The 6-Step Formula To Become A MILLIONAIRE In 2023 (How To Build Wealth) | Jaspreet Singh

so this is where you want to create a financial system and start investing your money because your savings will never make you well you cannot save your way to wealth you have to I think you gotta have a dream the school of greatness yeah please welcome so someone wants to become financially free to be able to retire within 15 years yeah I want to talk about that sure I want to talk about it at different stages of life if you're in your 20s to your 30s if you're in your 30s your 40s I want to talk about that what would be like a step-by-step approach from first the mindset standpoint which is your thing yeah thinking of the mindset okay I want to retire in 15 years how to think to then the actual actions that people need to take sure in order to get there and what does retirement actually look like oh that's a good question uh so let me I'm gonna give you a quick formula and then I'm going to break it down because I have created it's not very complex but I created this wealth formula which breaks it down into a very simple almost mathematical thing where it's you take your income you subtract your expenses and that equals your Investments plus your savings income plus income minus expenses equals your Investments plus your savings so if you want to become wealthy It ultimately comes down to having more Investments your savings are not there to make you wealthy they're there to protect you against an emergency your Investments are going to make you wealthy so if you want to become wealthy sooner or if you want to become a wealthier you need more Investments they need more Investments how do you do that well if it's your income minus your expenses it's basic math either increase your income decrease your expenses or do both right so that's the ultimate formula so now if we talk about let's break it down step by step on how do you actually do it six steps and this is no matter what age you are these are the six steps that you want to follow before you get into the six steps yeah what is the mindset that someone needs to think about step number one is so step number one is you need to have the right mindset right so this is why I call myself the minority mindset and you know the brand minority mindset because it's all about thinking differently than the majority of people because if you follow what the majority of people do in 80 to 90 of situations you're probably doing something wrong and you'll be in debt and you'll be paying off debts and loans for the rest of your life the majority of people are broke the majority people are living Patriot to paycheck the majority of people are drowning in debt the majority people have zero to no Investments the majority people are unhappy the majority of people are miserable and the majority of people do not like their jobs this is not me exaggerating these are all statistical numbers where more than 50 percent of people feel this way and so if now you keep doing what everybody else does you're going to end up like everybody else and so this is where now you want to think a little bit different and try to find what's right for you and start to get educated yourself because when it comes to the mindset the first thing you have to understand is that it is possible because if you're sitting there saying it's not possible for someone like me somebody who has my background my parents my whatever I can't become successful I 100 guarantee that you will not be able to become successful you cannot change your outcome without changing your mindset oh that's big and in the previous interview we had we talked about mindset versus tools that were most of the times we assume that the reason why we can't become successful is because we lack the tool set when in reality for 90 of people it's lacking the right mindset because when you have the right mindset you'll discover that this rule set is right around you so it's first believing that you can do it because once you know and believe that you can do it that belief is gonna then impact your decisions because now you just say you know what yeah maybe I can become successful what are you going to do you're gonna go into YouTube watch videos how do I become successful thanks for watching videos maybe start binging videos and now you start to realize oh okay I can start to do this I can change this about my life I need to change the way I think I need to change my actions I need to do more things in my day I need to stop watching so much Netflix I need to do this then maybe start reading books and they start reading business books because I have read a lot of business books and there's so much wealth in a 20 business world just go on to audible look at some of the top business books and just start reading them and you will learn so much now you start reading now maybe you start doing a little bit maybe you don't succeed too much but you start taking some action and you start to learn even more because your experiences are some of the best teachers teachers in the world even if you make mistakes I have learned from my mistakes I didn't have a mentor I didn't have guidance I didn't have investor family members I don't have people telling me how entrepreneurship works I screwed up a ton just like you we made a ton of mistakes and that's how we learned and then maybe you go and take a class now you're like okay I want to learn how to do this I'm trying to build this business I'm doing something wrong and I'm trying to get a better job or I'm trying to get a raise I keep doing something wrong you've read books now maybe you find a class you invest some money in this class and now you have more education now you try more and now you start to see over time oh my God 12 months ago I had no idea I didn't even believe that I can do it now that I believe that I can do it I started watching YouTube videos I started reading books I started to take classes I started taking action and then you keep doing it maybe you hire a coach maybe you hire a consultant I mean the list goes on and on and on what you can do but it all starts with the mindset because if you tell yourself you can't your mind shuts down and you're never going to find an opportunity you're never going to look for the opportunity so that's where that mindset is the most important thing and if you don't have the right mindset this is where the first thing you want to do is start learning how do I build self-esteem how do I build my confidence how do I believe in myself and there's I don't have a ton of videos on this I know you have a ton of videos on this watch Lewis's style right so start there then we go a little bit deeper now for focusing on your finances mine says number one mindset is number one the second thing now once you build the right mindset is you want to create your financial base and the best way to understand this is just to think if you wanted to build a house what do you do first well you got a foundation you gotta build a foundation if you want to make a bigger house if you want to build a bigger house you want to dig a deeper Foundation you want to build a tall building you need an even deeper foundation so you have to start by building your financial base and what that means financially is first you want to save two thousand dollars at the very least you want to put aside some cash for savings as fast as possible because right now it's something like 40 to 70 percent of Americans don't have well forty percent of Americans don't have a thousand dollars to put aside and something close to 70 Americans don't even have four hundred percent four hundred dollars but aside to protect them against an emergency so the you know most Americans don't have a thousand dollars put aside get a two thousand dollar bill with two grand as fast as possible yep and then you need to cut the financial bleeding that means your high interest debts your credit card debts your hard money loans your zero percent APR loans which are now charging you 20 to 25 these need to be paid off as fast as possible because these are loans that are skinning you alive financially so I mean it seems like credit cards are one of the biggest things that hold people back look credit cards right credit cards are a tool they are a tool if you're not educated with them you can get stuck if you have this tool without the education it will burn you I only spend with a credit card I spend you know how to use my tool because I know how to use a tool and now because I know how to use my credit card what happens well I don't spend more than I would otherwise because I use my credit card just as a medium of exchange I'm going to spend this money anyways might as well use my credit card with my credit card benefits gives me perks it gives me cash back it gives me fraud protection it gives me free insurance it gives me Hotel upgrades it gives me all these things just because I use my credit card instead of paying with cash and so now again it's the financial education because now some people will say oh my God these credit card companies are scams well the reason why they're looked at as scams is because we don't have the right education and how to use them right it's a tool without the education and how to use it and this is where now you have to build that Financial education and many times you're gonna have to go out and do it yourself because your credit card company is not incentivized to give you the financial education because they're going to make less money right it's profitable to keep people poor it's profitable to keep people financially uneducated because now if you just keep spending money in your credit card because you have no idea what you're doing now your credit card company is going to get rich the average household in America has sixty two hundred dollars with the credit card debt so if you have credit card debt in America you probably have an average of sixty two hundred dollars now let's talk about that because if and what's the interest on that well that's at 15 to 25 28 and every month every month you're paying that you're paid it every month so it's not six thousand a month it's really you know over years if you never fully pay it off you're just paying more and more and more and the interest rate on your credit card isn't fixed rate it's variable interest rate so as the Federal Reserve Bank raises interest rates the interest rate on your credit card also goes up so if you are 21 years old right now and you invested 6 200 which is the average household credit card debt right now if you invest sixty two hundred dollars right now and you got a 20 return on your money and he did that for the next 45 46 years you were going to retire with 20 million dollars 20 million dollars and you never invest another Penny again save more time if you invest 6 200 today and you never invest another Penny again and you're 21. at 21 and you get a 20 return on your money you're going to retire with 20 million wow and you're going to say just please where in the world am I going to get a 20 return on my money year after year you're right but your credit card company is doing it every single day wow they're charging you and so when you have that sort of credit card debt that's you making your credit card company richer now you know whether or not you think it's a scam look let's move past and understand what's going on that way now you can use it to your advantage because I get tens of thousands of dollars worth of cash back every year from my credit card company because I use it as a tool and I understand how to use it and this is where look if you don't want to use a credit card it doesn't matter right but just don't if you have credit card debt you have to pay that off because that is skinning you alive right now understand the financial education aspect so that's the first thing you want to do is create your financial base so you got to save some cash then you gotta pay that credit card debt off cut the financial bleeding what's the strategy if you got three credit cards what's the strategy to to get around that debt so Dave Rams is going to tell you to do something called the snowball method the smallest first all this first and then to the biggest because you're building momentum right a financial advisor might tell you the opposite do the debt Avalanche which is now paid the highest interest rate first and then go down because now you're going to pay off the most interest first so it costs you the most money in the long term the reason why Dave Ramsey recommends the snowball method is because psychologically when you get those small wins of paying something off you feel like you're winning and you can pay it off faster a advisor is going to look at the math and say hey look these numbers are telling me that pay off the higher interest rate first because it's going to save you the most money over the long term which one's right again I'm not going to say which one do what's best for you because I know if I was in a situation I'm not I like the idea of paying down the heavy interest rate burst because that's how my brain works I don't need the small wins like that I can work for the long term I think you know the entrepreneurial mindset where you know I know how my mind works so I understand myself and this is just honestly being open and honest with yourself if you can't stay true with it then do the snowball yes it does not matter screw painted off a few months early just get it away and pay it off as fast as possible cut out cut the financial bleeding and have a two thousand dollar base that's step two okay except that's step two now the next thing you want to do is what I call lead your money so this is where you want to create a financial system and start investing your money because your savings will never make you wealthy you cannot save your way to wealth you have to invest your money your savings won't make you wealthy because of what we've talked about in previous interviews inflation you're losing money in the savings if inflation is higher than the interest rate you're getting at the bank then your savings are effectively making you poorer each and every day because now your savings are losing value to inflation now does this mean you should not save any money no it means you need to save your money strategically so you want to save it money for three reasons and three reasons only save your money for an emergency saving money for a big purchase if you want to buy a car you want to buy a house you want to buy a nice watch whatever you want to buy you need cash in order to do that and then three save your money for an investment if you're not saving your money for one of these three reasons you're saving your money the wrong way and it is making you poorer by saving that money so now we're focusing on the first aspect of saving your money for an emergency how much do you save this is now again going to depend on your risk tolerance you want to stay somewhere between three to 12 months worth of your expenses and the amount of money you save is going to depend on where you are in life and how much risk you're willing to take on if you're like hey dude I'm I'm 25 years old I don't have any financial responsibilities I don't need that much savings fine save a few months worth of savings and that's it invest more aggressively if you're like hey I have a family I have kids I have a spouse I I don't want to take on all this risk then save six months nine months a Year's worth of savings because now it will give you that peace of mind that you have some extra cash put aside so it's going to depend on your risk tolerance and and what you want but this in this Legion money step this is where you want to understand that there's more to putting your money aside and just saving your money you also want to be putting your money to work and the best way to do this is to create a system where no matter how much money you're making you are going to proportionately continually invest and save based on your income so what does that mean well one of the simplest things you can do is follow something like percentage my 75 15 10 plan which means for every dollar that you earn 75 cents is the maximum that you can spend 15 cents is the minimum that you invest and 10 cents is the minimum that you save and this never changes with your income the only thing that you would ever change is after you hit that savings goal for your emergency savings you don't keep saving your money for the Emergency because you built that whatever once you want you put that towards your Investments yes and now whether you're making 40 grand for 100 grand 4 million 40 million you just keep following the same thing and you're living below your means and now you're constantly putting monies aside for your Investments now again we talked about this before this investment money can either be passively invested all of it or you can put this money aside to be invested so you can put this money into a bank account you're looking for a rental property you're looking for a business to buy you're looking for a cheap stock to buy this now depends on know your investment goals right where do you want to be invested how do you want to invest your money and this is that Financial education now of you know what do you want to do and your personal goals if you don't want to be involved with their money you don't want to be a day-to-day investing or paying attention to the markets you hate that idea just passively invest it right put it into low-cost ETFs index funds and don't even worry about it and let it do its thing you don't change it whether the Market's up or down so this is where now you're putting your money to work leading your money because real wealth is built through your Investments not through your savings because you don't want to be spending all your money either because if you're spending all your money on the the Gucci the Louis Vuitton the Beamers and the extra guac well guess what Gucci's making money Louis Vuitton's making money Chipotle is making money Beemers BMWs making money but you're the one that's making all them Rich yes if you say I want to become wealthy but you have no savings and yet you have all this nice stuff you'll look rich but the stuff that's looking rich is making you broke Megan you're broke yeah so you know you're paying the price to look rich which there's nothing wrong with that but you just have to understand what your goals are if you say hey I don't really care about Building Wealth I just want to have my stuff it's a free country it's your choice but if you say I want to have wealth you have no Investments and you're spending money on all this stuff this is where you want to rethink what you're doing and understand what it is that you want and make sure that your actions are aligning with your goals and your lifestyle is aligning with what you want to do I mean you can't keep lying to yourself that's why you should put your money not in buying a bag but I'm buying the stock every month exactly exactly right own the company own the places where you're spending your money and you know again there's nothing wrong with having nice stuff right what I'm trying to say is just just be able to afford it yeah you know what you get a credit card you don't want your credit card with it if you want you want a nice watch you want a nice house you want a nice car fine just make sure you can afford it first right and this brings me now to the next step which I call interest free living and now this is where we're gonna go a little bit deeper of how do you actually spend your money because in the American culture it is very normal to be in debt it's very normal to buy things that you can't afford and before it was with credit cards now it's with this new thing called buy now pay later I'm an I'm an entrepreneur I'm very much involved in the financial space I'm very much involved in the fintech space buy now pay later with the last couple of years is arguably the fastest growing sector in fintech they're crushing it right they're crushing it I have not invested any money into buying on pay later apps because I don't believe in it however supporting more people in the debt kind of the way that they work is you can buy something out and worry about the price later now the pitch to Consumers to people is well you don't have to pay any interest it's kind of like the housing market back in the day right it arrives it rhymes history Rhymes right but the whole idea that they say is you don't got to pay any interest just pay it off for say 12 months or six months which doesn't seem like a bad idea why would I want to pay a thousand dollars for a laptop today if I could just pay it off in installments and not pay any interest for the next 12 months yeah well if that's the case why is it such a fast-growing industry I mean no one's going to invest billions of dollars into something if they're not going to see any sort of financial return I mean they've got a the most expensive kind of money is free money so if they're giving you money for free how are they gonna make money from it well that's where we dig a little bit deeper if you don't get past your if you don't pay in your 12 months then what so that's the first part if you don't pay it off now you get slapped with a very very Hefty Hefty fine a very very Hefty fee where now you're paying a massive interest rate essentially like a credit card you're just acting like your credit card it's the same concept where you get a little bit of a grace period but the second aspect is if you want to buy a laptop for a thousand dollars and you need a thousand dollars to buy it well you got to have a thousand dollars but if you don't have to pay for it now last month yeah you still have the thousand dollars in your bank account maybe 900 and now what happens I can go buy more stuff for 100 bucks a month that's a thousand dollars and more and more so it allows people to spend even more to lock and all this stuff so you have a whole bunch of stuff and all your money is going out to pay for the stuff that you bought yesterday a year ago now a year ago and then if you can't pay it off in time because that's ultimately oh man you know their goal if you can't pay it off a time now you get slapped with all that interest all these fees and now you're the one that got to pay it off so this is where you have to understand the spending aspect of how do you spend your money because again these things are tools I wonder how many people you know this is going into our previous interview I wonder how many people signed up for more credit cards since 2020 and also signed up for more bought more things with this buy now pay later I wonder if there's data out there on this I don't which will give us a more indication hey 12 to 24 months from now man people need to either make double the money or they're going to be going into a lot more debt so in terms of the number of credit cards I don't have an answer off the top of my head but what I do know is the amount of money spent on the credit cards because in 2020 when the pandemic hit we saw the fastest paydown of credit card debt ever really which was great because now you're sitting at home you have very little expenses you don't got to pay a mortgage mortgages and forbearance a lot of people are not paying their rent you don't got a pair of student loans you're not going out right yeah very little expenses and then many people are now getting unemployment checks they're getting stimulus checks so you have more money coming in and many people actually became wealthier because of the situation so yeah it's extra cash some people spent it some people invested it some people paid down their debt and we saw the biggest credit card debt paid down in the history of time in 2020 which was all from free money though well you know at the end of the day at least you're using it for the right person so that was great that's great people paid down their debt well then what happened towards the end of uh 2021 into 2020 2 was the economy opened back up people started spending you wanted to go out and you know this pent up demand you want to start traveling you want to eat out again you want to have fun again fine but then we were also hit with inflation everything is so expensive now you've been waiting to travel you've been waiting to eat out you've been waiting to do all this stuff and it costs so much more expensive so now what do you do well I don't got any credit card debt let me go put it on my credit card and so over the last number of months we have seen the fastest growth of credit card debt in the his trauma of time and this is the situation where we paid it off and now we're going right back into it maybe because you feel like hey I got room to spend and second because everything is so expensive I can't afford groceries I can't afford gas and so it's it's this whole it all goes back to point number one mindset the mindset the education it is so so so crucial and this is where now in this step you can make that decision first you have to understand how to spend your money and then you can understand now what do you do with the rest do you want to pay down the mortgage right you want to pay off you know something like that or do you want to invest your money and this is really an individualized question because the simple math is if your mortgage is costing you say five percent a year and you can get a eight percent return on your investment you can invest your money get a better return pay off your mortgage and have some money in your pocket it's a no-brainer so if you can invest your money get a better return why would you not do that well because investing comes with risk versus paying off your mortgage does not because when you pay off your mortgage you get a guaranteed five percent return on your money because now if you pay it off a year early you get a guaranteed five percent return versus when you invest your money it comes with risk my God might go down like whoop might go down and so now the question again is what type of Life do you want to live do you want to say you know what I just don't want to have to worry about my mortgage payment I just want to be financially free never have to stress about money and just be okay then pay down the mortgage because now wants to pay down the mortgage your biggest expense is gone you own your house free and clear you still got to pay property taxes but at least now the biggest expense is gone and you're gonna breathe so much easier when you don't have a mortgage to pay but if you say you know I just split I want to live big I want to have the nice stuff I want to have the big things I want to be flashy nothing wrong with that like you I want to have it all okay that's fine then you don't want to be trying to get a five percent return you want to invest this money in the markets you want to invest it in your business you want to invest this in your education you want to invest in yourself because now you can get a much better return is it riskier absolutely but your mindset is somewhere else right you want to get a different type of return and this is why you're investing into the things that can give you a better return because that's what you want right but you just have to understand that it comes with risk and if you're not comfortable with that then do the first so this is where you just have to understand you and understand what type of life you want to live but the key here is you don't want to put yourself back into the situation that got you here in the first place where if you have the credit card debt you gotta know how to spend your money that way don't end up there again one of the simplest things to do is now to understand the difference between being able to buy something and being able to afford something and one of the things that I like to say is just follow my rule of five if you can't buy five of them you can't afford one of them the houses are expensive though well house isn't an exception the difference well our liabilities you want to buy a Gucci belt do you want to buy 200 Gucci belt fine can't buy five don't buy one you can't buy five don't buy one the house is different how's it doing house is an exception that's the only one five five ounces is the one exception here where you know when it comes to your liabilities that's the only liability that would say is okay to finance uh because everything else you know your Gucci belts yeah clothes your vacations you should not be financing that because it's not putting any money in your pocket and that's a clear liability you don't want to be financing that stuff right right so that's where now you want to understand how to spend your money and then where to put your money to work interest-free living yes and then this brings me now to the next part which is what I call multiplier income where you know going back to the wealth formula where's income minus expenses equal your Investments plus your savings we talked about how to save your money we talked about how to invest your money we talked about how to manage your expenses now let's talk about the income because if now you understand how to live below your means you understand how to put your money to work if you want to put fuel on the fire you just got to earn more money now if you earn a hundred thousand dollars you earn a million dollars you earn whatever you earn more money now you know how to put this money through your system through your funnel whether 75 15 10 or whatever else you know how to take this extra money but it's work that way you have more money to invest more money to save more money to live your life but the key is you don't want to 100 increase your lifestyle to match your income you want to increase your income with your Investments is the same ideally now you can you know marginally increase your expenses but the key is you want to be increasing your income and your Investments way more yes so the question is how do you do that well this is where again understand you if you are an employee you don't want to start a business you don't want to start a side hustle fine nothing wrong with that there's nothing wrong with being an employee you just have to understand you but that means now how can you earn more money if you like your job look for ways to get a raise to get a promotion see how you get a bonus just be open with your boss say hey look I want to be able to contribute more I want to earn more money what can I do most people are going to be very open and honest say hey I would like you to tag on this this and this do this and we will help raise your salary yeah maybe if you don't like your job you're going to get a certificate you're going to do something else you need to figure out how you can earn your increase your income maybe you can you bring to the business to bring in more money for the business or save more time or create some systems exactly so that the business can say okay cool let's give you more opportunities for growth exactly I mean if you can bring in an extra ten thousand dollars a year to the business of profit they're not going to have a problem paying me you five thousand dollars or whatever it might be right and this is where you just want to be open because every business is different maybe you take on a second job and you know it's just figuring out how can you earn more money there now if you say well I want to do something outside of my job fine well the first thing you can do is start a side hustle so much more accessible now than ever before I mean you can go on to the internet become a virtual assistant you can become a copywriter you can become a designer you can become a video editor I have paid so upwork they're not paying me upwork is a platform that I use to hire Freelancers and I did a video on this so I looked this up in the last two years or three years I have spent more than a quarter million dollars on upwork alone wow paying on different individuals different individuals just hiring people in different areas who don't work for me they work on their own schedule because now this freelancing business has grown so much and so there's a lot of opportunity there where now you can if you can present a service you can make money doing that yeah they might be working an extra 5 10 20 hours a week on the side or they might just be full-time Freelancers yeah yeah and you get to set your hours for the most part uh you can really do something that you like that you enjoy that you're good at so there's a lot of opportunity there where now you can be a freelancer or start your own titles if you have a idea you want to one of my buddies his mom is really good at making cakes and she started this uh what is it called carrot cake business they're making a good I don't know how much maybe I think it's like 700 or a thousand dollars a month selling carrot cakes from Instagram he markets on Instagram people say hey can you make me a cake because mom makes the cake and he delivers it you know sure what I mean it's just the number of opportunities now of course as an attorney I should say there are liabilities to selling food get insurance and all that but this is where there are so many opportunities right just being a hustler just getting yourself out there figuring it out and there's an unlimited amount of possibilities and opportunities out there now if you want to take it one step further you could try to build your own business your side hustle can turn into your own business if you have a business idea invest in it first invest in your mind invest in education and then try to do it you want to invest as little money as possible until you start generating Revenue like again mindset versus tool set we assume that we need all these tools to start doing it but the reality is the first thing you need is your mind because there's a lot of alternatives on how you can do it like when I started I started a sock company a number of years ago when I was trying to figure things out and it was a water resistant sock yeah yeah and the interesting thing was I knew nothing about socks how do you manufacture socks how do you make them waterproof and so I was working with textile Engineers I was working a lot of work extra companies I was working with a lot of different people I don't have a lot of money and they wanted and now we're talking about a real product so I learned to talk and essentially I did not I think my total cost to build my first round of socks was 3 500 it's not a lot of money but relative to what if you want to manufacturer products and create a product to go through the Prototype after prototype to prototype right it costs typically a hundred thousand dollars plus I did it for under four grand because I was able to talk to them I used to talk about the potential I and I worked with them to fill out these special deals where hey work with me here and you know exactly and we were able to get it going so it's the ability to hustle be willing to find a way and that's that mindset that sometimes too much money can be a disease especially if you want to be a side Hustler or a business because now you just start spending money and I've been a victim of that too I uh I'll just give examples like the minority mindset blog I didn't know how to build a Blog and my time was so eaten up with things like Market briefs talking about building this tax business although that's much newer uh but building my companies building my YouTube channel doing all these other things investing in real estate that I didn't really care about building a blog like I cared about it but I didn't have the brain capacity and the time to sit here and come up with a strategy to do it so I outsourced it I hired some of literally the top blog managers in the world and they charged me a lot of money like as in six figures plus right a hundred thousand dollars plus to manage the blog and they promised all this stuff I was like fine do it so a hundred thousand dollars for the blog manager at least another hundred thousand dollars on Vlog content over the course of 12 months and guess what no results zero nothing the worst what did I do too much money problem I just I said I don't got the time just gonna throw money at it hopefully that will fix the problem because if you can get the top blog manager you can hire people to write it's easy right well after those 12 months the contract was over fired them and this is where I was like all right you know what let me figure this out because I do want to build a Blog and so we built a brand new strategy it costs us a fraction like a teeny tiny fraction what we were playing before yeah we're bigger results our blog is growing we're generating Revenue now I mean it's it's a complete turnaround but it's that mindset versus tool set yes and these are real stories real things that I have gone through so you need to know now how do you multiply your income and understand that you don't need thousands of dollars my first business I started with nothing essentially when I started my event planning company I started minority mindset with under a few hundred dollars yeah I mean I was making videos off my cell phone you just need some hustle some great activities some actions some consistency some relationships some communication and just making stuff happen The Hustle Man and that's why I always say keep hustling yeah at the end of my videos because that hustle mentality is so crucial and you can't teach that you can't read that in books you have to actually live it yes and so this is right now if you want to really do that you have to understand the hustle mentality and this brings me now to the be great aspect the last part now you speak my language exactly right exactly greatness so you've built the base you're putting some money to work you're leading your money you are either paying off your home or you're understanding how to use your extra cash the right way you're increasing income that way you can build your wealth even faster now it's all about being great and there's two aspects to this the first aspect that I want to talk about is protecting yourself because the reality is when people realize that you have money they're going to try to take their hand put it in your pocket and keep someone for themselves you know to pause on you there I remember hearing Oprah talk about this one time years ago I heard her on some podcast or somewhere she said something like as she started to rise to fame with her talk show and started to make a lot more money what do you think happened everyone's reaching out with a handout right oh you got money now can you help me with a thousand dollars here can you help me with this well you've made the money can you help me yeah she said I'm paraphrasing this but after like I don't know a decade of this or something it just felt like everyone was using her yeah as opposed to just being in a relationship with her and having an actual friendship or relationship and she said that she decided after a period of time she was tired of just giving giving giving giving to people who had a handout and so she said I'm going to do a big dinner and I'm gonna invite everyone friends family everyone you know third cousins you know twice removed everyone who's been asked for a handout when I invite them all and she said like she she gave out she had this massive dinner for everyone like all of the everything you could eat and she started giving out envelopes and gifts and cars and cash and just like she gave out gifts based on what she wanted to give to each person yeah everyone got something and she said she gave a speech at the end and said this is all I'm going to give you don't ask for anything else from it after this and she said still people were complaining oh you gave this person 10 grand I only got 5 000 it's like you got to learn to protect yourself yeah mentally psychologically financially because you could just be giving and giving and giving it can never end right right a hundred percent and so how do you do this that's that's a huge relationship aspect I'm gonna take it one step a little bit deeper on the legal side because you're you're absolutely right you know I struggle with that relationship side as well because I'm not saying don't be generous yeah but also it's like when you feel like you're being taken advantage of then it becomes challenging so my family's from a state in India called Punjab and uh what happens a lot of people is you come here to America or to you know somewhere like Canada my family came to America and your family is in India and they think oh my God you're wealthy in America so you're working your butt off here while sending money back to India so you know my parents did this my dad did this a lot where uh especially when we were young he wasn't making a lot of money but he was always sending money back to siblings or people just to help take care of them because that's our culture to help take care of people and it becomes difficult because you know it's that for at least for me that cultural aspect of giving which I like taking care of family but then also not making them reliant on you because now once you start giving them this thing yeah and so it's a very tough balance and I don't have a good answer for you here because you know I do like taking care of people I like helping people especially you know within my family you know I want to make sure I can take care of everyone that's why I work hard because I want to make sure that I can give you and so when I because I I have given money to people around me my family and my friends the way that I look at it is I don't want that money back I know when I give you money I'm never gonna ask her back and I don't want it back if you give it back to me maybe I'll take it but I'm never gonna ask her back and I will give based off of what I can but I know that's money in my mind I'm never getting back and I have to be okay with that for myself and if I'm okay with that that's fine and I think that's one of those things where I don't because I don't want to mess up the relationship right with my family that's more important to me and so look if I'm okay giving you a thousand dollars here's a thousand never talk to me about it again right and really that's it and if I see you blow that money in Dumb Ways guess what when you're asking for another grand you're not getting it yeah you know it's as simple as that I'm gonna forget about it I don't like arguing over money I think that's very dirty and evil so um you know I am generous in that sense but you know I'm also very straightforward where if I feel like hey I'm not gonna give it to you I'm not going to do it yeah but I also don't sit here and ask her back are you talking about protecting yourself Legally Legally which means now having the right advisors accountants and insurance to protect you and so when you start earning money people are going to try to reach into your pockets and get it also legally I had a tenant in one of my properties Sumo realistic company because they said that the bathtub got too slippery when the water was on geez and because it was so slippery when the water was on it caused them to slip and fall which then bathtub it's a bathtub with water and because of that they wanted damages for injuries but you just have to defend yourself even if it's not your problem and so this is where how do you protect yourself so I had a couple things one I had an LLC second I had uh rental insurance or yeah and third I had a property manager company property management company and so I'll go through the different layers you can see all the different levels of pictures and how they worked because now the first thing that happens is my property management company documented everything because prior to them slipping they made a complaint that there was about a quarter inch by quarter inch chip in the bathtub and they said oh there's a little paint chip we want to get this fixed so my contractor goes out there he says okay yeah we can fix this and my contractor said you know the tenants here are kind of old let's install them a handicap pool just to be nice we weren't required to do this we were fully licensed by the city but the contractor offered to do this so now they go back to do the work the tenants say we don't want you to do it we're tired he goes back to do it again they said we don't want you to do it uh the tenant slipped and fell at a barbecue they go back and said no he's still injured from the barbecue so we have notes of all this sure and then they go and say that they slipped and fell in the bathtub we have records of all this where they said they slipped and fell at a barbecue and now they're saying they flipped a fell at a bathtub why are they doing that well maybe they can try to get some money out of the quote unquote Rich landlord I was a very young kid at this time I was still in college um trying to dig into those Pockets thinking that oh if he's a real estate investor must have a lot of money and so they use one of those free attorneys to go after my insurance so now I have insurance so now my insurance company gives me an attorney to protect me through this process and the judge laughed at the case even the attorney laughed at the case it was like look man this is just they're just trying to grab money there's nothing here it's a frivolous lawsuit so we just have to do it and the insurance company wants to settle because it's cheaper to settle than to pay 350 to 400 an hour to the attorney to fight it and actually win the case and so that's where the insurance came in and protected me they fought me for me and defended me and then paid out the settlement now if it had escalated further that's where the LLC protects me where just where you want to have a good attorney there to recommend what's best for you because that LLC then kind of creates a shield where you can only take what the LLC owns and you can't go after my personal assets so if the LLC only owns that property you can't go after anything that I own because the LLC is what owns the real estate so you want to make sure you protect yourself there right so this is where having those right Shields to protect you are so important because especially in America we are the most litigious country in the world and you want to make sure you protect yourself against that right um and there's a funniest thing in real estate that if you haven't been sued as a real estate investor you haven't been in business long enough wow so it's just one of those things where you want to protect yourself I think people also got to also understand this is a a full contact sport you know learning how to follow these fix six steps that you've laid out which I think are great but learning how to be you know an investor it doesn't come easy for everyone right away you're going to make some mistakes there's going to be some challenges to face and the longer you're in it you just have to deal with stuff that's not fun right this is something you have to deal with there's probably months of a back and forth thing and you're there's some stress there's some worry there's conversation it's time it's energy with insurance with lawyers just to deal with something that even isn't your fault 100 and you know this is one of the realities of being an investor and entrepreneur you know understanding the aspects and there are going to be some things that are not fun like I talked about in our previous podcast the tax issue I know it was a uh where my accountant calls me up saying that hey just please this is nine in the morning you owe a hundred thousand dollars by the end of the day sucks send it into the IRS that sucks and now I have to go figure out how to do this send it in and then he tells me that I also have to pay a penalty on this because he did something wrong so it's one of those things that's not fun it's a problem but then as an entrepreneurs how do you find the opportunity well first I fired the accountant I go on the hunt for a new accountant new Tax Advisor I started working with this new Tax Advisor and I see the difference between a bad accountant and a good accountant I started learning wow you're telling me that every month we can meet and you can advise me and what I can do with my money that way I can legally limit my tax liability and you're going to do all this work in advance and I don't have to worry about this ever I love that now with my entrepreneurial brain I'm like let's start working together because there's so many small businesses that need this it is a real problem because there's a lot of bad accountants out there and we need more good accountants we need more good tax advisors who's going to help people especially in this new age where we have more IRS agents joining the workforce we have a lot of things changing we're probably going to see a change in tax laws so you want to make sure that you're taking care of yourself so this is one of the things that I'm working on with him is to to fix that we don't have a website or anything so if you want to learn more shoot me a DM on Instagram at minority mindset or email me at team at the minority mindset.com but this is just one of those things where you want to make sure you have the right resources there to First be great to protect yourself for your family and I'm going to take that one step further because as an attorney you also want to make sure you have the right Estate Planning in place because this is one of those things that is really not fun but so crucial if you build any sort of wealth you want to tell the world and when I die or where does it go where is it going to go because if you don't your family is going to fight over it oh man and it's not fun because no one wants to think about what happens after I die but it is so so important because when you die you don't want your family fighting at your funeral and so create a will create a trust have an estate planning attorney that can help guide you there because you never won't have to worry about that and the second aspect of being raped is being great for the world where the more you have the more you can do you can give back nor you can do more things whether it's your money whether it's your time whether it's your education because when you can light a candle well you can Light One Candle but that one candle can also light a million other candidates and this is where now as you're on this journey to build wealth you have lit your own candle now you can help light someone else you can help give someone a helping hand whether you help someone financially whether you help them with their time whether you help them through expertise because now you've learned the process because information is meant to be shared I talk about the stuff on YouTube not because I wanted to get rich but because I was so frustrated by the system right I never knew that I could even make money on YouTube I started making videos not even turning advertisements on I didn't know that you could do that until someone showed me hey you can make money from these videos and so it's the whole idea of helping to spread because you know like we've talked about in this video this this podcast there's so much misinformation out there there's so much lack of information out there and financially like if you don't understand money if you don't have money it can ruin so many other aspects of your life because if you don't have money if you're stressing about money now you can't take your spouse on the vacation that they want you can't pay for your kids education you can't fund your retirement you can't buy that gift that you want you can't do anything and now you're stressing it makes your mental health worths it can put you into depression it can make you start eating bad it can make your physical health worse it can make you feel so unfulfilled it can make you feel so spiritually beat so this is where understanding hey more money isn't going to fix every aspect of your life but if you don't have money it can impact every aspect of your life and this is that Financial education now where okay I'm starting to learn this help spread the message you can help people out and again through your money through your time through your education there are so many ways that you can do this because the more you have the more you can do and now you've built this wealth and this is where now you want to be great for the world not just for yourself yeah man if you guys want more of this information check out minority mindset YouTube The minoritymindset.com Market briefs as well which is your newsletter which is teaching more of this financial education which I think a lot of people should be subscribing to and uh if you guys want more from myself and jasperith then make sure to leave a yes Below on this video subscribe subscribe to both channels and uh let us know what you want to hear more on we've done some incredible interviews so far some credible content I want to keep doing more with you so do it man just read this is inspiring teaching people how to the what the wealth formula I love teaching people how to get into the mindset of being able to retire at some point in their life if they want to um you mentioned what is it the fire concept for a minute but if you guys want more subscribe to both the channels check it out just please thank you for helping spread the word man appreciate it appreciate it if you enjoyed that interview then I know you'll love what we have coming up right now what do you recommend someone um to do whether they're an employee or maybe they have some extra cash sure so I would say you know this is a lot going to depend on you because I'll be very personal with what I'm doing because I'm an entrepreneur so I look for different types opportunities and somebody else might so if you are an employee there's going to be different opportunities for you if you're a business owner this can be different opportunities for you for an entrepreneur there's different opportunities for you so I invest my money in five places invest my money into my own business I talked about Market briefs I address some money into real estate invest my money into stocks less money into crypto then I invest my money into physical gold this is the order that I invest my money into this is my type of diversification now I understand what's going on and I do have some cash I always have some cash but aside for like you know things going wrong Investments I always have some cash putting aside there and what I've been doing is I passively invest my money meaning no matter what's happening in the markets whether the market is up whether the Market's down is automatically everybody and this is happening into stocks into crypto and into fiscal gold that does not change that never changes so I get paid money is automatically invested no matter what then in the past I've had my more active strategy where I would take money and actively go out and buy real estate or activate going to buy stocks and in this situation I'm looking for good deals meaning a good price so I haven't been doing that as much recently not because of what's happening in the market but because I see more opportunities for me in the entrepreneurial business side so I've been investing money into Market briefs like I talked about hiring more people on your team building infrastructure and then I'm also working on um a tax firm so I'm going to talk about tax for one second if that's okay because this is a very interesting thing happening right now because going off of inflation President Biden just signed something called the inflation reduction it was that 80 billion or something it was a huge it was a huge huge I think it's even bigger than that 80 billion is just the IRS IRS so the tax side so they're hiring they're investing 80 billion in the IRS to start auditing more people essentially right to start trying to get more money from people and that's only one part of the inflation reduction act so let's go big to go small because the inflation reduction Act is supposed to reduce inflation that's what the name says a font is I'm laughing because it's kind of silly because right how do you reduce inflation you spend less money uh because the government has spent so much money they didn't have which caused money printing for people you collect more exactly so that's how do you now pay off all this debt remember the government doesn't make money they tax you the tax made that they collect taxes and then that's what they use to pay off their expenses now it's not surprising that the government is running into an issue because they have 31 almost trillion dollars of national debt that they need to pay off this is not fixed rate debt so as interest rates go up their payments on this debt go up as well so we talked about what happened in the housing market imagine that on a 30 trillion dollar level now so the payments are getting bigger so what does that mean well if they have this pool of money either they're going to need to inject more money to the government the FED has to print more money but they can't do that anymore because of inflation or they're going to need more tax dollars so that's one of the reasons why through this inflation reduction act one of the things they want to do which is one of the most like financially interesting topics is they want to invest very heavily billions of dollars into the IRS to help them beef up and collect more tax dollars and past tax dollars now I do want to clear up some of the false information out there because the ACT is working to hire 87 000 more IRS workers that's crazy it is crazy especially considering that today there are about 80 000 IRS workers you're a devil yes and no so the 87 000 people that they're hiring are not all IRS agents and they're not all being hired today they're going to be hired over the course of 10 years and the whole idea is this is what they say again this is what they're saying what might happen is it could be a little bit different so I want to be just completely transparent because I don't want to mislead people I want to make sure everyone's fully understanding what's happening you have about what's scheduled is about 50 000 or so people in the IRS are scheduled to retire over the next 10 years so these 87 000 people are supposed to replace them and beef up the agents that are actually going to be doing the auditing to go and collect more money now even if 50 000 people retire that's still adding almost 50 percent more people to the IRS who are they going after well they say the wealthy the super rich and uh there's about a thousand billionaires in the United States yeah do you need tens of thousands of people no to go after them no so you go a little bit deeper now again what do we look at history I look at history to answer the question because they keep saying that we're not going sing it's not in the bill it's not written anywhere this is what they say that we're not going to go after uh middle-income people or anything like that well in 2021 50 of IRS audits were on people earning less than 75 000 a year come on fifty percent fifty percent wow how do they know how do they is that public information go search it on Google Google has a lot of information of the audits wrong people that were making lessons 175 000 a year wow and why are they doing that well probably because if you're making less money you're not going to have the resources to hire a good accountant and hire a good uh attorney to represent you so it's a little bit easier less cost I mean it's just it's just easier right I mean you're maybe less Financial savvy than somebody who's making half a million dollars a year or two million dollars a year because now you probably have more resources to defend yourself so that's a bigger fight for the IRS and you're probably more protected because you have good advisors have told you what to do because now let's say you're making you're filing your taxes you're doing all the right steps and maybe if you make a million once you start making a lot of money like if you're making over a million dollars a year you're not trying to play the game of trying to hide ten thousand dollars because now you're already under scrutiny yes the IRS is trying to see you do something wrong and so if you try to get 10 000 under the table it's a bad idea because you already know you're being watched you're trying to you do everything by the bush and you have good advisors to guide you to do everything legal so you can pay the least amount of taxes impossible legally now if you're making 50 Grand a year and you have a side hustle making you a thousand dollars a year you might take that in cash because you might say It's a grand a year you know it's just the reality right you're you're taking pictures at people's weddings you're you're doing whatever you're making some cash and you're you're just doing it under the table and the IRS wants that thousand bucks and this is one of those things where it's not surprising because if you look at what's been happening over the last couple of years it's this has almost like been a foreshadow of things to come because you remember over the last couple of years we've seen this new rule on venmo right on venmo transactions where they want all venmo transactions over 600 or something like that where now if you're you know unless you're you're a photographer and you're taking pictures at your friend's wedding and he pays you 700 and venmo has to report that they want to know that they never said why but now you're starting to see all these things start to add up where if you're doing these small things you know it's just like things starting to fall into place where oh no wonder they started wanting all these details for this no wonder they started really going after cryptocurrency brokerages no wonder they really started doing all of this stuff maybe creating a digital dollar because they want to be able to see every transaction which means they want to be able to tax every transaction of course I can't validate this but I mean it's just like puzzle pieces starting to come together and so this is where the tax thing why is it so important because of inflation because of the national debt the government needs more tax dollars to be able to go and fund their payments and so what are they going to do well they're going to try to find the easiest hanging fruit is it going after a billionaire probably not because the billionaire is going to say come after me I have my resources with everything yeah we have everything there everything is documented because we want to play by the books because we know you're already watching right now I'm not saying that everything always is right right there's of course exceptions to this but this is where you just have to understand you know they say that they're not going to go after anyone making middle uh income whatever but after you go after you look at the Thousand or so billionaires okay you gotta look at everyone else if it is so this is again right that's what we would have to we got 80 000 people working on it it's like all right it's just looking at history right I mean this history is the best indicator for what's coming I keep saying that I'm sure your audience is getting very bored annoying of me saying this but I mean it's what the best indicator yeah because I can't look into the future and see what's going to happen but I can look in the past and see what has happened and I see that hey this is what happened in 2021 this is what's been happening because this is just the situation and so for me I've also seen a big difference between good tax advisors and bad tax advisors because is that why you're starting a taxes that's why because I you know because the entrepreneurial mind where when I get scammed I get screwed over I get you know these things happen it makes me want to find a new Solution that's how I started minority mindset I got scammed and I started minority mindset I got screwed over when I started my bed planning company I got completely screwed over my first realistic investment deal pretty much every part of me had to do with something really bad happening yes so I had a really bad Tax Advisor it was really just an accountant who filed my taxes and was never on time and I got this call it was horrible it was just a mess yes I got a call from my accountant one day I'm in the office this is right before my morning huddle so we have a 9 30 a.m morning huddle calls me I think it was like 8 45 in the morning I'm in the office says Hey Jasper how are you I said good how you doing he said Hey listen I need you to do me something uh can you wire or send the IRS a hundred thousand dollars by the end of the day today and can you also send about fifteen thousand dollars to the state government by the end of the day today I was like what he said sorry we had some Mills calculations we did something wrong oh we missed this and you need to send this by tonight and I was like geez Are you seriously oh yeah one more thing you're probably gonna have to pay a penalty on this as well this is a completely true story like when was this this is not I mean this is less than a year ago oh my God and so it's I mean it's painful it's very painful and so I'm like okay like I was very frustrated because I'm like what did I do wrong like what are you talking about he said you didn't do anything wrong and I was like well if I'm the one that has to pay this and I'm the one who has to pay the penalty something's not right here and so I paid it and then I fired him pretty quickly right because you know that's that's not the way I like to do business I like I want I want everything to be clean but I also want people who care about what they do and he was a uh cheaper accountant yeah I got what I paid for and so I went on the hunt for uh top of the line accountant and I pay a lot more than what I used to however the situation scenario is extremely different because he has a very different personality about a different Persona and the way it works now is one he manages all my books on time and handle schedule so every month he meets with me and he shows me hey just please here's your profit I'm sorry we'll start from the top here's your Revenue here's your expenses here's what your expenses look like here's how they changed here's a profit here's your tax liability and here are the things that you can do to limit your tax liability that's cool here are you know three recommendations or whatever that we believe based off of what's happening right now to legally limit your tax liability and he has given me so many interesting ideas because the tax code is over 2 000 pages long and you need I'm an attorney I studied a lot of tax it takes a lot of knowledge and education to understand and read the tax code but then things keep changing all the time like even this inflation reduction Act is changing corporate tax structure so you need somebody who literally eats breathes and all they care about is taxed and this is this guy right and I'm like dude like this is amazing like I love this because I don't have the time I don't want to spend my time thinking about taxes and all the cash flow stuff I want to build my business and so I got to know him got to build see how we worked I really liked it and after a number of months of working with him and seeing him in action I was like hey man like you have nothing on social media like can we work together like let's like he's very good at what he does but I was like let me work with you like I think we can create a lot of things here because there's a lot of small businesses that need which you have to offer because there's a lot of small businesses who have bad accountants so all they do is file their taxes and you need a Tax Advisor especially now as we're going to see a big change like you need a device who's going to guide you what to do with your money how to document what you do like just to make it completely seamless that way you don't have to stress about it right and he was like I'm down so over the last couple of months we've been working to build this together it's not launched yet we were just talking about it because it came a conversation but uh that's something that I've been really working on uh so you know if you're listening to this and you want a good Tax Advisor just email me there you go team at the minoritymindset.com or send me a DM on Instagram minority mindset and I will connect you but these are I mean this is where what am I doing I'm I like entrepreneurship I like this stuff because it gets me excited it's the way that my brain works it's the way that gets you can speak my purpose right and so I do that I like investing in real estate I like investing in stocks I'm passively doing it in stocks but right now I just see more opportunity for me to invest in things like Market briefs to invest in things like this tax firm because like I see the opportunity it's fun I have a blast doing it I get to meet with the cool people so you know it's just it's a matter of now what is that lifestyle now if I didn't if I wasn't an entrepreneur what would I be doing yeah I'd be stacking up cash to find good Investments either in the stock market or the real estate market or to buy a startup because it's very accessible now thanks to the Internet thanks to all the crowdfunding sites out there and I'd be passively investing like I would not change that so I mean I think everybody should be you can put 100 bucks a month away into stocks or into into an automated account that is Investing For You did you know if you're 21 and you start investing a hundred dollars a month and you never changed it and you just get a 10 return on your money which is the average stock market return and you do that until you're 65 you will retire a millionaire come on we're talking about less than four dollars a day in your opinion would you buy a home uh when interest rates is over or I mean yeah when interest rates is over 10 or you feel like even though you're getting at a massive discount you're paying more every month would you consider that or you just wait until interest rates go down so I look at home buying very differently than the majority people I look at buying a home the way I buy a shirt for me a home is not an asset it's a liability so what does that mean I want to buy a home because I want to create memories I want to buy an investment property or an investment because I want to make money so if you're buying a home because you think oh I want to get rich because of my home I think you're looking at it the wrong way because you should be looking at your home as I want to make memories here I want to live here and I want to grow my family here and I want to spend time here if that's the reason why you want to buy a home what you should be paying attention to is not what's going on in the markets not what's going on with interest rates but instead what you should do is say can I afford it right and what does that mean can I afford the down payment can I afford the monthly payment property tax property taxes fix UPS the fix-ups the move-in costs and then you know you move in like like I mean the furniture so if you can afford it then you buy if you can't afford it if you're stretching yourself too thin you don't buy because what happens to so many people is you get sucked into trying to time the market but again if interest rates drop and you own a home you can refinance right and so remember it's understandable it's almost good to buy it when interest rates are high if you can get the house on discount and then if in a year or two the interest rates drop in half you can refinance just as make sure you can afford it right that's the biggest thing you have to be able to afford it because if you are stretching yourself to then go and paycheck to paycheck that live in a home you're hurting yourself because now what you're doing you don't have the ability to invest in other places you cannot invest your money and do you think people will be able to actually buy a home in five to seven years it depends on what the FED does If the Fed Cuts interest rates and we go into a recession if so our economy slows down the FED starts cutting interest rates mortgage rates go back down you're gonna see a bigger flood of cash into the housing market and that will create a bigger wealth Gap and it will make it significantly more difficult for the regular person to buy a home home ownership will become a real American Nightmare because you will not it will be so difficult for the regular person we will turn into essentially a renter Nation wow where home runs uh homes are owned not even by regular investors corporations corporations yeah they've been buying up I was reading Pakistan's been buying up a ton of homes yeah black Rock's been like uh black rocker block someone yeah they're buying one out of every four homes in certain neighborhoods it's crazy right yeah and and so because which means they believe people are gonna be able to afford them and they're gonna have to rent from them yes and so it's it's uh it's a crazy times to understand that which is why again I look at the home like a liability can you afford it yes then buy if not then don't start yourself too then I used to be a real estate salesperson and the reason why this is so important is because when I was a salesperson you know what they say is you know you want to tell people this is their biggest investment of their life it's a biohome that you love now again real estate agents are not bad people banks are not Bankers are not necessarily bad people however you have to understand the messaging if I tell you this is the biggest investment of your life what are you gonna say I want something bigger I'm willing to stretch a little bit thinner I'm willing to go a little bit further because I want that home and so what does that do well it makes the banker richer it makes the real estate agent a bigger commission check and they walk away now you have to deal with it if you can afford it great but if you start to struggle with it you're the one that has to deal with the problem by yourself and so what happens for so many people is your home is a money pit until you sell it and then you have to hope that you sell it for a profit because there's no guarantee right we don't know uh where home prices are going to be in five years or ten years I can't predict that I don't know what the FED is going to do and so the main thing that you have to understand if you're thinking about buying a home is ignore the markets ignore what's going on in the world can you afford it today and please do me a favor okay I I very rarely try to tell people what to do because I feel like you know I try to I want you to be educated so you can make smart decisions for yourself but the one time that I really tried to give people like I say don't do this is when it comes to adjustable rate mortgages because they've been making a huge comeback now because now the interest rates are five and a half percent people say I missed out on the opportunity to get a low mortgage and now I have been seeing a huge growth of adjustable rate mortgages because now banks will say don't pay five and a half percent on a home pay 3.7 today and it's a five one arm meaning after five years it's going to readjust and then your mortgage payments will readjust and if it goes higher don't worry you can just refinance out and it is so risky because we don't know where interest rates are going to be if they go up and they go up significantly and now you're like oh my god let's just say mortgage rates are 10 I don't want to pay three times more for my mortgage from 800 a month to 2400 a month I can't afford that so let me refinance well if you do that and home prices have dropped and you can't refinance because the bank says well you don't have enough equity in the home I'm not going to refinance you and then you can't sell because you're underwater well now you're in a tough situation so pay a little bit more get that fixed rate mortgage because if mortgage rates do drop refinance right and lock it in because you know other countries in the world don't always even have the option to do a 30-year fixed right we do but uh an arm an adjustable rate mortgage is significantly more risky the only time that I was saying arm is okay is if you are like 100 confident that you're going to be able to pay off the home during that initial teaser rate uh because if you cannot then you are taking on a huge gamble with the home that you live in with your family's livelihood you know it's one thing if you do it with an investment but with your the home that you live in avoid that extra risk and just lock in the rate please right I'm curious here's a question uh we got from people on YouTube if someone has between a thousand and ten thousand dollars today to invest they can spend on whatever they want yeah and they had to turn it into a hundred thousand within three years oh okay what steps would they should they take and obviously this is a you know not a guarantee but if you're like you have to turn this 1000 into a hundred thousand or ten thousand to a hundred thousand what would you invest in right now and how would you manage it over the next couple of years so I'm going to give you kind of a longer answer than maybe you're hoping for on this one I'm gonna start by telling you what you should not do okay uh because the first time I remember um I've had a thousand dollars extra on my bank account I was in high school and what I did with that is I took the thousand dollars and I went out and I bought a watch don't do that yeah and this watch was very studded up it was all crystals and I was like oh it's a nice watch clean so what happened with yeah what happened with that watch well I made that watch company richer I made the jewelry store owner richer and now that thousand dollar watch today has made it worth maybe 50 bucks right it was just a show so my value of my investment dropped Like a Rock but now these companies made money which now they could take that and invest in more products more inventory more marketing or whatever so the first thing is you got to understand that you want to put in something that's gonna help make you more money so I'll give you my personal experience because I saw the biggest returns by investing in me but that will be more of an active investment and then you have the opportunity for a passive investment which is why it's a longer answer than what you were probably hoping for but I'll try to get to all the answers there so I feel like everybody uh who especially if you're had the entrepreneurial mindset you go through these phases where you first go through this like I'm a hustler side Hustler phase and maybe you become like a solopreneur and then you become an entrepreneur and then you become a small business owner and then you kind of go to that business owner so you kind of go through these phases because initially when I first started as a side Hustler I don't know what entrepreneurship was I was just trying to make something cash on the side exactly you just started off for me I started off in the event planning space so I was in college I started hosting teen parties for other kids in college and I didn't really have any money to spend all the 17 year olds or 17 years old when I started so I was like making a very not attractive deals to me but it was the only way I could get started because what I did was I would go to venues to host a party and I wanted a venue that wouldn't charge me any money up front and in exchange they would say just give us 50 of every dollar that you earn so if I made a thousand dollars in revenue from cover charge right ten dollars to come in I give the venue the club whatever 10 or 500 dollars and then I didn't have money for a DJ right so I said look DJ I need someone to play music let's work out a deal they took 50 of what I was left with oh man so I would give them you know I've left 500 they would take 250. now luckily the business was able to grow where you know we were making on the low end a couple Grand a night and then what was I able to I was able to negotiate better deals and then I was able to start investing my money into marketing so I started taking some money and I remember the first thing that we did was I started investing money into Flyers it was a hundred dollars at the time to print 5 000 small flyers and so uh I got creative and I was like look before the event we need to distribute all 5 000 Flyers we cannot have them in a possession anymore and I can't do this myself so I need sales people essentially but I don't want to pay for sales people street team interns college students yeah yeah so what do you do I'll give you VIP entry into the party which doesn't cost me a penny yeah and I will give you a shout out at the party does it cost me anything makes you feel cool makes you feel exclusively good to walk past the line you have this lanyard that says you're this you know VIP whatever and so now I have people at some of the biggest colleges in my area passing out flyers trying to get everybody to come because now you want to be one of those people so you know I got these free sales people that are trying to promote it you have to be creative and that now starts to multiply that money and that's when I realized that I'm just a side Hustler I will never be able to build a business on this I don't want to build a business like this because it was a very dirty industry which is why I got out of it I did not like the scene so I left that and uh started kind of going down more the entrepreneurship route not going more into Innovation so I started a sock company so now I'm starting to invest money my own dollars into the sock company that way now I can build a product build inventory build a website build advertising build marketing and now I'm able to grow this much faster because now I have some skills that I learned right from my mistakes because I screwed up a lot my first event was a complete flop I had some very bad failures I had lost money on some occasions it was you know when you deal with club Owners you're dealing with very interesting people and you learn very quickly right I'm a 17 year old going up to some of these club Owners trying to figure out the game and take advantage they're taking advantage of you and it's also dangerous I remember one time I went to a club uh to talk to the manager because we had a party the next week and I said where's the manager he said oh we got stabbed last night oh man and so you know you learn very quickly to protect yourself to protect your own interests I mean it's you you're literally I mean there was a lot of physical stuff that happened I mean I got almost a bouncer a lot of it so I you know you learn to protect yourself physically learn to protect yourself mentally learn to protect yourself financially so I had to learn very quickly and so now I take things I learn I'm in a much safer much smoother much cleaner industry the sock industry but I start to learn and I start to apply some of the same marketing how can I be creative in the marketing how can I get people to learn and you know you can't learn this in a textbook you just have to try be willing to fail and so same thing there now I kind of go into the entrepreneurship route and now I'm starting to learn and I start to sell and then I realize my passion isn't in socks I like the socks I like the business idea but my passion isn't there my passion is more on the financial side so now I was also doing minority mindset as a hobby minority mindset starts to grow and then I start to build things like Market briefs which is our financial newsletter so now I'm building Market briefs and now turning more into like from the entrepreneur to the small business side because in Market briefs I am not the only worker right on the minority mindset channel it's my face it's me talking and it's you know we have video editors and all that but it's mainly me if I'm not working in minority mindset we're not making any more content and it's not growing which is okay right it's not for me like as my business for me it's my way of helping to pursue my passion and my mission to help spread the sort of financial education the things that I was never taught yeah but my business now Market briefs we have a whole team right we have people that read that lead the creative side that write the news that every day we have the business development team we have the operations people so you know we have a full team that are doing it and if I were to not go into work tomorrow or if you know something were to happen to me the business will continue without right right and so you know it's a matter of flipping that money into the next thing to the next and being willing to invest the time the education so for me it took me a solid decade so I don't have a better three years I I couldn't figure out how to do it you know it took me a long time to figure it out and maybe you could do it now now it's 30 000 to 100. significantly faster than a year I think one of the things is that I'm hearing you say is you know invest that thousand into a skill invested into a skill you look at the quest return and put it into you know that could be okay I'm gonna buy a camera and for the next two years Master becoming great at using the camera whether it be video or photography and then start working with clients and making some side income and then using that money to reinvest in more equipment exactly using that money to maybe have someone else help me yeah to scale my my side business yeah and then have that cash to invest in other things as well it's like and then develop new skills yeah new skill and new skill and it takes that mindset though and the willingness to take risk because you know I would also caution that because you have to be willing to just try when I start a minority mindset I didn't have a camera I don't have any fancy equipment I started recording videos off my phone yeah and I was like you know I'm not going to invest so much money into this when I'm trying to you know it's a hobby for me yeah see where it goes see where it goes and I but I did take an acting class uh I I was in law school so I was in law school part-time I was working on my business full-time and then I took an acting class in the evening's night school because I was like I've never I've never talked in front of a camera before I'm not even a good public speaker um I don't know how to present myself I don't even know how to hit the on button on the camera how am I supposed to do this so I took an acting class because I was like well I'm willing to learn I'm willing to try so you have to be willing to get uncomfortable and you have to be willing to take that risk and this is gonna I don't know if this is gonna offend people or I'm gonna say a bad word but the reason why I think I've been able to become successful is because I'm stupid my whole life I've been told you're both man I've been told that's pretty they're stupid just speak they're stupid why would you want to do that and you know what that's the reason why I am where I am today is because I'm stupid because I'm willing to I never looked at the risk and he called it stupidity but for me is I just saw the opportunity as I know I want to achieve something bigger because I saw how hard my parents had I saw how hard my grandparents had my grandparents were refugees yeah they lost their homes they lost everything they had to fight for their lives and so I saw the things that my family had to go through my grandparents raised me they lived with me so I lived with my grandparents and my parents so I heard their stories talked about the struggles and that was where I started to get my basis of financial education because my grandfather would tell me and he actually repeated this to me a couple weeks ago when I was on the phone with him and he was like you know the the biggest and worst disease is poorness because he said I grew up and I saw extreme poverty so my family's from state in India called Punjab and in 1947 our home the state of Punjab was severed by the government and if you were sick a member of the religion that I am and you're on the west side of Punjab you had to migrate East otherwise you were going to be killed uh so my grandparents were on the west side and you literally had to like run like my grandfather all he had was a clothes on his back and a sword in his hand and as they were coming across they got attacked by a mob and he saw his uncle get his head chopped open right in front of him no way they had a fight and so he put his uncle on a horse and that was the end holy cow he got to the new side of India now and he's there he lost his shoes on the way he has no home no money no anything and so he says I saw extreme poorness and when you're in that level of poorness forget helping other people you can't even feed yourself how can you feed your family if you can't feed your family you can't feed another hungry person what would you say the three biggest myths about money that you've debunked over your time of learning about money that maybe you grew up thinking it was one way like you were talking about loans and Banks and all these different things what are three myths about money that you've found out we're not true the first thing that I would say I don't know if it's a myth but I would say that the first thing everyone has to understand is what money is and I don't mean in terms of like uh in terms of wealth but like money is just paper it doesn't make you a good person it doesn't make you a bad person it just is paper and we talk about all these insecurities people have with money I grew up being told don't talk about money don't worry about money don't stress about money yeah here I am seeing my parents Point their butt off every single day so trying to make money trying to make money and it doesn't make sense how am I supposed to not worry about money and you want me to become a doctor because you read those uh if you go to those uh Career Fairs they show you the different careers right and doctor is always number one the highest income so why am I doing this if it's because of the income instead of because I love it or do something that I love why not because I want to help people yeah you want to save lives exactly and what's crazy is if you understand money you become financially educated you're willing to talk about it well now you can be financially stable doing whatever you want and you can follow something you love and still be financially okay because we assume that you have to have this in order to make money you have to have this job in order to make good money you have to have this career if you want to be financially stable but that's a complete lie yeah but that goes down to not us being willing to talk about money and you know I talked about this in our last interview but you know money is one part of our lives and the reason why people are scared to talk about it is because we're insecure about it and that's because we don't understand how money plays a part in our lives it's one aspect I say that there's four you have to be physically healthy mentally healthy spiritually healthy and then financially healthy if you're not financially healthy well that can make everything else much more miserable because you can't pay your bills but if you're financially healthy you're rich but you have nothing else more money just makes you more miserable so you need to live a holistic life and understand how money plays a part in your life that way the finances can have the biggest power and then you understand that more money just amplifies who you are it's like fire it's like fuel it fuels your fire if you're a good person and you have more money you have a tool to do more good if you're a bad person you have more money you have a tool to do more bad which is why we need more good people with money exactly why did we do that well yeah get educated a lot of people just say that money exposes who you really are exactly it amplifies who you are so people can see um you know whether you're that good person or a bad person or whatever it might be in between but first off understanding what money is yeah is what you had to learn it's kind of like this this thing what else around understanding it what you say so maybe you thought it was one thing but then you realized it was something exactly so now that's money the second thing is how do you use money and value money because I'm gonna say this in the nicest of it possible but traditionally Indian people can be very cheap and uh you know I grew up seeing this and what does that mean it means that the Indian the traditional Indian house is a safe heavy culture and I can say that because I've seen this and I grew up in that where you you make a dollar to spend 20 cents and the traditional American cultures you make a dollar to spend two dollars right and so to save heavy culture so you're spending as little money as possible to save it now obviously we talked about inflation so I'm not going to mention what that means with savings but what I'm talking about here is you can use your money as a tool and this is what wealthy people do because not what do they do with the money you use your money to buy your time back because what so many of us do is we're exchanging our hours for dollars you go to work every single day and you get paid but what are wealthy people doing they're not working just to use their money as a way to buy hours they're using the money to to buy their time back yes because now you can build things and build processes and invest your money because now you can use your money as a tool instead of as a fool that's what I like to say but uh this is where it's it's how do you now use your money to make your life better yeah and and you don't want to be now just just buy a whole bunch of Gucci and Louis Vuitton it's now actually improving your life and not to make your life look better but to actually improve it from the inside out yeah so the simplest example would be you start a YouTube channel we talked about buying a camera well one thing that you could do is you can hire a video editor you know you go on a freelance site hire a freelance video editor and now what are you doing you can spend more time making more videos instead of spending all your time editing the content so you can focus on your time you can hire someone to mow the lawn you bite your time back you can hire somebody to help get you your groceries you buy your time back it costs money you have to spend money in order to do that but you're getting something in an exchange and now you're buying your time back so you can use your money as a tool and you can use your money as a tool to buy a time back or you can use your money as a tool to make you and attract you more money that's what wealthy people do and so you want to be able to use money in that way the third thing would be now to really I mean I know I talk about this a lot but you have to understand the difference between something that makes you money and something that loses your money that's a liability yeah a liability and one of the main liabilities that people spend on today the way you look man we got we have this Instagram Flex culture yes right and uh it is it is very toxic if you do not know how to use it and unless you're investing your money wisely and you've got excess money and you're like okay I want to buy some stuff to flex cool but there's nothing about investing your money yeah and you're just spending it on clothes and watches and shoes yeah if you look good if you've got the name brand stuff but you got no savings you got no Investments you're doing something wrong your priority is in the wrong place what are you doing you're making Gucci Rich you're making Louis Vuitton Rich you're making all these companies rich but you're keeping yourself broke when I talked about my watch I spent a grand on a watch I had no Investments I don't even know what an investment was at the time I didn't realize I could have taken that grand and invested it into a watch company and get to share of the profits but that's how wealthy people are doing and they understand it and there's nothing wrong with spending money there's nothing wrong with having luxuries there's nothing wrong with having the nice things yes but it's a matter of when can you actually afford it you have to know when the right time is for you to have it because you want to First make yourself rich and then hey below if you can afford it do whatever you want Grant Cardone is always talking about how he doesn't spend money on the cash he makes to buy watches or things he only spends money on the watches and clothes and things on the passive income that's great from his Investments you take the earned income you're working every single day you take this income and you use as much as possible to invest into assets the assets pay you live off of the assets because now those assets don't need you to go to work every single day to get paid so if you break your leg and you can't get paid you're not getting the earned income but that active that the passive income from your assets still coming in and now if that's the money you're living off of you are free your earned income is just buying you more assets and so how do you start that right and so this is where you have to kind of build some sort of system for yourself and the rule that I would always say is follow something like marula 5. if you can't buy five of them you can't afford one of them yeah so it's you know you want to buy a a thousand dollar phone you want to buy a thousand dollar watch okay fine can you buy five of them and if you don't have the ability to buy five of them if you can't afford to do that then you can't afford one if you can't buy five you can't afford one and then you want to create a system like a A system that automates your finances where now you have something going on with your money that is putting your money to work no matter what and so one of the easiest things you can create your own is to follow something like a 75 15 10 plan which means that for every dollar you earn from now on 75 cents is the maximum you can spend 15 cents is the minimum you're investing and 10 cents is the minimum that you're saving now the savings is you want to build somewhere between three and twelve months worth of savings if you want to have that protection three months if you're you don't have a lot of reliability a lot of responsibilities you don't have all that going on and you have a high risk tolerance 12 months if you want to play it safe you figure out what's right for you after you filled your savings you fill up the savings you don't want to put any more money into it because I just being eaten Away by inflation yes right the savings is not there to make you wealthy is there just to protect you against an emergency then what you do is you take the money put it into your Investments and now you just keep investing money now what happens is as you grow your income you don't change this ratio so if you go from forty thousand dollars a year to four hundred thousand dollars a year you keep the same ratio and you're still investing first and then you keep saving your money and then you know how much you can spend because now what you're doing which is what wealthy people do is you invest before you spend the way that the finances will look for the majority of people is you make money you pay taxes you spend your money and then you wonder where your money went a lot of people do right wealthy people are you make money especially in California you know seven dollars yes but wealthy people are doing is you make money and then depending on how you make it either you pay taxes first or after ideally after because there are ways to do that legally but you make money and then you want to invest as much as possible and then you spend whatever's left so wealthy people invest and spend what's left while the majority of people spend and invest whatever is left here's one that I think a lot of people do and I think it hurts them in a big way how does someone not make their net worth attached to their self-worth that's a good one you know Minnie how do they believe in themselves have confidence uh have you know love for themselves when they're not making that much maybe they're in a transition maybe they lost their job maybe they're just starting out and how do they also when they start making some cash not tie their bank account number to their self-worth so when you fail at something you don't become a failure as a person you failed at a task and in order to become successful at something you have to fail at a lot of tasks and so the first thing is you have to understand that about yourself is that just because something didn't work just because you feel that something does not mean that you are a failure maybe you failed out of task I failed at a ton of things I'm sure you have to you have to screw up a lot and that's how you find the good so now when it comes to net worth if you want to be completely honest your net worth is pretty useless it's a worthless number it means nothing it means less than nothing because what is net worth it's a paper number if I have a million dollars net worth in the stock market today tomorrow could be worth 400 000. it doesn't if you are valuing your life and even worse if you are spending based off your net worth you're living a very dangerous life and some people do do this because they say oh I'm worth a million dollars so I'm going to go out and live a million dollar lifestyle you don't have a million dollars you're just worth a million dollars you don't have income coming in you're just worth this amount of money and so you go and borrow a ton of money and you start living this million dollar lifestyle and then things go down and now you're the person want to lose your shirt so the thing that I want you to remember is first regarding the failure you're not a failure just because you feel that a task does not mean you're a failure it's actually a good thing you failed because that means you're one step closer to finding that success and then second regarding the actual net worth number look this is just temporary everything is temporary and you have the opportunity to build something a lot bigger you have to have the right mindset and if you are here in America you're in a first world country you have the opportunity to do that but you have to be willing to learn and be willing to give a time so you have to be patient but also impatient at the same time patient in the sense that you have to understand that get rich quick is majority of time a big scam it doesn't work it makes the people selling the get rich quick rich people you broke so the first thing to understand is that but then second is you want to be impatient where you gotta it's gonna fuel that drive fuel that work ethic feel that discipline and you have to be willing to keep going you know I don't if you would have told me 15 years ago or 10 years ago hey man you're going to be interviewing with Lewis on this show yeah I would never thought that's possible like you know I grew up being told somebody like me can't do this somebody like you know I remember talking to my own family members that you can never be a CEO of a company somebody like you can't do that you have no business background you couldn't even get into business school and um it's funny and nowadays I'm like well there's a lot more value to being the owner of a company than the CEO of a company because the CEO is working for the owner but anything is possible and you know even if you just ignore the financial side anything you can do anything you want but you want to be a singer you want to be an actor you want to be an entrepreneur you want to be a CEO you want to be whatever you want to do it is possible but you have to believe it and you have to be willing to put in that work you know hard work beats Talent when talent doesn't work hard that is the truest saying that you can make because I have so you know I'm working I worked in the event planning space I still know a lot of people in this place space I know a lot of people that manage singers Big Time singers especially in the the Indian space and some of these people are incredibly talented with no drive no work ethic and where are they going with their careers they had this spike in the proof going down I know these other people that are average singers but they're putting out songs day after day after them and if you heard them saying just like you know it's whatever but we can produce it before you can make the hooks and they keep putting out content and they keep they keep improving every week and it's like dang you got millions and millions and millions of views it's funny man I got a friend of mine I've had on the show uh Andy Grammer who was literally in Santa Monica busking for four years five days a week four years playing songs for just tips on the streets they hustle right but he I think he said he did like he wrote like over a thousand songs or something crazy like this in this four year period he would sing the covers to try to get like people to come around like Oh I like that song Let me give you a dollar and then he would throw in one of his own original songs to try to get people like oh he gots his own stuff but he does for four years before he actually got something that was on the radio and then touring and all these other things four years on the streets just amazing working really hard now he's got momentum but he's got all these skills now developing over those years to write his own songs and I don't think people realize what four years means because you share four years oh you know college is four years High School is four years but you gotta remember during those four years that's a long time you go from February every day again and again and again Steve Harvey I love historians because he went through the same thing he was homeless because he was like I'm a janitor right now I want to be a comedian a friend who I grew up with is now on TV we both had the same dreams I didn't want to say it he got laughed at for his dreams and now he's the one on TV living my dream and I'm working as a janitor quit his job moved into his car and spent three years just trying to make it look at him and he's he's on shows after shows after shows crushing it it's that discipline be willing to put in the work and just sticking with it is so hard and that can help you with any you know forget the financial side doing something you love living a purposeful life because what's important to you is not what's necessarily important to me and what's important to someone listening to this is going to be different than me and we all have a different passion a different purpose and a different Mission and so someone's going to care about climate change someone's going to change care about world hunger someone's going to care about uh cancer in kids someone's going to care about breast cancer someone's going to care about financial education and so we all come at this world with different experiences different paints and each one of those paints are going to drive our motivations but you have to you have to be willing to work towards it because if you don't who else is going to yeah and you have to be willing to do it if you want to make that impact then you had the inflation and in the beginning it swung and then at the end of it they said inflation will never end in everybody's position for it never ending and then of course what happens is it's so bad that then the Central Bank goes the opposite extreme and then they get surprised

Channel: Lewis Howes

Views: 3,236,285

Keywords: Lewis Howes, Lewis Howes interview, school of greatness, self help, self improvement, self development, personal development, success habits, success, wealth, motivation, inspiration, inspirational video, motivational video, success principles, millionaire success habits, how to become successful, success motivation

Id: fQXrWhcomdY

Length: 96min 5sec (5765 seconds)

Published: Mon Oct 10 2022