What’s up everybody?
I am Jaspreet Singh and welcome to the Minority Mindset. The people who never
learn the rules of money, will always be ruled by money, which is why you, who me?
Yes, you need to learn the rules of money. The ten laws of money that I’m going to go
over today, are not things that you can just find in a textbook somewhere. These
are things that I learned from starting and running my own business, from
investing, and most importantly, making a whole lot of expensive mistakes. But
before we get into the ten laws, make sure you hit that thumbs up button below,
because if you don’t hit that thumbs up button, YouTube doesn’t show our video to
anybody else. Money law number one: money is emotionless.
Having money doesn’t make you an evil person and having money doesn’t make you
a good person. Having money just gives you fuel for your life, and you, as the
controller of your fuel, get to decide how you want to use your fuel. Your money is emotionless. It doesn’t care what you tell it to do. Aww, I didn’t mean to hurt
your feelings Benji. Your money does whatever you tell it to do. If you want
to be an a-hole, hey, having money will let you be an even bigger a-hole. If you
love serving meals to hungry people, having money will let you serve even
more meals. Money law number two: money does not reward hard work. If money
rewarded hard work, then the highest-paid people would be the construction workers,
the laborers, and the people working retail and restaurant jobs. Newsflash
they’re not. If you work as a consultant making a hundred thousand dollars a year,
and you work ten hours a day, and you wanted to make more money, you could work
harder at your job, and now you might be working fifteen hours a day, and you
might get a 10% or a 20% pay bump if you’re lucky. You’re working really
really hard to make more, but you’re only marginally making more money. But at the
same time, your boss might be making 10 times more than you, but they’re not
working any harder. It’s because money does not reward hard work. Money rewards
unique value creation. But, this is where things
get tricky, because if you want to create a whole lot of unique value, you need to
work really really hard to create this unique value. But the difference here is,
now you’re working hard to create more unique value where you have an unlimited
earning potential versus, before you are working hard to make more money where
you only have a marginal return. Money law number three: money hates sitting still.
The Federal Reserve Bank can print money a million times faster than you can work
for it. When you make your money sit still, it’s becoming less and less
valuable. Your money would much rather be out working, attracting you friends, and
making you more money. Ulysses, meet your new friend Ben. That’s when money goes
to people who know how to use their money. Like, when you go shopping, the
business owner is the one making money, because they use their money to buy
things that will make them money versus you, you’re using your money to
buy things that will lose your money. And when you save your money in the bank, you
are forcing your money to sit still. Don’t move Benji. That’s when your bank
comes in and says, OK, you are abusing your money, so we’re going to come in, and
we’re going to use your money for you, because your money hates sitting still,
and you don’t know how to use your money. That’s when your bank comes in, and they
take that $1,000 or whatever you deposited in your savings account, and they turn
around, and they loan your savings to John. So that way, he can get a mortgage,
or so he can get a line of credit, or so he can get a credit card. Now your money
is working really hard for your bank, attracting them a lot of money through
interest, while you get next to nothing, because you wanted to abuse your money,
and this brings me to money law number four: with no risk, comes no return. If you
want to be wealthy, you need to ask yourself two things. One: what are my life
goals? And two: how fast can I double my money? And then see if these answers
align. If you start off with $10,000 and you double it, you have $20,000. Double
that, $40,000. Double that, $80,000. Double that, $160,000.
Double that a few more times, you’re at $1,280,000,
and now every time you double your money, you are making
millions. The faster you can double your money, the more money, the more wealth, and
the more freedom you will have. But, this is where your risk needs to align with
your life goals. When you save all of your money in a savings account, paying
0.05% a year, it will take you a hundred and thirty-eight
years for your money to double. Your money isn’t going anywhere, and you will
never achieve your goals. If you put your money into a high interest rate CD
—certificate of deposit—paying 2.5% a year, it will take you
twenty-eight years to double your money. Still, nothing significant or meaningful
is going to come out of this. If you invest your money in stocks or real estate, and
you can get a 10% return a year, now you can double your money every 7 years,
and now we’re talking, because now you can double your money seven times over
your lifetime. If you started off with $10,000, over a lifetime you could end up
with over 10 million, if you start your own business. Now, you are physically
working to grow your money, and it gets you returns of 30% to 100% a year. If
we just stick with the lower amount, 30% a year, now your money will be doubling
every 2.6 years. And so what took you a lifetime to do here, you could
do in 30 years. The further you go down this list, the better your returns are,
but it comes with more risk. When you put your money in your savings account,
you got no risk. You give your money to the bank, and you can access your money
whenever you want, but that’s all you get. No reward. No returns. When you put your
money into a CD, now your money’s tied up for a few years, which is why you get a
better return, but it’s still nothing meaningful. Now, when you invest your
money into the stock market or in real estate, now you can get a better return
on your money, but you can also lose money a lot easier, because this comes
with more return, and when you start your own business, now you have to invest your
time and your money, to grow a business with no guarantees, but you have the
highest potential. You need to ask yourself what kind of life you want to
live, and make sure that your risk is aligning with your life goals. Money law number
five: money is a game. If you want it to be a good basketball player,
you have to learn the rules of the game, and then you have to practice, practice,
practice until you can make free throws with your eyes closed. Money works the
same way. It’s just a game. If I bring back this chart, the good news is, all of
this can be learned. This is what financial education is. You probably
don’t have a class on this in school, but this can be learned. If you want to get
good at these games, you got to learn the rules, practice, practice, practice, make
mistakes and get better. We have tons of videos on a Minority Mindset YouTube
channel that can help you with that, and we even have a free ebook on money
management and investing that you can read for free, when you sign up for my
emails, and you can download that by clicking the link up here, or by clicking
the link in the description below. Money law number six: negative minds repel money.
If you wanted to repel Superman, all you need is some Kryptonite. And if you just
want to repel money, all you need is a negative mind. When you criticize
somebody else’s success, you’re not hurting them. They’re successful, they’re
doing their thing, and they’re not going to stop being successful because you’re
upset. But, you are stopping yourself from becoming successful, when you criticize
success. And that’s not all. You will 100%, without a doubt, never become successful,
if you tell yourself you cannot do it. You can do it Jaspreet. When you
tell yourself you can’t do something, your brain shuts off, and it will stop
trying, which is why instead of saying you can’t do something, ask yourself how
can I do something? Money law number seven: what you’re worth
on paper is not what you’re worth in cash. The cash in your hand is how much money
you can spend today without selling any of your assets, and without selling any
of your investments. The amount of money you’re worth on paper is how much you
think you’re worth, based on the assets that you own. Just because your stock
portfolio is worth $1,000,000 today, doesn’t mean it’ll be worth a million
dollars tomorrow. So what does this mean? It means, you should absolutely not live
a lifestyle based off of what you think you’re worth on paper.
You should be living a lifestyle based off of how much cash you have in your
hand. I cannot tell you the number of business people that I have worked with,
that start living this huge lavish lifestyles, because
of what they think they’re worth on paper. And then when things go wrong,
these are also the first people in line to lose their shirts. Money law number
eight: protect your assets. I’m an attorney, and as an attorney, I can tell
you that, when people see you have money, they will try to take their hand, put it
in your pocket, and take some of your money from you, just because they see you
got it. Get insurance, use legal shields, hire an attorney, and hire a tax
professional to help you with your taxes, because you want to keep your wallet for
yourself, instead of sharing it with the whole world. Hey! Get your hands off my
wallet. Money law number nine: act your wage. Everyone on instagram has
a Nissan GTR, a Lambo or a Porsche. At least that’s what it feels like. But, just
because you can buy it, doesn’t mean you can afford it. If you cannot buy your car
with cash, you cannot afford it. Sorry fake Instagram flexors. And when it comes
to buying a car for the show, so I’m talking about luxury and exotic cars
here. If you cannot buy five of them with cash,
you cannot afford one of them. Ooh, then I’m going to need a lot of money, before I
can buy a Lambo. Yeah, that’s the point. When I was finally starting to see some
success as an entrepreneur, I really wanted to go out, and buy a brand new
Beamer, and all of my friends around me kept saying, Jaspreet, go buy the BMW,
it will look sweet. It would have cost me like, fifty thousand dollars, which I had
ready to go, but do you know what fifty thousand dollars can do when you’re
starting off as an entrepreneur starting a business?
Fifty thousand dollars is a full-time employee salary. Fifty thousand dollars
is rent for a year. Fifty thousand dollars is a new software that can make
us more money. There’s nothing wrong with buying nice things, or buying luxury
things. But, you should only be buying luxury, when you can afford to buy it
without worrying about the price tag. And money law number ten:
diversification isn’t always the right answer. You’ve probably heard people say
that millionaires have seven streams of income. But, what you’re missing at the
end of that statement, is that the millionaire didn’t become a millionaire,
because they had seven streams of income. They became a millionaire, because they
mastered one thing. And once they figured this one thing out, that’s when they
moved on to two. And once they mastered the second, that’s when they moved on to
three. If you try to do seven things at once, because you think that’s what
millionaires do. So you try to start a business, you
try to start lending money to your cousin, try to start flipping real estate,
you’re trying to start the Shopify business. You will go nowhere. Be the
master of one first, and once you dominate that, then move on to two. Thank
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