The 5 BIG REASONS You Can't GET AHEAD FINANCIALLY!

if the stock market goes down the value of your million dollars will go down too a lot of the financial advice that we get from the people around us is the reason why so many people are broke financing is never the smart financial decision when it comes to buying a car because when you finance what's up everybody i am justin singh from the minoritymindset.com where money minds rethink rich if you feel like you've been struggling to get ahead financially you're in the right place because in this video i put together some of our best clips that walk you through what's been keeping you from getting ahead and what you can do about it that way you can start building wealth right now so let's get into it 78 of americans are living paycheck to paycheck that means if you walk out of your house right now and you look down the street and you look at your neighbors eight out of 10 of your neighbors don't have a couple thousand dollars in their bank account right now to protect them from a financial emergency it doesn't matter where you live this is the reality of what's going on in america right now the majority of people are broke i know this is going to hurt a lot of people's feelings but there's a lot more to this than just how much money you make i've talked about people like earl crowley on our youtube channel who make minimum wage and yet have built a multiple six-figure investment and savings account while having kids while living a life and then on the other hand i've also talked about people like henry's if you remember henry is an acronym that stands for high income earner not rich yet and it's this movement of people that make at least six figures a year that are broke because their goal right now is not to save money or invest money but to live this lavish lifestyle where they're spending all their money to look rich this is where the vast majority of people get kind of offended and they put up the smoke screen and they say things like oh you shouldn't talk about money like that then you shouldn't worry about money when in reality we all use money every single day if money really didn't matter then why are you going to work every single day to get a paycheck now i get it there's a lot more to life than money okay money is just one small aspect of our life but if you don't understand money and if you don't have money you become a slave to money because now you're drowning in debt and you have all these payments that you can't afford so you're going to work every single day not to enjoy your life not to do something fulfilling but just so you can make and back payments but if you understand money and you know how to use money and you can grow your money now you can build your wealth now you can take care of yourself and your family financially and you have more money to help other people and to help your community because you have the resources to do that if you're broke you don't have the resources to help other people when you're broke and you're drowning in debt the only person that you're helping is your bank because they're paying these insane rates on money that you borrowed to buy things that you didn't even need so many americans put a lot of weight on luck when it comes to success and i'm speaking strictly financial success right now they see somebody who's become wealthy or rich and they say oh this person must have become wealthy they must have inherited the wealth or they must have just got lucky with their business or their investments or whatever luck is the reason why they're successful if that was the case why is it that 88 of millionaires are self-made that means these are people who did not have millionaire parents these are people who created their millions themselves nine out of 10 millionaires out there that are millionaires made it themselves this is where you can say oh they had an advantage or they had this or they had that we can spend the rest of our lives looking for advantages that other people had as to why they could become successful or you can spend that same time understanding how to use your money the right way that way you can build your wealth because there's a system to understanding how to use your money the first thing you got to do is get your mindset right i talked about this a little while ago on youtube but i was at speedway getting gas and speedway actually had this video on their screen i was talking about how they let you buy lottery tickets with credit cards and i went in because i needed to get a pack of gum and there was a lady there who was frantic who was freaking out because her credit card got rejected when she was trying to buy like 150 worth of lottery tickets she was buying dozens and dozens of lottery tickets because this was her kind of hope of becoming successful spending all your money on lottery tickets or financing this lottery tickets is gambling and it's a straight path to broke not only are you not going to win but now you're going to be spending all your future paychecks paying off these bad decisions wealth is a long-term game and if you really want to know the secrets to not being broke and the secrets to becoming wealthy there's five things that you need to understand these are the five things you have to understand first you got to stop living in a net zero life second you gotta avoid the money traps that are out there third you need to know how to grow your money and grow your wealth faster fourth you gotta stop living in this game of the fake flex and five you need to understand the game of how money works these are the five things i'm going to be going over in this video so make sure you watch this video until the end first let's talk about living this net zero lifestyle because this necessary lifestyle is keeping the majority of people broke and it is holding you back from becoming wealthy the way it works is like this the majority of people think okay i have a hundred dollars in my bank account right now and if i have a hundred dollars in my bank account that means i can go out and i can spend a hundred dollars on a pair of shoes because i have a hundred dollars on a bank account if i have a hundred dollars i should be able to spend a hundred dollars this is net zero thinking because if you have a hundred dollars you can spend a hundred dollars this mindset kills people's wealth because if you have a hundred dollars you cannot afford to spend a hundred dollars this is why i keep saying that your income is now what determines if you're going to become wealthy or not and your income is now what's going to determine if you're going to live broke or not it's what you do with your money if you make a hundred thousand dollars and then you spend a hundred thousand dollars guess what you're broke if you make twenty thousand dollars a year and you spend twenty thousand dollars guess what you're still broke the very first thing you have to understand is you are not allowed to spend every dollar that you have because some of your money needs to be saved to protect you from emergencies and some of your money needs to be invested to help build your wealth okay if you have a hundred dollars in your bank account you cannot afford to spend a hundred dollars this becomes even more true if this money that's in your bank account is not yours so when i was in law school i had this friend or acquaintance rather that was in my law school with me and i was talking to him one day about what his plans were for the evening and then he told me that he was going out to buy a really nice umbrella i thought it was kind of funny that his evening activity was to buy an umbrella but i understand it because you know we're in a rainy area and it's not fun to go walk around when it's wet outside so i told him that i bought my umbrella from home depot when i paid like five dollars from it and he told me now remember this is when we were in law school okay he did not have a job he told me that he wanted to go out and buy this really fancy 400 umbrella he showed it to me on his phone and i was like 400 for an umbrella who spends 400 on an umbrella and he told me that he had this extra cash from his student loans in his bank account so he wanted to use this money to buy and invest in this umbrella so when he goes to these attorney interviews he's going to look really fancy with his 400 umbrella in his hand that is net zero thinking on steroids now you assume oh i have four hundred dollars in my bank account even though this money is not yours this is money from the bank and you feel like you need to spend this money because this cash is in your bank when you live this lifestyle of spending every dollar you have in your bank whether it's your money or someone else's money it's even more expensive when it's someone else's money but when you have this need to spend every dollar you have on things that don't make you money like an umbrella you are going to be broke the solution to this net zero thinking is to create a system where you are not allowed to spend all the money you have you have to create the system where you know that you have to live below your means this is where a rule of five comes into play a rule of five says if you cannot buy five of them you cannot afford one of them so if you have a hundred dollars in your bank account and we're talking about things you don't need to survive if you have a hundred dollars in your bank account and you want to go buy something you can only afford to buy something that costs twenty dollars because if you have a hundred dollars in your bank account this twenty dollar thing is what you can afford to buy five times over so if you cannot buy it five times you can't afford to buy it one time second let's talk about money traps to avoid because the majority of americans are broke and will never build wealth because they're spending money they don't have on things they don't need which will never make them any money sometimes this is obvious like i just gave you that example of the person i knew in law school who had money from student loans this money was not his this is the bank's money that he spent to buy an umbrella right but sometimes this money trap isn't so obvious when the majority of people say that they can afford something what they actually mean is i can make the monthly payments but that's very different than being able to afford something the simplest example of this is your cell phone okay your thousand dollar cell phone that you have in your pocket so many people are financing this phone on 20 30 40 50 monthly payments because they cannot afford to pay a thousand dollars for a phone so they think oh i can afford this phone because i can pay fifty dollars a month with zero percent apr financing so i'm not paying any extra money and interest and i can afford this phone right but this is a money trap what happens when you finance something that you can't afford that you don't have the cash to buy up front well now you're going to be paying this 20 30 40 50 a month for the rest of your life because every year you're gonna get into this trap of buying a brand new phone and then secondly you never have the pain of this money leaving your wallet you think that you just bought a thousand dollar phone but you never had the pain of a thousand dollars live in your wallet all you saw was fifty dollars leaving your account every single month and so you think now oh i bought this thousand dollar phone and it's only costing me 50 a month so let me go and buy this 2 000 laptop that you can't afford but it's only 85 a month so now you buy that and then you buy the sofa that you can't afford because that's only 75 dollars a month and now you're spending money on things that you can afford because you think you can live way up here but you can actually afford down here you thought you were being financially smart about paying zero percent apr but you just got played because now you're spending more money on things that you don't need because you never had the pain of money leaving your pocket in the first place the reason zero percent apr is so profitable for businesses is because when you buy things with zero percent apr you never have the pain of money leaving your bank and so now you can buy a whole bunch of things that you didn't know that you can afford because you can't actually afford it all you think you can afford is the monthly payments there's a difference between being able to afford a smartphone and being able to make the monthly payments there's a difference between being able to afford a brand new car and being able to make the payments you need to start being able to afford the things you buy not just making the monthly payments the goal with the first two things that i talked about not living at zero and avoiding money traps is all so you can grow your money and your wealth faster if you follow the first two things that i just talked about you avoid net zero you avoid these money traps what you're going to see happen is all of a sudden you're going to find extra money in your bank account out of nowhere now what you want to do with this extra money is you want to put some of it to work that way you can grow your wealth faster there's two terms you need to understand assets and liabilities i've talked about this before so if you haven't subscribed to our youtube channel yet make sure you do that but what you need to understand our assets are things that put money in your pocket liabilities are things that take money away from your pocket your 400 umbrella your shoes your lottery tickets all these things are liabilities if you're spending money on something and it's not putting money in your pocket or if you're not buying it for the sole purpose of making money it's a liability the interesting thing about liabilities though is liabilities make you look rich right when you go out and you buy a fancy new wardrobe you buy new shoes you buy a new purse you buy a new cell phone you buy a new watch all this stuff makes you look rich and so this is what broke people do broke people spend all their money on liabilities that way they can look rich but they're actually just product rich you look rich but you're actually broke because you have no assets if you want to become wealthy you got to flip this around you need to start spending more money on assets which are things that pay you for owning them and then once you have more money coming in then you can afford to buy these liabilities the first time i really understood this concept of assets and liabilities was when i first started investing in real estate i was running this event planning business and i had money in my bank account and i really wanted to buy this bmw it's the 3 series and i really wanted to buy a 3 series because it looks sweet and it would look really cool with my image but then for some reason i was reading books and every book talked about how wealthy people owned real estate i had no idea what real estate investing was i didn't grow up with real estate investing family members but i decided you know i wanted to try this out so instead of using my money to buy a car i ended up buying a small little condo this condo as soon as i bought it about a month later after renovating it i rented it out for 600 a month and after paying all expenses i was left with 250 a month in profit every single month and i didn't have to physically do any work to get this 250 a month this was passive income i was getting because i spent my money buying an asset instead of using my money to buy a liability which was a car assets are things that put more money in your pocket these are the things you need to buy if you want to build wealth liabilities are things that make you look rich but they keep you broke so now if your goal is to become wealthier faster you got to spend less money here and buy more assets aggressively and it doesn't have to be a ton of money to start you can start with five dollars a day or five dollars a week or twenty dollars a week whatever you have you just got to make these small incremental investments that way you can buy these assets and build your wealth faster the reason it's important for you to be buying these assets instead of just keeping your money in your bank account is because at the end of the day when you're working to make money you physically are working to make money when you save money your money is just sitting like this it's flat your money isn't doing anything the amount of money you have in your savings account today is going to be the same amount of money you have in a year of something you don't take any money out or put it in right so if your money is in your savings account it's just sitting there but you can't physically always be working right you want to live this life where you have other sources of income coming in this is where assets come in when you invest your money you can see your money grow like this it grows quicker than your money in your savings account and it grows without you physically having to earn this money you're using your money as a tool kind of like a magnet to go out and attract you more money and if you want to attract more money you need to be buying more assets the more money you put in here the more money you're going to get back a simple rule of thumb to help you out with this if you want to build more wealth faster is to follow our five to one rule which says for every five dollars you spend on liabilities spend one dollar buying assets if you spend five dollars at chipotle spend one dollar investing in chipotle if you spend a hundred dollars at amazon spend 20 investing in amazon now if you do want to learn more about money management and investing like this that way you can grow your wealth faster we have a free ebook of money management and investing that you can read for free when you sign up for our financial education emails which are also free you can get a free ebook and start reading our financial education emails by clicking the link up here or by clicking the link in the description below by the way our financial education emails are separate from our financial news emails fourth you gotta stop living this fake flex lifestyle we're living in the day and age of social media where people live their lives based off of what they see on instagram look more than half the stuff you see on instagram is fake there are people that are going into debt to finance the perfect instagram page because people are going into debt borrowing money to buy things that way they look cool on instagram this has turned into a game of chicken where people are competing against each other to see who can go bankrupt first just because somebody has something doesn't mean they can afford it okay remember the things that we talked about in this video the majority of people are broke just because your friends are showing off the things that they just bought doesn't mean that they can afford to buy those things life doesn't have to be a competition these big companies want it to be a competition because they know that if all your friends are competing against each other on what you own you're going to be spending more money at these companies but it doesn't have to be a competition you don't need to go out and spend all your money and make every company around you rich use your money to build your wealth first this brings me to number five you gotta understand the game okay everybody in the world is after your money okay this does not mean that businesses are evil or that they don't deserve to exist this is just how the game works businesses want your money apple wants you to buy their airpods lululemon wants you to buy the leggings chipotle wants you to buy the extra guac what you need to do is create this filter okay the whole world is asking you for your money what you need to do is have this filter in place that way you know what is worth spending money on and what is not spending money on because right now what the majority people do is they don't have this filter when they see something they like they just spend their money they don't have this filter you need to know what's worth spending money on and what's not worth your hard-earned money the goal is not for you to live small for the rest of your life okay the goal is for you to live bigger and expand your means but the only way you can do that is if you have more money for yourself that way you can invest more money into yourself that way you can have more money attracting you more money and when you have that that's when you can go out and live a bigger lifestyle you can buy the nicer things you can have the nicer car you can have the bigger home but in order to do that you need to make sure you can afford it first that way you're not stressing about the payments the goal of the game is to become wealthy that way you can buy all the nice things you want without worrying about the price but you can never do that if every time you make a book it's constantly just going out you need to know when it's worthwhile for you to part with your money but this also goes both ways because once you understand the game and you understand how money works that's when you're going to want to fuel your financial system because now you understand okay i need to use more of my money to buy assets investments which are things to pay me and if you really want to ramp that up then you're going to need more money coming into your financial system that way you have more money to invest and you have more money to grow your wealth faster and the only way you can do that is to come onto this side of the equation the producer side of the equation and learn how to create more income this is going to depend on what you like maybe you're just going to work overtime at your job you're going to try to get a promotion you're going to try to get a raise that way you can earn more money for some of you this might be starting a side hustle maybe you have a side cake business maybe you become a freelancer you just have this thing on the side that you do to earn more money that way you can build your wealth faster and for some of you with the entrepreneurial bug this is the opportunity for you to go out and understand how to create value that way you can create a product that people need that improve people's lives the name of the game is not spending money whenever you can and then trying to find steals or deals that are not actually deals one time i was at the mall before this whole pandemic happened and there were these two girls in front of me in the line to check out and the cashier asked them would you like a store credit card because you're going to save 15 off your order i forget which store this was now maybe it was macy's or jcpenney and these two girls were like yeah that would be great and then the cashier starts looking up the credit information and these girls were literally praying that they would get approved for the stroke credit card and when the cashier came back and said that you're approved they literally started dancing with joy right when you have that you are just being bombarded with these places these companies that want your money and you're just giving it to them as soon as you have the opportunity you got to stop living like that you need to understand the game that way you can keep more money for yourself and build your wealth first before we get into the next clip if you are interested in learning more about how you can manage your money the right way that we can build wealth have a financial system and invest your money our team put together an amazing guide that walks you through how to do this you can download this guide for free when you sign up for a daily newsletter and you can do that by clicking the link up here or by clicking the link in the description below knowing how much money you need in order to live financially free is one of the most important financial questions you can ask yourself i got my handy-dandy whiteboard because today i want to go over how far a million dollars can actually go how you use your million dollars is going to depend on a couple of different things it's going to depend on how you spend your money and it's going to depend on how you actually use your million dollars so let's start by talking about you using a million dollars to live a million dollar lifestyle if you want to go out and live that millionaire lifestyle then you're probably going to keep this million dollars in cash in your bank that way you can access it very easily and now what you're going to do is you're going to go out and you want to look good on instagram so you're going to buy yourself let's say a half a million dollar house with cash that we don't have to deal with any mortgage payments and then you're gonna buy yourself a nice 200 000 maybe an audi r8 a nice super car you're gonna go on a few vacations so there's a plane looks like a plane and in a couple years you are going to be broke so if you want to live the instagram flexing lifestyle then the million dollars is not going to last you very long this should be pretty obvious if you're subscribed to a youtube channel you understand that it doesn't really matter how much money you make that matters it's what you do with the money you make even if you have a million dollars you can go broke almost instantly if you don't know how to use your money the right way and if you're not subscribed to a youtube channel you should do that but this is why so many high-paid athletes and so many high-paid lottery winners end up broke so quickly it's because you make a ton of money but you don't have any financial education so what do you do when you make a lot of money you blow it now when you blow all this money you have you have a bunch of nice things but you have no money left this is the majority mindset way of spending money you make a ton of money and then you blow it on a bunch of nice things that make you look rich but they keep you broke and so this is going to be a big no-no when you make a million dollars now don't get me wrong i want you to own a nice home and i want you to drive a nice car and i want you to go on nice vacations but i want to make sure you can afford it that way you have cash to live your life financially free so let's go into the second way that you can use your money now let's assume that you have this million dollars but you're conservative you don't like the whole idea of investing your money because you don't want to throw your money in the stock market and see this million dollars get sliced in half if the stock market crashes so you want to be safe and you just put this money in the bank this is how i grew up learning about money i grew up in a traditional indian house and indian people love saving money it is like in our blood and so indian people make a dollar to spend 20 cents and save 80 cents well in the american culture it is very common to make a dollar and then spend 1.20 with lines of credit and credit cards and loans and so indian people are born with a saving mentality and so what do you do you make money and then you save as much money as possible and you don't want to invest it because investing is risky and so you build this huge savings cushion that way you can live wealthy now saving your money is better than blowing all of your money on nice cars and clothes but it doesn't give you the full potential of your money because your money is just sitting there flat and is getting eaten away by inflation i already made a video where i talk about if you can get rich by being cheap so if you want to learn more about that i'll link it for you in the description below in the financial world there is something called the four percent rule which says you take your savings and investments and you add it up and then you live off of four percent of that a year and you adjust it for inflation so in this example i'm going to take a modified version of this four percent rule and say that you want to live off of just forty thousand dollars a year which is four percent of your million dollars you saved up in cash if you live off of forty thousand dollars a year then this million dollars is going to last you 25 years because now you're not investing your money this million dollars is just sitting in your bank account and every single year you're just gonna draw out forty thousand dollars so january first every year you draw out forty thousand dollars and you live off of the forty thousand dollars for twelve months if you continue to do that you will be able to live off your million dollars for 25 years after 25 years you're not gonna have any more money i'm assuming for the sake of this example that this million dollars is just sitting in your bank account and it's not growing at all because right now savings accounts are not paying you anything so if your million dollars is not growing and you're just pulling out 40 000 a year then you will be able to live off this money for 25 years and you will be living a 40 000 a year lifestyle but this doesn't factor in inflation because as you know the value of our money doesn't stay the same that's why a hundred dollars today can't buy as much as 100 could back in 1970 because our money is slowly losing value over time because of inflation now if we factor inflation into this and now you're not pulling up forty thousand dollars every single year you pull up forty thousand dollars this year and then you pull out a little bit more money next year and then a little bit more money after that by factoring in a two percent inflation rate now you're not going to have enough money to live off of this million dollars for 25 years you're gonna have enough money to live off of for 21 years so if you want to live a 40 000 lifestyle then you can expect this money to last you for 21 to 25 years depending on what inflation is if you have a million dollars now if you want to live a hundred thousand dollar a year lifestyle you can just adjust the numbers so if your goal is just to save your money that you can draw cash out of well now you can do the math to see how long this money is going to actually last you now this time instead of saving your cash let's say you have the minority mindset where you invest your cash and you want passive income so you invest your money in the stock market for dividends and i'm going to give you two different scenarios scenario one you invested in mcdonald's mcd or you invested in ibm so scenario one you invest all million dollars into mcdonald's and scenario two you invest all million dollars into ibm now look i am just a random guy on youtube okay so don't blindly listen to anything i say and make sure you do your own research i do not recommend that you take all lubricash and throw it into one stock just because of the dividend this is just a hypothetical some companies in the stock market like mcdonald's and ibm at the time we'll be recording this video make a lot of money and at the end of the year they have a whole bunch of cash in their bank account and they just don't know how to invest all this money back into their business and so what they do is they take this cash and they just give it away to their investors people like you who invest in their stock so if you go out and invest in one share of mcdonald's or one share of ibm then you will get these passive income checks called dividends deposited directly into your account at the time of me recording this video mcdonald's pays a two and a half percent dividend which means if you invest a million dollars into the mcdonald's stock you will make 25 000 a year from your mcdonald's investment ibm on the other hand pays out around a five percent dividend yield right now which means if you invest a million dollars into ibm you will make 50 000 a year in passive income from dividends so you still own your investment but every year you're getting a check from mcdonald's or from ibm for doing nothing except just owning their stock so you don't have to sell your stock to get these dividend checks you just own the stock and then every three months every quarter you are going to get a check from mcdonald's or ibm before you go out and start living this 50 000 or 25 000 a year lifestyle from your passive income remember the government wants their cuts so you got to pay taxes luckily dividend income has a lower tax rate because the government wants to incentivize you to invest your money and get this type of passive income so they reward you with lower taxes if you make between zero and forty thousand dollars a year in taxable income at the time of recording this video you have to pay zero percent of your money in taxes if you make between forty thousand dollars and four hundred and forty one thousand dollars a year in taxable income then on your dividends you have to pay fifteen percent in taxes and if you make more than four hundred and forty one thousand dollars a year then you are paying twenty percent a year in taxes on your dividends at this point you might be thinking why in the world would anybody want to invest in mcdonald's where you can only make a two and a half percent dividend when you can invest in ibm and make a five percent annual dividend well there's a little bit more to what meets the eye over the last two decades or so the price of ibm stock has stayed pretty much flat and over the last decade the last 10 years ibm stock has actually come down about 10 percent so if you invested this million dollars into ibm it hasn't really gone anywhere and if anything if you invested over the last decade it has come down even though you're making more money in dividends here with mcdonald's on the other hand the price of the stock has gone up five-fold over the last couple decades and over the last decade the price of the stock has doubled so if you invested this million dollars into mcdonald's a decade ago this would be worth about two million dollars and if you invested into them five years ago this would be worth about five million dollars even though your dividends aren't as big so you have to understand there's a little bit more to what meets the eye because there's more to investing than just the dividend price which is why you do not want to make your investment decisions based solely on this dividend percentage you want to look at the underlying fundamentals of the company and you want to make sure you're investing in a company that's growing that you believe in for the future because if you do that then you're going to make a whole lot more money than just this dividend price now past performance does not predict the future performance in any way but i just want you to understand this because if you invested a million dollars here versus a million dollars here then you are going to make less money and passive income for a little while here but you could also pull some of your stock out and sell some of your stock and have some cash and still see the stock growth and still see the value of your million dollars grow while having more cash in your hand in any case with both of these examples you have income that you can use to live off of every single year and you also still have this million dollar nest egg now if the price of the stock goes down the value of your investment will go down too but in general you still have a big chunk of your investment just sitting there invested in one of these companies and you also have passive income that you can live off of without selling any of your investment the third thing that you can do with this money is you say you know what i don't want to invest my money for dividends i want to invest my money in the stock market to see my money grow but i don't know which stock to put my company in so i'm just gonna put my money in the stock market and if the stock market goes up my million dollars will go up and if the stock market goes down well i will take that risk and now what you're planning on doing is taking out a little bit of your profits every single year or taking out a little bit of your equity rather every single year and if you have profits then that's just icing on the top now instead of just keeping your money in cash in the bank you're putting your money to work by putting it into something like vo or spy these are two funds that give you exposure to the broader stock market vo and spy both give you exposure to the top 500 companies in the stock market so now if the stock market goes up your fund will go up and if the stock market goes down your fund generally goes down you can draw cash out just like you could in the bank but now you have a little bit more risk because if the stock market goes down the value of your million dollars will go down too to put some numbers on this for context in december of 2010 voo was trading for around 110 dollars a share and spy was trading for around 125 dollars a share then in december 2020 one decade later voo went from 100 share to around 340 a share and spy went up to 375 a share so both of these funds saw right around a 300 increase over one decade between december 2010 and december 2020. what this tells us is if you put a million dollars here or here in december 2010 you would have something around three million dollars over here but the issue with that is that you don't have any money to live off of for this decade so if you live off of six percent of your income now so meaning in 2010 you take 60 dollars out so now you have nine hundred and forty thousand dollars to invest and you put it here or here you would still see a profitable growth that means now you're not taking a four percent like i talked about before you're taking out sixty thousand dollars or six percent of whatever your pool is every single year and you're still seeing a profitable growth because you're seeing more than a 10 growth on your money year after year after year so you're pulling out six percent but your money is growing by 10 so although you're taking out more money than before your money is still growing faster than what you're pulling out in this situation you have a couple benefits you get to pull out more cash than you did before so you can live a bigger lifestyle and you still have your nest egg and your nest egg is growing on top of that before when you just saved a million dollars every time you pulled money out your nest egg grew smaller so you had less and less cash available now you're pulling more money out but your nasdaq keeps growing bigger now i know you're probably thinking but just breathe just because the stock market went up in the past doesn't mean it's going to continue to go up at the same rate in the future you're 100 right maybe the stock market will go down maybe it will stay flat maybe it will go up faster than this maybe you'll go up slower than this there's no way to predict that but this is the risk you take from you investing your money and that's also why more risk comes with more potential reward now i should also mention that when you pull out cash in this situation when you sell your stock and you have a profit you have to pay taxes on your profits that doesn't mean you pay taxes on every dollar you pull out because some of this money this million dollars is yours so when you pull this million dollars out you don't pay any taxes there's lower tax rates that i talked about earlier if you don't like the idea of owning these paper investments like stocks and you want to own a tangible physical investment that you can see that will pay you passive income then you can look into investing in real estate so real estate is my favorite investment class just because i like the idea of creating passive income through owning a physical asset i'm trying to draw an apartment complex here so bear with me i hope that looks like an apartment but when you buy an investment like real estate now you own something physical that you can see feel and touch like this property and now what your goal is is to own this property and put tenants people into this property who are going to live there or use your property and in exchange for them using your property they're going to pay you rent every single month so you don't have to do any physical work to earn this income because once you own the asset you can hire a management company or a property manager to do all the physical day-to-day work but you will get this passive income every single month because people are living in or using your property and for them to do that they have to pay you rent when i invest in real estate my goal is to get a minimum seven percent annual return on my money so if you invest a million dollars into a property let's say you buy a small apartment complex then my goal would be to make 70 000 a year in passive income profits after paying all your expenses from owning this property so after paying all your expenses you should be left with 70 000 in your bank account at first glance you're making the most money here but don't forget about taxes because you got to pay taxes on your income now as an attorney i can tell you that real estate has a bunch of legal tax loopholes that you can use now although i am an attorney i am not your attorney so if you have specific tax questions make sure you talk to a tax specialist in your area now what you can do with real estate here is you could to tell the government hey yeah i made seventy thousand dollars but i don't want to pay taxes on all seventy thousand dollars because my property is a year older and so what you get to do if you have a million dollar property is you get to take a 25 000 deduction every single year for the next 30 or so years because the property that you own is just one year older and so you get to tell the government i'm only gonna pay taxes on forty five thousand dollars even though i made seventy thousand dollars because you get to take this deduction called the depreciation deduction every single year for just under 30 years because you are investing in real estate and that's just one of the loopholes you get for investing in real estate so if we calculate this out if you tell the irs that you made 45 000 in income from your real estate property you're gonna have to pay around five thousand dollars in taxes because you don't have to pay social security taxes or medicare taxes you only have to pay your income taxes which means you are going to be left with right around sixty five thousand 000 you made 70 000 you only pay taxes on 45 000 and you will be left with about 65 000 that you can use to live your life and you still own this million dollar property now there are some other bigger loopholes that you can use in real estate to lower your taxable income even lower but i'm not going to go over all of that in this video hopefully you'll see a property value go up which will add some icing on top of this passive income but when i analyze my real estate investment deals i'm looking at this the passive income i'm not looking at what potential value this could go up to because i just want to see how much money i can make every single month as a quick little tip on this real estate does have more risk because now you have to physically manage this property and deal with tenants and work with property managers and work with real estate agents and work with contractors so there's more upfront work acquired and there's more of kind of like a skill set required because now you're not just investing in a company like mcdonald's and ibm and letting them handle the investment you are the one managing your investment here so now if we really analyze how far a million dollars can take you it depends on how you use your cash if you just save the million dollars that means you will be able to live off of let's say 40 000 a year and you have 21 to 25 years of money after the 21 to 25 years your money is gone and you have no money left if you invest this money into dividend paying stocks like the mcdonald's or ibm that we discussed then you can expect to make somewhere between twenty five thousand and fifty thousand dollars a year to live off of based on today's numbers and this will last you as long as the company is strong because now you're owning an investment that will continue to pay you dividends as long as the economy is strong and as long as the company that you're investing in is making money if you invested this money into an index like vo or spy that gives you exposure to the general stock market then we're talking about something like 60 000 a year based off of the historical numbers that we saw and again how long will this last well as long as the economy is growing and the stock market is growing these come with more risk than this but there's more potential to make more money and if you invest this money into real estate then hopefully depending on where you live you should be able to make about seventy thousand dollars a year in passive income again these are all pre-tax numbers and how long will this last you well it depends on how good the area is that you invest in if the location continues to thrive then you will be able to make money from that property for generations but if the area that you're investing in starts to tank and people move away then you might not continue to see the same rental income that you're seeing right now [Music] if you're like most people you grew up and told that if you want to become successful you got to go to school get a good degree get a good job work really hard at your job save some money in your 401k and then you will be able to retire wealthy or at least hopefully financially free or at least be able to retire i always wanted to be financially successful my parents are immigrants from a state in india called pujab and i saw how hard they worked and so i wanted to be financially successful that way i could give back to my parents and i could take care of my family because i saw the hardships and the struggles that they went through but i started to look at things differently than what everyone said that you should do when one day i was in college and i was sitting in the library and i was like you know let me just take a look at the fourth richest person list and over there you know you have people like warren buffett mark zuckerberg bill gates and i'm looking at these people and what they do and what's interesting is none of these people follow that traditional path that everybody tells you to follow to become wealthy or to become successful now i know not everybody can be the next mark zuckerberg or elon musk or bill gates and build a multi-billion dollar business i'm not saying that's what you should do but there are many ways for you to become wealthy and retire a millionaire that many of us never learn actually a lot of the financial advice that we get from the people around us is the reason why so many people are broke now when it comes to really understanding money there are three main points that i need you to understand that most of us have been completely lied to about money and these are the three things that i'm gonna be talking about in this video but before i do that i need you to do me a quick favor and smash the thumbs up button below the first thing that all of us are taught about money is that money must must be earned through labor and this is one of the biggest lies out there when it comes to money and this is a big reason why a lot of people will never become wealthy growing up this was the only thing that i saw my parents were immigrants like i said and so when you come to a new country with not that much money where you don't speak the language or you don't know the culture you have to hustle to make it work and so my dad had this thing where he would say there's no such thing as sick days because if you take a sick day that means you're not going to work if you're not going to work you're not getting paid if you're not getting paid you don't have money to eat now i was very fortunate i was never poor i never had to worry about where my next meal was going to come from but i really understood the value of working hard because in my mind the more you worked the more money you would make and it was to the point where if my parents had a saturday and a sunday off a whole weekend off this was considered a long vacation but this method of earning money is how we're all taught to earn money here's how it works here's you right here gotta draw you you know a nice mustache or for our female audience draw you a nice braid or as we say in my native language a good so here's you and here is your job and so what do you do you go to your job and every time you go to your job your job pays you a paycheck now if you want to earn more money in the system what do you do well you go and get a good degree or you go and get a certificate you get a master's you become a doctor you become an attorney you become an engineer so you get a better job to get a higher paycheck but at the end of the day it's still labor sure maybe it's not physical labor but you're still working you go to a job every single day to get this paycheck if you have a better job you make more money but this is where kind of one of the disconnects are about money because yes you can make money here but this is not the only way to make money because this is one of the biggest misconceptions that i had because i always assumed that if you wanted to make money you had to go to a job you had to do a task you had to do some work in order to get paid but it doesn't work like that wealthy people and rich people do not make money in the system sure maybe that's how they started off or maybe this is how they attract some money but that's not the only way they make money what every single wealthy person does is they understand that they do not want to earn all their money through their labor because there's a limit to how much you can work there's a limit to how many days you can work there's a limit to how many hours you can work and so what they do is they take this money right here we'll call this your e i your earned income this is money that you have to go work to earn and now they're going to make this money and they're going to put some of this money aside right here and they're going to take this money and they're going to put it to work somewhere else for their pi passive income because there's a difference between your earned income where you have to go to a job or we have to go to your business where you have to do something to earn money and your passive income where your money goes out and makes you money this ei this earned income right here is not going to make you rich i don't care what job you have i don't care if you're a doctor you are never going to become rich just with your salary right here what you need to do if you want to become wealthy this is whether you're making 25 000 a year or two and a half million dollars a year is you got to take some of this money aside and you got to start putting it towards your passive income this is what wealthy people do wealthy people take as much of this money here and they put it here because they understand that this is not going to make you rich because it doesn't matter how much money you make as soon as you stop working the money stops coming in and so if you look at really what becoming wealthy is wealthy is how much freedom you have here it doesn't matter if you're running a business or if you have a job it doesn't matter because now if you stop working you stop getting paid now this is assuming that you don't have a big business where you don't have to work in there to get paid but if you have a small business or if you're working a job you have to work to get paid now what you got to do is you got to take this money put it here that way now you're getting paid even if you don't go to work even if you don't do a specific task and this is where real wealth is built when i realized this concept that was when i changed my life completely at least financially because i stopped working just for this before anytime i made money i'd want a nicer car i'd want to upgrade my car i'd want a new watch i'd buy all these nice things but when i realized that my money could fund my lifestyle not just by making money and spending it but by making money and using it the right way by buying investments assets real estate stocks things that pay you then i started changing what i did with my money instead of buying cars and watches i started buying real estate and these were things started paying me with cash flow and so what i understood was if i made enough money here from my passive income then i could fund my entire life without making any money here so it was a big shift in my mind and this is where a lot of us are never taught that you can make money outside of just your job in most of our minds we think okay if we want to make money what do we do well we can get a job we can start a business but both of these are going to require a lot of work on your part and if you don't work you don't get paid but you have to get paid even if you don't work if you want to become wealthy the way you do that you get paid whether it's from your job your business whatever you get paid you have to put money here now i'm not going to be getting into investing and how you do that in this video because i got other things i want to talk about but if you do want to learn more about how you can start investing in real estate for cash flow i already made a video where i explained all that and i'll link that video for you in the description below this system is why you have some doctors that are broke and you have some people making 30 000 a year that retire wealthy because when you live off of this you will never be able to build wealth but when you work to grow this so you can live off of this you will become wealthy and so what you want to do is stop living off of this and start living off of this the second wrong thing that we're all told about money is that money is evil or some sort of variation of this like in my house money wasn't something that we really talked about because in my culture you don't really talk about money in that way like it's just kind of something that you just kind of assume is going to be okay you don't talk about money so at the same time when i was growing up my parents always told me that if i wanted to become successful i should become a doctor but we never talked about money management or investing or saving because these things were kind of just bad and distractions so we never talked about money and anytime i did i was always told don't worry about money it will be okay once you are a doctor but here's the thing in my culture i'm going to keep it just completely real with you in my culture we don't talk about money but at the same time we have so many people drowning in debt we have so many people that don't understand how to spend their money we have so many people blowing their money on nice cars but now do not have any money for their investments we have so many people blowing their money on the wrong things and do not have a way to afford a decent lifestyle or afford a good education for their kids and so we have all these kind of like confusions and the way that people use their money and it all comes down to this because we are scared to talk about money but the reality is we have to start talking about money that way we can start being good with our money that way we can start building wealth for ourselves instead of making everybody else around us rich and the unfortunate thing is the media does not help with this the media especially nowadays we really start to see this kind of like divide between the rich and the poor and anytime you hear people talk about someone rich or a corporation or whatever on the news is always portrayed as this evil person right because rich people are evil in the media but the thing that you have to understand is money at the end of the day does not make you a good person money does not make you a bad person money is just a tool okay it does not make you bad it does not make you good it is a tool that you can use to take better care of your family it's a tool that you can use to take better care of your parents it's a tool that you can use to take better care of your spouse it's a tool that you can use to take better care of your community we live in this culture right now where people hate rich people why because they're rich and this is where we have to kind of start breaking out of this mold and take a step back and say why are we thinking like that why do we think this person's rich because they have become successful maybe instead of us hating on success and this richness or whatever you want to call it how about we figure out how this person became successful so we can do it too because being broke has never helped anyone period okay you can help more people if you have money money is just fuel it amplifies what you do if you want to feed hungry people having a million dollars can help you feed more hungry people if you want to do more community service sure you as your person can do that but if you have a million dollars with you you can do a whole lot more community service okay so money is just fuel it doesn't make you a good person doesn't make you a bad person it amplifies who you are it allows you to do more of whatever it is you want to do i realize i never change this one to a two so let me do that right now look at the end of the day money is just one part of your life and yes there are things that are way more important than money like you got to be physically healthy if you're on your deathbed it doesn't matter how much money you make because if you're about to die or even so obese where you can't live your life it doesn't matter how much money you have you've got to be mentally healthy if you're depressed or you have all this anxiety so you cannot even live your life it doesn't matter how much money you have if you cannot live happily you have to have spiritual health that doesn't mean you have to be religious when i say spiritual health i mean you got to have a purpose in your life you got to have a reason to get out of bed in the morning if you don't have a reason to get out of bed you can have 10 million dollars in the bank but it doesn't mean anything because you don't have a purpose to your life once you have the physical fitness the mental fitness and the spiritual fitness now is when being financially healthy is the most beneficial but this is where everyone gets things screwed up because everyone says money doesn't buy happiness so don't worry about money yeah money is not going to buy you happiness but being broke is not going to make you happy either money can help buy you the things that you want to do that way you can do things that make you happy and money can buy you freedom but you got to understand where money plays a part in your life and when you just put up the smoke screen by saying things like money is evil so you don't got to talk about it now you're just ignoring the issue and you're living in fairy tale land and this brings me to number three and for the purposes of this one i'm gonna call this our dollars money the third thing you gotta understand which is one of the biggest lies that we're told is that this money is real money when i was growing up i had never heard of the word investing no one in my family was a real estate investor no one in my family knew a real estate investor and so for us in our household money management and being financially smart was working hard at the job working as hard as possible and then saving as much money as possible and so you work hard save as much money and what do you do with the savings you let those savings sit in the bank you know i've joked around about this before because there's a lot of difference between the traditional indian culture and american culture because in the indian culture people make a dollar to spend 20 cents in the american culture people make a dollar to spend two dollars with the help of credit cards and loans and lines of credit and so in that kind of traditional indian culture we have this kind of like saving bread into our blood and so my parents were the same they worked very very hard and then they saved as much money as possible thinking that it was the financially smart thing to do now it is better to save your money than to blow it at gucci and louis vuitton and buy a whole bunch of nice things but there's so much more to what you can do with your money and the only way you can do that is if you understand what money actually is these dollars right here are just pieces of paper and it only costs 12 cents to print a hundred dollar bill i don't have a hundred dollar bill on me so i'm going to show you 50 but it cost 12 cents to print a 100 bill and so this piece of paper now can be printed as much as the government and the federal reserve wants and as more money gets printed and enters our circulation the value of each dollar that you save and the value of each dollar that you earn now gets diluted so if you were making three thousand dollars a month and more money is printed that three thousand dollars a month in a few years is not gonna have the same buying power that three thousand dollars a month does today because three thousand dollars a month in a few years is gonna be more diluted because of all the dollars now in circulation than three thousand dollars a month does today and so what happens the price of a rent goes up the price of your groceries go up if you want to go on a vacation your vacation costs go up gas prices go up and so the prices of everything around you keep going up while the wages don't necessarily keep up with now the higher cost of living and the higher standard of living the average person's financial advice is work hard make money and save whatever you can and this is the reason why most people will never become wealthy a wealthy person would never follow that financial advice a wealthy person is going to work hard take whatever money they can and invest it and only save what they need a wealthy person is only going to save money for three reasons they're going to save money for an emergency and so now you gotta have an emergency fund this might be three months worth of expenses up to a year's worth of expenses depending on how conservative you want to be and while the person will save for big purchases this might be a home this might be a car and a wealthy person will save to invest their money if saving your money does not fall into one of these three categories you got to do something with that money this goes back to what i was talking about earlier where financially educated people will take their money their earned income and they're going to convert it to passive income well it comes back to this right here too because when you make money and you leave it in your bank account your money stays flat it's dead but at the same time the price of everything else keeps getting more and more expensive so your money in your bank account is dead but everything else keeps getting more expensive so you are effectively becoming poorer and poorer day by day that's why what wealthy people do is they take this money and they convert it to something else they convert it to assets this might be stocks this might be real estate things that now make them more money when you own shares of a stock now you own a piece of a company and this company is working hard to make more money and as the company makes more money so do you because your stock price goes up or you get dividends when you own real estate you own a physical property or if you're talking about crowdfunded real estate or something like that now you own exposure to real estate but we own real estate you own a real piece of property you own brick you own land you own windows and now if a tenant is living there they're going to be paying you rent every single month so you have a stream of cash flow and you have a physical building and so now you have real assets that are worth something because you own shares of a company or you own shares of a building when you own money just cash just pieces of paper you own pieces of paper that are losing value every single day that's why you got to understand why you're saving money after you get past that you got to convert your cash to something real i get it some of the stuff is going to seem really weird and really out there especially if you haven't been exposed to financial education before but this is the reality of what's going on if you are not happy with where you are financially if you are struggling paying your bills if you are struggling paying down your debt if you do not know how you can be financially free it is possible but it starts with financial education and is tough because none of us are taught about money or financial education when we're in school this is where you're gonna have to be the one to go out of your way to learn this financial education and then actually put it to action but lucky for you it is easier now than ever because there's so much information that you can access for free literally on your fingertips and if you're looking for a place you can learn you can subscribe to our youtube channel because we talk about this every single week [Music] you might think that you're the one driving your car but in reality for a lot of americans your car is the one driving you i want to start by going over the real cost of your car so the average new car payment in america is 554 dollars a month this is how much people are paying for a new car right now in america and the average lease payment for a car is 487 a month so i want to be conservative so i'm gonna do all the examples assuming we go with this lower amount there's 487 dollars a month for a car so you have the average person in america making something like a 487 dollar monthly payment on their car which will get you something like a 27 000 car but the interesting thing about this car payment is your car is a triple threat you are paying interest on a car which you have to pay to maintain every single year which depreciates in value what that means is yeah you bought this car as a twenty seven thousand dollar car today but when it comes time for you to sell this car you're not gonna get anywhere near twenty seven thousand dollars cars are liabilities what that means is the longer you own it and the more you drive it the less your car is going to be worth you can compare that to something like a stock or a house which are assets where in general the longer you own this thing the more it's going to be worth cars on the other hand just take money out of your pocket every single month because you have to pay interest you have to keep paying money to maintain it and this car is losing value every single day so you're paying 487 dollars a month and you're getting a car with a heated steering wheel that's pretty cool but if you took that same 487 a month and you invested this money into let's say a low-cost index fund that was paying a 7 annual return so this is not something super aggressive we're talking about an average seven percent return a year after five years this 487 dollar monthly investment at the seven percent return would grow to 36 000 while the value of your car would come down to 11 000 so after five years this is what your money would look like your investment would have been 36 000 but you wanted to heat the steering wheel and so your car is only worth 11 000 so this is what you get if you invest your money and this is what you get when you want heated seats now let's keep going with this let's say you do this for 10 years so after 10 years your investments won't be worth 36 000 they'd be worth about 87 000 assuming you get the same return and your car and your heated steering wheel would be worth about 4.5 thousand dollars if you do this for 40 years now so 40 years your investments would be worth over 1.2 million dollars and your car would be worthless and by this time who knows what's going to be out heated steering wheels might not be a thing then you might have some chip in your hands that keep your hands warm if you have 500 to put towards your heated steering wheel every single month but you don't have 500 to put towards your investments something is wrong and at this point you're probably thinking but just breathe how am i supposed to get to and from work hold that thought i'm going to get to that in just a minute but when we posted this concept on instagram where we said if you invest 400 a month and get a seven percent return you will be a millionaire in 40 years we got two kinds of responses the first kinds of people said oh i don't want to wait until i'm 40 years old to become a millionaire and the second people said where am i supposed to invest an extra 400 a month just breathe let me start by answering the first part but before i do that i need you to do me a quick favor and smash that thumbs up button below because at this point a lot of people are getting triggered and probably smashing that thumbs down button so if you want to help balance that out help me by smashing that thumbs up button below if you're given two choices you can either be a millionaire today or you can be a millionaire when you're 70. i would pick being a millionaire today who wouldn't but the problem is the majority of people are broke today and they're going to continue to be broke or just above broke when they're 70. baby boomers are in their mid 50s and mid 70s right now and many baby rewards do not have any money saved for retirement and if they do have money is nowhere near what they need to retire and live financially free or even something remotely close to financially free so yeah maybe you don't want to wait 40 years to be a millionaire but in my opinion now i know i'm just a random guy in youtube so what do i know but in my opinion i would rather be broke now and rich later instead of broke now and broke later if i can't be a millionaire tomorrow i'd rather be broke forever by the way if you're really concerned about waiting 40 years to build this type of wealth you don't have to wait 40 years there's other things you can do and i'm going to be talking about that in just a minute second people kept talking about how they didn't have 400 to invest in building wealth in their future yeah you have 400 to invest into a heated steering wheel every single month which is a money trap which is keeping you broke which is keeping you from becoming wealthy and actually the average person is paying a whole lot more than 400 a month especially when you start adding in upgrades and premium gas and insurance you're already spending this money the issue is right now this money is going into somebody else's pocket and it's making somebody else rich it is not making you rich so what i want you to do right now is shift where this money is going and put it into your own pockets that way you can make yourself rich first that way you can buy your dream car and not worry about the price okay just breathe how am i supposed to get to work if you're subscribed to our youtube channel you know that i love nice cars if you're not subscribed to our youtube channel you should probably do that but what you might not know about me is that for the last decade or so i have been driving the same beat up 2007 toyota with like 170 000 miles on it the car might be worth a thousand dollars on a good day but it drives just fine there's no issues with the car i mean it has dents and scratches and i got two different rims on the car but it takes me everywhere i gotta go and it's safe and it's saving me a whole lot of money i can't afford to drive a much nicer car i'm not saying this to brag but i make good money i mean tomorrow morning i could go to the car dealership and buy a nice supercar paid them six figures in cash and it wouldn't affect me a bit and you know what i will be driving a nicer car one day maybe even soon i like nice cars but i chose not to spend that money over the last decade because all the money that i haven't been spending on my car has been going towards my investments and growing to build my business i understand that my car is a money trap if i took 200 000 and i bought a nice car tomorrow i would look really sweet and i would have a nice car but the two hundred thousand dollars that i spent on my car is going to be worthless in 40 years and it's actually going to be worthless closer to 10 years if it's a supercar but if i invested this money in my business or an investment i know that i can build wealth with it look i understand that i'm young and i have the power of time on my hands which is why all of my focus is on building not looking sweet and as i get older i'm gonna start shifting it a little bit when you build your pie bigger you can take out a smaller chunk and live a whole lot nicer if you're worth 10 million dollars and you take out just one percent of it to drive a car you're gonna drive a much bigger car than if you're worth a hundred thousand dollars and you took out ten percent of that to buy yourself a car most people are not going to understand this that's why i call it the minority mindset because we think different than the majority of people most of my friends are always joking around by my car but the numbers speak for themselves car companies spend 35 billion dollars a year to sell you the idea that if you drive a nice car you're gonna have a great life you're gonna have an awesome family and your neighbors are gonna be jealous of you but what they don't tell you is the real cost of your car because the cost of your car isn't just 400 or 500 a month the real cost of your car is your future wealth i'm not saying don't own a car don't drive a nice car i want you to drive a supercar i want you to drive that luxury car i want you to drive something nice but i want you to be able to afford it first that way you don't got to worry about the price and that way you're not sacrificing your future freedom you need a car i get it what i'm saying is do you really need a car that's costing you 400 or 500 a month what i'd rather have you do is go out and buy a used but good working condition car with cash that we don't got to worry about the monthly payments and now you got a car that takes you from where you got to go and you got the extra cash in your pocket that can build your wealth leasing is almost never the smart financial decision so these things should be completely out of the question unless you are worth at least a million dollars financing is never the smart financial decision when it comes to buying a car because when you finance you're paying interest to own a depreciating liability cars don't make money they lose you money and if you have to pay interest to buy something that is losing your money you are losing money twice you're losing money in the value of the liability because the car values going down and you're losing money by paying interest to own something that is losing your money buy used use your extra cash to build wealth and now when you have this wealth go out and buy whatever car you want it doesn't matter because now you can afford it and the price doesn't even matter to you earlier in this video i talked about how you can build this wealth faster than waiting 40 years to do that now we talk a lot about this on our website the minoritymindset.com and i will also link an article for you up here and in the description below but there's two things you can do to amplify this process you can either invest more aggressively that means put in more than 487 a month or you can grow your money faster if we're talking about investing more money then you can either cut more expenses that way you have more money to spend or you can raise your income that could mean looking for a new job or asking for a raise or getting a good promotion if you have more money then you could put more money towards the investments that way you can build your wealth faster or the alternative is growing your money faster than seven percent a year i said this seven percent a year because this is a completely passive investment if you went out and you threw your money into a low-cost index fund which is a fund that gives you exposure to the stock market now you're not doing anything you're just throwing your money into this fund and you're letting the stock market do its thing this is where people say oh where are you ever going to see a consistent seven percent return on your money every single year and yeah you're right you might not see a seven percent return every single year one year you might see four percent one year might see five percent one year you might see negative two percent but other years you might see eight percent nine percent ten percent and so over the long run this is what we've seen on average in the stock market if you want to beat the seven percent return it's very possible but it's not going to be as passive this is a passive investment where you're just throwing your money into something and then you're walking away and you don't do anything and you just let your money grow if you now invest your time along with your money you can grow your money a whole lot faster there's a few different ways you can do that to get the better returns one way is to be more active in the market so now you're trying to find growth companies and you're actively trading them that way you can get a better return it comes with more risk but it also comes with the opportunity to make a better return or the alternative to that is you can start your own side hustle because now you're investing your money and your time into this thing the side hustle that can grow way faster than seven percent a year if you took a thousand dollars and you went out and you started a side hustle the side business there's a chance that you can make the thousand dollars back within six months that's way better than the seven percent return and if you continue to grow it that one thousand dollar investment that you put into your side hustle could become a one thousand dollar a month return or it could be a one thousand dollar a week return that is way higher than a seven percent annual return with a passive investment now again starting your own side hustle or starting your own business comes with risk and you can fail but if you really want to amplify your wealth there's only two ways to do it you can either grow your money faster or invest for money if you want to invest more money you need to have more money and if you want to grow your money faster you got to take more calculated risks everybody says they want to be wealthy with their mouths but the real question is how bad do you want it what are you willing to do to make it happen if you're not willing to take the risks or make the sacrifices i'm sorry it's never going to happen before we get into the next clip if you are interested in learning more about how you can manage your money the right way that we can build wealth have a financial system and invest your money our team put together an amazing guide that walks you through how to do this you can download this guide for free when you sign up for a daily newsletter and you can do that by clicking the link up here or by clicking the link in the description below [Music] let's talk about money for a second okay because the majority people are spending their lives chasing money but they have no idea of how money really plays a part in their lives so money this money this cash is just paper this paper honestly has no value unless you use it that's what people actually want it's not the money that people really are after it's what money can buy you but one thing that so many people get confused and why so many people are miserable is because they don't understand how and when and why money plays a part in their lives money is important okay we are not one of those theoretical channels that just talk about things that don't make any sense to reality because you need money in order to survive anybody who tells you money is not important is either broke or they're delusional money is what buys your kids clothes money is what buys you food money is what puts a roof over your head and money is what buys your car now while money is important it is not the only thing that matters in life and this is where so many people get confused because they don't really understand where and how much to value money in their life let me draw a little triangle i call this my quadrafit theory if you're subscribed to our youtube channel you might have heard me talk about this before and if you are subscribed to our youtube channel make sure you do that and while you're doing it make sure you smash that thumbs up button below but this quadrafit triangle really will help you understand how money really plays a part in your life so this you can think of kind of as what are the building blocks of living a happy life because at the end of the day the goal is to be happy not rich if you are rich and miserable what's the point right but at the bottom of this quadratic triangle is physical physical fitness if you want to live a good life the very first thing you have to do is be physically fit okay if you are on your deathbed if you are so morbidly obese you cannot live your life if you are not physically healthy to the point where you cannot live your life nothing else matters if you are on your deathbed it does not matter if you have 10 million dollars in your bank account it does not matter when you are sick when you are hurt the only thing that you want is to be healthy when you are healthy you can have a million desires you can have a million missions you can have a million dreams and you can work towards these things but if you are not physically healthy nothing matters because you can't even start working towards these things so the very first thing you have to do if you want to be able to enjoy money and enjoy your life and live happy is you have to be physically fit if you are physically fit then you can start moving up this quadrafit triangle and move to the second building block which is mental fitness this is something that is now starting to really get some attention which is good news but mental health is a real thing okay if you are not happy if you are miserable if you are depressed nothing else matters it doesn't matter if you have a million dollars in your bank account if you are depressed and miserable because you won't be able to enjoy it okay the first thing you need to do before you can get there after you're physically fit is make sure you are mentally fit too surround yourself with people that love you work on things find things that make you happy if you are not happy it doesn't matter how much money you have you are not going to be able to enjoy it because you are not mentally healthy now there are resources available for you out there if you are really depressed you have a lot of anxiety you cannot live your life talk to a therapist there are resources for you out there but if you are not mentally fit you will not be able to enjoy money or enjoy your life okay this is what everybody says money can't buy happiness because a lot of people are hurting right down here they think oh i have this void in my life i am not happy but if i just had a million dollars and i'd be happy and then you get that million dollars and then you realize oh i'm more miserable now than before because money fuels you if you are unhappy more money is going to make you more unhappy once you are physically fit and you are mentally fit then you can move on to the third block which is spiritually fit now being spiritually fit doesn't mean religious being spiritually fit means having a purpose in life what is the reason you are on this earth for why do you get up every morning what is your purpose that's what being spiritually fit is okay so once you're physically healthy you have a good life you have a good body once you're mentally healthy you have a good mind now you can work on finding your purpose what is your reason for being on this earth this is what being spiritually fit is all about if you do not have the spiritual fitness then you are just kind of just flying through the world like a plastic bag you don't know why you're here and you don't have a reason to get out of bed but if you have a reason to get out of bed every single morning now you have this kind of this drive to just conquer the world and this is what helps people live that happy life if you don't have the spiritual fitness it doesn't matter how much money you have you're gonna feel like you have no purpose in life once you're physically fit and then you're mentally fit and then you're spiritually fit that's where money plays a part everybody says money cannot buy happiness because they assume that people are going to make money here to either make up for the lack of spiritual fitness the lack of their mental fitness or the lack of the physical fitness this is where money cannot be happiness because yeah you cannot use money to make up for a void in one of these things and this is what so many people try to do they think oh yeah i'm not healthy but if i was rich things would be better or yeah i'm not happy but if i was rich then i'd have more friends or yeah i have no purpose but maybe if i'm rich i'll feel like i have a purpose but that's not how it works money and financial fitness helps you here it helps to be financially fit nothing else that's why if you want to live a great life and you want to live a rich life you need to understand how money plays a part in your life and where money plays a part in your life because in order to really enjoy this money that you have you need to make sure you have the building blocks first i can't tell you how many people i know and i'm sure you know people like this too that are lacking either here or here they are not happy in their life for one reason or another where they feel like they have no purpose yet they're sitting here chasing money just trying to get more money thinking and hoping to having more money will compensate for these two things it doesn't work like that i'm sure you've heard of people that are rich millionaires and billionaires that are miserable well why does that happen it's because they're lacking here here or here and then they're trying to use money to make up for the other parts of their life having more money helps with the financial part of your life that's it and then once you do have more money and you have these building blocks then you can use this money to amplify these things you can use your money to improve your physical fitness you can use your money to do more things that make you happy you can use your money to help serve your purpose but if you don't have these things then this money is just going to help amplify that void because money is fuel it amplifies who you are if you are a bad person and you are miserable and you have more money now you're gonna be more miserable and you have a tool this money to do more bad deeds if you are a good person and you're happy and you have more money now you have a tool this money to do more things that make you happy and you have a tool to do more good our brand talks so much about financial education because the reality is money does play a part in our lives yeah many of us don't understand where or how but money is important but at the same time many of us are never taught how to use money and understand money the right way and in our culture and society it's almost like taboo to talk about money it was the same way for me when i was growing up i was always told don't talk about money don't worry about money don't think about money like that because it's bad but i was also told to go and become a doctor because for my parents and a lot of my family the richest people that they knew and the most successful people that they knew were doctors so they assumed okay if you go and become a doctor then you'll be able to become successful and then you can live a great life but things just didn't add up for me if money doesn't matter you're not supposed to talk about money why do i have to go and become a doctor to earn this high salary when money isn't that important many of us create these smoke screens in our lives we say things like money doesn't matter or don't talk about money or money is bad because we don't have money ourselves and we don't understand why we don't have it and so we just say oh don't worry about money as kind of the smoke screen to cover up our financial issues we need doctors but i realized that i was going down this medical route pre-med route when i was in middle school high school and college for all the wrong reasons you should become a doctor because you want to be a doctor not because of the salary that's just one of the perks of being a doctor and having the value that you have that's when i had to start asking myself okay how do i get that doctor financial freedom because everybody thinks doctors are financially free and rich when there's a lot more to the story than that but that's what everybody thinks right and that's what i thought too how do you get that doctor financial freedom without being the doctor oh you just worked on the financial freedom that's when i dove into entrepreneurship and i started an event planning business in college because i thought okay now if i make this money i can work towards being financially free the problem was i didn't like what i was doing i don't drink i don't smoke i'm not into the party business but i was hosting parties every single week and a few years into it i got burned out the business was making great money but i just didn't like doing it the business failed but i did it yeah we made good money but beyond that i learned a lot i learned how business worked i learned how to get customers i learned how to sell i learned how to market and even more importantly than that i learned how money really plays a part in our lives life is like a cake and money is the icing if you are not happy and you're miserable it doesn't matter how much money you have the icing okay if you have a bad cake and you try to slather it and cover it up with a whole bunch of icing the cake is still going to taste like crap because the cake the life is miserable but this is where things get interesting because if you have a great cake but no icing the cake is still not as good as it can be because the cake is going to be dry money is still a part of the life you still need the icing on the cake you can be physically fit and mentally fit and spiritually fit the first three things in the quadruped triangle but if you don't have money to pay your bills and eat and do things that you love you still can't live that fulfilled life money is fuel it's a tool it amplifies who you are if your goal is to feed hungry people and you only have a hundred dollars you might not be able to feed that many people but if you want to feed hungry people and you have a million dollars now you can feed a whole lot more people and if you want to be happy and live your life to the fullest you need to have money but you also need to have the physical fitness and the mental fitness and the spiritual fitness that way money can amplify your life that way you can live your life to the fullest this is really the core of financial education yeah financial education all about using your money the right way and investing your money and growing your money and earning more money but at the core if you do not understand how money plays a part in your life that way you can live the best life possible what's the point remember the building blocks physical fitness mental fitness spiritual fitness and then then at the top of it is financial fitness you need to have the bottom building blocks before the financial fitness can really amplify your life now once you get to the financial fitness part of your life that's where it's all about learning how to use your money and invest your money and grow your money and if you do want to learn more about that and how you can use your money the right way we have a free ebook on money management and investing that you can read for free when you sign up for our financial education emails which are also free you can get a free ebook and start reading our financial education emails by clicking the link up here or by clicking the link in the description below by the way our financial education emails are separate from our financial news emails if you enjoyed this video here's the video on investing money that i think you'll love and while you're at it download a free money management pdf and as always keep hustling and now my mind started thinking if i could just amplify this now i can have my passive investments pay for my life and now i'm financially free because i don't have to go to work to earn a paycheck because my investments are paying for my lifestyle

Channel: Minority Mindset

Views: 65,742

Rating: 4.9527459 out of 5

Keywords: minoritymindset, minority mindset, minority123, jaspreet singh, rethink rich, financial education, financial literacy, build wealth, become wealthy, personal finance, finance, investing, investing 101, investing for beginners, real estate investing, real estate investing for beginners, stock market investing, stock market investing for beginners, budget, budgeting, buy a car, car buying, how to buy a car, wealth, money tips, debt free

Id: Ce1eJELXLzM

Length: 79min 55sec (4795 seconds)

Published: Sun May 23 2021