else so these are things you need to plan for because if you don't then you're going to run into a situation where you can create a lot more risk a lot more fights within the family a lot of other issues but you can avoid all of that by just planning for it now I know no one likes to plan for worst case scenarios like insurance is not something fun you want to pay for no one likes to plan for what happens after you die but the reality is if you don't and something bad happens well you're taking on all the risk and it can cause a lot of issues when you can prevent all of it by just protecting your wealth and taking these precautions when times are okay I mean it's just like investing your money how do you take advantage of a market crash well you'll learn and you put money aside when times are good so it's preparing when times are good for a bad time and it's the same thing here where you want to prepare for when things go wrong during a good time you got to understand that okay working hard is good but now you want to work hard in a way that's going to give you the most returns in a way that's going to scale just because you're making a good hourly wage by doing something doesn't mean it's necessarily scalable and so we have to understand sometimes you got to take a step back like sometimes get caught up where oh I got this really good gig I'm making 30 40 50 an hour

Channel: Minority Mindset

Views: 183,619

Keywords: minoritymindset, minority mindset, minority123, jaspreet singh, rethink rich, financial education, financial literacy, finances, stock market, stocks 101, how to invest, money management, investing 101, building wealth, how to manage money, financial advice, investing, buying stocks, housing market, inflation, wealth, passive income, personal finance, real estate, real estate 101, real estate investing

Id: aqAZaFvvPz4

Length: 63min 53sec (3833 seconds)

Published: Thu Nov 10 2022