What's up everybody, I'm Jaspreet Singh, and welcome to the Minority
Mindset. If you had to climb a mountain, how would you do it? You'd probably come
up with a plan and then start climbing, one step at a time.
Well building wealth is just like climbing a mountain. If you want to
become wealthy, you have to come up with a plan, and then you have to climb to
wealth, one step at a time. And, in this case, you are going to be
climbing to wealth in five steps: C-L-I-M-B but, before we get into what each
of these five steps are, make sure you hit that thumbs up button below, and
subscribe to The Minority Mindset YouTube channel, that way you don't miss our new
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Step number one: 'C', create your financial base. Okay, we talk about real estate
investing a lot on this channel, so if you wanted to build a house, what would you
do first? Design it? Okay yeah, but what's after that? Get the money to build the
house? After that? I don't know, just tell me what it is. You have to lay a
foundation; the bigger you want your house to be, the stronger your foundation
needs to be. So, if you want to build a big house, you need to lay a strong
foundation first, otherwise the house is just going to fall over like a house of cards.
OOH! My house is falling! When it comes to your wealth, you need to create your
financial base first, and you can do that by doing three things: First, save $2,000,
second, pay off your high interest debts, and third, put aside $500 to start
investing. You need to do these three things as fast as possible. You need to
create your financial base in this order because, if you start paying off your
credit card debt first, and then your car breaks down, well now you're going to have
to go back into credit card debt to fix your car, because you didn't save any
money yet. It's like taking one step forward and then two steps back--
ooh--wards. Once you create your financial base, now
it's time for step two: 'L', lead your money. Here's how the majority of people's
financial plans look: you make money, and then, you spend money, and then,
you wonder where all your money went. No more doing that. Instead of letting your
money rule you, you need to be in charge of your money, by telling your money
where to go. Okay money, it's time for you to go to the gym. The simplest thing
you can do is follow my 75-15-10, or 50-30-20 plan. My 75-15-10 plan is for
people that have people relying on them financially, and my 50-30-20 plan is for
young people, who don't have a lot of financial responsibilities. The way it
works is, every dollar you make, is going to be divided up into three different parts:
seventy-five cents or fifty cents of every dollar you make is going to be what
you can spend, maximum, fifteen cents or thirty cents of every dollar you make is
the minimum you're going to be investing, and ten cents or twenty cents of every
dollar you make is going to be the minimum you're saving. Again, you're either going to
follow 75-15-10 or 50-30-20. You can think of this plan, kind of like creating
a three-headed funnel, where every dollar you make, is going to flow through this, and
your money's going to be divided up into, either your spending money, your
investing money, and your savings money. So, every time you make a dollar, it's
going to have to flow through this funnel. Now that you know how to lead your money,
it's time for step three: 'I', interest-free living. PSST! Let me let you in on a little
secret, saving is losing. Every single day, the Federal Reserve or the Fed is
printing more money, more money, more money, which is diluting the value of our
money, which makes the value of our dollars, and our savings, go down. That's
why, when you save your money, you're slowly becoming poorer, and you don't even
see it happen. This is what inflation is. So—uh—then, why are you telling me to
save my money Jaspreet? Well, unlike what the majority of people have told
you, your savings are not there to make you wealthy. That's what your investments
are for. Your savings are kind of like a shield, it's there to protect you, from
going into debt, when an emergency happens. Investors, this—is—financial—
EDUCATION! And that's why you want to be saving your money strategically. If you
are saving your money, just to save it, you are saving your money wrong.
Sorry, after you save six months worth of expenses, stop saving, that's it, you're
done saving. Now, what I want you to do is, I want you to take this money that you
were saving, and move it here, to your investments, this way now, you have more
money, going into your funnel, and so, you can build your wealth quicker. If you
still have leftover debt, like a student loan or mortgages, now, it is up to you to
decide, if you're going to use your investing money, to pay down your debt or
to invest the traditional way. There really isn't just one right answer for
this, it depends on you. If you want to live large, and drive fancy cars, and go
on fancy vacations, then you're going to need to make more money, which means you
have to take more calculated risk, which means you have to invest more money. But,
if you just want to live financially stress-free, then use your money to pay
down your debt, this way you don't have to worry about your expenses. And, if you
want to make the smartest money decisions, you have to pay attention to
what's happening around you, which is why we created the free Minority Mindset
newsletter, where we first break down the top finance, and business news, and then
we show you how this news affects your wallet. This newsletter is completely
free, and you can subscribe to it by clicking the link up here, or by clicking
the link in the description below. Oh! baby! We're moving! Now it's time for step
four: 'M', multiply your income. The issue that I have with most financial plans, is
that they only focus on one thing: spending less. Knowing how to live below
your means is very, very important, but that's just one side of the financial
coin. If you really want to fuel your climb to wealth, then you're going to have to
earn more money. Let me come back to this three-headed-funnel for just a minute. If
you make—$100, that means that you get to spend—$75, you get to invest—$15, and
you get to save—$10. Not bad. You get to go to a nice dinner, you can invest in
one of those online apps, and you have a little bit of savings. But, if you earn
more money, and now, instead of making a hundred dollars, you make—$100,000, now
things are a little bit different. You don't get to spend just 75,
you get to spend—75,000, you get to invest—15,000, and you get to save—10,000.
Now, you can drive a better car, you can go on nicer vacations, you have more
investment options, and you're building your savings much, much quicker. But Jaspreet,
how can I go from a hundred to a hundred thousand? The great thing about
being alive today, is that, it is more accessible than ever, to earn more money,
because of the Internet. I mean, I'm here on YouTube making one
penny, every time somebody watches this video. Thank you for your penny. Now, you
don't have to be on YouTube, you don't even have to start your own business, and
if you want to learn more about this, I'll link a couple of videos for you to
watch, about how you can earn more using the internet, in the description below.
Now, finally at the top of the climb to wealth mountain, is step 5: 'B', be great. As
you are on your climb-to-wealth journey, there are two things you need to
do, to be great. First you need to be great for your family, by protecting your
ass—ets. When people realize that you have money, they're going to try to take their
hand, put it in your pocket, and take some of it for themselves. Create a will, use
insurance, get legal entities, and hire an attorney, this way you can protect your
ass—ets. And second: be great for your community. It costs money to eat, and it
costs money to feed other people. The more you have the more you can do. If you have
$100, you can feed 20 hungry people, but if you have a million dollars, now, you
can go out, and feed 200 thousand hungry people. I'm not telling you to go out, and
become a monk, and give up every one of your possessions, I'm saying, if we all do
just a little bit and do our part, we can make the world a much better place. Thank
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are released, and as always, KEEP HUSTLIN' *