The Savings Expert: Are You Under 45? You Won't Get A Pension! Don't Buy A House! - Jaspreet Singh

We have to get over these money myths. that you can't build wealth if you rent. where you live. You can't build wealth. if you don't have access to millions of. dollars. That's not true. And there's. one key thing that's given much better. returns than any real estate, than any. stock, and even any cryptocurrencies. So, let's talk about the real way to. build true wealth. Jaspreet Singh is the. no-nonsense financial guru, realtor, and. entrepreneur, whose methods have helped millions of. people solve their crippling money. problems. and unlocked financial freedom. People. don't like when I say this, but I'll say.

what I say to make friends. I say what I. say to help people be better with money. There's a lot of people that are lacking. financial education. And we're taught. study hard, get a good job, and if you. continue working down that path, you're. going to become successful. Yet, most. people buy a house they can't afford, and statistically are living paycheck to. paycheck. In fact, that's 78% of. Americans. Because, ironically, the key. thing that keeps so many people poor for. the rest of their life is they're scared. to look broke. So, what do they do? They. drive around in nicer cars, going on. better vacations, and to the nicer.

restaurants, but they no longer have. money to save, they no longer have money. to invest. And the problem is you need. about $1.8 million to retire. comfortably. Wow. So, if you are in the. financial danger zone, which is you. don't have $2,000 saved up for an. emergency, and you have credit card. debt, you have to make drastic changes. today. So, what do I do? Well, the first. thing you got to understand is the. 75-15-10. plan, which is. But now, let's dig this a little bit. deeper. And let's talk about making. money. I put my money in five places. that has been proven to win. Number one,

This is always blown my mind a little. bit. 53% of you that listen to this show. regularly haven't yet subscribed to this. show. So, could I ask you for a favor. before we start? If you like the show. and you like what we do here and you. want to support us, the free simple way. that you can do just that is by hitting. the subscribe button. And my commitment. to you is if you do that, then I'll do. everything in my power, me and my team, to make sure that this show is better. for you every single week. We'll listen. to your feedback, we'll find the guest. that you want me to speak to, and we'll. continue to do what we do. Thank you so. much.

Jaspreet, who should care about your message, and why should they care? Anybody who uses money, which is everybody. The interesting thing about money. is we use money every single day. It costs money to eat, and it costs. money to feed other people. Yet, most of us are never taught about. money. So, most people say money doesn't. matter. I shouldn't think about money. I. shouldn't have to worry about money.

Money's bad. Money's evil. When in reality, it costs money to eat, and it costs money to feed other people. And when you don't understand that, now, you're the one. that's going to be. paying the highest taxes. You're the one that's going to be. struggling to pay your bills. You're the. one that's not going to be able to go to. Disney World. You're the one that can't. pay for that amazing gift for your wife. or your husband. And you're the one that. can't pay for the health care for your. parents. And you wonder why. And in this economic system that we all.

live in, money talks. And unless you understand that, you're never going to be able to win in. the system. What is the difference. between people who figure out how to. make themselves wealthy and those that. don't? If we put all objective. advantages aside, rich parents, inherited lots of money, all these kinds. of things, what is like the fundamental. difference that you've seen from the. many, many hundreds of thousands of. people that you've worked with and. taught and have consumed your content?

What is the fundamental? There's one difference. One key. difference. People that become wealthy. understand how money works. And everybody else does not. And I'll tell you where I came to this. conclusion. I checked all the boxes. I studied hard. in school. I went through high school. I went to college. I spent 1 year in graduate school. And then I went through law school. But I never once learned a thing about. money.

I never once learned a thing about. building wealth. I never once learned a thing about. investing. I never once learned a thing about. passive income. But if you just look at the wealthiest. people in the world, they don't get there. by working a job and getting a raise. They don't get there by working to climb. the corporate ladder. They get there because they understand. how money works. And they understand how to win in that. economic system. And the crazy thing about that is we're.

all taught to trust the system. My parents are immigrants from a state. in India called Punjab. And like many other traditional Indian. immigrants, they wanted me to become. successful. Now, in my house, that definition of. success was very simple. They gave me. two options. I I I can guess. Well, option number one was Jaspreet, you can be a doctor. Yeah. Option two. was Jaspreet, you can be a failure. Okay. And they said I get to pick which. one. And this is me when I'm like 1 year.

old. That since the day I could start. talking, my parents told everybody, not. just people around us, they'd call my. family in India, my family all around. the country, that Jaspreet is going to. grow up and become a doctor, because. he's going to become successful. Now, I had nothing against that, because. I wanted to become successful, too. I. saw how hard my parents worked. My dad, if he got a Saturday and a. Sunday off, it was considered a long. weekend. I mean, my parents bust their. butt, and I wanted to become successful. so I could give back to them. And they. told me that if I wanted to become.

successful, the way I do that is by. becoming a doctor. Which makes sense, because when you're. in school, you get those like pamphlets, those career pamphlets. And they show you the different career. options you have. And anytime you look. at that, the top of the list is always. doctor. And so, they said, Jaspreet, if you want. to become successful, you have to become. a doctor. And because we came to this. country, you have to become successful, so you have to become a doctor. Now, I. didn't think anything wrong with it, because I liked the idea of becoming. successful. So, I went down that path.

Now, along the way, I realized I didn't. want to be a doctor. I told my parents that I'm not going to. be a doctor. My mom almost had a heart attack. My dad couldn't believe it. And so, my dad essentially told me that, Jaspreet, if you want to keep any pride. in the family, you have to at least. become an attorney. So, I said, okay. I went to law school. part-time, worked on my business. full-time. Now, today I am a licensed attorney, but I've never worked a day as an. attorney.

And the reason why I've never worked as. an attorney is because it's just not. worth my time, and it's not where my. passion is. And along that way, that's when I. learned. that we're taught. this is how you win. Go to school. Study hard. Get good. grades. Get a good job. And if you continue working down that. path, you're going to become successful. But if you look at the successful. people, that's not the path that they followed. And if we take a look at the three. things that have built more wealth than. anything else over the last century,

it's starting a business, investing in real estate, and investing in stocks. Yet, along my entire educational path, I. was never taught that. We're focused on how do you get a good. job, but all wealthy people are focused. on is how do I grow my assets. And that's the key difference here. Is wealthy people are working to own the. corporate ladder. Everybody else is working to climb the. corporate ladder. And then the next thing, I'm going to go.

back to what you said. Assuming that you don't have rich. parents, because most people assume that. you have to be rich in order to do this. You need millions of dollars. You need. access to all this money. But that's not true. You can start now with $100, $10. But. you have to get started. The problem is most of us are never. taught how to do this. But unless you start doing this, you're. never going to build wealth. And that's the way that you win in this. economic system. So, I want to go through all of those.

three things you've just said. I want to. talk about starting businesses. I want. to talk about investing in stocks, and. also want to talk about real estate. But. I'm curious in your own personal story. there. When did the penny drop? Because. it's so interesting. In my life, there's. key moments where I got to see behind. the curtain. And when I say see behind. the curtain, I I I'll refer to my. friends when we're we're speaking uh. privately, I'll say I'll refer to it as. money games. Like the day where I saw. these billionaires playing money games. that I was I didn't know existed. And I. was there working my butt off, working.

in call centers or building whatever. And then I got to meet a billionaire. I. got to spend time with them, got to see. behind the curtain. I was like, oh, they. just play these money games, which. nobody else has been told about. Right. Um when was the penny drop moment. for you? You qualified as a lawyer. Why. didn't you end up pursuing that? Some. some something happened. Yeah, so when I. was in grade school, I began working at. Indian weddings. I played a drum called the dhol. It's a. Punjabi drum. That's where my family is. from in India. And I used to play this drum at. weddings. And my parents didn't like.

that I did this, because anything that. was not math or science was like, you. don't do this. So, I had to play this. drum uh in secret. But I would play it at weddings, and I. started to make a little bit of money. And by little bit of money, I mean $50. per wedding when I was in middle school, then maybe $100, $200 in high school. And one of the DJs that I was working. with said, Jaspreet, you know a lot of. kids in high school. Uh how about we host a teen party for. some of these kids in your school? I was. like, okay, why not?

So, we hosted this teen party, and it. was a big success. And at the end of the. night, uh the DJ then starts paying out. all the costs, because we were going to. go on 50/50 on this business venture. And then we pay out the money for the. security, for the venue, for the. marketing. And then he says, all right, let's count our profits. And he has four. bills in his hand. One, two, three, four. There's four singles left. $2 for. him, $2 for me. And I saw that we put in so much work.

into this business venture, into this. idea, into this this first party. And we. made $4 of profit, which we split 50/50. And at that moment, he was really upset, but I was really not upset at all. because I was like, this was fun. You know, it was it was it was a lot of. fun putting this together. But in my. mind, it was just one of those hobbies. that I was doing because I needed to. become a doctor. Well, I did a few of those teen parties. when I was in high school. And now, it. was time for me to go to college.

I was 17 years old. And I get there. And I see everybody partying, drinking, blowing money they don't have. And I was shocked. I had no idea that people went to. college to party. And I had no idea people got the money. to spend money on all this alcohol. I don't drink. I'm not into partying. But now I needed something to do on. Friday nights. And so now I'm thinking, well, what do I. do?

How about I take this teen party. business concept that I had in high. school and now do it in college? So, I was 17. And I started knocking on the doors of. all the. bars, venues, restaurants, trying to see. if anybody would let me host a party. there. And in the beginning, some said, "Sure, you can host a party here. We just need a $10,000 deposit.". I don't have $10,000. I was 17 years. old. So, I kept going. Some said I. needed $20,000 deposit. But eventually, I found this one club that said, "Yeah,

you can host a party here. You don't got. to pay us anything. Just pay us half of. the cover charge that you generate. Pay. us 50% of whatever revenue generate.". Now I'm in business. I made the same arrangement with my DJ. I said, "Look, how about you DJ for me. for free, and I'll split whatever. profits I make with you?". And that was the beginning of my first. real business. It was this party. promotion company, which then became an. event planning company. And it grew pretty big in college. I.

mean, I started off by hosting these. one-off parties. Then I was contracted. by one of the largest clubs on campus to. host their weekly college night. So, I. was hosting their parties every week. We. were hosting official shows and. after-parties. And it grew pretty large. And. now, as this business starts to make. money, the first thing that I realized is. I don't need a license or degree to make. money. I thought that was something that. I needed because I thought I needed.

these good grades to qualify for this. thing to make money. So, that was the. first kind of shock and realization. The second realization that I had was I. knew nothing about money. I was making a. little bit of money, and I was very. fortunate that I started reading books. about money and business. And I started reading these books. And the first thing I learned. was the difference between an asset and. a liability, which with things I had. never heard of before. An asset is something that puts money in.

your pocket. A liability is something. that takes money out of your pocket. Wealthy people want to own assets. I was buying a whole lot of liabilities. because I was working in this party. promotion business, and I wanted to look. the part. So, I would make a little bit. of money, buy a nice watch. Make a. little bit more money, put some new rims. on my car, put a new sound system in my. car, put a new uh. subwoofer in my car. I mean, I was. blowing money on all these dumb things. to look like I was rich. When in reality, I was just making a lot.

of other people rich. And then, I learned about this thing. called investing. Which. really started to upset me because I. thought I was doing everything right. And I'm reading these books that are. talking about how every wealthy person. invests in real estate. I have no idea what that means. Nobody. in my family is a real estate investor. I had never heard of this concept of. real estate investing before. I don't know what it is, but if wealthy.

people are real estate investors, and I. want to become wealthy, maybe I should. invest in real estate. So, when I was 19, I'm now studying to. get into medical school because I still. think that I'm going to become a doctor. And I was bored out of my mind because I. would spend all day, 10 to 12 hours a. day in the library studying. And this was around 2011. And the reason why I say the year is. because if you remember, 2008 was the. great financial crisis. That was when we.

had the real estate collapse in America. So, real estate prices were decimated, and they didn't hit rock bottom until. 2012. That's why I'm saying this. So, in 2011, I'm studying to take the. Medical College Admission Test, the. MCAT. And I'm reading these books talking. about how wealthy people invest in real. estate. And now I'm making a little bit. of money from this party business. I. have a little bit of cash in the bank. So, during my breaks when I'm studying. for the test, I start looking on the internet websites.

of finance. And they all talk about how. real estate prices have hit rock bottom, how real estate is being decimated in. America. And so, I was like, well, maybe I start. looking to buy real estate. And so, on August 22nd, I took the Medical College Admission. Test. And then on August 23rd, I purchased my. first real estate investment property. It was a small condo that I purchased. out of foreclosure. A few years prior,

it had sold for a little bit over. $150,000. And then like many properties, it went. into foreclosure. The banks couldn't sell it. And it was listed on sale for $8,400. That was the total price of the condo. So, I came in with an offer of $4,000. because I don't know what how this real. estate investing stuff works. And we went back and forth with the. bank. The bank said, "We'll sell it to you for. $7,000." I tried to negotiate them even.

lower. And then the bank said that they. had another offer on the table. So, now. it was a bidding war. And I had to pay offer my highest invest. price. So, I said, "I'm willing to offer $8,000. to buy the condo. No more.". And they accepted my bid. So, I purchased this condo for $8,000. I put in a few thousand dollars with the. work. And then I rented it out for $600 a. month. And now, I start to question things.

Why did nobody tell me about this? This condo is putting money into my. pocket without me having to do something. because I own this asset. We're all. taught. to trade our time for dollars. We're all. taught to work to get paid because. that's what we're taught to do. But wealthy people are not working for a. bigger salary. They're working for more. assets because that can continue to pay. you even when you're not working. And that's that shift when I saw that,

that really sparked a fire under me and. really made me angry. And I don't know. why I got so angry, but I got angry. because I felt like I was checking all. the boxes. I was doing good in school. I. bust my butt in school. I was going to. do all the right things, become a. doctor, and do everything that I was. told. But what I didn't realize is. those boxes weren't my boxes. Who. created these boxes? And why is there. this whole world of financial education. that we're never taught?

Because if this is how wealthy people. build and grow their wealth, why is. everybody else not taught this? So, I want to make a distinction here. Are you saying that in order to build. wealth, people should. buy a house? No. If you want to build wealth, you have to. buy assets. When people say buy a house, what does that mean to most people's. eyes? It means buy my home. Yeah. I want to buy this nice place for me to. live. Which is what most people do when. they get a bit of money. What they take. their salary from work, and then they go.

and buy a house to live in, and then. they pay into the mortgage, which means that they are now building. an asset, right? They're building what many people call. generational wealth. Which is one of the. biggest lies when it comes to money. The. reason why. is because. your house. is actually a money pit. And that's why I want you to think of. your house as a liability. But I want you to hear me clearly. I'm. not saying you shouldn't buy a house. I'm not saying it's bad to buy a house.

You have to treat your house like a. liability. This suit that I'm wearing is. a liability. This watch is a liability. My shoes are liabilities. Should I not. buy them? No. I got to make sure I can. afford them. So, when people think about buying a. house, what do they think of? They think. I'm going to build generational wealth. I'm going to build wealth. I'm going to. pay it off, and I'm going to be able to. have more freedom in my life because I. can own this house. Let's go with the. best case scenario. You buy a home for,

let's call it, $300,000. You pay it off. And throughout your lifetime, this. $300,000 home grows in value to a. million dollars. And now you're going to. say, "Jaspreet, I showed you this is an. asset. My house tripled in value, more. than tripled in value. And now I'm going. to pass it down to my kids.". So, now, yeah, your kids got a million. dollar house. But unless they have the. income to support paying for a million. dollar house, they might have to find some more cash. Now, what do they do? Because you can't.

just pull cash out of this house, right? I mean, it's not an ATM. Unless you go to the bank. The bank will give you the cash. because the bank says, "Oh, you have a. million dollar house. How about we loan. you $800,000?". But that's not an ATM because you have. to pay that money back plus interest. And now, unless your kids have the. income to pay for the property tax, to. pay for the insurance, to pay for the. upgrades, to pay for the maintenance, and the mortgage, they can't afford that house. So, maybe now they have to sell.

Okay, now you sell it. You got a million. dollars. Great. We're not even going to. talk about taxes right now. But, you got. a million dollars. You're rich. But, if they don't have any financial. education, and you have a million dollars, what's. going to happen? Well, let's think about this. If you had a. million dollars, what would you do with. it? If I went down the street and I. asked the average person, "If I wrote. you a check for a million dollars today, what would you do?". What are people going to say? "I'm going. to go to the Bahamas. I'm going to buy. myself a nice house. I'm going to buy. myself a nice car. Buy myself some nice.

clothes. Go to the Gucci store. Go to. the Louis Vuitton store, and buy myself. the extra guac at Chipotle.". That's what the average person will do. Now, maybe you're a little bit more. financially smart. You say, "I'm just. going to live off of $50,000 a year.". But, after 20 years, you have nothing. left. Not to mention the fact. that 10 years from now, that $50,000 a year lifestyle is going. to buy you half of what it can today. So, now let's go back to that situation. You thought you built generational.

wealth. You did a good thing by paying. off the mortgage because you don't have. to pay the mortgage payment. But, is that really the type of. generational wealth that you want? And now, to fully. hammer this home, I'm not saying it's bad to own a house. It's actually very great. It's an. amazing thing to own a house free and. clear because now you can. rest assured, you don't have to worry. about the mortgage payments. If you have. the financial education, that's great. But, let's talk about now the real way. to do this and build true wealth. When I.

buy my real estate investment. properties, and my property values go. up, the rental values also go up. The rent is what pays for the. maintenance. The rent is what pays for. the upgrades. The rent is what's paying. for the property taxes and the. insurance. The rent is putting money in. my pocket. And this is cash flow that I can use. I. can use this cash flow to buy a. vacation. I can use this cash flow to. buy food. I can use this cash flow to. pay for my lifestyle. But, your house.

doesn't do that. You have to pay to live. in your house. But, people think, you know, they're. getting their mortgage payments. They're. spending whatever they are, you know, spending on their mortgage payments. They They think they're. Well, we're kind of told that that. mortgage payment is an investment. into an asset. Your mortgage payment. is. a payment to your bank. Banks are not stupid. In fact, they're. very smart. Banks do something called. front-loading your mortgage.

What that means is if you go out and get. a 30-year mortgage, which is what many. people do in America, and you pay $3,000 a month on your. mortgage, you're not paying $1,500 to your. interest, your bank, and $1,500 to your. principal, your equity. The way it works is banks front-load. your mortgage, which means for the first. almost 15 years, it's about 14 years and 8 months or so, but for almost 15 years of your. mortgage, the first 15 years, the.

majority of your mortgage payment is. going directly into your banker's pocket. in the form of interest. Which means if you're paying $3,000 a. month on your mortgage, for the first part of your mortgage, maybe $100 is going out of the $3,000. into your equity. The other $2,900 is. going right into your banker's pocket. with interest. And now, yeah, after 15 years, now half. of your mortgage payment.

is going to your equity, and half is. going to interest. But, if you refinance before that. 15-year mark, that starts over. And so, this is where banks understand. the game. Again, I'm not against buying a house, but you got to understand the game of. money, and most people don't understand. that. And so, the mistake that people. make is they buy a house they can't. afford, and now they're paying all this money. into their mortgage thinking that I'm. building wealth. They no longer have. money to save. They no longer have money. to invest into other real assets.

And their money is just going to pay. down their mortgage thinking that this. is going to build my wealth, but you've been sold a lie. This term, opportunity cost. Most people don't know what this term, opportunity cost, means, but it appears. to be very pertinent to what you're. saying, especially when you just said, "This is money that you can't then. invest in assets." Can you explain what. opportunity cost is and how it's. impacted if you if you buy a house? Sure. If you have Let's Let's make the numbers. very simple. You want to buy a $100,000.

home, and let's say the banks require a 20%. down payment, $20,000. You could do a few things. Number one, you can take that $20,000 and go out and. buy this house. And now, that's how that money has been. used. But, if you use that money to buy. the house, you lose the opportunity to. take that $20,000 and say use it to buy. a rental property. You lose the opportunity to use that. $20,000 to invest in the stock market.

You lose the opportunity to take that. $20,000 and maybe build a business. Now, the question is, what is going to. give you the best and most growth? Now, hopefully this house that you buy will. go up in value. It's not guaranteed. We. know that houses don't always go up in. value, no matter what your banker says, no matter what your real estate agent. says, because we saw what happened after. the 2008 crash, where real estate prices. were slashed in half. It was. as much as 93%.

real estate values dropping in the state. of Michigan, where I am. So, we know real estate prices don't. always go up. Stock prices don't always. go up. Businesses don't always work. Everything has a risk. But, now the question is, which risk do. you want to take? And which risk do you. want to take first? Are you in a situation now where you're. ready to go out and buy a house? Or do. you want to build your wealth first a. little bit more? And that's the question. that I want people to start thinking, is. am I ready to buy a house? And then.

people say, "Well, if I go out and. invest my money, the problem is housing. prices keep going up. I'm chasing this housing market that. keeps getting more and more and more. expensive.". And you're 100% right. It's a risk. But, there's also a risk that housing. prices could fall. I think one of the. biases that makes people want to buy a. house is that they're currently renting, and they see that as just giving money. away. So, they think, "Listen, I could spend. this money on a mortgage, and I'll own. this thing one day, or I could spend. this same $2,000, whatever it is, on.

rent, and I'm never going to own this. thing.". Well, I'm here in Los Angeles right now. I had to stay in a hotel. That hotel payment is paying somebody's. mortgage. It's paying somebody's. college tuition. It's paying for. somebody's stuff. When I go to a. restaurant and I eat out, I'm paying for somebody's mortgage. I'm. paying for somebody's college tuition. I'm paying for somebody's bills. Because. when you go out and you rent, that's. what everybody says, "I am making my. landlord rich." Well, when you eat at a.

restaurant, you're making that. restaurant owner rich. When you go to a. hotel, you're making the the hotel owner. rich. When I go and buy a mug, I'm. making the mug owner rich. And the reality is, yeah, it's good for you to own a house. But, are you ready to own a house? Can. you afford to own a house? And what do you want to own first? I. rent where I live right now. I am making. my landlord rich today. I also rent for. my offices. I am making my office. landlord very rich because my office.

rent is very expensive. Do you feel bad for me? I hope not. And this is where we have to get over. these these money myths that many people. keep selling you that you can't build. wealth if you rent where you live. You. can't build wealth if you don't get a. good degree. That's not the way that the system. works. See, there's the traditional rules, and. then there's the real financial. education money rules. And again, I'm not saying it's bad to. own a house, but it's bad to own a house.

you can't afford. How do you know if you. can afford one? Well, there's three parts to affording a. house. You have to afford the down payment. You have to afford the monthly payment. And you have to afford the moving costs. I'm going to go start from the simplest. one, which is the moving costs, because. many people don't factor this in. When you buy a house, you got to move. in. And I'm not talking about the the. closing costs. You might have to hire movers, which are. expensive. You might have to upgrade. your furniture, which is expensive. You. might have to upgrade the house, which.

is expensive. Factor that in. Then, I want to talk about your down. payment. People don't like when I say this, but I. don't say what I say to make friends. I. say what I say to help people be better. with money. If you want to afford the house, you. have to have at least a 20% down. payment. That way you actually have some equity, some skin in the game, that way you can. actually afford the house. The third part is you have to afford the. monthly payments. Now, every bank is going to have a. different rule for you. Banks have like.

the 28% rule and these other rules. I have Sorry, just on that last point. Why do people not like it when you say. that? Because it's very hard to pay a. 20% down payment. Housing is expensive. Mhm. You want to buy a $500,000 house? You have to have $100,000 as a minimum. for your down payment. Okay. And that's extra cash. Great. Now, if we talk about the monthly costs, the simple way that I like to follow it. is you have to have a system for. yourself. You have to know how much. money you are allowed to spend, how much.

money you need to be investing, and how. much money you have to be saving every. single month. Then, just factor it in. So, the way I like to look at it, a. simple rule of thumb, is something like a 75 15 10 plan, which says for every dollar that you. earn from here on out, 75 cents is the maximum that you can. spend. 15 cents is the minimum that you invest. 10 cents is the minimum that you save.

Now, let's do the math. If you know that you make, let's call it. $100,000 a year. That means the max you can spend out of. the $100,000 is $75,000. So, if out of that $75,000, you can afford your mortgage costs, you. can afford your food, you can afford. your vacations and lifestyle, then sure, you can afford it. But, if. you can't afford that, then you can't. afford that mortgage. And the reason why. I like to go by this rule is because.

some people are going to say, "I can live in a small house. I just. want an expensive car and some nice. vacations.". Other people are going to say, "I want a. beautiful home. I don't care about the. car and vacations." So, now you can. factor it all in there. How much can you afford out of that 75%. of what you make? Do you think people even know how much. money they. spend? No. I was thinking, I wonder how many people. listening right now know, over the last. 6 months, the exact figure that they. spend every single month.

Most people, statistically, are living paycheck to paycheck. So, they're basically spending. everything. Or more. Okay. 78% of. Americans are living paycheck to. paycheck. Which means, I make some money. and I spend all of it or more. There's a. There's a joke that I like to make, which is. in the traditional Indian culture, people make a dollar to spend 20 cents. In the traditional American culture,

people make a dollar to spend two. dollars through the help of lines of. credit, credit cards, and other forms of. debt. And the reason why I'm going to take it. a step back. I don't think you wanted me. to go this way. I'm going to go. anywhere. Anyway, we live in what's called a credit-based. economy. Which means, if you make $50,000 a year, you don't live off of $50,000 a year. At. least most Americans don't. We live in what's called a credit-based. economy, which means you have the.

ability to spend the $50,000 you earned, plus debt. Because as you make more money, as you. have a good job, you become more. creditworthy. And so, as you show the bank, "Hey, I. made $50,000." they'll give you credit. cards, they'll give you lines of credit, they'll give you whatever types of debt. that they can, that way now you can go. out and spend 60,000, 70,000, 80,000. dollars. Because that's what grows the economy. The more money you spend, the richer. somebody else gets.

And so, now when you live in this. credit-based economy with no financial. education, people spend, spend, spend, the economy grows, grows, grows, and. most people have no idea what hit them. Do you know what's really interesting. is, 2 days ago, I was having a. conversation with one of my friends. It. was actually I did a podcast about. finance um. recently, and in there I mentioned some. of my friends, and then they messaged me. on WhatsApp and we're having a chat in. our group chat. And I, for the first. time ever, one of them asked me to. guess. We're very close friends. We talk.

about money, we talk about how much. money we have, etc. They said, "Guess. who has the most money in the group?". So, I went through and I did, I think. this is this person's net worth of my. five best friends, and I think this is. how much cash they have. Now, one of my friends. who. is. very What's the word? I guess frugal. Lives a very, very simple life. As I was. going through, I got, "You know what? This friend is this like a high-flying. guy, lives in this. amazing apartment. This person has all. these wonderful things. This person's.

been successful in business. This. person's successful in crypto. But, you. know what? I bet my mate, and I won't. say his name, I bet he's richer than. everyone else in that chat.". Um all of my other friends in the chat. And so, I did my little prediction and I. said, "I bet you've got X figure.". And he replied and got and said, "This. is my current cash position." He was. richer than everyone in the chat in. terms of cash combined. This guy. lives so He lives in like a studio. apartment. He never balls. He does.

doesn't have like a fancy car, doesn't. have fancy clothes. And he's richer than. the entire lot of my friendship group. And I thought, "God, there's something. really important here in terms of. And it's it's so crazy if you if you. know the context of what I'm saying, because I've got a friend in that chat. who's built like a big business. I've. got a friend Like everyone in that chat. runs businesses, is successful. But, they're living in different ways, and. the one friend who runs the smallest. business, who like probably has. the least income, is the richest.

And over the last couple of days, it's. so funny. I was thinking about all the. dinners I've bought this [ __ ] guy, and I'm like, "I didn't know you WERE A. MILLIONAIRE.". I'M LIKE, "GO ON, YOU [ __ ] I WOULD. HAVE BEEN PAYING for everything." But, this is really I mean, if we ignore your. friends, it's very easy to look fake. rich. Yeah. Because everybody will give. you a line of credit. If I want a Gucci. purse, I can't afford the Gucci, guess. what? I can buy now, pay later. I can. open up a credit card and buy the Gucci. and look like I'm rich. Mhm. When in reality, I'm just making. Gucci rich. In fact,

one of the richest people in the world, in 2023, he was the richest person in. the world, is Bernard Arnault. He was. the founder and CEO of LVMH or He's the. founder and CEO. of the company that owns Louis Vuitton. And why? Because millions of people pay. him to look rich, when in reality, he's. the one that's getting rich. And we assume that when you make some. more money, you got to start looking the. part. And this is that mindset shift. that we have to make. And, you know,

a lot of people resonate who come from. the Indian. traditional families. They message me saying, "Jaspreet, I. became a doctor or my wife and I are. doctors. We make hundreds of thousands. of dollars a year. We make a great. income, but we have no savings and no. investments, and I don't know what to. do." And the reason why is we have a. Range Rover and a Benz. We have a nice. house. We go on the doctor vacations. We. have to look the part.

But, we don't have any money left over. at the end of our. paychecks. And it's a very easy thing to get caught. up in, because when you make more money, you become more creditworthy. Banks will. give you bigger loans. When you make. more money, you want to spend more. money. And it's very easy. And you have to understand, how do you. control that spending? And that's why if. you follow something like 75-15-10, one of the simplest things you can do to. start is just always, no matter what, whether you're making $10,000 a year or. $10 million dollars a year,

you always put money aside to invest, you always put money aside to save, and. you spend whatever's left. My friend doesn't invest. The friend I'm. talking about doesn't actually invest. He just doesn't spend. He like just doesn't spend money, and. he's just stacked up to like a million. dollars in cash, whilst earning less than everyone else. of my five friends in that chat. And it's it didn't take a long time. Like it took him. 4 years or something, four or five years. of just running this small business with.

a couple of people. When I say a small. business, I mean a really like a small. business, like a business of maybe four. or five employees. And he's built up a million million. dollars in cash for himself, because he just doesn't spend money. And he lives He doesn't have like a an. ego, doesn't care if people what people. think of him. Yet, my other friends who are earning. maybe five times more a month have five. times less cash than him. It's like. It was so inspiring. It was honestly so. inspiring, because it it says something. about the importance of saving. But, who.

the hell wants to save? If I titled this. podcast today the something about. saving, no one's going to click. It's not fun. Saving isn't exciting. Who. wants to go out and save $2,000? Who. wants to spend less money? We want to. buy more nice things. But, unless you can control the. spending, unless you know how to save, you will never build wealth. Do you know. if people that are in that paycheck to. paycheck cycle, which I was in for many, many years of my life, where I'd get. paid for my call center, I'd go and.

spend the money, and I'd pretty much. spend all the money within the first. couple of days of getting the paycheck, and I was just waiting the next 3 weeks. for the next paycheck. What advice would you give them about. getting out of that cycle? Cuz it Cuz. you almost feel imprisoned by that cycle. if you're in it. Absolutely. Well, before I give the advice, I want. to explain to that person what's. happening. Because you are the prime. customer. for. our economic system. Banks love you, because they can sell. you payday loans, they can sell you.

credit cards, they can sell you lines of. credit, and they can keep you in debt. for the rest of your life. Which means, you keep making the bank rich. Corporations love you, because you're not going to think twice. when we show you this nice bag, when we. show you this nice vacation. You're. going to want the stuff, and so we love. selling you this stuff. The government. loves you, because you are going to pay the highest. taxes. Employees pay the highest taxes. And so, when you're in that situation, you are making everybody else rich at.

your expense. And so, if you want to break out of. this, the first thing you should. understand, you need to make yourself rich before. you make everybody else rich. Because. when you're spending all your money, you. are putting your money in to their. pockets, and you have to stop that. You. got to keep that money for yourself. You're in a boat. Think of it this way, you're in a boat, and this boat has water just flowing in, and you are sinking. And you got to. start by sealing the holes. You got to. stop the water leaving this You got to.

stop the water coming in. You got to. stop the bleeding. And that means you got to stop the. spending. So, if you are in what I call the financial. the zone, which is you don't have $2,000. saved up for an emergency and you have. credit card debt. If you are in that situation, you are in. the financial danger zone and you have. to make drastic changes. That means. right now. no more eating at restaurants, no more. vacations, no more doing anything that doesn't put. money in your pocket and no more.

Netflix. No. And the reason why I say this isn't. because you're going to save $15 a. month. It's so you can save 2 hours of your. time a day. The average American is. watching more than 2 hours of television. a day. And if you don't have $2,000 saved up, if you have credit card debt, you cannot. afford those 2 hours a day being wasted. on TV. And that means right now you have to go. out and start using the time to learn,

start using the time to work and start. using the time to make some extra. dollars. So, what do you do? Start selling stuff? Stop spending money. Selling stuff you. own. Selling stuff you own. Stuff you have. A TV that you're not. using, sell it. You have a car that you. can't afford, sell it. If you're living. in a house that you can't afford, sell. it. Downgrade. Move smaller. And then work to earn more money. I've got to say the couple of things. that I came to mind as you were saying. that and funnily enough I put myself in.

the shoes of 18-year-old Steven Bartlett. when I was in that small apartment with. three or four immigrants in Moss Side. Rusholme and I was. you know, my rent was nothing. My rent. was a 1,000 150 pounds a month, which I. could not afford and I could not pay and. I was. intermittently working between call. center jobs and whatever money I got I. spent and part of the reason I spent it. just pre is because like many people. watching, especially men who sometimes.

feel the need because of the way society. is, I was trying to get laid at the same. time. And it's hard Yeah. when you're a young. man and I say young men in particular. because the stats do support the fact. that there is an expectation that men. pay. Um when you're a young man it's. particularly difficult to do all of. these things, to cut back and also get. laid. And what am I going to do? Defer. getting laid for 10 years? When I say. laid I'm really saying meeting someone. and falling in love and having a having. a life. So, what do I if I if I'm living. in a shoebox, which I was, I can't bring.

anyone back there. I can't take anyone. for dinner. I can't take anyone to the. movies. So, what do I do? And this is. why every Indian parent tell their kids. to become a doctor so their son can get. married. It's the same concept. But here's the thing, you have to pick. your hard. Either life's going to be hard now or. it's going to be hard for the rest of. your life. And you have to pick what's more. important to you right now. And. you know, if we talk about balance, if. you want to have a balance of everything. where you want to find a girl. and you want to make money and you want.

to stay healthy, you are dividing your attention. everywhere. Not saying it's impossible, but very few people can actually do. everything all at once. And if your number one goal is to become. wealthy, if your number one goal is to. turn your finances around, you have to. get serious about it because. where you put your attention is where. you get the results. And so if you want to be in a better. financial situation, you are going to have to make. sacrifices. And it's difficult. I can't come here. and tell you it's going to be easy Yeah.

because that's going to be me lying to. you. I've got to be honest, I did to make a. sacrifice and for me the sacrifice was I. started a business and frankly that. meant that I didn't have time to be. going out, getting laid or meeting. people or socializing, but it's. my story arc ends with it going well. and then. the romantic situation taking care of. itself many years later once it had gone. well because I was so focused on myself. And it's funny, there is a bit of a. paradox to life that the more you. actually focus inward, the more you.

become a magnet. Yeah. Um and the more I. focused outward, the more I pursued and. chased and sort of neglected myself, the. the more harder it was to get people. interested in me. Yeah and you know, I also want to say that when I talk. about building wealth, I'm not talking. about becoming a money hungry, just. money greedy, this is evil person that. just cares about money. That's not what. I'm talking about because I want you to. live a holistic life because money is. just one part of your life. But the second part to that. is I'm not telling you to never enjoy.

life. I'm telling you to make a. sacrifice for a period of your life that. way you can enjoy the rest of your life. and never have to worry about money. again. It's hard for us to naturally see life. for seasons, especially when we're. looking forward. When we're looking back. it's very easy to say oh that was that. season. Like I can sit here now and say. oh that 20 to 25 was that sacrifice. everything in my life to make myself. something season and then 25 to 30 was. like building and learning and then I I. now, you know, can can think of. it's easier actually now to think.

forward in seasons now that I've been. through some seasons, but for someone. that's hasn't been through seasons in. life, it's hard to think about life in those. terms. I now think of my life in these. five-year seasons. and that helps me to say to you know, even have conversations with my partner. where I go this is the season I'm in. um and it will last probably roughly. this this long and I'm going to. sacrifice these things and prioritize. these things in this season. But um it's hard for people to. understand this idea.

It's difficult and that sacrifice is. difficult. especially during a time. where everybody's showing off everything. on Instagram. You look at your friends who have a. crappy job, but they drive around in. nicer cars, going on better vacations, going to the nicer restaurants and. you're thinking what did I do wrong? And then especially if you're a guy, you. have a girlfriend, you have a wife, she's going to say how come they keep. get to go can they keep getting to go to. Cancun, they keep going to these nice. restaurants, how come you can't take me.

to these nice places? And now you feel like you're doing. something wrong because where is this. discrepancy? The reason why I call my. show the minority mindset is because I'm. a big advocate of not doing what the. majority people do. The first time I made a million dollars. in a year I was in my 20s. I was driving a car worth $500. It didn't have a bumper on it. It was not pretty. My wife sat in the car with me. and my employees drove better cars than. I did.

So, you know, you got to be confident. and you got to work for something. bigger. And you want a partner that's going to. understand it. That's my belief. Which is not the easy thing. It's interesting because confidence is. such a internal thing and I just feel. like I just probably just didn't have it. then. cuz I I think I was scared for someone. to know.

that I was broke. I was so scared to know for someone to. know that I was broke that I just didn't. entertain romantic relationships. And that is the reason why so many. people will go into debt to buy. vacations, to buy things, to buy stuff. to look rich. And. ironically, that's the key thing that. keeps so many people poor for the rest. of their life is because they're scared. to look broke. And now when you try to look rich, that's the thing that's actually keeping. you broke.

There's another element to this which is. my life was pretty miserable. So, when. you have a. relatively miserable life, when you. don't have many nice things cuz you're. working in a call center as I was until. 11:00 at night time doing overtime every. overtime hour I could get. Then because. you're also lonely you're going home. alone, walking home cuz you can't afford. the bus. Anything that gives you a little. dopamine hit. Gambling. This is why all the gambling. shops are in the areas that struggle. with the worst financially because those.

I mean a lot of people say because those. people are. looking for that, you know, that big. payday, that dopamine hit from a payday. Um my TV. in my. tiny tiny little bedsit room. was like half the size of the wall. I was making reckless spending decisions. because I think it gave me some kind of. hit that I I was missing in my life. It. gave me like a dopamine rush that was. and there wasn't many things giving me a. dopamine hit at that point in my life. And see here's the thing, during that time you are making. emotional decisions as many people are.

and it's very difficult to speak logic. to emotion. But this is where now you have to be. able to understand the difference. because if you're listening to this and. you're in that situation, you have to understand if you want to. continue being able to live that. lifestyle, you're going to have to make some. changes today. Otherwise you're going to. be stuck in this lifestyle. for the rest of your life. And it's only. going to get more difficult. And that's the thing is if you want to. become wealthy, the first part is just.

your own mindset. It's your own. discipline. And until you can conquer that, I can. tell you everything about investing. I. can tell you different ETFs and index. funds to invest in. I can tell you. different investment institutions out. there. I can tell you which stock. brokerages to use. I can tell you just. invest 15% of your income into this for. the next 10, 20, 30 years and you're. going to become wealthy. But until you can get over that mindset, you're never going to become wealthy. because then what happens in that. situation. is when you're in that state of.

I just want to look rich. I just want to. have that dopamine hit. I just want to. have some nice things because I deserve. it. I work hard. You know what happens next? You are the one that gets caught up in. all the get rich quick schemes. Because someone's going to say look, put $1,000 into this, you'll have $10,000 in the next 3 months. or I'm going to show you you can live. the laptop lifestyle. You can work 5 hours a week, make. $10,000 a month, $10,000 a week. You're. never going to have to worry about money. again. Just buy this program.

And now you're a prime candidate. because now you are driven by this. emotion of I want that. I can't imagine. if I had an extra $10,000 a month and I. don't even have to work for it. Because you can't see past it. You're. all you're doing is being sold by. emotion. And so you you're the one that's going. to get caught up in the get-rich-quick. schemes. You're the one that's going to. make the bank rich because you're going. to get stay stuck in debt. Corporations. are going to love you because they can. keep selling you the nicest and newest. stuff because you want to look rich, want to show it off to your friends,

want to show it off to the girls. And you get stuck in that cycle. So, I. want to talk about what the money. mindset is. But just on that. thing you just said there, you said. get-rich-quick schemes. Crypto. What's your point of view on. cryptocurrencies and investing in. crypto? So, I'll tell you where I invest my. money so you can understand. I put my. money in five places. I put my money. into my own business. I invest my money into real estate. I. invest my money into stocks. I invest my money into speculative. assets, which includes cryptocurrency.

And then I own some physical gold. So, starting with my own business. I run. a company called Briefs Media. We're. probably most known for our Market. Briefs newsletter where we break down. what's happening in the financial. markets. So, that's Briefs Media. Number two is I invest in physical real. estate. So, I'm going out to buy rental. properties that I can use to generate. cash flow. Number three, I invest in stocks. This. is in the form of investing in. individual companies. and investing in funds. Funds are ETFs,

index funds, mutual funds where you can. get investment into a broad basket of. companies. Number four. is my speculative investments. Notice. how I said number four, this is one of. the smallest pieces now, which are things that I believe can go. up very quickly, but can also fall just as fast. So, these speculative assets, which make up. a small piece of my portfolio, include. things like startups that I invest in. It also includes things like. cryptocurrency. And then I own a little bit of physical.

gold. Physical gold makes up about 2% of my. portfolio. But going back to cryptocurrency because. that's what you asked. I think it is a. speculative investment. I have made a. ton of money in cryptocurrency. Uh. and I started buying cryptocurrency. before it was as popular as it is today. I began buying it in uh 2016 or so. when Bitcoin was around 3,000, maybe. 2016, 2017 when Bitcoin was around. $3,000 a coin. And I have sold some.

And for me, I understand it can go up very fast, but. it can fall just as fast. And the issue that I have is when people. now want to get into this idea of. investing. because now they're in this tough. situation, I'm living paycheck to. paycheck, and I hear about this. financial education and investing. If I just dump my money into Bitcoin or. crypto, maybe it'll 10x and I'll have. financial freedom. And that's where I have issue. Because. you're taking your money and you're.

going for your long-term investments. into a speculative asset that hasn't. been proven. Maybe it will work and you'll become a. multi-millionaire. Maybe you'll lose everything. But I don't want to gamble with my. wealth. I want to build my wealth with. something established and then use a. speculative asset as something that is. speculative and treated as such. In. terms of your net worth, then how is it. broken down in terms of percentage. between these five things? So, if you look at real estate, real. estate is probably close to almost 50%.

of my investments. Okay. Stocks make up. probably right around 30%. Speculative is about 18% of my. portfolio. Sorry, just the 30%, how much. of that is into individual company. stocks versus ETFs? It's about half and half. Okay, so 50% each. Okay, cool. And then speculative? About 18%. And how. much of that is like crypto versus. startups? It was a lot more crypto. Now. it's a lot more startups. I sold a a.

chunk of Bitcoin when it was breaking. record highs. and I'm going to be using that money to. buy some more rental properties. Okay. And gold? About 2% of my portfolio. Okay. And the reason why I buy gold, I don't. I myself don't consider gold an. investment. I look at gold as a way of. saving hard money. Because my theory. is if I take $10,000 of cash and I take. $10,000 with the physical gold and I. bury both of these things in my backyard.

today, in 10 years, what's going to have more. buying power? My theory is that the gold is going to. have more buying power. And so that's why I own some physical. gold. For me, it's a way of saving hard. cash. I look at it as a insurance against. doomsday, against something really bad. happening, against something bad. happening to our currency, something bad. happening to the economy. That's why I. own a little bit of physical gold. But the problem with gold is when I own. my physical gold, it just sits there in.

a vault. It doesn't produce cash flow. It doesn't. create new value. It just sits there. When I invest in real estate, it. produces cash flow. When I invest in stocks, the companies. are working to produce a better product, to grow their profits. The gold doesn't. do anything. What about cash? Do you. keep a lot of cash on hand? Uh cash is. definitely a position. I I don't know. about percentage, but I always keep. cash. And I want to break this down a few. ways. Because I have one.

let's call it bucket of cash, which is. my emergency savings. This is cash that. is there to protect me against an. emergency in my personal life. I also have a separate bucket of cash, which is my business emergency savings. Then I have a bucket of cash. which is there to be invested money. This is money that's waiting to be. invested in real estate. And then I have in stocks. And then I. also have another little piece of cash. that's waiting to be invested more into. speculative assets. So, I have cash.

waiting to be invested in speculative. assets, cash waiting to be invested in. real estate, cash waiting to be invested. in stocks, and then I have my emergency. cash. So, I like to separate it all out. A second ago you said that unless you. have a money mindset, you're never going. to be wealthy. What is the money. mindset? The mindset is number one, you have to. believe that you're going to become. wealthy. What I like to say is you have. to say I will become wealthy. Why? Because if you don't believe you're. going to become wealthy, it is going to. be impossible for you. Why? I used to. guest teach in Detroit public schools.

So, Detroit is a. it was a very rough and it still is, rough area. Certain parts of it. Our. office is in downtown Detroit, but there. are parts of Detroit which are still. very rough. And I used to guest teach in some of the. public schools there. And these are kids, good kids, who were not exposed to some of the best. things. And what I mean by that is when. I would go into these classrooms, you'd first have to go through multiple. metal detectors. There'd be police. there. You might have to be patted down.

And when I get into the classroom, I'd ask the kids, "How many of you have two parents in a. home?". Almost nobody would raise their hand. I would then ask, "How many of you work. a job?" Almost everybody would raise. their hand. And as I got to know the students. better, I also started to realize that. these kids, high school kids, some of. them are already in gangs. Some of them already have been arrested. by the police. Some of already been. involved in these what we consider bad. things, and they are bad things. But.

to the kids, that's just normal. Because when I talk to them about these. gangs, what they'll tell me is. "I don't have parents at home. I don't have a dad. I don't know my dad. My mom is working. How am I going to. eat? My brothers, this gang, provide me. some comfort because there's people that. are around me. They give me food. They. help give me money. It's not a bad thing in their eyes.". And so when you grow up in that mindset, it's very hard for you to think bigger. And so when I would come into these.

classrooms, I would talk about life, motivation, money, all things. And And. so one of the things that I'd like to. do, an exercise that I would do, is try to get you to think about. successful things. What are things that. kids want? A nice car. So, I would ask these kids, "What is. your dream car?". And the responses that I would get were. things like a Ford Mustang or a Dodge. Challenger. And you know, these these. nice cars, but I would follow up with. "Why not a Bugatti? Why not a Lamborghini? Why not a.

Rolls-Royce?". And they would say, "Somebody like me can never have. something like that. So, I can't even dream about having. these nice things.". And that was really shocking to me. I. mean, that you are kind of suppressed to the. point where not only do you not think. that you can achieve it, but you can't. even dream that you can achieve it. You. can't even achieve it in your own. dreams. And so when you don't believe that you. are worthy of anything more than a Ford. Mustang,

how in the world are you going to work. for something nicer? And I'm not saying. you have to work just for materialistic. things, but this is that mindset shift that if. you don't believe that you can do it, you are never going to be able to do it. And so this is where the first thing is, you have to say I will become wealthy. And sometimes you have to be able to. find a taste of success and see what. that looks like. And there are many ways to go about. doing it. I mean, you can just go on to. Instagram and see what success looks.

like to some people. But you start to define what is that. success and tell yourself, "I will. become wealthy." Not that I might, not. that I can, but I will become wealthy. The second thing. is money is a tool. And the reason why I say that. is because we've been kind of hinting at. this throughout this entire discussion. But the reason why many people are. so scared to talk about money, the reason why money is such a taboo. topic,

is because we are insecure about our own. money. I just want to pause there before we. carry on on the money is a tool point. Um, it's so interesting what you're saying. about those kids. So interesting because I was thinking as. you were speaking about stereotype. threats. And in my previous book I I. spent some time talking about. self-belief and confidence and this idea. of stereotype threats. And some of the. studies I came across showed that if. there's a stereotype that people like. you, let's say black people like me,

are bad at a certain thing, let's say. maths, before they do a math test, if they. reminded a black person that they were. black, just got them to tick a box. saying that they were black, their. performance on that test would drop. And. they did the same with women. So if. there's a stereotype surrounding your. ability in something, if they remind you of that. part of you before you do a test, your. performance drops. And really. importantly, in the studies, when they don't remind. the black person or the woman about that. particular feature of themselves,

their performance is the same as. everybody else. And it's it's. interesting that you say that when you. you're talking about money. that we have a stereotype threat there. We we exist in a world where we think. people like us make a certain amount of. money. And if the stereotype threat. studies are true, that means that I'm. going to show up in the world in such a. way Yes. that's going to bring that. amount of money about. But it's not easy. to. genuinely believe. outside of your stereotype. 100%.

outside of the context in which you were. raised. Now I went undercover in a. school in a rough area in Liverpool that. was doing very poorly. And I was. undercover as a school teacher. So I was. getting to know the kids. And I met this. one kid. And I remember him saying to me. um about his plans for the future. And I. sat there and I said, "Do you know any millionaires?" He was. like, "No, there's no no millionaires. around here." I was like, "Have you ever. met one?" He goes, "I've never ever met. one." And in that moment I'm his mom, it. which it's on video, it was a channel. four documentary I did. Um, he then. goes, "But I think I want to be a. millionaire." And his mom burst out.

laughing. She was on the sofa next to him. And she. burst out laughing. And I remember. asking her on I remember asking her on. camera saying, "Why are you laughing?". And she goes, "No, there's no cha. there's no chance." So it's like. indoctrinated into your context, your. family, your roots, your friendship. networks that you can't make it. So it's. hard. It is 100% difficult. And it it doesn't. stop. in any level. If, for example, when I told my parents that I didn't. want to be a doctor,

I was told by everybody I'm throwing my. parents' sacrifice away. And that somebody like me can never make. it in business because I don't know. anything about business. No one in my. family is a business person. No one in. my family is an investor. No one in my. family does this. You've never learned. this stuff before. You didn't get into. business school. You. How are you going to do this? And I'm not saying this to compare. I'm. saying this to explain that there are so. many levels to this mindset block. That if you cannot.

break out of this invisible barrier, you will never become successful. When. when. any employee joins my team, the first. day we make every employee, every single. one, regardless of the role, do this. exercise. It's called the nine dots exercise. And. you have these nine dots on the screen. And if you go to Google, you can see the. nine dots exercise or nine dots trivia, where it's nine dots. We'll put it on the screen. Yes. And I'm not going to spoil it, but I. will, actually. That's the only way I.

can get it across. But the way that this. exercise works. is you have to, in four lines, touch. every dot on the screen. without picking up your pen. You have to. touch every dot, all of these nine dots, without picking up your pen. And so when you do that, you might say, "Well, there's it's impossible. How do you do. that?". And so this is where now Oh, okay, not. going over a previous line. Right, not Well, you can go over a. previous line, but you cannot pick up. your pen. So if there's nine dots, one.

one two three four five six seven eight. nine. Yeah. You have to connect all four. dots. Sorry, all nine dots with four. lines. You can't curve the pen and you. can't pick up your pen. And people will say, "This is. impossible." And the reason why you say. it's impossible is because you have just. created an invisible barrier. Because. now if you go outside of the box, if you. extend the pen a little bit further, then you can start to connect all of. these dots. And now you realize, "Oh, it is possible if I don't create these.

invisible walls around myself. If I. don't put myself in this invisible box.". And that's what we do. We're all. conditioned to do this to some extent. If you grew up in poverty, it might be that you can never become. any level of successful. If you grew up thinking that you want to. big be this thing, it might be that you. can never start a business. You can. never become an investor. If you have. become an engineer and now in your 30s. you want to go out and do something. different, it might be that somebody. like you can never do something. different. But these are all invisible.

boxes. You see it right there. And that. is that's why we make every team member, every employee do that on the first day. because what we say is, "Look, we've got. to come here and innovate. And if you. want to be able to innovate and do. something big, you have to get out of. your own mind. And you have to be able. to break out of these invisible. barriers." And so now when you go back. to question, it's very difficult. It is. difficult. And so how do you do it? And so this. goes into now your personal development. What I would recommend. is go read five books on And.

really now try to implement these things. into your life because until you can. start to think a little bit different. and you can start to see the world a. little bit bigger, you're never going to be able to achieve. the maximum level of wealth that you. deserve. I've just uh gone on Google and found. this nine dots thing which I've got. here. This is the nine dots. You got it. So you're telling me I've. got to connect all of the dots without. lifting up my pen. Exactly. Okay, let me try. Yeah, but. only four lines and you can't curve. I. can I can only do four lines. Only four lines.

Four straight lines. It's not as easy as it looks. Come on, Steven. Show me how to do it. So what most people do is they start. going like this, this, and then now we. freeze up because I don't know where I. can go next. But the way that you do it is we're. going to break the invisible barrier. So. what I'm going to do now is I'm going to. start the same way I did before, but. instead of creating the same cut that I. did last time, I'm going to break the. invisible barrier, go a little bit.

further down. And now I'm going to come up like this. Then I'm going to go this way. And then I'm going to finish it up. like that. You break the invisible. barrier. You go beyond what you think you can do. Because you blew past your own. expectations. We have this invisible box. around ourselves. And this is what you. want to be able to break out of. This is. that mindset shift that you have to be. able to make. And that's the first part. of becoming wealthy.

When you talked about invisible. barriers, it reminded me of a video that. actually changed my life. And it was a. video of an ant. Some people have heard me talk about. this video before. This is the video. Shows an ant. And they get a Sharpie pen. and draw a circle around it. And the ant now believes that it's. trapped in the circle. No matter. what it does, it goes around and it. checks all the sides of the circle. It. thinks that it's it's trapped. We can. see that that circle is a figment of its.

imagination. Right. And when I see this, I think, "Oh. my god, we've all got this sort of. imaginary circle drawn around us." And. then I watched this video of a spider. So they can do the same thing with a. spider. But the key moment in this video. that really inspired me is the spider's. currently trapped by this pen, right? But in this video, there's a moment. where the spider accidentally steps over. the pen. And when it steps over the pen, it can never ever be trapped by the pen. again. You'll see it in a second. It's running towards it. So this is like a an imaginary imaginary. barrier in its mind.

Um, and then if I just bring it forward. a little bit, this is the moment here where it gets. Wow. It's like a real wall. It thinks. it's a real wall. And then it gets too. tight here. It runs over it and it can. never be trapped again. I love that because once you break it, you can't be stopped after that. You. realize that it's an illusion that was. trapping you the whole time. And this. kind of feeds into what we've been. saying about these stereotypes. For me, when I.

at a very young age, when I was able to. make my first money or start start a. business or turn an idea into a thing. that put money in my pocket, that. illusion was broken forever. The. illusion that the only way to become. successful, you said the same thing, was. to go to school, get a degree, get a. job. Um, and you can't un you can't. unsee it. You can't unlearn it. Yeah. You can't ever go and follow the. same traditional path and do that again. because you saw the other side. And until you get a taste of it, you're.

going to be stuck. And that's where, again, all success starts with your. mindset. And that's why I say, I will become wealthy. That first point. though of awareness, just knowing the. fact that you're trapped by something. And it's it's not to say that I've. broken out of all of my. psychological barriers now. I'm just in. a new one. I'm just in a new set of barriers. I. think that I can be I can have nine. figures. I don't I probably don't think. I could be a a billionaire or whatever. at this moment. And all of us, no matter.

how successful we think we are, are in. some kind of circle. Always. In every stage of your life, you're in some sort of barrier. And. you know, everything that you do now has to be. constantly working to shock yourself. When I started my YouTube channel, it's. kind of funny. Uh, I I didn't start my YouTube channel. thinking that it was going to be big. And the funny thing was I always thought. that I thought big. I think big. I'm. going to start a business. I'm going to. prove everybody wrong. I didn't start my. YouTube channel to make money. This was.

kind of a hobby for me. But I remember. and I laugh at this now. I told my brother when I started my. YouTube channel, if I hit 100,000. subscribers, I don't know what I'm going to do. But if I had a million subscribers, I'm. going to shut my channel down because. there's no way. It's impossible that my. channel's going to hit 1 million. subscribers. Like there's not 1 million. weirdos in the world that are going to. want to watch this random guy on YouTube. talk about guacamole and money, right?

And the funny thing is. I started making these videos. I started enjoying making these videos. because I started talking about the. things that I wish somebody would have. told me before. And people started to watch. And people started to actually enjoy it. and share it with their friends. And then we had 100,000 subscribers and. I couldn't believe it. We hit 500,000 subscribers and I. couldn't believe it. And then one day we hit a million.

subscribers. And I was like, oh crap. I hope my. brother doesn't remember this promise. because I don't want to shut this down. But then we continued growing. And. here I was, this guy who had been. successful. I'm already investing in. real estate. I've had some business. success. I. broke out of this idea of becoming a. doctor and started a business. And I'm still putting these limitations. on myself that I can't start a YouTube. channel. Mhm. Why did I do that? Because I had never. done that before. I had never seen this.

happen for somebody like me before. So. is there anything practical that someone. who's currently trapped in some kind of. psychological barriers can do. practically. to help them be more expansive with how. they think about their life? What I do, and I don't know if I. recommend this to anybody else, is. I'm a little stubborn. I'm going to kind. of preface it with that. Is. I do things to stick out and be. different. So what I mean by this, I'm.

going to go back to what I said before. The first time I made a million dollars. in a year, I thought originally that I would be. flying in private jets and balling out. and doing all this stuff. But I knew that I wanted something. different. I would I wanted to build. this wealth, but I didn't want to now. start living like everybody else. I. wanted to do something different. So I. continued living small. That's why I. continued driving around in this car. because. everybody questioned what the heck I was. doing. People were wondering, is Jaspreet. actually successful or is this guy a.

hoax? Is Jaspreet. broke? Can he not afford a nicer car? And so I kind of put myself in this. position of like. hearing this stuff and. wanted to really keep You talked about. confidence. I wanted to really build my. confidence to be that person that did. something different. And. I I don't know. I get joy out I'm a. weirdo. I get joy out of that. When I. graduated law school, I told my dad before I graduated law.

school, even before that, I'm only doing. this for you. And so when when it was my graduation. day, everybody, you know, you wear a nice. suit and tie and you kind of get all. dressed up to go. I told my dad, look, I. told you I'm going to get you the. diploma, but I'm going to do it on my. terms. So I decided not to wear a suit. I. decided to wear a very traditional. Punjabi outfit called a kurta pajama, which is a a long shirt and pants and I. wore traditional It's called a Punjabi. jutti, meaning Indian shoes.

And. for me, I just wanted to do that because. it gave me this confidence. And yeah, I. mean, people will say, what the heck are. you wearing? But for me, I needed that. burst of confidence that I'm doing this. for me and I. I get fueled by people. questioning me. And you have to find what fuels you. On. my first point of it's my duty to become. wealthy, is that just something you say out loud?

Is there a way you can remind yourself. of this? So I I'm not a big fan of, you know, meditating on this idea of you become. wealthy. I'm not a big fan of this. woo-woo idea of I'm going to become. wealthy. I'm going to become wealthy. That's not how it works. But what I do believe is you have to. keep reminding yourself and giving. yourself the motivation and discipline. in the beginning as to why you started, some fuel as to why you started. So one. of the things I like to talk about is. what is your why? Who are you doing this. for? And so in our office, everybody has next.

to their desk this this tack board where. you can put pictures or whatever it. might be to remind you of why you're. working hard. And in the beginning for me, it was I. was pissed off. I wanted to prove people. wrong and I was angry and I don't try to. cuss on camera that often, but here we. go. Uh I was angry and the reason why I. was angry is because. when. I. made that decision to not become a. doctor, the thing that I was told.

was I'm throwing away the sacrifice that. my parents made. And I started a business at the time. I. was working in the e-commerce world and. I started a sock company. And so then the comments that we get was. so Jaspreet, you were going to become a. doctor. Now you're selling socks? And it was this very just reoccurring. just like uh you gave up your dreams. You gave up all the sacrifices that your. family did. You don't even appreciate.

the things, the sacrifices and now. you're just going to sell socks on the. internet. And. that was my fuel. Because. I knew. I don't know how, but I knew I was going. to prove you wrong. Toxic fuel. It was. 100%. It was just anger, just pure just anger. I'm going to prove you wrong. And uh slowly the business started to. grow. I started to be seen on TV and all.

these things started to happen and and. so I was fortunate that my business also. flipped that now I'm not selling socks. I'm, you know, building this financial. media company, Briefs Media. And now for me, it's. there is a purpose for what I do. There's a lot of people that are lacking. financial education. There's a lot of. people that are working really hard. that have no idea why they can't build. any wealth. They keep hearing about how. people are becoming so wealthy.

Investment levels are skyrocketing. Billionaires are becoming even richer. And they don't understand and people. just get angry. When in reality, you can participate in that same game. and win in this game because our. economic system is designed to benefit. investors. And if you don't understand that, you will never be able to win in this. system. Point number two in your money mindset. is that money is a tool. What do you. mean by money is a tool?

And how is that different from how. everyone else thinks about money? You have to understand how money plays a. part in your life. When I say money is a tool, what I mean. by that is money doesn't make you a good. person. Money doesn't make you a bad. person. It amplifies who you are. And what I like to say. is that there are four fitnesses in your. life if you want to live a happy and. fulfilled life. You have to be. physically fit, mentally fit, spiritually fit,

and financially fit. If you're physically fit, you're on your. deathbed, you're morbidly obese, having. $10 million is not going to make you. happy. All you want to do is be healthy. again. Mentally fit is about being happy. If you're surrounded by toxic people, if. you're unhappy, if you're depressed, if. you're anxious, if you're just. miserable, you're never going to be able. to really enjoy life. Having more money. is not going to fulfill that hole. Spiritually fit does not mean religious. It means having a purpose. What is the. reason for getting out of bed every day? What is the reason for wanting to go out.

and achieve and do something? Because if you have $10 million, what's. the reason for wanting to get. and. conquer? At the very top is financial fitness. And once you have the bottom three, having financial fitness gives you the. most power and ability to live the best. life possible because this is all about. now being able to solve your financial. problems, being able to not worry about paying. your bills, being able to have the nicer.

stuff when you want and not have to. worry about the price. And the thing about this that I want to. really hammer home. is if you don't have this financial. fitness, now your physical fitness can. get hurt because you can't afford the. nice gym membership. You can't afford. the healthy food. You can't afford to. take care of your body. If you don't have the financial fitness, your mental fitness can get hurt. Financial problems are one of the. leading of suicide and divorce. Financial problems can really stress you.

out. And they can cause a whole lot of. anxiety and depression. Financial problems can also ruin your. spiritual fitness because if you can't. pay your bills, you can easily lose your. sense of purpose. So yes, being financially fit is its own part, but it all comes together in your life. Number three to this money mindset, money is abundant. And what I mean by that is.

you have to be willing to think bigger. Because oftentimes what happens. is. we start to think about. the dollars that I'm giving as opposed. to the dollars that I'm getting. If I pay you a dollar, you are getting rich off of me. But I'm not looking at what I'm getting. If I'm getting $2 from you, well, is it bad that I pay you $1? No, and this is where now we know just. we need to start to understand there's a. lot of money in the world.

Just because somebody gets rich, that. doesn't mean somebody else can't get. rich. And the reason why we get this. confused is because we assume that money. is scarce. And this comes from our childhood. Because when you grow up, you're fighting for your parents'. attention. And there's a limited attention span. that your parents have. If you have siblings, now it's divided. And so you can't have all the attention. So, if they're giving your your parents. are giving their attention to somebody. else, that means you're not getting. attention. This is it's a yes or no.

It's a black and white. But with money, that's not the case. You. can be rich and I can be rich. But we have to understand that there's a. lot of money in the world. I mean, the. United States government has 35 some. trillion dollars of debt. It's a lot of. money. And so, if you just take a small piece. of that, a small piece of the dollars. out there, you can build wealth and. somebody else can build wealth. And why. is that that particular point in this my. money mindset so critical? Why is it.

important to know that there's so much. money out there? How does that change. you? So, if you make $50,000 a year. right now, what you might start doing if you become. financially smart is you might say, "All. right, I'm going to start living off of. 75% of what I make and I'm going to. invest the other 15%.". That means I'm going to live off of. 30,000 and save and invest, we'll call. it $20,000.

You might now say, "Ah, I like this idea. of investing. I'm seeing the potential. What do I do? I make $50,000 a year. How about I keep cutting back? Now, I'm. going to live off of 25,000, 23,000. There's a limited number of dollars that. you can squeeze out of this pie. But there's no limit to how much you can. earn. So, what if I say, "Let's flip it. up a little bit. How about instead of trying to squeeze. more pennies out of this $50,000 that.

you have, let's try to earn $500,000 a year now.". And the first thing that's going to. happen is you're going to say, "Whoa, whoa, whoa, $500,000 a year? My boss is not going to give me a. $500,000 a year salary. What are you. talking about, Jaspreet?". Well, okay, let's break this down. If you want to make more money, how do. you do it? Uh I don't know. Well, let's start. learning. Where are you going to go to. learn? I'm going to Google, YouTube. Okay, let's go to Google and YouTube. How can. I make more money?

Maybe you start by learning how to ask. for a raise. Maybe learn to get a career change. Maybe you learn to change jobs. Or maybe now you start to think a little. bit different and you say, maybe you start to. build a side business or a side hustle. That way you can start earning more. money. But until you realize that it's possible. to instead of trying to go from 50,000. to 55,000 to 58,000 to 65,000, let's try. to go a little bit bigger. How about. 50,000 to 500,000?

And that's going to require, number one, you break out of that mindset shift that. that that invisible barrier, but also. understanding there's a lot of money out. there. And the last point here is I will become. wealthy, which is. different to the first point, which is. it's my duty to become wealthy. So, we discussed the first one, which is. I will become wealthy. The last one is. it is my duty to become wealthy. Oh, okay. Why is it your duty to become. wealthy? Because I believe that it's up. to you to take care of your family, to be the one that takes care that takes.

care of yourself, that we can also help take care of your. community. That is my belief that it is your duty. to do so. And if you rely on the. government or somebody else to do it, well, you are asking for problems. And you know, we've seen this in many. instances. where. you might have heard in the United. States social security is drying up. It's never going to dry up because the. government can just print more money and. pay it out, but it's never going to be. enough to live a great life. People that relied on pensions, well,

pensions are becoming a thing of the. past. Some pensions have gone bankrupt. and people have lost that. So, it is more important than ever for. you to become financially sufficient and. financially stable. through your own financial education. Trump has just been elected the new. president of the United States of. America. And when you saw that news, did. it change your thesis as it relates to. wealth creation? Is there anything. you're now going to be doing. differently? Is there any new. opportunities that you now see? Are you. shifting your capital allocation towards.

more risky assets or less risky assets. or real estate? If we take a look at the. last 15 presidents in the United States, some have been Democrat, some have been. Republican. The stock market has gone up under. Democratic presidents. It's also fallen. under Democratic presidents. The stock. market has gone up under Republican. presidents. It's also fallen under. Republican presidents. So, what does that mean? Well, if you're just investing for the long.

term, who cares? But for some investors that we'll call. it a little bit more sophisticated, you might want to understand. what the president is going to do in. terms of shifting government spending. Now, I'm going to make this a little bit. technical, but let me kind of break this. down. Our economy is measured through a. number called GDP. And GDP is a measure of all spending. that happens in our economy. In the. United States, the largest spender.

is the government. 30% of our GDP, our economy, is government spending. Which means that there are certain. entities, certain businesses that will. benefit depending on where the. government spends money. And that can then impact those stocks. It can impact those industries and it. can impact those businesses. So, now, let's break this down. If you're a. long-term investor, you're investing in. the S&P 500, you're investing in just. general ETFs and index funds and mutual. funds, it does not matter.

But if you are, let's say, a little bit. more sophisticated, you want to. understand now government shifts that. are happening. Now, we can dig a little bit deeper. So, prior to the election, we published a. whole report in Market Briefs Pro on. this. What we talked about is. if Trump is elected president, here are the things that he has said. that he's going to do. Number one, he wants to deregulate oil. and gas. Number two, he wants to. deregulate the financial service. industry. And number three, he wants to.

invest in the military. So, if we break this down, oil and gas, these are companies. that are investing and drilling oil. And so, these companies have less. regulations and more ability to produce. product and sell more product, they could see bigger revenues and. bigger profits. Number two, with financial service. industries, things like. the companies on Wall Street, if you deregulate them and give them the. ability to do more things, they can make. bigger revenues and bigger profits. And.

crypto as well. And crypto. Crypto's. since the news that he's been. and he's going to be inaugurated, the. prices have just skyrocketed. Exactly. And number three. is investing in the military. Now, what. does it mean to invest in the military? Well, if we're investing in the. military, that means that we're going to be. practicing shooting more guns, shooting. more bullets, having artillery, having. planes and other machinery. And these are then done by private.

companies. And so, if the government can spend and. choose where to spend money, and the government then decides that. they want to spend more money or allow. companies to be more free to do whatever. they want in these industries, those industries then have the ability. to potentially grow their revenues, grow. their profits, grow their stock prices. These can then create what we call a. government shift because the government. spending shifts and that can create an. investment opportunity for investors. that want to be a little bit more.

sophisticated. But I'm going to say this. again, as a long-term investor, forget the election cycles. You're. investing for the long term. For those less sophisticated investors, as you were when you were 19 years old, you chose to invest in real estate as a. cash generating asset. Now, if I want to invest in real estate, it's my first investment as you did, what are the things that I should be. looking out for if I'm someone that. knows nothing about real estate? What. kind of property should I be looking. for? How big? Does it matter how how.

much those properties cost? Am I looking. for family rentals, studio apartments? What kind of things matter? What you invest in is going to depend on. what's best for you. But the way I like. to look at it for me cuz. I can't tell you what to do. Is for me, when I invest in real estate, is I look for a 7% cash on cash return, minimum. What does that mean? So, if I. invest a. a dollar today, I want 7 cents of cash. flow after expenses.

every year. for my dollar that I invest. So, if I. buy, let's just call it a $100,000. house. And I'm going to keep it very. simple. We're going to have no debt. I. take $100,000 out of my bank account and. I buy this $100,000 house that I then. rent out. That rent, after all the expenses, should then put at least $7,000 into my. pocket every year. That's what a 7% cash on cash return. means. Now, for me, I prefer.

single family houses or multi-family. apartments. Because that's kind of where I got. started and I've found more success. there and it's a little bit more. innovation proof because we know that. offices can go up and down. If companies. are working from home, offices be. affected. The retail sector can be. impacted if companies are moving online. and we see that there's a lot of shifts. happening in the retail spaces. But. uh at the end of the day, you got to. find what's right for you and how.

involved you want to be. When I invest. in real estate, I want it to be passive. for me. That after I find a property, after we do the renovations, I want to. give the keys over to a property. manager. I don't want to have to worry about it. Okay, so you don't you don't become the. landlord yourself and deal with the. tenants directly. I do not. And the. reason why is I have other things I need. to do. And I don't want to spend my time. managing the property. I want to spend. my time acquiring. I want to spend my. time investing, but I don't want to. spend my time managing. What's the best.

investment you ever made? The best investment I ever made is the. investment in myself. That has given me a much better return. than any real estate, than any stock, and even than any cryptocurrency. And when I say the best investment in. myself is. two things. Number one is the investment that I have. made in my own education outside of. school. So, books, podcasts, classes, coaching.

Number two, the failures. I have made a lot of mistakes. They have. cost me a lot of stress, a lot of headache, a lot of money, but they have taught me a ton. So, we'll talk about real estate for a. second. If we go back to the first condo, the sunshine and rainbows is I rented. this property out for $600 a month. But the downfall or the risky part and. the bad part is that I made every.

mistake possible. Number one, I hired a bad contractor. Number two, I hired a property manager, which I didn't realize was a fake. property manager. We didn't even sign a lease with the. tenant. I didn't even sign a contract. with the property manager. They weren't. working with the tenants. And they gave. the tenant my phone number. So, here I. am sitting in my organic chemistry class. getting calls from my tenant saying the. property's going to implode because the. light bulb fused. Then we hired brought in a bad tenant.

Can I ask you a question there then? How could you have avoided all of this? Well, I could have either number one had. a real estate investor that I could have. talked to, which I didn't have access. to. I read a lot of real estate books. So, if you say what could I have done. differently, Totally agree with that. Because there's. people listening right now that are. going, "Jesus, I I want to get into this. real estate game, but I don't want to go. through all those mistakes.". as much as you want. You're going to. make mistakes. It is a part of the. process. You can learn as everything you want,

but every real estate deal is unique. You are going to screw up. And I have made a lot of screw-ups. But. once you get through the screw-ups, it. becomes a lot easier. I call it the. hurdle. But then things get even more exciting. because now we bring on a new property. manager. And. the tenants move out. And then we think everything is good. And now. I get a letter. delivered to me, hand-delivered. Well, this is a nice gift. It says, "Jaspreet. Singh, you are being sued.".

And I said, "What?". Those tenants then. sued me. because they claimed that the bathtub. was too slippery when the water was on. True story. And now here I have this lawsuit. I'm. 21, 22. I have no idea what's going on. Jaspreet, was the bathtub too slippery? Well, I'll tell you exactly what. happened. There was a chip about the size of a. quarter.

in the bathtub. The paint had chipped. They filed a complaint with my new. property manager. Thank God I switched. property managers because what a good. property manager does is they're going. to document everything that happens. So, my property manager documents that. okay, tenant complains of a chip in. their bathtub. We send out the contractor. So, the. property manager sends out the. contractor to go there. to fix the chip in the bathtub. And you. know what the tenant says? "Can you come back a different time? My. husband slipped and fell at a friend's. barbecue. And so, we don't want you to.

fix that chip today." The contractor. says, "Okay, we note this down." He. tries to then fix the chip three more. times, but the tenant denies it every. single time. And so, we thought, "Okay, just let us. know when you want the chip fixed. The. contractor is waiting." They never. brought it up again. Then we get this lawsuit saying that we. were negligent, that I'm this evil, greedy human being because I refused to. fix this chip in the bathtub, which made. the bathtub slippery when the water is. on, which caused this person to slip and.

fall and break their hip. And so, now we go through the lawsuit process. Thankfully, I had insurance, but the insurance company still has to. pay for the attorney. I still have to be. involved through all the proceedings. And now they're claiming that because I. didn't fix this chip and made the. bathtub slippery and that's what caused. this tenant to get hurt. But we had the documentation saying that. they slipped and fell at a friend's. barbecue. And then we go through the. hospital records. And we found out that.

this person slipped and fell at a. barbecue. But they wanted to get some money out of. this rich landlord. I'm a 22-year-old kid. I'm 21-year-old. kid. I have no idea what's going on. And so, the insurance company had to. settle. They paid $14,000. to make the case go away. It's interesting cuz even when people. hear all of that, they think, "Gosh, I. really don't want to go through that.". So, Jaspreet, please tell me something. to avoid some of those things. And and. you know, as you were talking, I was I.

was writing down some principles. Yeah. And what the first principle that I. wrote down, which could have avoided you. a lot of that heartache, is to really, really, really, really take time. when picking people. 100%. And we know one does it. No one does it. And I have an investment portfolio where. I have 40, 50 companies now. And if. there was one piece of advice that I'd. give to all of those portfolio. companies, which I know they are not. going to listen to, no matter how. passionately I say it, no matter if I.

bang on the desk, no matter if I scream. or show them my scars, the one piece of. advice I'd say to them is that. recruitment is the single most important. thing. And and. you can say that to people, but they. still rush the process. They still will. just go with their vibes and biases. They'll still just go with the person. who sounds the smartest. They won't. acknowledge the fact that they don't. know what good looks like. You don't. know what good looks like. If you start. with this base premise, which most. people don't start with, which is I am. really, really bad at recruitment. If.

you start with that, then you'll put. systems in place. to alleviate the downsides of you being. really bad at at recruitment. And if. you'd started with that when you were, I. don't know, 20 years old or whatever it. might have been, you would have gone to seek out someone. else's opinion on which contractor to. hire, which tenants to bring in. And. that could have alleviated a lot of this. pain, it seems like. I was in a rush. In a rush, yes. I wanted to get it done. And so, I'd. find the cheapest and fastest. contractor, the cheapest and fastest.

property manager, the cheapest and. fastest or not the cheapest, but you. know, the fastest tenant that I could. bring in. because I wanted to do it quickly. I. wanted to get there fast. It reminds me. of people picking romantic partners. I. was in a rush, so I ignored the red. flags. And it's funny cuz you said the. cheapest. This is actually what plays. out in business all of the time as I. speak to these young founders that are. starting businesses, and they go, "Steve, yeah, I know you say like take. time and hire great people, but look at. the salary. This person costs $100,000. and this one's $50,000, so I'm going to.

go for the one that saves me money.". And that is the trap. One of the most expensive things that. you can do is be cheap. And I learned. that the hard way because I was born to. be cheap. You know, I talked about how Indian. people make a dollar to spend 20 cents. That was my family growing up. And that was the way that I was raised. That if you become a doctor, you'll make. a nice six-figure salary. You can live. off of $30,000 a year and save a whole.

lot of money. And I never questioned it. But this is a. very kind of just don't spend money. That's how you build wealth. Because if. I give you money, that means I'm taking. my wealth and giving it to you and I'm. getting nothing in return. And that's because goes back to the end. of mindset. Money is abundant. And that scarcity thinking. is one of the most expensive things that. you can do. So true. And I'll give you. an a story of this. I told you I have a. If you want to talk about mistakes, we. can go for hours and days about my.

mistakes because I screwed up a lot. Uh-huh. I had an accountant. And I. figured that if I'm paying less money in. accounting fees, I am saving money, so my business can. keep her money, I can build more wealth, right? But one of the most expensive things. that you can do is be cheap. So, I had. this accountant that was cheap. And all he did was file my taxes. Kind. of. I mean, he was late and whatever, but he was cheap. The monthly payment.

was cheap. So, I didn't really care too. much because I got the taxes done. And then. I always wondered why we don't like talk. about tax planning. What should I do? It's just like at the end of the year, I. get this like vague email, "Send me all. of your stuff." And then I don't hear. from him for a long time. And then he. says, "Sign this paperwork." And I. didn't really think much of it. But then one year, it was January. I'm in my office. And I get a call early in the morning.

from my accountant. And if you get a. call from your accountant early morning. in January, it's never a good sign. I didn't know that. He calls me, says, "Jaspreet, how are you doing?" I said, "I'm good. How are you?" Thinking I'm. going to get some good news. He said, "Hey, uh I made a little mistake on the. taxes. Could you do me a favor. and uh wire $18,000 to the state of. Michigan by the end of the day?". I said, "Excuse me?" He said, "Oh, uh. also, could you also by the end of the. day please wire $100,000 to the federal.

IRS by the end of the day?". "Excuse me?" Oh, and the last part, "You're going to have to pay penalties. and interest on this, too.". And it took me a minute to really absorb. all this information. So, you want me to send a hundred some. thousand dollars by the end of the day? Whose fault is this?" And I remembered. this response. He said, "It's nobody's fault.". And, you know, I didn't really process what he said, but I had to think through this. I said,

"Whose fault was it?". It's my fault. That's whose fault it. was. I wanted to blame him. But it was my fault. Because. I was being cheap. And I learned. I hired a new accountant who cost me. many, many, many multiples more than. what I was paying before. But, you know. the crazy thing? Is it's actually saving me more money. now because we do these tax. strategizing,

which then allows me to pay less money. in taxes legally, even though I pay more money to my. accountant. This is one of the most pivotal things. that I learned in the last sort of three. to four years of my career. And I've. been in business for maybe, well, my. first business maybe 15 years ago, but. in the last three years in particular, I. just got overly obsessed about hiring. and recruitment. And really. how much the the exceptional person. costs. is inconsequential to the long-term net. impact they'll have on my business. Remember I spoke to Jay Jason, who's my.

older brother who works in my company. now. He's like super smart LSE actuarial. scientist. He's like a calculator. Um and I I'd said to him, "Can you tell. me where my net worth has originated. from?" He said, "Your net worth is X. hundreds of millions or whatever." I. said, "Can you like go upstream and tell. me where it came from?" And he he didn't. come back and say, "Oh, you made this. great bet or this investment." He said, "Effectively, what happened is you hired. six or seven good people. And those six or seven good people. ended up hiring a couple more good.

people and making a couple of good. decisions, and those people made a. couple more hires and made a couple more. good decisions, and it propagated." And. it reminded me of something Steve Jobs. said. Steve Jobs said, "People think. I've built this, you know, multi-billion dollar business. because I'm so smart." And he says in. that interview, "I've built my career by. doing the really, really hard work of. finding truly exceptional people, and it. propagates. I.E. A players hire A. players, B players hire B B players, C. players hire C players. So, the game of. business, I mean, the definition of the. word company is group of people, but the.

game of business is to assemble the best. group of people. And if you're cheap, that mission is not possible. Yeah. And. and you'll you'll get a short-term win, but the long-term pain, which is that. January phone call from your accountant. when they say, "I [ __ ] up.". You get what you paid for, Jaspreet. And. and you know, it goes back to you know, we talked about touching the fire, right? But becoming successful means. you're going to make mistakes. You have. to make mistakes. You cannot bypass the. mistakes. You ask me, "How does somebody. do this without the mistakes?" You're.

going to make your own. But the difference between somebody who. becomes successful and somebody who does. not become successful is they are. willing to make those mistakes. See, most people say, "I don't want to try to. touch the fire. I don't want to risk. it.". But until you touch it, until you screw. up, you're not going to know it's hot. And you got to be willing to screw up. I want to add something to that as well, which I had noticed in you. You just. said that. unless you're willing to make mistakes, you're not going to become successful. But there was a question I asked you. I. said, "Whose mistake was it?" when I was.

talking about your accountant. And I was. testing you. Because I was I was trying to see where. you put responsibility today. And I. think that point of taking. responsibility is actually the biggest. indicator that that mistake turns into a. lesson. So, your your accountant [ __ ]. up, clearly incompetent. But when I. asked you, "Whose fault was it?" you. said it was my fault. And that. immediately tells me that you now have. an internal locus of control. I.E. The. control. of that decision and your belief of. where the control lies is within you. So, in the future, you can do something. about it. But when I speak to people.

about bad relationships, about bad. hires, or about any sort of bad personal. decision they've made, maybe a bad. friend, 99% of the time, they will blame the. person. That was a bad person. And what you did is what I think is the. most important thing, and actually the. science corroborates that if you have. this internal locus of control, internal. responsibility for what happened, you're. much more likely to be successful, much. more likely to learn from it, much more. likely to be happy, much more likely to. be rich. Which is you and it was my.

fault. Can I tie that together now with wealth? When people ask me, "Why is it that so. many people are poor and struggling with. money?". I said, "There's two things at fault. And there's two ways you can look at it. There's the it's your fault and the my. fault. And I always like to talk about. both of these because you have to. understand this. Because it ties in very. well. I appreciate all the kind words. because. I really do appreciate that. But when I. say it's your fault, look, our economic. system is designed to profit off of.

people being financially stupid. Period. Banks profit when you're financially. stupid because that means you stay in. debt, and they keep making interest for. the rest of your life. Corporations profit when you're. financially illiterate because that. means you're going to keep buying their. stuff and not think twice. And they're. going to hire the best and smartest MBAs. to get you to open up their wallets. To open up your wallets. Number three, the government is going to. profit when you're financially.

illiterate because that means you don't. do anything outside of your W-2 job, and. you're going to pay the highest tax. rates. You profit when you're financially. educated. So, now, what can you do? You. can say, "They're the reason I'm broke. This company is the reason why I'm. broke. My company is the reason why I'm. broke. The government's the reason why. I'm broke. The banks are the reason why. I'm broke.". Well, that's not what I'm saying. That's. just part one. The second part to part one before I get. to part two is once you understand this, you can learn how to win. You can learn. how to use the bank. You can learn how.

to use corporations because you want to. have nice stuff. You can learn how to. use the resources that the government. has. But now, let's flip the script. The. second part to this is you need to. understand. it's your own responsibility. Because if you spend every dollar that. you earn, you're never going to become. wealthy. If every time you make money, you go on a nice vacation, you're never. going to build wealth if you can't. afford it. If you just make money and. you make everybody else around you rich. before you make yourself rich, that's your choice. People don't want to.

take personal responsibility there, you. know, it's a topic I always talk about. um. because that's like holding a mirror up. to yourself. It doesn't feel good, does. it? To say that it was my mistake. I'm. the reason why I don't have money. I'm. the reason why I'm living in this, you. know, this little bedsit with these four. strange guys when I was 18 years old and. I didn't have carpets on the floor and I. was shoplifting food to feed myself. I'm. you know, it that hurts to say that it. was me. It's my deficiencies. The.

self-esteem doesn't want to. to take such an attack. And you know. what? Here's the thing. It might not be all. your fault. There might be a lot of reasons why. you're in that crappy situation. There. might be a lot of reasons why you're. struggling with money today. You might. have grown up in a very crappy. situation. You might have had horrible. parents. You might have had a horrible. upbringing. You might have had horrible. surroundings. You might have been dealt. a horrible set of cards. Okay, now what? Now what? You were. Now the question is are you going to.

take that responsibility today going. forward or not? And you have to take that drastic. responsibility. You have to take that. drastic mindset shift, and that's what. you have to do. And it's difficult. Who wants to blame themselves? But if you want to change where you are, they're not going to do it. Your banker. is not going to say, "Hey, Stephen, you know, you can't afford this car. Don't take this debt. Don't take this. house." Because if they can sign you up,

they're going to want to get paid. They're in the business of making money. Not for you, but for them. Gucci's not. going to say, "Maybe you should buy some socks instead. of this purse." Because they're going to. want you to buy their stuff. The government's not going to say, "Hey, why don't you take a look at our balance. sheet?". I'm going to get I'm going to take this. little tangent. The government says student loans are a. problem. We've all heard that. Millennials can't buy houses. They can't.

buy their home. They can't invest. because they have student loans. The government says student loans are a. problem. Really? Let's take a look at the United States. balance sheet. Your balance sheet is. your asset and liability statement. The number one largest asset on the. United States government balance sheet. are student loans. So, here we keep saying, "Oh, student. loans are bad." We keep hearing this. from the government. But on the other hand, the government is. so rich because of the student loans.

Because so many people are stuck in. these student loans. And. guess what? You pay the highest tax. rates when you are just an employee. I'm an attorney. I'm not your attorney, but I am a licensed attorney, and I. spend a lot of time studying the tax. law. And what I can tell you. is that the tax law. rewards you when you are an investor. In 2024, the CEO of Coca-Cola, James Quincey, is.

going to make about $8 million in cash. compensation. He'll also get equity, but. about $8 million in cash compensation. His top tax rate on that $8 million is. going to be 37% on the federal taxes in. the US. Warren Buffett is going to make over. $700 million. from Coca-Cola dividends. in 2024. His top tax rate is going to be. 20%. He's making way more than the CEO, but he's going to pay less in taxes on a.

percentage level. because he made that money as an. investor. We're never taught that. This goes one step further though, doesn't it? Because if you look at. someone like. an Elon Musk, they never even take a salary, these. people. And people don't know about this thing. called lending against your assets. I. didn't know about it. And I think it's a big secret that. people need to know about. Elon Musk is interesting because he's a.

risk-taker. And he chose. to get paid not in salary. And if we look at the tax benefit from. this, it's because. you are taxed. not on your income. That's not what the. tax code says. You are taxed based on your taxable. income. So now whatever you accounted, every. smart accountant, not every every smart. accountant is going to focus on reducing. your taxable income. And so what Elon Musk did is when he was. building Tesla Tesla, he negotiated with.

the investors and the board. that I want to get paid not with a. salary, I want to get paid with a stock. options. A stock option gives you the. right to buy that stock. And he was. awarded these Tesla stock options at. about $6 a share. Which means if the Tesla stock goes up. to $7 a share, he could sell the stock. option for $6 and profit $1 for each. stock option. Now, he was given millions.

and millions and millions of these stock. options. And so now when the Tesla stock a $100 a. share, now he is rich on paper. He doesn't have. any money in his bank. He hasn't a. salary, so he has no taxable income. because he hasn't actually received any. money. He has the option to sell this. stock for $6 and in return get $100. So. net 94. But if he sold that stock, he would have.

$94 of income. Now you have a tax cuz you have taxable. income. So instead what he does is he. goes to the bank and he says, "Hey bank, I have these millions and millions of. stock options. that are worth billions of dollars. Would you like to loan me. a million dollars, 10 million dollars, a. hundred million dollars at three, four, or five percent interest?". No bank is going to say no. because the collateral is so valuable. What's the collateral? The collateral is.

the company and his assets, those stock. options. Which is Tesla in this Which is Tesla in. this instance. So then he gets let's call it $10. million loan from the bank. Now he has $10 million in his bank. account, but it's not an income, it's. debt. Debt is not taxed. If you go out and get. a mortgage for a half a million dollars, you're not taxed. If you do a cash out. refinance, you're not taxed because. that's debt. So now he gets this $10. million of loans that he can spend to.

buy a house, to buy a car, to buy food, to buy vacation, to buy whatever you. want. To buy Twitter. To buy Twitter. and pay no money in taxes and it's 100%. legal. Now you're going to say, "Well, Jaspreet, how does he pay it back?". Well, let's just assume that you're. going to get a 5% interest on this. If the value of Tesla goes up by say 7%, he made a profit. So now he can go back to the bank and. say, "How about you give me an. additional $10 million?".

And he can pay back the old loan because. the value keeps going up. And as long as. the value keeps going up, no problem. But you can start to see where this gets. risky. Because if Tesla goes bankrupt, now. we're talking about a house of cards. that can collapse. And now you have all. this debt that you've already spent and. no more collateral. But in his case, he. could. if Tesla. starts to fall in value, then the bank. will call. payment. So if it say it might be, I.

don't know, Tesla falls from let's say a. hundred to $10 a share, they're going to. call payment. He's going to get What's. What's that called? He's going to get a. Margin call. A margin call. Which means that they're going to say, "Give me the money back quick." Yes. And. all they're going to sell off the asset. and. to get their money back quick. And it's. a losing transaction. The bank will lose. because if they banks do not profit from. margin calls. Because once you start making margin. calls, that's when panic hits. Yeah. And now you have to scramble to.

sell. And now the bank is just trying to. get pennies back out of every dollar. that they lent out. I'm going to get old someday. And um I think a lot about. making sure I'm wealthy enough so that I. can take care of myself when I probably. can't work. A lot of people talk about this. retirement crisis. that the UK and the US are in. What is the retirement crisis and why. did Why does it matter to any of us? And. what do we do about it?

This is a multifaceted issue. The first issue is we have this huge. population of old people, baby boomers, that are. retired or entering retirement. that have. not enough money. This is not just the. US, this is also the UK like you said. Which creates a few issues. Number one, who's going to take care of. them? Number two, who's going to fund that. taking care of them?

The government doesn't have that money. And the people that are going into. retirement don't have that money. And. their kids many times don't have that. money. That's the first issue. And now as we start to dig into that, we have people that are working longer. And. it creates now this. problem in the future. that we can see today. If you're in your. 50s, 40s, 30s, 20s, teens, you can see.

that there is this problem that's. happening. How do we prevent that today? Because I don't know what the solution. is for this retirement crisis. I don't. have a solution for that. The average retirement savings for. Americans age 60 is roughly $500,000. And the average age of death in the US. is 77 years old. So if you retire at 67. years old, which is the average age of retirement. in the United States, then for the next. 10 years, you're going to have to live.

off about $50,000. Um and the stats say that Well, I. actually got this from your YouTube. channel, The Minority Mindset YouTube. channel, said that the average American needs. between one to two million dollars to. retire comfortably. According to USA Today, you need about. $1.8 million. to retire comfortably. Wow. And the reason why is. every year. we have inflation. So if you live off of $50,000.

this year, you're going to need maybe 52, 53, 54,000 dollars next year, more the year. after that, more the year after that. And $50,000 doesn't buy you what it did. 30 years ago. And so now when we take a look at all. these issues happening, the question is. what do you do today to prevent these. issues in the future? And starting with in the United States,

we have what's called social security, which is a government check that you get. when you retire. The first problem with social security. because social security is drying up. This is a fact that if you read the. headlines, they'll say social security. is going to be dry by 2034. if nothing changes. The problem is people are paying money. in, but the government is paying out. more than what's going in. So from any. business perspective, if you have more. cash outflows and cash inflows, you have.

a problem. And the reason for that is well, number. one, the math was wrong. And number two, people are living longer. So when the government keeps paying your. social security check longer and longer. and longer because people are living. longer, life expectancy is getting. higher, that means they have to keep paying. That's not good for the government. Now on the plane ride here to LA, I sat. next to somebody who was telling me, I. didn't verify this, but he told me that. the government knew that this was going. to be a problem from the get-go.

because he told me that the first. recipient of the social security program. lived to a hundred. I don't know if. that's true or not, but you can Google. that to see. But that's the problem right now. Social. security is is running out of money. And. this is where everyone says social. security is going to run dry, you're. never going to get a social security. check. That's not true either. The reason why I say that is because. the government. won't let it fail. They'll either raise. your taxes or they'll just print that. money.

But the problem with it is you will. never be able to live comfortably off of. social security. That was never the. intention, but many people are looking. at it as I'm going to be able to live. comfortably from this government check. But here's the problem. Let's take a. look at what's happening today. Between 2024 to 2025, social security recipients are going to. receive a 2.5%. raise. for inflation. What they're saying is we have this.

inflation in 2024. And because of this inflation in 2024, you're going to get a 2 and 1/2% raise. There's two problems with that. Number. one, that raise is not enough. Things are getting a lot more expensive. Even though the rate of inflation is. falling, I mean, 2 and 1/2% raise is not going to keep up. with the real cost of living growth that. most people feel. The second problem is it's a delayed. raise. The government gives you a raise in 2025. based off of the inflation you had in.

2024. So, we already had this price growth. and then you get the raise next year. And guess what? We're going to have more. inflation in 2025. So, relying on social security is a. losing proposition. Which brings the next. part of this three-legged stool. So, you. have social security, then you have. pensions. Pensions have become a thing of the. past. I mean, if you're under the age of. 45, chances are you're not getting a. pension. And even if you're over the age of 45. and you're promised a pension, you.

better cross your fingers to hope that. that pension fund does not go bankrupt. Because there have been many pension. funds that have gone bankrupt and people. are then left with nothing. Which leads number three. Your own savings and investments. And this is where we have so much. a lack of understanding because. people are not doing enough. This goes back to the whole financial. education. We make money to spend money.

That's what the American culture is. I. make a thousand dollars, I'm going to. spend a thousand dollars, maybe twelve. hundred dollars. But you're never going to be able to. retire with that sort of mindset. And here's the second problem with that. I'm just going to lay the problems, then. we'll come up with the solution. You might say, "Well, I need a financial. advisor.". No good financial advisor nowadays wants. to work with anybody. under. $500,000 in assets. Maybe $250,000 in assets. Maybe if you.

get lucky, $100,000 in assets. But if you have under that, they don't want to work with you because. they want people that have some money to. actually make money off of, right? They. financial advisors got to eat, too. So, if you don't have the investments, you. don't have the education, now you're stuck. And this is where now your financial. education comes in. Because if you want to build wealth, you want to have {quote} retirement, you got to do something different. You. can't keep doing what the majority.

people do. because if you keep doing what the. majority people do, you're going to end. up like the majority people. And right. now, that's broke, in debt, living paycheck to paycheck, fat, and unhappy. And I'm not saying this as a general. term. I mean, statistically, that's what the majority of people are, especially in America. So, now let's come up with the solution. cuz we have laid out the problem. The first solution is define what is. retirement. Because. I'm going to get a little philosophical. here, but I have my issues with.

traditional retirement. There's a saying that says those who. retire early die early. The reason why is because if you work. from the age of 21 to 65, maybe 67, at a. job you hate, but you work every single. day and all you're looking forward to is. retire at 67, you retire at 67, you have this great. big retirement party, now you come home. and you sit on the sofa and you start. watching TV,

you start to lose your sense of purpose. And I've seen this. very closely with people in my not my. family, but close to my family, where I've seen people who were healthy, energetic, maybe they didn't love their. work, but they had a reason to get up. every day, go to work, retire, and. literally go insane. I mean, you have. nothing to do. and now you start to see health issues. that you didn't have before. You start. to have mental health issues that you. didn't have before. And all these things.

just start to happen when you were going. to enter your golden years, even if you have the money to do things. So, when we talk about what is. retirement, I want to caution everybody. or if you have parents. to start thinking about. what do you want to do during. retirement? Because if your goal is to. do nothing, you might enjoy it for the first few. weeks, maybe six months, but eventually. you're going to get bored. So, you got. to have something to do. Then there's the financial side of. retirement.

What is retirement? And I have a. different definition than most people. Most financial advisors don't like me. for the things that I say, but my. definition of retirement is the same as. my definition of wealth. Wealth is. for me. when my cash flow. from my investments exceeds my expenses. It's very simple. If my expenses are $4,000 a month. and my cash flow from my stocks and my. real estate and everything else is.

paying me $4,001 a month, I am wealthy. So, now the question is, how do you. actually achieve this type of wealth. retirement? The reason why I don't like the word. retirement as well, besides the. connotation of I'm going to do nothing, is they assume that I got to be 67 years. old to hit this retirement. When you can. achieve this wealth way sooner. And now you have more options.

So, retirement is wealth. Wealth is when. your cash flow from your assets exceeds. your expenses. How do you actually do. this now? Well, you got to buy the assets. And in order to do that, you have to. have the money. And many people assume that the way you. get rich is by investing for passive. income. You get rich by investing in. real estate. You get rich by buying this. cash flow. That's a lie.

You have to have the money first. You have to have the money to invest in. real estate. You have to have the money. to buy the cash flow. So, if we just make the numbers very. round and simple, if I need $70,000. a year to live. my life. and I can get a 7% cash flow on my. investments, I need to invest a million dollars. to have that $70,000 a year to fund my.

lifestyle. Now, you're going to say, "Where in the world are you going to get. a million dollars?". You don't need it today. It can happen over time. Right? When. people talk about retirement planning, they're thinking about 45 years. So, when we talk about wealth, why can't. we talk about the long term? It's not. going to happen in 2 days, but it can. happen if you put in that work. So, now, you have to put aside this. amount of cash to buy certain. investments that can pay you this type. of cash flow.

The second thing is, "Well, what about inflation, Jaspreet? You talk about this all the time. The buying power of my dollar is going. down. $70,000 when I'm. 65 years old in a few decades is not. going to have the same buying power as. today." You're right. But here's the thing. When you invest. your money. into dividend-paying stocks, which are. stocks that pay you, or into strong real. estate, these are inflation-adjusted.

s. Which means. generally, as inflation happens, rental prices go up. As inflation happens, stock values and. dividends also go up. And this is where now, if we start to understand this, you'll. understand the power of this. Because it's actually a little bit more. extreme. We've probably heard about, you know, the wealth gap in America and how the.

richer getting richer and the poorer. getting poorer. Well, the reason why that happens. is because investment values. grow faster than incomes. And inflation benefits investors. So, you see how we start to tie this all. together because wealth is about owning. investments. The way you become wealthy is by owning. investments. Our economic system is. designed to benefit investors. If we take a look at 2019 to 2024,

over those 5 years, household incomes, the median household. income, grew by around 18%. During those 5 years, the S&P 500, the. stock market, has grown. by almost 100%. Which means that the wealth for. investors has grown almost five times or. about five times faster. than incomes. This is why you can't earn your way to.

wealth. You can't save your way to. wealth. You have to invest your way to. wealth. And remember, wealth is. retirement. And you might say, "Well, Jaspreet, that's just because of the pandemic and. everything that after happened after the. pandemic.". Well, let's go back in time. Let's look. at it a little bit broader. Let's look at the five decades between. 1971. and 2021. Over those five decades, household income. increased by around 600%.

Now, mind you, that between 1971 and 2021, we also saw the number of workers in a. household increase. Between in 1971, the average household had one person. that went to work. The man went to work. and the woman didn't. That's how life. was in 19 early 1970s. In 2021, many households have two. household incomes. So, 1971 to 2021, the. median household income grew by around. 600%. The S&P 500, the largest 500 companies. in the stock market, grew by around.

4,000%. So, again, inflation happens. Inflation benefits. the investor. How do you become wealthy? It's by investing your money. So, if you want to retire, if you want. to build wealth, you have to be an. investor. And you have to calculate what is that. wealth number for you. For me, the way that I do it is I do it. through cash flow. Most of my. investments My real estate investments. pay me cash flow. When I buy a property, I buy it for the cash flow. Most of my stock market investments are.

dividend paying assets, meaning they pay. me. cash flow dividends just for owning the. stock. Some of my investments grow in value. They're more appreciative. They're for. appreciation. But when I think about retirement for. me, it's cash flow exceeding my. expenses. What about starting a company? Should. people become entrepreneurs? Well, I think everybody in America needs. to be a business owner.

But the majority people should not. operate a business. When you invest in a stock, you become a. business owner. You don't operate the business. If I go. out and buy a share of Amazon, I'm not. working in the company. I'm not. operating the company, but I own some of. it. Some people should start a business. I'm. a huge advocate for entrepreneurship. for the right person. Who's the right. person? I used to think. everybody needs to become an.

entrepreneur. Because when I started to see success. as an entrepreneur, I crossed that. invisible barrier. I said, "Oh my god, people need to see. this. You have to become an. entrepreneur. You can do things on your. own.". And I was preaching this to my friends. I got one friend of mine. who was an engineer. to quit his job. and to then join me. He would come to my.

office and I would talk to him about. things and I said, you know, "Different. ways you can do this.". And I realized pretty quickly. he is not meant to be an entrepreneur. The work ethic was different. When he would go home, he didn't want to. work. And that did not click to me. What. do you mean you don't want to work after. 5:00? Like that There's no stop point. When you're starting a business, you got. to start. The second thing was.

the way you think about risk. It's Oh, well, if I invest $100, how. fast am I going to make the money back? Am I going to make this money back? It. became all these like little analysises. before you've even done anything. You got to start. And then it's the innovation of what are. you going to do? It's asking for a. blueprint. Tell me exactly what to do. Tell me. exactly what to sell. Tell me exactly. how to sell it. I don't know what you are good at. I. don't know what problem you can solve. I. don't know what innovation you can. create.

And this is where. I go back to. I am a big advocate for entrepreneurship. for the right person. Who is that right. person? Somebody who has this. entrepreneurial itch. That you have this. this. I need to create something. This I can't. work for somebody else feeling. This. I want to build something. It's a very. much like I don't care what it takes. I. don't care what I have to do. This is. what is my calling. And as you say there,

you're going to have to tolerate. uncertainty. And when I say uncertainty, I mean. comfort as well. The lack of a. blueprint, the lack of certainty about. how much you're going to make this month. or how quickly you're going to make. money or if you're going to make money, risk, which is you might have to put a. lot of things on the line including your. reputation. And you said hard work as well. So, are. you willing to work 7 days a week? And. you're right, you know, when people say. that they think it's super toxic, but. like I. In my own experiences of starting. businesses, but then on every friend. that I have that started a business,

they'll all tell you that there's. absolutely no such thing as 9:00 to. 5:00. You work We work whatever you have. to work. And if you're at a bar mitzvah. or a wedding or a anniversary meal with. your partner, at any moment, you might. get a horrible email and you have to act. upon it. You can't say I'm going to save. that till Monday or not my problem. Oh, yeah. And I'm going to add one more to. that list. The willingness to be criticized. Oh, yeah. Any business you start, you are going to upset a lot of people.

at every stage of the business. I mean, this is really important because. much of the reason why people want to be. entrepreneurs is cuz they want to be. their own boss. But what's so. interesting about the story you told. about that tenant is you became her. boss. Whenever I speak to entrepreneurs, there's one problem that always comes. up, but today's sponsor, LinkedIn, has a. solution and I think you'll want to hear. it. Connecting your business with the. right audience can be tough. You can. spend a lot of time and money trying to.

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credit to launch your first campaign on. the platform. Just go to. linkedin.com/doac24. to claim your credit now. That's. linkedin.com/doac24. Terms and. conditions apply. This diary won't change your life, but. the habit it teaches you definitely. will. The most unhelpful advice that I. ever received was don't sweat the small. stuff. You have to sweat the small. stuff. I sweat the small stuff. I always. have and I always proudly will because. small things that are easy to do are.

also easy not to do. It is easy to save. a dollar, so it's also easy not to. It. is easy to brush your teeth, so it's. also easy not to. It is easy to make a. 1% improvement, so it's also easy not. to. Understanding. the power of compounding 1%, you can. absolutely. change your outcomes in your life. It. isn't about drastic transformations or. quick wins. It's about the small, consistent actions that have a lasting.

change on your outcomes. So, 2 years. ago, we started the process of creating. this beautiful diary and it's truly. beautiful. Inside, there's lots of. pictures, lots of inspiration and. motivation as well, some interactive. elements. And the purpose of this diary. is to help you identify, stay focused. on, develop consistency with the 1% that. will ultimately change your life. We're. only going to do a limited run of these. diaries, so if you want one for yourself. or for a friend or for a colleague or. for your team, then head to the. diary.com right now. I'll link it below.

What One of the things I really wanted. is to to talk to you about as well is. just a word that I think is so pertinent. to everything we've talked about today, which. which I think is important, which is the. word patience. Because there's some areas of my It goes. to what I said about my friend. My. friend who's been in our group chat, who's made more cash than all of my. other friends in that group chat. And. he's done it by being boring and. patient. Like he's he's just flown under the. radar. And when I think about my life.

and many of the investments I'm making. now, I'm like, "Oh god, what is it?" I'm. looking over there and my friend's. buying some like crypto meme coin and. he's told me it's gone up 150x this. month. I'm looking over there and people. are investing in, I don't know, the the. the picking stocks and stock trading, whatever, and they're telling me it's. gone up 50%. But in my wisdom, as I've gotten older, I've realized, like the tortoise and the hare, that boring and patient is such a. wonderful investment strategy. It's such. like a paradoxical way to think. I have.

so many seeds that I've planted that are. taking forever to grow. But I just now know, because I've got. enough case studies in my brain, that. that boring and patient approach to. wealth. will put me in a better position at the. end of the game. Yes. And. you have to be sometimes impatiently. patient. So, if we talk about building wealth through. investing your money, the numbers have shown that over the. last century,

the stock market has gone up by an. average of 10% a year historically. But many people lose money when. investing in stocks. I mean, if you go. around talking to people, "Have you. invested in stocks?" Yes, yes, yes. How. many have made money? The hands start. dropping. Well, if the stock market has gone up by. around 10% a year on average every year. for the last 100 years, why are so many people losing money? Because we start playing the wrong game. And so now, what happens? If you invest your money into the stock.

market, and by the stock market, I mean, let's just say you buy the S&P 500, which is a basket of the 500 largest. companies in the stock market. For. example, not financial advice, if you. invest in SPY, that is an ETF that gives. you exposure to the 500 largest. companies. We know that historically, that's gone. up by 10% a year. But that's not enough for a lot of. people. So now, I'm going to play this. game of I'm going to try to beat the. market. And some people will. Most won't. So now, some people are going to try to. get into the game of investing in.

individual companies or. maybe trading companies. Because even. investing in individual companies, if. you invest for the long enough period of. time, you're probably going to win. But many people now want a quicker. solution. So now, we start trading. We start. finding hot companies, the next Tesla, the next Amazon. We see what Reddit. says. We see what Google says. and we. start buying these things because we're. excited. But that excitement. is what's killing your wealth because.

you're investing on emotion instead of. investing on financials. And so this is where you talk about. what's boring. Just keep. doing the market. Keep investing in the market when the. market's up, when the market's down, when the market's sideways, just keep. investing because that has been proven. to win. We know that if you invest $100. a month from the age of 21. until your retirement, 65, 66, and you can get the same 10% return, you're going to retire a millionaire.

Assuming you only invest $100 a month. from the age of 21 to 65 or 66. It's so interesting cuz when I asked you. earlier what the best investment you. ever made was, you said the investment. you made in yourself. And maybe we've not spent enough time. really talking about. how critical knowledge and skills are to. wealth generation. Maybe that is the. first principle of wealth creation. Maybe that is the furthest thing. upstream is knowledge and skills. Um.

and you can, you know, dabble in stocks. and whatever else, but really. over a 50-year time horizon, your. knowledge and skills, and, you know, your knowledge might be. of patience. Your knowledge might be of. real estate investing. Your knowledge. might be of whatever. Your knowledge. might be of a philosophy towards. investing. Really it's your knowledge. and skills that are going to determine. where you end up. So as it relates to. getting those knowledge. and skills, where's the best place to people to go.

other than obviously the Diary of a CEO, you know. But. outside of this podcast, where is the. best place for people to go to get. knowledge and skills that they can trust. without getting scammed, without having. to pay for some course from some. YouTuber who's. cha- charging $3,000 a month for like a, you know, to tell them something that. reading off ChatGPT. What is like the. best place? Well, the best best place is. to go out and do it. Screw up. Make. mistakes. But along with that, start with what's. free. YouTube, podcasts. Best book. you've ever read?

The first book, I'll start with that. because the best is it changes. Yeah. The first book I've ever read cover to. cover was Rich Dad Poor Dad. The second book was Total Money. Makeover. Rich Dad Poor Dad is by Robert. Kiyosaki. Total Money Makeover is by. Dave Ramsey. The third book is a book called uh The. Creature from Jekyll Island, which talks. about the Federal Reserve Bank. Those. three books are going to give you a. foundation of. money. and different perspectives of it. So start by learning for free. Even.

before books, start by watching YouTube. videos, start by listening to podcasts. Then you take the next step and you. start reading books. And what I talk. about is if you go out and over the next. 12 months, you read five books on money. management and investing. I just gave. three. Read five books on personal development. and self-development. Read five books on. how to start a business. Read five books. on leadership. And then read five books. on how to scale, market, and build, grow. your business, you're going to have an. MBA-level education for a fraction of.

the cost. Start with that. And then. go out and make mistakes. And as you grow, that's when you can. start buying classes and other things. cuz you'll find people that you might. want to get consulting from. But start with that. What is the most. important thing we didn't talk about. today? As it relates to wealth creation. The most important thing that I think we. did not talk about. is we we talked about the economic. system. We talked about the principles, but I think we didn't get into the.

actual steps now of how do you preserve. and protect your wealth? And how do you now continue to use. wealth protection tools? Because there's. a lot of that that every single wealthy. person is investing a huge amount of. time, effort, and money into. that most people have no idea even. exist. We started to touch on taxes, but. there's so much more. So on those wealth preservation tools, what exactly are you referring to? Starting with first your accounting and.

taxes. Then we get into the legal, your estate. planning, what types of attorneys, what. types of legal protection and shields. and tools can you use to structure your. business, your investments to protect. you, but also amplify your wealth. And then things like insurance. But then also your estate planning. because you talk about generational. wealth, well, generational wealth isn't just the. money. It's what your money does after. you die, and you can control that when. you're alive. We have a closing traditional on this. podcast where the last guest leaves a.

question for the next guest not knowing. who they're leaving it for. And the question that's been left for. you is. what wakes you up every morning? Well, I'm excited. I don't use an alarm. Uh I'm I'm I'm getting up by the. purpose. I'm excited by the mission. I. mean, I I love what I do. The purpose, the mission, that's what. gets me up every morning. What about. yourself and your own. happiness and mental health and. you know, you know.

I I am happy. I I've been so fortunate. I've always been one of those people. You could put me in a box and I'd have a. great time. I would turn the box into an. airplane and I'd be flying it around. Before I came here, my wife recorded a. video. I found these So we were in a. hotel uh and they gave these cans of. water. Okay? These two cans of water, I took them. I. said, "Record this video." I went on the. balcony and I did a Stone Cold Steve. Austin mock video where I opened up the. cans of water and just dumped it on. myself. Just I don't know why and I sent.

it to my cousins. I've been very blessed to uh. I I can have a good time with anything. I'm a pretty. light-hearted guy. I know I talk about. serious stuff, but I I I've been very. fortunate on that. And uh. I can have fun in a lot of situations. I'm not driven by materialistic things. Um. there are some certain things that I. like. I will spend money on luxuries. Uh. my wife got me into that into like like.

nicer hotels and nicer travel and those. conveniences I like. Uh and I want to keep my wife happy, so. whatever, you know, she likes, but I. I'm not driven by fancy cars, fancy. clothes. Uh. that to me is not as important. I I I. like to see. change and I want to help empower people. and that gives me excited. If If you had. to bring it down to five things that are. driving you then, what are those five. things? Number one, taking care of my family. Yeah.

Number two. is my own purpose and mission and. feeling excited. Like my personal. excitement. Yeah. Number three is the mission. Yeah. Is to continue help people. Number four is to bring light to the. community. Number five is to continue giving back. and to help. Just pre- Thank you. Thank you so much. for being so generous with your time and. I've learned so much. um. about so many things and I've had so. many sort of.

ideas reinforced. And sometimes that's it, you know, I do. these conversations because. I've been out there in the world and. I've met people who have listened to. these conversations about wealth and. finance and money, and sometimes in life. all it is is just a little seed of. information that can absolutely change. the trajectory of not just you, but the. generations that come after you, and. that's exactly what you're doing. It's. exactly what you've done on your YouTube. channel for so many people that probably. will never get to say thank you to you. But it's to give these little seeds of.

inspiration and information, and you. never really know which seed is going to. change someone's life. But what you do is you just continue to. plant them, and hopefully those people. will water them for themselves. So thank. you so much for what you do. Thank you. for being so generous with your time. today, and please do keep doing it. because our education system is a bit of. a cookie cutter and optimizes for. creating people that are. part of a. system which doesn't seem to be designed. with their best long-term interests in. mind, and that's why we have these. problems. That's why we live in this. credit society. That's why we have these. retirement issues, and that's probably.

why we have so much mental health issues. and depression. But it's people like you. out there that are. giving us the information that gives us. a chance, a chance to live a different. life. So thank you for that, Jaspreet. I. really appreciate you. Thank you for. having me on. It was really a pleasure. Chuck me that Huel Ted. One of the things that I think about all. the time because my life is quite hectic. and busy is how to manage my energy. load, and as a podcaster, you kind of. have to manage your energy in such a way.

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