These 5 THINGS Are Keeping You POOR

we cannot change what happens out here but we can change how we react and so if we just beat yourself up and you just blame everybody else for every problem that you have going on in your life you are not going to improve anything why is it that 88 of millionaires are self-made that means these are people who did not have millionaire parents these dollars that we worked so hard to earn is fake because our money or what we call money is not backed by gold or silver or anything tangible what's up everybody i'm desperately sing from the minoritymindset.com we're money minds free think rich and today we're doing something a little bit different because i'm going to be diving deep into your money and your mindset because i got some of our best clips lined up where i talked about the things that are keeping people poor that way you can understand and make sure that you're using your money the right way let's get right into it i grew up being told that if you wanted to become successful or rich financially all you had to do was become a doctor and then save a whole lot of money my parents are immigrants from india and so i grew up with saving in my blood savings are you there here's the thing if you work really hard and you earn a hundred dollars and you save this money in the bank what are you actually saving i mean it took you effort and labor and work to earn this hundred dollars and when you save this money in the bank what do you end up actually saving i'll get to that in just a minute but before i get into answering that question let me show you this let's assume that you have a nice job where you are earning fifty thousand dollars a year and in order to earn this fifty thousand dollars you're working 40 hours a week for 52 weeks a year so you're putting in 2080 hours in order to earn this 50 000 of money now what you have to ask yourself is what is this fifty thousand dollars that you're earning i mean it's fifty thousand dollars worth of money but how much effort is really required to earn or create the fifty thousand dollars that you had to work to earn because the government can create or print that fifty thousand dollars before i can even finish the sentence with just the push of a button so robert kiyosaki the author rich dad poor dad really made popular this idea that our money these dollars that we work so hard to earn is fake because our money or what we call money is not backed by gold or silver or anything tangible this money is just paper and we work so hard to earn this paper while the government can just print this paper with a click of a button if you want to see his explanation as to why he thinks money is fake i will link that for you in the description below but it's kind of hard to imagine that our money is fake because this is the money that we use to pay our rent to buy our food and to buy our vacations but the question that you want to ask yourself especially now more than ever is what are you working for you say that you're working for money okay but what is money is it that paper hundred dollar bill that i have right now at the time of me recording this video the united states has right around 28 trillion dollars worth of national debt and we are on pace to hit 78 trillion dollars worth of national debt in just a few years now that probably just seems like a random big number because it's really hard for our brains to comprehend what a trillion dollars is so let me try to break it down let's assume that you can count one dollar in one second if you could do that and you wanted to count a million dollars it would take you 11 days now that's probably not something you want to do but you could do it if you wanted to count a billion dollars it would take you just over 31 years again that's definitely not something you'd want to do but you could do it in your lifetime but if you wanted to count a trillion dollars that would take you 31 000 years that's not something you could do in your lifetime now if we multiply that by 28 which is 28 trillion dollars the amount of national debt that we have that means it would take you almost 900 000 years to count the amount of national debt that we have and we're on pace to triple that in just a few years so what is my good friend benji really worth no hard feelings benji well money is supposed to be a representation of worth if your time is valued at 20 an hour and you spend an hour at work then you earn 20 dollars that's also supposed to make spending money pretty straightforward because if you want to buy a 100 scarf that means you got to work for five hours to earn a hundred dollars to afford the scarf the tricky thing now is that the value of our money can be manipulated back in the day our dollars used to be tied to the value of gold and let's assume hypothetically that an ounce of gold is worth twenty dollars so if you put in an hour work and you made twenty dollars you effectively made one ounce of gold worth of value these paper dollars were really just a paper representation of how much value that you created that you could see through how much gold that you were entitled to if you put in one hour of work you're entitled to one ounce of gold if you put in five hours of work you're entitled to five ounces of gold so this creates a benchmark of value because not only does it take you time and effort and labor to earn that 20 but it also takes time and effort and labor to mine one ounce of gold so it was a lot easier to define what a hundred dollars was worth because a hundred dollars was worth whatever it took to mine five ounces of gold but then in the 1970s our dollar was taken off of the gold standard so our dollars became just paper i have directed secretary connelly to suspend temporarily the convertibility of the dollar in the gold or other reserve assets except in amounts and conditions determined to be in the interest of monetary stability and in the best interest of the united states that's when our dollars changed to something called fiat currency and i'll just read you the definition of what that means a fiat currency is a national currency like our dollar that is not pegged to the price of a commodity like gold or silver the value of a fiat currency is largely based on the public's faith in the currency's issuer which is normally the government so this money that you're working so hard to earn is not backed by gold or silver or anything tangible it's just a piece of paper that's backed by the government now lucky for us the united states is the most powerful country in the world it has the most powerful military presence in the world and it has the most powerful economy in the world before we go any deeper in this let me just make sure this is clear i'm not trying to promote any conspiracy theories i just want you to understand how your money works that way you can learn how to use your money the right way because that's what financial education is all about and that's what we talk about on our youtube channel all the time we talk about investing your money saving smartly and using your money the right way well if you don't understand what your money is then the financial education doesn't really have that much value when your dollars are not backed by anything tangible it makes it very easy to manipulate the value of the dollars that you're working so hard to earn i'll show you what i mean so let's go back to this example where now i'm working really hard to earn 50 000 a year so this is me and i'm going to work every single day gotta draw me a nice mustache i'm going to work every single day so i can make 50 000 in a year and let's assume for the sake of this example just to keep things simple that there are only 500 000 in the entire world so i worked really hard to attract and earn this fifty thousand dollars and there's only five hundred thousand dollars in the world which means i control ten percent of this country's buying power of this dollar so i own 10 of the wealth because that's what i worked hard to earn now here's the thing if these dollars are just paper and the government comes out and they say you know what we are going to increase the money supply and we are gonna change the amount of dollars out there from five hundred thousand dollars to one million dollars they have just increased the money supply and if i don't get any of that now i don't have ten percent of the world's wealth i only have five percent of the total buying power or world's wealth because the amount of dollars out there just doubled because the government decided to print more money and inject it into the economy and unless i get some of that i just became poorer because i have the same amount of money when there's more money out there now if i wanted to go out and buy myself a side of extra guac that used to cost five dollars when there was only five hundred thousand dollars in circulation i'm gonna need ten dollars in order to buy the same side now because you need the same kind of percentage the same amount of wealth the same amount of value in order to buy that guac because now there's so many more dollars out there it might sound like a crazy example and yeah it's a little bit simplified but that's kind of how our monetary system works our money supply is controlled by our central banking system which is known as the federal reserve bank and the federal reserve bank has the ability to print money so when you hear about things like the rising national debt and you hear bailouts are happening you hear about stimulus checks what that means is the government is going deeper into debt to fund whatever it is they want to do and in order to fund their debt they're working with the federal reserve bank to print this money and then the federal reserve bank gives money to the united states government and then the united states government then injects this money into our economy could you imagine if you had your own money printer i mean you could walk into the mall go to the gucci store and see that 400 scarf and say oh no i don't have 400 let me just print a few hundred dollars 400 come out now you just got yourself a new gucci scarf you and i unfortunately don't have the ability to do that because we have to work to earn this money but the fed can just print money this money printing does have consequences because now you need two dollars to buy you what one dollar could before this is what inflation is this is why your rent keeps getting more expensive that's why groceries keep getting more expensive you need more dollars to have the same buying power that you had before in the beginning of this video i talked about why traditional financial planning methods like just saving all of your money is not such a good idea anymore because of all the money printing that's going on and that's because now as more and more money is printed savers become losers because the value of your savings keep going down because each dollar cannot stretch as far as more money is printed that buying power of each dollar that you save goes down if you work really hard and you live below your means and you save ten thousand dollars to help fund your retirement and you wanna be risk-averse and you don't wanna invest this money so you save this money in your bank that way you know where this cash is well the ten thousand dollars that you save isn't going to have the same amount of buying power when it comes time for you to retire like if you save ten thousand dollars back in 1970 that ten thousand dollars in 1970 would have gone way further than it will today like today you would need about seventy thousand dollars to buy what ten thousand dollars could back in 1970 so you save this 10 000 but each and every day the buying power of the 10 000 is slowly dropping now practically speaking this doesn't mean that you shouldn't save any money there is value to having savings and i'll get to that in just a minute but you need to understand what this really causes so when the fed prints money they need to get it into the economy and there's a couple ways that they can do that so the fed is printing some money and the first main way that they get this money into the economy is by giving this money to banks because banks are really involved in the money supply and so if banks have more money they'll be able to lend more money the second way that you can see this money injected into the economy really only happens during crisis times this is what you saw happen in 2008 and during the 2020 recession where money can be injected into people through stimulus checks or it can be given directly to companies through bailouts so one way this money gets into the economy is through banks and the other way is through a direct payment either to people or to businesses but let's dive a little bit deeper into this so interest rates are cut and banks have all these incentives to lend more money so what happens well you see two types of people you see people like number one who go and borrow money and then they go out and they buy assets so these are people that are going out borrowing money from the bank at low interest rates and they're investing this money maybe they're buying businesses they're investing into real estate whatever they want to get this money from the bank that way they can make themselves richer the other type of people let's call this person number two they use this money from the bank to make them broker they're buying liabilities so now you have these people going to the bank with all this newly funded money and they're borrowing this money to buy a new wardrobe on their credit card or they're buying themselves a new car or they're buying themselves a nice fancy vacation so now they're making money just for the bank because they're borrowing money buying things they don't make them any money and now all this money and this interest is going back to the bank while leaving this person broke now watch this there's a bigger pool of money in the world because it's more money that was printed and this person is using this money to buy more assets they're buying things that make them more money and so they own a bigger share of the entire kind of money pot well this person is spending all their money to buy things that lose the money so if you even just had the same amount of money as before you're effectively poorer than before because now there's all this other money out there and you don't own any of the other money because you use all your money to buy things that lose you money so this person is owning a bigger share of the pot well this person is owning a smaller share of the pot because more money is being created and this person buying assets is buying the things where all the money is going and this person is the one paying for all of these assets to grow so now you're seeing a bigger divide between the rich and the poor because the people that understand money are the people that are buying assets and all this new money is flowing into the assets while the people that don't understand money are effectively becoming poorer because even if you have some savings your savings are not stretching as far and if you have a job your earnings are not stretching as far and all of your money is going out back to the bank because you're not using your money to buy something that's actually going to make you wealthy you have all your money going out but it gets a little bit worse because watch this now when you have these direct payments it's going to go either to a business or it's going to go to a person so a person would be through a stimulus check a business would be something through a bailout when a business gets free money through a bailout guess who wins it's the person who is investing in the business it is not the average person unless you're working for that company but in general if a business is getting bailed out the people who are winning are the people who own the business and i guess the people that work there because they continue to have jobs so this helps the asset owners the people that understand money the person who gets the stimulus check what do they do well they take this money and then they walk on over to amazon where they go to walmart or they go to kroger or they go to lululemon or they go to apple or they go to chipotle and buy themselves some extra guac so you take this free money and you spend it back here i'm gonna draw this kind of a convoluted way back at the businesses so you made this free money there's more money was ejected into the economy you got it and then you give this money to the businesses now when the money goes to the businesses guess who's winning again it is the asset owner because when you own assets you are the one making money when everybody else is spending money and so now what's happening you have all this more money that's created all this more money that's printed it's injected into the economy now you have way more dollars out there but more of these dollars are getting funneled to the top to the people that understand money because now when people make money or when people get this free money they spend it and where do they spend it at businesses so now businesses have a bigger share of the pot because there's all these dollars out there and all these others flow into the businesses and people are spending all their money in businesses so now businesses have a bigger share of the pot and the people that understand money are the ones that are really benefiting because they're owning the assets they're the ones that own the businesses they're the ones that are investing in the businesses they're the ones that are investing in assets where the money is flowing versus the people that don't understand the system are becoming poorer and poorer because now even if you have the same amount of money as before it's a smaller percentage of the pot so you're effectively becoming poorer because you don't own as much as you did before now your dollars don't stretch as far your savings aren't as powerful and your earnings don't buy you as much as they did once before now going back to the whole idea of saving money we are seeing the lowest interest rates in the history of time now that's good news if you're a business or for somebody that's using this money to now make yourself more money and it's i guess good news if you're this person because now your debt is a little bit cheaper but in reality it's really not so good news because that means you're just becoming poorer because you're using more of your money to buy liabilities because you think you're saving money when in actuality you're actually just becoming poorer but the real issue now is if you're saving your money you're not getting any return on your savings because banks when you have lower interest rates banks pay you less interest on your savings so when interest rates go down yeah you get a lower interest rate on your mortgage which is nice you get a lower interest rate on your credit card payments which might be nice but the issue now for your savings is your savings aren't growing either your savings are still they're flat they're dead they're not doing anything and so when you save ten thousand dollars in the bank after a few years your ten thousand dollars only earns you a few pennies let me diagram what this means so here are your savings over time your savings are flat they're dead they're not growing because banks are not paying you any interest on your savings but at the same time the price of everything around you your rent your groceries your health care bills your vacations everything else keeps going up because of inflation we just talked about this as more money is printed the value of dollars go down which makes the price of everything around you go up this is not a secret this is public information the fed is openly saying that they're working hard to increase inflation and so when they say they're trying to increase inflation that means they're working hard to print more money to make the price of things go up while at the same time you know that your savings are not growing at all so your savings are dead the price of things keep going up which means if you're saving all of your money you are effectively becoming poorer because your money is not doing anything while the price of everything keeps going up so what does this mean for you before i get a whole herd of comments and everybody's saying oh just breathe are you telling me not to save any money let's get this straight saving your money is important you need to have an emergency fund you need to have savings to protect you from an emergency but you need to understand why you're saving your money saving your money is important as a financial cushion to protect you from you losing your job from a financial hardship from a crisis that's why your savings are there your savings are there to protect you from going into debt when something goes wrong if you want to be a small saver then your goal should be to save something around three months worth of expenses if you want to be in a good savings spot then you want to save about six months worth of expenses and if you want to be an aggressive saver then your goal should be to save 12 months worth of expenses so if you're spending 3 000 a month just calculate it out now what you need to remember is why you're saving your money your savings are not there to make you wealthy your savings are there to protect you financially once you have your savings locked now you need to really be investing your extra cash because you want to be on the winning side of what's happening financially this could mean investing in real estate or businesses or stocks or commodities it really just depends on what your investing goals are and what your risk tolerance is the whole reason you want to be investing in money is because now you want to be the person that's owning the assets so if more money is printed this money flows into your assets which makes the value of your assets go up because of inflation and now you're on the winning side of inflation that way you're not getting abused by the financial system and if you do want to learn more about how you can actually start investing your money in different ways you can invest your money right now i will link a video for you in the description below if you don't want to be poor financially you got to ask yourself why do you want to have more money what is the driving force inside of you that wants to have more money what's interesting is how your answer changes over time like when you're young chances are you want to have money that way you can have a nice car you can show off on instagram that way you can have all the nice things but as you get older those nice things start to have less value and the freedom that money provides you starts to have more value that way you can just enjoy life have money to spend time with your family and just be able to be free a simple kind of exercise that you can do with yourself to understand the importance of having money is just asking yourself what does not having money do what does not having money bring because when you don't have money that comes with stress now you got to worry about how you're going to pay your bills that comes with financial pain because now you can't get your spouse what they want you can't send your kids off to college without a whole bunch of debt and you can't go on those nice vacations with their family so if you don't want to not have money you got to avoid the five habits that are keeping you poor in the first place that's the five things that i'm going to be going over in this video but before i do that i need you to do me a quick favor and smash that thumbs up button below the first habit that keeps so many people poor is having a poor mindset you might have heard people talk about the difference between being poor and being broke where being broke is a financial thing you just don't have any money right now but being poor is deeper being poor is where you have a broke mindset when you have a poor mindset it doesn't matter what you do out here doesn't matter how much money you make it doesn't matter if you achieve wealth on paper you are not able to live your life because you're still poor up here so if you want to become wealthy the first thing you got to do is break out of this poor mindset and one thing that you got to do to do that is you need to stop finding the problems with everything you need to start finding the opportunities you know i don't consider myself the smartest person or the most talented person but one quality that i think i do have is the ability for me to find the opportunity when i see a problem i mean that's the whole reason why minority mindset started in the first place i was working on a stock business and i got scammed by a fake marketing company and i lost a lot of money and then i had to make a decision okay what do i do about this do i just complain about it and cry about it or do i do something about it and so i decided to come on to social media and create this instagram page called minority mindset where i help people launch a business without getting screwed over and i created this class on udemy which is no longer there on how to launch a business without getting screwed over that eventually grew our instagram page grew and then we grew to like 17 000 followers on instagram when i had the idea okay maybe i should start a youtube channel so now i start a youtube channel and interestingly as soon as we hit like 17 400 followers on instagram our instagram page got hacked and it was deleted now i had almost no subscribers on youtube i had no instagram page no following left on minority mindset i could have ended the thing right there but i was like you know what this is an opportunity for me to now work even harder on youtube so now i dove even deeper onto youtube and now we have a youtube channel with close to 900 000 youtube subscribers and we're building the whole financial media company all because of a problem that i faced now i'm not trying to say look at me look at what i did that's not what i'm trying to say i'm trying to say you got to understand that all of us face problems i talked about my worst real estate deal ever on youtube that way you can see the problems that i faced in real estate now i've been able to do much bigger deals because that problem showed me the opportunity and how to do real estate the right way i talked about when i got sued in real estate that was a problem and then i learned how to protect myself legally and i learned how to be a better real estate investor we are all going to face problems that's a part of life now we cannot change what this problem is but we can change how we react to it and the way you react to it is going to determine how you live your life are you gonna live a wealthy life whether we're talking about financially or just happily or are you gonna live a poor life look this is reality we cannot change what happens out here but we can change how we react and so if we just beat yourself up and you just blame everybody else for every problem that you have going on in your life you are not going to improve anything okay so now just ask yourself when something goes wrong what can you do you can complain about it you can point fingers or you can do something about it these are typically the only three options that you have and i want you to look at what can you do about it to better yourself because complaining about things and blaming others doesn't get you anywhere but doing something about it can find you more opportunities to help you live a better life the second habit that is keeping so many people poor is you are getting too comfortable with debt i was at the mall a few years ago this image just like burned into my brain and i was at the checkout counter and in front of me were these two girls who were buying some clothes and they go up to the cashier and they check out and the cashier says can i interest you in a brand new store of credit card if you get approved and you open it today i can save you 15 off your order the girl said yes that would be great and then he goes away to go see if they can get approved and the girls literally started praying in front of me saying please god help us get approved for this credit card the guy comes back he says good news you've been approved and you can save 15 off your order today and the girls started jumping up and down because they just saved 15 percent on their order because of this brand new credit card no credit cards can be a great tool like i only shop with my credit card but when you're getting a credit card just so you can save 15 off your order chances are you're not using a credit card for the right reasons chances are if you're one of those people you're going to be going into credit card debt because a credit card to you is just a free money printing machine and i can buy whatever you want and pay it later and you know what this is the society that we live in and it's only going to get harder there are more and more companies coming out to help this whole idea of you being able to buy something now and pay later which means you get to be broke now and broke later you've probably seen it if you shop online when you go to the checkout page there's a little button that says would you like to pay for this order in installments what does that mean now you don't got to pay all this money today you just pay it off in six months and add a little bit of interest on top of it back in the day you'd hear people talking about getting big mortgages and then financing the car and then maybe using a home equity line of credit to buy a boat nowadays it's a little bit different because people are not just financing your home your car and your boat but your financing your clothes your furniture your electronics your cell phone your laptop and everything in between and let's not get started with student loans i graduated with kids who had six figures more than a hundred thousand dollars with the student loans graduated school making 14 an hour this habit is gonna be hard to break away from because our society is going deeper and deeper and deeper into debt where it's just completely normal to be drowning in debt that's just what everybody does and so now if you want to go on a nice vacation you don't got to wait until you can actually afford it you just put it on your credit card or you just finance it or pay it off in installments because that's what everyone else is doing you want to go on a nice vacation go ahead pay for it later now you're spending the rest of your life paying off that trip to cancun plus interest but at least you got to eat some guacamole the third habit keeping you poor is sticking around in a toxic environment the internet is great because it has opened the doors to opportunity and education to everybody in the world who has access to the internet but the downfall with the internet is if you get sucked into this negative or toxic environment you get sucked into this deep rabbit hole where it gets really hard to get out because now you're surrounded by people not just in your real life but also in this digital life of everybody who just keeps talking about gambling and blowing your money and spending your money in all these things that are not helping you achieve wealth they're just keeping you poor we all want to have a sense of community and i'll talk about our physical real-life communities in just a minute but we all want to have this community in our digital life too and so people get drawn into these digital communities whether it's in investing or sports betting and the communities that get the most traction that are the most hot are typically the ones that involve the most risk you have a lot of people jumping into the stock market which is great but you have a lot of new people entering the stock market to trade these high margin option trades even though many of these people have never traded a stock or invested their money a day in their life it's the same with sports betting we have this whole new industry of sports betting with companies like fanduel and draftkings that kind of create this community around people betting their money on sports when you gamble it doesn't matter what the odds are at the end of the day the house always wins if the people all around you either talking digitally or physically in your real life are all broke all drowning in debt and are all making bad financial decisions what do you think you're gonna do because when you're in that community when you're in that toxic environment these things are normal it is normal for you to be paycheck to paycheck and it's abnormal for you to save money and invest money and so now when you're in the toxic environment it is just normal to continue being broke and continue complaining about life but if you can transplant yourself from this environment to a different environment where people are talking about investing and living smartly especially when it comes to finances now if you're talking about gambling and living paycheck to paycheck you're not going to fit in this community because this environment doesn't want people like that that's why your surroundings and your environment plays such a big part in how you live your life and if you want to go from this toxic environment to this growth environment the first thing you got to do is you got to start learning because if you just start going into these other people they're not going to know who you are they're not going to want to talk to you and so the first thing you got to do is start learning start reading books change this environment you're in in the digital world start watching good youtube videos where you're actually learning things you know minority mindset start learning things that will help produce a more growth mindset and a wealth building mindset because now you're gonna start thinking differently you know i think we all kind of have to go through this transition phase and kind of change who we're around because the people who were around when we're younger might not be the people that's best for us as we start to grow because when i was younger when i was in college a lot of my friends were all about blowing their money having all these nice things and with this kind of real exotic looking life and as i started to realize this now for me that's when i had to start taking a step back and distancing myself and i did that especially after i started reading these books talking about this other life that i have never experienced and that's when i started looking i kind of started this new journey and new people started coming in my life naturally plus the easiest thing that you can do is change what digital environment that you're in what are you absorbing on the internet because as you do that you're going to find new digital communities that will help you grow the fourth habit keeping you poor is your priorities are all in the wrong place because what happens to a lot of people is they prioritize making money but you don't understand how money really plays a part in your life because yeah money is important but at what cost because you know what there's other assets in our life that are more important than money like time you can always make more money there's no limit to how much money you can have but there's a limit to how much time that we have and so now one of the things that you got to do if you want to stop being poor is you got to start valuing your time more because your time is your most valuable asset if you do not treat your time wisely it doesn't matter what you're doing with your money there's a couple ways that i want you to look at this the first is really just a straight financial perspective if you can make twenty dollars an hour from working at your job or wherever you're working and you are spending a lot of your time doing things that are not making you at least 20 an hour in value like you're mowing the lawn which you don't like doing and you can pay somebody else to do that for ten dollars an hour now you are losing out on the opportunity to make an extra ten dollars an hour because you can just pay somebody ten dollars an hour and work an hour and make twenty dollars so the first thing you gotta do is start putting the price on your time because if you're spending all your time doing things that are not producing any value for you while they're talking about cutting the grass where you can hire somebody to do it at a cheaper cost than you could do it or we're talking about playing video games all day well now you got to put a price on your time and see how much money you're throwing away by not using your time the second part of this coin is you got to know how to use your time in the most efficient way possible because there's only 24 hours in a day and you cannot work 24 hours so you got to understand how can you extract the most value out of your time that way you can attract the most money this is where you got to understand the difference between active money and passive money because active money is where you're physically working to earn money this might be you going to your job there's a limit to how many hours you can work because you got to sleep you got to go to the bathroom you got to spend time with your family so there's a limit to how much active money that you can earn but there's no limit to how much passive money that you can earn because when you talk about passive money this isn't money that you're physically working to earn this is money that you're attracting thanks to your money so when you earn this active money you want to take some of this money and send it off to attract you this passive money that way now you have more money coming in and you're using your time the best way possible because you're using the time to attract this active money but you're also getting this passive money without having to physically invest more of your time but in order for you to attract this passive money you got to understand the number five thing that's keeping so many people poor you're not paying yourself interesting right we're talking about the habits that keep people poor and only now are we talking about how you pay yourself when the majority of people make money they get paid then you got to pay your taxes because the irs wants to cut and now with the money that you have left you're going to pay your rent or your mortgage you're going to pay a car payment you're going to pay your student loans you're going to pay for your utilities you're going to pay for your phone bill you're going to pay for your laptop you're going to pay for your furniture financing plan you're going to pay to go out with your friends you're going to pay for this vacation that you went on last year and then if there's any money left you're gonna save it but that's why we don't think like the majority people i mean that is why we're the minority mindset because if you want to not be poor you got to know how to use your money the right way and that includes paying yourself before you pay everybody else around you and before you make everybody else rich when you pay a housing payment do you want to know who's getting rich it's not you it's your bank or your landlord when you pay a car payment do you want to know who's getting rich it's not you it's your car company or your bank when you pay your phone payment do you want to know who's getting rich it's not you it's your phone company when they go out to eat do you want to know who's getting rich it's not you it's the restaurant before you go out and you make everybody else rich i need you to start using your money to make yourself rich first and that means paying yourself before you pay everybody else now when i say pay yourself first i'm not saying reward yourself i'm not saying go over to the mall go to the gucci store and buy yourself a brand new scarf because the person that's getting rich when you buy that brand new scarf is not you it's the gucci store i mean pay yourself that way you are getting rich first so when i say pay yourself the first thing you gotta ask yourself is who's getting rich when i pay myself the answer is supposed to be you the way you do that now is every time you get paid i want you to take a little bit of money and put some aside for your savings that way you have cash in case an emergency happens that we never have to worry about going into debt again and then i want you to take some cash and put it towards your investments because now you want to buy some assets some investments that are going to pay you for owning them an asset would be something like investing your money in the stock market or investing in real estate investment properties or investing in a business now when you're investing your money in these assets you're doing it for the purpose of making money because now when you own these assets you are the one that's getting paid you can compare that to something like a liability which is where now you're going to the mall you're buying yourself a brand new wardrobe or when you buy yourself a nice car or where you go on a nice vacation these things are nice and they make you look rich but they keep you poor because now when you buy these things you are giving the money to somebody else and you have no money coming back with an asset you're giving your money to this thing that way you own this asset that way now you can keep having more money come back to you this is the financial part of becoming wealthy because if you do not do this i don't care how much money you make i don't care if you make a million dollars a year you're gonna continue to be poor because when you're paying everybody else before you pay yourself even if you make a million dollars a year you might have really nice stuff you might live in a big house you might drive a fancy car you might wear expensive clothes you might go on exotic vacations but you have nothing left for yourself because if the income went away if your money went away what are you left with nothing you have a whole bunch of liabilities that you cannot get your money back from because when you own a liability you buy yourself a brand new car guess what if you go to sell that car three years later you're gonna get pennies for what you paid for it wealthy people get rich and stay rich by living below their means and always no matter how much money they make always putting money aside to pay themselves first because if you want to become wealthy and if you do not want to be poor you have to you have to prioritize your wealth before you prioritize everybody else's wealth so before you pay apple before you pay lulu lemon before you pay chipotle for the extra guac before you pay gucci you got to put that money in your wallet you got to put that money in your assets that way you can build your wealth before you make everybody else rich [Music] you might think that you're the one driving your car but in reality for a lot of americans your car is the one driving you i want to start by going over the real cost of your car so the average new car payment in america is 554 dollars a month this is how much people are paying for a new car right now in america and the average lease payment for a car is 487 dollars a month so i want to be conservative so i'm gonna do all the examples assuming we go with this lower amount there's 487 dollars a month for a car so you have the average person in america making something like a 487 dollar monthly payment on their car which will get you something like a 27 dollar car but the interesting thing about this car payment is your car is a triple threat you are paying interest on a car which you have to pay to maintain every single year which depreciates in value what that means is yeah you bought this car as a 27 000 car today but when it comes time for you to sell this car you're not going to get anywhere near 27 000 cars are liabilities what that means is the longer you own it and the more you drive it the less your car is going to be worth you can compare that to something like a stock or a house which are assets where in general the longer you own this thing the more it's going to be worth cars on the other hand just take money out of your pocket every single month because you have to pay interest you have to keep paying money to maintain it and this car is losing value every single day so you're paying 487 a month and you're getting a car with a heated steering wheel that's pretty cool but if you took that same 487 a month and you invested this money into let's say a low-cost index fund that was paying a seven percent annual return so this is not something super aggressive we're talking about an average seven percent return a year after five years this 487 dollar monthly investment at the seven percent return would grow to 36 000 while the value of your car would come down to 11 000 so after five years this is what your money would look like your investment would have been 36 000 but you wanted to heat the steering wheel and so your car is only worth 11 000. so this is what you get if you invest your money and this is what you get when you want heated seats now let's keep going with this let's say you do this for 10 years so after 10 years your investments won't be worth 36 thousand dollars they'd be worth about 87 000 assuming you get the same return and your car and your heated steering wheel would be worth about 4.5 000 if you do this for 40 years now so 40 years your investments would be worth over 1.2 million dollars and your car would be worthless and by this time who knows what's gonna be out heated steering wheels might not be a thing then you might have some chip in your hands that keep your hands warm if you have 500 to put towards your heated steering wheel every single month but you don't have 500 to put towards your investments something is wrong and at this point you're probably thinking but just breathe how am i supposed to get to and from work hold that thought i'm going to get to that in just a minute but when we posted this concept on instagram where we said if you invest 400 a month and get a 7 return you will be a millionaire in 40 years we got two kinds of responses the first kinds of people said oh i don't want to wait until i'm 40 years old to become a millionaire and the second people said where am i supposed to invest an extra 400 a month just breathe let me start by answering the first part but before i do that i need you to do me a quick favor and smash that thumbs up button below because at this point a lot of people are getting triggered and probably smashing that thumbs down button so if you want to help balance that out help me by smashing that thumbs up button below if you're given two choices you can either be a millionaire today or you can be a millionaire when you're 70. i would pick being a millionaire today who wouldn't but the problem is the majority of people are broke today and they're going to continue to be broke or just above broke when they're 70. baby boomers are in their mid 50s and mid 70s right now and many baby rewards do not have any money saved for retirement and if they do have money it's nowhere near what they need to retire and live financially free or even something remotely close to financially free so yeah maybe you don't want to wait 40 years to be a millionaire but in my opinion now i know i'm just a random guy in youtube so what do i know but in my opinion i would rather be broke now and rich later instead of broke now and broke later if i can't be a millionaire tomorrow i'd rather be broke forever by the way if you're really concerned about waiting 40 years to build this type of wealth you don't have to wait 40 years there's other things you can do and i'm gonna be talking about that in just a minute second people kept talking about how they didn't have four hundred dollars to invest in building wealth in their future yet you have four hundred dollars to invest into a heated steering wheel every single month which is a money trap which is keeping you broke which is keeping you from becoming wealthy and actually the average person is paying a whole lot more than 400 a month especially when you start adding in upgrades and premium gas and insurance you're already spending this money the issue is right now this money is going into somebody else's pocket and it's making somebody else rich it is not making you rich so what i want you to do right now is shift where this money is going and put it into your own pockets that way you can make yourself rich first that way you can buy your dream car and not worry about the price okay just breathe how am i supposed to get to work if you subscribe to our youtube channel you know that i love nice cars if you're not subscribed to our youtube channel you should probably do that but what you might not know about me is that for the last decade or so i have been driving the same beat up 2007 toyota with like 170 000 miles on it the car might be worth a thousand dollars on a good day but it drives just fine there's no issues with the car i mean it has dents and scratches and i got two different rims on the car but it takes me everywhere i gotta go and it's safe and it's saving me a whole lot of money i can't afford to drive a much nicer car i'm not saying this to brag but i make good money i mean tomorrow morning i could go to the car dealership and buy a nice supercar pay them six figures in cash and it wouldn't affect me a bit and you know what i will be driving a nicer car one day maybe even soon i like nice cars but i chose not to spend that money over the last decade because all the money that i haven't been spending on my car has been going towards my investments and growing to build my business i understand that my car is a money trap if i took two hundred thousand dollars and i bought a nice car tomorrow i would look really sweet and i would have a nice car but the two hundred thousand dollars that i spent on my car is going to be worthless in 40 years and it's actually going to be worthless closer to 10 years if it's a super car but if i invested this money in my business or an investment i know that i can build wealth with it look i understand that i'm young and i have the power of time on my hands which is why all of my focus is on building not looking sweet and as i get older i'm gonna start shifting it a little bit when you build your pie bigger you can take out a smaller chunk and live a whole lot nicer if you're worth 10 million dollars and you take out just one percent of it to drive a car you're gonna drive a much bigger car than if you're worth a hundred thousand dollars and you took out ten percent of that to buy yourself a car most people are not going to understand this that's why i call it the minority mindset because we think different than the majority of people most of my friends are always joking around by my car but the numbers speak for themselves car companies spend 35 billion dollars a year to sell you the idea that if you drive a nice car you're gonna have a great life you're gonna have an awesome family and your neighbors are gonna be jealous of you but what they don't tell you is the real cost of your car because the cost of your car isn't just 400 or 500 a month the real cost of your car is your future wealth i'm not saying don't own a car don't drive a nice car i want you to drive a super car i want you to drive that luxury car i want you to drive something nice but i want you to be able to afford it first that way you don't got to worry about the price and that way you're not sacrificing your future freedom you need a car i get it what i'm saying is do you really need a car that's costing you 400 or 500 a month what i'd rather have you do is go out and buy a used but good working condition car with cash that we don't got to worry about the monthly payments and now you got a car that takes you from where you got to go and you got the extra cash in your pocket that can build your wealth leasing is almost never the smart financial decision so these things should be completely out of the question unless you are worth at least a million dollars financing is never the smart financial decision when it comes to buying a car because when you finance you're paying interest to own a depreciating liability cars don't make money they lose you money and if you have to pay interest to buy something that is losing your money you are losing money twice you're losing money in the value of the liability because the car values going down and you're losing money by paying interest to own something that is losing you money buy used use your extra cash to build wealth and now when you have this wealth go out and buy whatever car you want it doesn't matter because now you can afford it and the price doesn't even matter to you earlier in this video i talked about how you can build this wealth faster than waiting 40 years to do that now we talk a lot about this on our website the minoritymindset.com and i will also link an article for you up here and in the description below but there's two things you can do to amplify this process you can either invest more aggressively that means put in more than 487 dollars a month or you can grow your money faster if we're talking about investing more money then you can either cut more expenses that way you have more money to spend or you can raise the income that could mean looking for a new job or asking for a raise or getting a promotion if you have more money then you could put more money towards the investments that way you can build your wealth faster or the alternative is growing your money faster than seven percent a year i said this seven percent a year because this is a completely passive investment if you went out and you threw your money into a low-cost index fund which is a fund that gives you exposure to the stock market now you're not doing anything you're just throwing your money into this fund and you're letting the stock market do its thing this is where people say oh where are you ever going to see a consistent seven percent return on your money every single year and yeah you're right you might not see a seven percent return every single year one year you might see four percent one year might see five percent one year you might see negative two percent but other years you might see eight percent nine percent ten percent and so over the long run this is what we've seen on average in the stock market if you want to beat the seven percent return it's very possible but it's not going to be as passive this is a passive investment where you're just throwing your money into something and then you're walking away and you don't do anything and you just let your money grow if you now invest your time along with your money you can grow your money a whole lot faster there's a few different ways you can do that to get the better returns one way is to be more active in the market so now you're trying to find growth companies and you're actively trading them that way you can get a better return it comes with more risk but it also comes with the opportunity to make a better return or the alternative to that is you can start your own side hustle because now you're investing your money and your time into this thing the side hustle that can grow way faster than seven percent a year if you took a thousand dollars and you went out and you started the side hustle the side business there's a chance that you can make the thousand dollars back within six months that's way better than the seven percent return and if you continue to grow it that one thousand dollar investment that you put into your side hustle could become a one thousand dollar a month return or it could be a one thousand dollar a week return that is way higher than a seven percent annual return with a passive investment now again starting your own side hustle or starting your own business comes with risk and you can fail but if you really want to amplify your wealth there's only two ways to do it you can either grow your money faster or invest for money if you want to invest more money you need to have more money and if you want to grow your money faster you got to take more calculated risks everybody says they want to be wealthy with their mouths but the real question is how bad do you want it what are you willing to do to make it happen if you're not willing to take the risks or make the sacrifices i'm sorry it's never going to happen [Music] 78 of americans are living paycheck to paycheck that means if you walk out of your house right now and you look down the street and you look at your neighbors 8 out of 10 of your neighbors don't have a couple thousand dollars in their bank account right now to protect them from a financial emergency it doesn't matter where you live this is the reality of what's going on in america right now the majority of people are broke i know this is gonna hurt a lot of people's feelings but there's a lot more to this than just how much money you make i've talked about people like earl crowley on our youtube channel who make minimum wage and yet have built a multiple six-figure investment and savings account while having kids while living a life and then on the other hand i've also talked about people like henry's if you remember henry is an acronym that stands for high income earner not rich yet and it's this movement of people that make at least six figures a year that are broke because their goal right now is not to save money or invest money but to live this lavish lifestyle where they're spending all their money to look rich this is where the vast majority of people get kind of offended and they put up the smoke screen and they say things like oh you shouldn't talk about money like that then you shouldn't worry about money when in reality we all use money every single day if money really didn't matter then why are you going to work every single day to get a paycheck now i get it there's a lot more to life than money okay money is just one small aspect of our life but if you don't understand money and if you don't have money you'll become a slave to money because now you're drowning in debt and you have all these payments that you can't afford so you're going to work every single day not to enjoy your life not to do something fulfilling but just so you can make your back payments but if you understand money and you know how to use money and you can grow your money now you can build your wealth now you can take care of yourself and your family financially and you have more money to help other people and to help your community because you have the resources to do that if you're broke you don't have the resources to help other people when you're broke and you're drowning in debt the only person that you're helping is your bank because you're paying these insane rates on money that you borrowed to buy things that you didn't even need so many americans put a lot of weight on luck when it comes to success and i'm speaking strictly financial success right now they see somebody who's become wealthy or rich and they say oh this person must have become wealthy they must have inherited the wealth or they must have just got lucky with their business or their investments or whatever luck is the reason why they're successful if that was the case why is it that 88 of millionaires are self-made that means these are people who did not have millionaire parents these are people who created their millions themselves 9 out of 10 millionaires out there that are millionaires made it themselves this is where you can say oh they had an advantage or they had this or they had that we can spend the rest of our lives looking for advantages that other people had as to why they could become successful or you can spend that same time understanding how to use your money the right way that way you can build your wealth because there's a system to understanding how to use your money the first thing you got to do is get your mindset right i talked about this a little while ago on youtube but i was at speedway getting gas and speedway actually had this video on their screen i was talking about how they let you buy lottery tickets or credit cards and i went in because i needed to get a pack of gum and there was a lady there who was frantic who was freaking out because her credit card got rejected when she was trying to buy like 150 worth of lottery tickets she was buying dozens and dozens of lottery tickets because this was her kind of hope of becoming successful spending all your money on lottery tickets or financing this lottery tickets is gambling and it's a straight path to broke not only are you not going to win but now you're going to be spending all your future paychecks paying off these bad decisions wealth is a long-term game and if you really want to know the secrets to not being broke and the secrets to becoming wealthy there's five things that you need to understand these are the five things you have to understand first you gotta stop living in a net zero life second you gotta avoid the money traps that are out there third you need to know how to grow your money and grow your wealth faster fourth you gotta stop living in this game of the fake flex and five you need to understand the game of how money works these are the five things i'm going to be going over in this video so make sure you watch this video until the end first let's talk about living this net zero lifestyle because this net zero lifestyle is keeping the majority of people broke and it is holding you back from becoming wealthy the way it works is like this the majority of people think okay i have a hundred dollars in my bank account right now and if i have a hundred dollars in my bank account that means i can go out and i can spend a hundred dollars on a pair of shoes because i have a hundred dollars in a bank account if i have a hundred dollars i should be able to spend a hundred dollars this is net zero thinking because if you have a hundred dollars you can spend a hundred dollars this mindset kills people's wealth because if you have a hundred dollars you cannot afford to spend a hundred dollars this is why i keep saying that your income is now what determines if you're going to become wealthy or not and your income is now what's going to determine if you're going to live broke or not it's what you do with your money if you make a hundred thousand dollars and then you spend a hundred thousand dollars guess what you're broke if you make twenty thousand dollars a year and you spend twenty thousand dollars guess what you're still broke the very first thing you have to understand is you are not allowed to spend every dollar that you have because some of your money needs to be saved to protect you from emergencies and some of your money needs to be invested to help build your wealth okay if you have a hundred dollars in your bank account you cannot afford to spend a hundred dollars this becomes even more true if this money that's in your bank account is not yours so when i was in law school i had this friend or acquaintance rather that was in my law school with me and i was talking to him one day about what his plans were for the evening and then he told me that he was going out to buy a really nice umbrella i thought it was kind of funny that his evening activity was to buy an umbrella but i understand it because you know we're in a rainy area and it's not fun to go walk around when it's wet outside so i told him that i bought my umbrella from home depot when i paid like five dollars from it and he told me now remember this is when we were in law school okay he did not have a job he told me that he wanted to go out and buy this really fancy 400 umbrella he showed it to me on his phone i was like 400 for an umbrella who spends 400 on an umbrella and he told me that he had this extra cash from his student loans in his bank account so he wanted to use this money to buy and invest in this umbrella so when he goes to these attorney interviews he's going to look really fancy with his 400 umbrella in his hand that is net zero thinking on steroids now you assume oh i have 400 in my bank account even though this money is not yours this is money from the bank and you feel like you need to spend this money because this cash is in your bank when you live this lifestyle of spending every dollar you have in your bank whether it's your money or someone else's money it's even more expensive when it's someone else's money but when you have this need to spend every dollar you have on things that don't make you money like an umbrella you are going to be broke the solution to this net zero thinking is to create a system where you are not allowed to spend all the money you have you have to create the system where you know that you have to live below your means this is where a rule of five comes into play our rule of five says if you cannot buy five of them you cannot afford one of them so if you have a hundred dollars in your bank account and we're talking about things you don't need to survive if you have a hundred dollars in your bank account and you wanna go buy something you can only afford to buy something that costs twenty dollars because if you have a hundred dollars in your bank account this 20 thing is what you can afford to buy five times over so if you cannot buy it five times you can't afford to buy it one time second let's talk about money traps to avoid because the majority of americans are broke and will never build wealth because they're spending money they don't have on things they don't need which will never make them any money sometimes this is obvious like i just gave you that example of that person i knew in law school who had money from student loans this money was not his this is the bank's money that he spent to buy an umbrella right but sometimes this money trap isn't so obvious when the majority of people say that they can afford something what they actually mean is i can make the monthly payments but that's very different than being able to afford something the simplest example of this is your cell phone okay your thousand dollar cell phone that you have in your pocket so many people are financing this phone on 20 30 40 50 monthly payments because they cannot afford to pay a thousand dollars for a phone so they think oh i can afford this phone because i can pay fifty dollars a month with zero percent apr financing so i'm not paying any extra money and interest and i can afford this phone right but this is a money trap what happens when you finance something that you can't afford that you don't have the cash to buy up front well now you're going to be paying this 20 30 40 50 a month for the rest of your life because every year you're gonna get into this trap of buying a brand new phone and then secondly you never have the pain of this money leaving your wallet you think that you just bought a thousand dollar phone but you never had the pain of a thousand dollars leaving your wallet all you saw was fifty dollars leaving your account every single month and so you think now oh i bought this thousand dollar phone and it's only costing me 50 a month so let me go and buy this 2 000 laptop that you can't afford but it's only 85 a month so now you buy that and then you buy the sofa that you can't afford because that's only 75 dollars a month and now you're spending money on things that you can afford because you think you can live way up here but you can actually afford down here you thought you were being financially smart about paying zero percent apr but you just got played because now you're spending more money on things that you don't need because you never had the pain of money leaving your pocket in the first place the reason zero percent apr is so profitable for businesses is because when you buy things with zero percent apr you never have the pain of money leaving your bank and so now you can buy a whole bunch of things that you didn't know that you can afford because you can't actually afford it all you think you can afford is the monthly payments there's a difference between being able to afford a smartphone and being able to make the monthly payments there's a difference between being able to afford a brand new car and being able to make the payments you need to start being able to afford the things you buy not just making the monthly payments the goal with the first two things that i talked about not living that zero and avoiding money traps is all so you can grow your money and your wealth faster if you follow the first two things that i just talked about you avoid net zero you avoid these money traps what you're gonna see happen is all of a sudden you're gonna find extra money in your bank account out of nowhere now what you wanna do with this extra money is you wanna put some of it to work that way you can grow your wealth faster there's two terms you need to understand assets and liabilities i've talked about this before so if you haven't subscribed to our youtube channel yet make sure you do that but what you need to understand our assets are things that put money in your pocket liabilities are things that take money away from your pocket your 400 umbrella your shoes your lottery tickets all these things are liabilities if you're spending money on something and it's not putting money in your pocket or if you're not buying it for the sole purpose of making money it's a liability the interesting thing about liabilities though is liabilities make you look rich right when you go out and you buy a fantasy in your wardrobe you buy new shoes you buy a new purse you buy a new cell phone you buy a new watch all this stuff makes you look rich and so this is what broke people do broke people spend all their money on liabilities that way they can look rich but they're actually just product rich you look rich but you're actually broke because you have no assets if you want to become wealthy you got to flip this around you need to start spending more money on assets which are things that pay you for owning them and then once you have more money coming in then you can afford to buy these liabilities the first time i really understood this concept of assets and liabilities was when i first started investing in real estate i was running this event planning business and i had money in my bank account and i really wanted to buy this bmw it was the 3 series and i really wanted to buy a 3 series because it looks sweet and it would look really cool with my image but then for some reason i was reading books and every book talked about how wealthy people owned real estate i had no idea what real estate investing was i didn't grow up with real estate investing family members but i decided you know i wanted to try this out so instead of using my money to buy a car i ended up buying a small little condo this condo as soon as i bought it about a month later after renovating it i rented it out for 600 a month and after paying all expenses i was left with 250 a month in profit every single month and i didn't have to physically do any work to get this 250 a month this was passive income i was getting because i spent my money buying an asset instead of using my money to buy a liability which was a car assets are things that put more money in your pocket these are the things you need to buy if you want to build wealth liabilities are things that make you look rich but they keep you broke so now if your goal is to become wealthier faster you got to spend less money here and buy more assets aggressively and it doesn't have to be a ton of money to start you can start with five dollars a day or five dollars a week or twenty dollars a week whatever you have you just got to make these small incremental investments that way you can buy these assets and build your wealth faster the reason it's important for you to be buying these assets instead of just keeping your money in your bank account is because at the end of the day when you're working to make money you physically are working to make money when you save money your money is just sitting like this it's flat your money isn't doing anything the amount of money you have in your savings account today is going to be the same amount of money you have in a year of something you don't take any money out or put it in right so if your money is in your savings account it's just sitting there but you can't physically always be working right you want to live this life where you have other sources of income coming in this is where assets come in when you invest your money you can see your money grow like this it grows quicker than your money in your savings account and it grows without you physically having to earn this money you're using your money as a tool kind of like a magnet to go out and attract you more money and if you want to attract more money you need to be buying more assets the more money you put in here the more money you're gonna get back a simple rule of thumb to help you out with this if you want to build more wealth faster hit to follow our five to one rule which says for every five dollars you spend on liabilities spend one dollar buying assets if you spend five dollars at chipotle spend one dollar investing in chipotle if you spend a hundred dollars at amazon spend 20 investing in amazon now if you do want to learn more about money management and investing like this that way you can grow your wealth faster we have a free ebook of money management and investing that you can read for free when you sign up for our financial education emails which are also free you can get a free ebook and start reading our financial education emails by clicking the link up here or by clicking the link in the description below by the way our financial education emails are separate from our financial news emails fourth you gotta stop living this fake flex lifestyle we're living in the day and age of social media where people live their lives based off of what they see on instagram look more than half the stuff you see on instagram is fake there are people that are going into debt to finance the perfect instagram page because people are going into debt borrowing money to buy things that way they look cool on instagram this has turned into a game of chicken where people are competing against each other to see who can go bankrupt first just because somebody has something doesn't mean they can afford it okay remember the things that we talked about in this video the majority of people are broke just because your friends are showing off the things that they just bought doesn't mean that they can afford to buy those things life doesn't have to be a competition these big companies want it to be a competition because they know that if all your friends are competing against each other on what you own you're going to be spending more money at these companies but it doesn't have to be a competition you don't need to go out and spend all your money and make every company around you rich use your money to build your wealth first this brings me to number five you gotta understand the game okay everybody in the world is after your money okay this does not mean that businesses are evil that they don't deserve to exist this is just how the game works businesses want your money apple wants you to buy their airpods lululemon wants you to buy the leggings chipotle wants you to buy the extra guac what you need to do is create this filter okay the whole world is asking you for your money what you need to do is have this filter in place that way you know what is worth spending money on and what is not spending money on because right now what the majority people do is they don't have this filter when they see something they like they just spend their money they don't have this filter you need to know what's worth spending money on and what's not worth your hard-earned money the goal is not for you to live small for the rest of your life okay the goal is for you to live bigger and expand your means but the only way you can do that is if you have more money for yourself that way you can invest more money into yourself that way you can have more money attracting you more money and when you have that that's when you can go out and live a bigger lifestyle you can buy the nicer things you can have the nicer car you can have the bigger home but in order to do that you need to make sure you can afford it first that way you're not stressing about the payments the goal of the game is to become wealthy that way you can buy all the nice things you want without worrying about the price but you can never do that if every time you make a book it's constantly just going out you need to know when it's worthwhile for you to part with your money but this also goes both ways because once you understand the game and you understand how money works that's when you're going to want to fuel your financial system because now you understand okay i need to use more of my money to buy assets investments which are things that pay me and if you really want to ramp that up then you're going to need more money coming into your financial system that way you have more money to invest and you have more money to grow your wealth faster and the only way you can do that is to come onto this side of the equation the producer side of the equation and learn how to create more income this is going to depend on what you like maybe you're just going to work overtime at your job you're going to try to get a promotion you're going to try to get a raise that way you can earn more money for some of you this might be starting a side hustle maybe you have a side cake business maybe you become a freelancer you just have this thing on the side that you do to earn more money that way you can build your wealth faster and for some of you with the entrepreneurial bug this is the opportunity for you to go out and understand how to create value that way you can create a product that people need that improve people's lives the name of the game is not spending money whenever you can and then trying to find steals or deals that are not actually deals one time i was at the mall before this whole pandemic happened and there were these two girls in front of me in the line to check out and the cashier asked them would you like a store credit card because you're going to say 15 off your order i forget which store this was now maybe it was macy's or jcpenney and these two girls were like yeah that would be great and then the cashier starts looking up the credit information and these girls were literally praying that they would get approved for the stroke credit card and when the cashier came back and said that you're approved they literally started dancing with joy right when you have that you are just being bombarded with these places these companies that want your money and you're just giving it to them as soon as you have the opportunity you got to stop living like that you need to understand the game that way you can keep more money for yourself and build your wealth first [Music] you and i all use money every single day but most of us never grow up learning how to actually use our money the right way i can't say this for sure but i have a hunch that this lack of financial education might be why one out of four americans say that they worry about money all the time in this video i'm going to be going over 10 things that you should not do with your money and it all starts with avoiding get rich quick schemes hey you want to get rich yeah you want to get rich fast yeah you want to get rich fast without doing any work what's the secret it's simple all you got to do is buy my proven secret system on how you can get rich in 60 days without doing anything online courses are great i spend a ton of money every single year on online education but if you're spending money on online courses and online education make sure what you're buying is going to teach you a specific skill or help you develop a specific skill because you want to learn how to improve your financial education or how to invest your money in stocks or how to invest your money in real estate you don't want to go and try to buy a system that's going to make you rich without you doing anything because the only person that's going to make rich is the person selling the system it's the same as spending money on lottery tickets and gambling because now you're hoping that the universe is gonna come from above and it is going to give you free money when you go out and you buy a powerball ticket hoping you're gonna get rich you have a 1 in 292 million shot at becoming rich through winning the lottery so are you saying i still got a shout out you have a better chance of walking outside your house and getting crushed by a meteor than you do of winning the lottery you also have a better chance of becoming the next president of the united states than you do of winning the lottery okay in the financial world they call the lottery an idiot tax because the people that blow all their money on lottery tickets are well let's just say they're not very financially educated lucky for you you are not going to be one of those people because you are watching the minority mindset and you don't think like the majority of people and this same concept also applies to gambling have you ever wondered why so many people from around the world want to come to las vegas it's because they want to see all these buildings and skyscrapers and they want to see the entertainment capital of the world but the way that these buildings and skyscrapers are getting all the cash to fund these buildings and skyscrapers is because so many people are losing money in the casinos gambling is a losing game when you go gambling you are the one paying rent and paying the utilities for all these huge beautiful buildings second you always gotta have the newest things nowadays the cool thing to do is to finance your phone with zero percent apr because now you're not paying any interest and you could pay off your phone in 24 months but what ends up happening for the majority of people is 24 months go by you pay off your phone and then people feel weird oh i don't have a monthly payment anymore for my phone so what do they do they go out and they buy themselves the brand new iphone now you're not paying 40 a month for 24 months you're paying 40 a month every single month for the rest of your life and the monthly payment is actually probably gonna go up because the price of phones are probably gonna go up too when you buy things with zero percent apr you might think you're doing the financially smart thing because now you're not paying any interest to borrow money and you can keep more cash in your account that way you can invest it and grow it but what ends up happening for the majority of people is you don't invest this extra cash you spend this extra cash because you never felt the pain of money leaving your account so now you're spending your money on a bunch of nice things that you don't need and when the monthly payments end you go and buy a new nice thing because you feel weird not having a monthly payment the reason zero percent apr is so profitable for businesses is because they know that you're not going to actually invest this money like you say you're gonna do they know that you're gonna go spend this money on a new sofa or on a new tv or on a new computer in america we got the whole concept of affordability wrong most people think that they can afford a new phone but all they can really afford is the monthly payments being able to make the monthly payments is not being able to afford the phone being able to afford something means being able to buy it in cash without worrying about the price which brings me to number three buy now pay later or as i like to call it broke now and broke later i don't know where i heard this thing but i really liked it and it stuck with me broke people love payments rich people love profits if you want to be able to afford something you gotta follow my rule of five if you can't buy five of them you can't afford one of them if you want to learn more about affording something i already made a video where i talked about the secrets of not being broke and i will link it for you in the description below the reason i want to talk about this by now and pay later concept is because well there's a new movement in this financial technology space trying to help people with this buy now pay later system i'm an entrepreneur so i love when new businesses come up and they find new disruptive ways to kind of shake an industry or they come up with new innovative ways to do something better but now some companies are finding a better way to do the layaway system layaway is this concept where if you don't have the money to buy something you can tell the store oh i don't have the money to buy this phone let's say for example so you just put this phone on the side and now you're gonna make monthly payments or whatever payments to the store until you can buy the phone and once you pay the store enough money now you can buy the phone nowadays this layaway concept is going digital with interest apps like a firm and after pay are shaking up this whole layaway system because their whole model and premise is built around the idea of letting you buy something that you cannot afford and then you can pay for this thing later with interest it's concerning because retailers think that this is the future some retailers have said that they believe that this is gonna be almost like free shipping where when you buy something online you'll always have the option to pay it in installments later this whole idea of buying things that you don't need that you can't afford that don't pay you with money that's not yours is one of the biggest reasons why so many americans are broke and now through the help of technology it is only going to become easier and more accessible for you to buy things that you cannot afford people are already going out and buying new sofas on five year or six year installment plans but they only keep their sofa for three or four years so now three or four years go by you get rid of the sofa you still got the monthly payments for your old sofa but now you go and buy a new sofa and so now you have two sofa payments one for a sofa that you don't own and second for a sofa that you just bought if it doesn't make you any money it is never okay to finance it fourth let's talk about eating out when you're in credit card debt let's do a little bit of math let's say you invest 750 dollars a month so every single month you take 750 and you invest it and let's assume that you can get a 19 annual return on your money so you're investing this money every single month and every year you're getting 19 return in five years you are going to have over 100 000 in 10 years you are going to have over 315 000 and in 16 years you are going to be a millionaire because you are investing 750 a month and you can get a nineteen percent annual return on your money now at this point you might be thinking but joseph how am i gonna get a 19 consistent return on my money every single year well your credit card company is doing that every single year when you have credit card debt this is why credit card debt is keeping so many people from becoming wealthy because you are spending all your money making your credit card company rich while it is keeping you broke that's why if you have credit card debt you got to know exactly how you're spending money because let's say you're eating out for lunch you might buy yourself a nice wrap and a salad and a coffee add that up plus some tip and it's going to cost you 25 now if you do this 30 times a month that's going to cost you 750 dollars that you're spending every single month on food that you can make a home for a fraction of the price now we already went over the math but if you're in credit card debt and you're spending 750 a month on things that you don't have to spend then well you are making somebody else wealthy instead of yourself now you might be thinking something like oh well at least i don't spend all my money on food well if you're in credit card debt just do the math if you are wasting 25 a day on something that you don't need to even if you don't eat out that much just do the math if you are wasting 25 a day that's 750 a month and we already did the math of what that kind of money would make you if you invested the money at your credit card's rate okay so if you are wasting 25 a day maybe it's food maybe it's your netflix subscription maybe it's all the things that you're blowing money on that you don't need to this is money that you could be using to pay down your credit card debt that way you can use your money to build your own wealth and set your credit card company's wealth if you are interested in learning how you can invest your money we have tons of articles on how you can do that on our website the minoritymindset.com and i'll also link an article for you up here and in the description below five buying gifts you can't afford people are always gonna need gifts people keep graduating from school people keep getting married they keep having babies they keep having birthdays to keep having anniversaries if you have a big friend circle that can add up to a lot of money on gifts very fast if you are in a financially tight situation stop blowing your money on gifts okay write them a card tell them you love them and tell them that you're going to get them something once you get your finances in order or if you can't get yourself to do that then talk to your friends about creating a limit on how much you can spend on gifts that way you're not spending more than twenty dollars to buy a gift for your friends or you can create a gift that's not gonna cost you any money like you could give me the gift of smashing that thumbs up button below sixth don't blow your money literally cigarettes drugs alcohol weed all these things hurt your body they hurt your mind and they hurt your wallet what are you saying just put it am i not supposed to have any fun look i know it's easy for me to say this because i don't drink i don't smoke i don't do any drugs but just look at this practically okay if you're in a financial crunch all these things are costing you money and they're not giving you any financial return it's a triple punch to you so you got to figure out how important it really is kind of like number seven driving a car that you can't afford the average payment for a new car in america right now is more than 500 dollars a month now this is also what i call a triple threat because your car isn't depreciating liability it doesn't make you money you have to pay interest to drive this depreciating liability and you have to pay to maintain your car so you're paying to maintain a car that doesn't make you any money and you're paying interest to do that now look i get it you want to drive a nice car and you want to look rich but you got to ask yourself would you rather look rich or be rich if your answer is look rich then yeah by all means keep paying for your fancy car because you look rich when you do that if your goal is to be rich well then you got to be rich before you can look rich if you want to be rich you got to put some money towards your investments before you're paying money to drive something that's not making you any money i already made a whole detail analysis video on youtube where i talked about why your car is keeping you broke and i will link it for you in the description eight do not invest in something that you do not understand bitcoin in 2017 real estate before 2008 and dot com companies before the year 2000. do you want to know all three of these things had in common people were investing the life savings into these things thinking that they were going to get rich overnight because they thought that these assets could never come down and in all three of these situations people lost everything investing is important and it is one of the fundamental keys to becoming successful i talk about it all the time on our youtube channel but you need to be investing in things that you understand not just in things that people are really excited about before you make your next investment ask yourself why are you investing is this thing going to have potential in the future and how am i going to make money nine don't shop because you're upset there is a concept called retail therapy where when you don't feel good you can just go over to the mall blow a bunch of money and now you're gonna feel a whole lot better because he bought a lot of nice things mental health is a real issue and it's a real problem okay i'm not trying to discredit that but let's look at this practically if you are upset at somebody or if you're upset at something and you go and take out your anger and frustration by blowing a whole bunch of money at the mall you are not fixing the root cause of the problem and you're creating a new problem debt find a new therapy when you're angry when you're upset when you're sad don't take it out in the mall by swiping your credit card take it out by going on a walk maybe listen to an audio book and number 10 you never pay yourself the way money works for most people is they make money and then they spend money and then they wonder where all their money went if you really want to build your financial freedom and your wealth you have to pay yourself first now when i say pay yourself first i don't mean take out some of your cash from your bank account and go to the mall i mean take out some cash put it into your savings account that way you can build a savings cushion and take up some other cash and put it into an investment account that way your money is growing and building your wealth and now you only live off of what's left now what you're doing is you're building a savings cushion that way you don't have to worry about a financial emergency happening and going into debt when your car breaks down and with your investments you are creating more income because your money is working to build your wealth this is not something that happens overnight but now you are laying the stepping stones to build this wealth that way you can live more financially free in the future if you enjoyed this video here's a video that i think you'll love and while you're at it subscribe to our youtube channel and join our free finance and business newsletter and as always keep hustling assets are things that put more money in your pocket these are the things you need to buy if you want to build wealth liabilities are things that make you look rich but they keep you broke

Channel: Minority Mindset

Views: 655,707

Keywords: minoritymindset, minority mindset, minority123, jaspreet singh, rethink rich, financial education, financial literacy, build wealth, become wealthy, how to get rich, personal finance, money management, rich dad poor dad, success habits, investing, investing 101, investing in real estate, investing in stocks, passive income, how to never be broke again, money tips, wealth tips

Id: 0DeCHX9eYm4

Length: 80min 12sec (4812 seconds)

Published: Sat Mar 06 2021