Unleash Your Income Potential | Jaspreet Singh
Published: 2023-10-15
Status:
Available
|
Analyzed
Published: 2023-10-15
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
The job market is shifting, with employers demanding more productivity and efficiency, leading to employees feeling overworked and underpaid.
"we are seeing a big shift in the job market right now where employers are needing more work more productivity and more efficiency out of their employees and employees feel like they're being overworked and underpaid"
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The power balance in the job market is shifting back from employees to employers, reversing the trend of the past few years where employees had more leverage for benefits like remote work and raises.
"for the last few years employees had had a major upper hand where you could say you know what I don't want to come into the office I want to work from home I want a bigger raise I want bigger benefits... Now we're starting to see the slowly switch now"
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Due to an economic slowdown, employers are becoming more selective in hiring, demanding more work, and reducing bonuses, perks, and even salaries.
"employers are now being much pickier when they hire employees they're demanding more work from employees and they're not paying out as many bonuses and perks as they were before in fact you're seeing some companies actually reduce some of their bonuses perks and even salaries"
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Economic pain is projected for the next 12 months due to current economic conditions.
"if you kind of forecast what's going to be coming over the next 12 months you have to project that there's going to be some sort of economic pain"
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Employees should focus on protecting their income, using money smartly, and growing real wealth.
"as an employee is number one how do you protect your income number two how how do you use your money smartly... and number three is how do you protect and grow real wealth"
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Historically, stock and real estate markets have averaged annual growth of 7-10%.
"historically what you have seen in the past from the historical stock market returns is that the stock market and the real estate market generally grow by an average of 7 to 10% a year"
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It is more financially advantageous to pay down high-interest debt (e.g., 18% credit card interest) before investing, as the guaranteed return from debt repayment exceeds potential stock market returns (7-10%).
"if you have any sort of high interest debt maybe you have credit card debt and if that credit card debt is costing you let's just say 18% a year well now let's think about this your credit card debt is costing you 18% a year when you go and invest your money you're trying to get a 7 to 10% a year which number is bigger... it makes more sense for you to take your investment money and work to pay down your high interest debt first"
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Getting started with investing, even if it involves making suboptimal choices initially, is crucial for long-term wealth building, as it facilitates learning from the process.
"the key to building long-term wealth is getting started because even if you pick the wrong investment at least you're getting started and what happens even if you make the wrong investment is you are starting to learn losing is a part of the process"
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An S&P 500 ETF offers exposure to the 500 largest companies in the stock market, serving as a passive investment option.
"you can just put your money into an S&P 500 ETF meaning you just want to invest your money into a fund that's giving you exposure to the largest 500 companies in the stock market"
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Acquiring more assets than liabilities is the fundamental principle for building wealth.
"the way people and businesses can become wealthy is you got to have more assets than liabilities period"
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Focusing on acquiring cash flow producing assets is key, as these assets generate ongoing income.
"I prefer cash flow producing assets I'll explain what that means in just a minute but they're working to convert this income into assets because now these assets will pay you with more income"
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Dividend-paying stocks and physical real estate are examples of assets that can generate cash flow through dividends and rent, respectively.
"One option is dividend-paying stocks... Another example of this would be you going out and investing in physical real estate... that person who is now living in your property will be paying you rent"
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Investing in ETFs like SPY, which track the S&P 500, or specifically dividend-focused ETFs, can be a strategy for generating dividend income.
"if you invested in the ETF spy this one ETF will give you exposure to the S&P 500 which is a group of the 500 largest companies in the stock market... I have ETFs that I invest in just primarily for their dividends"
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Engineering, accounting, teaching, management, and attorneys are identified as the top five careers for millionaires.
"at the top five careers for millionaires are engineering accounting teaching management and attorneys"
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Consistent investing and smart spending are identified as the primary drivers of millionaire status, rather than high salaries alone.
"it came down to two things it came down to consistent investing... and the second thing was smart spending"
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Doctors face significant educational loan debt ($135k-$440k) and high expenditures, which can trap them despite high earnings, impacting their wealth accumulation.
"the average physician ultimately pays $1135,000 to $440,000 for an educational loan plus interest... Physicians are trapped between High earnings and high expenditures"
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There are three primary paths to becoming a millionaire: earning $1 million annually, saving $1 million in the bank, or owning assets worth $1 million or more.
"you can earn your way to a million a year you can save your way to a million in the bank or you can own your way to a million dollars or more in net worth"
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Building a business valued at $1 million is achievable even with an annual income less than $1 million, as businesses can be sold for 5-10 times their earnings (EBITDA).
"creating a million dollar business believe it or not is easier than earning a million dollars a year because for you to build a million dollar business you can earn less than a million dollar a year I'll show you many small businesses in America can be sold for 5 to 10 times earnings or eida"
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Small businesses in America are typically sold at valuation multiples of 5 to 10 times their earnings (EBITDA).
"many small businesses in America can be sold for 5 to 10 times earnings or eida"
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To improve finances, one must track all income sources and expenses, categorizing them to understand money flow.
"take a piece of paper you can do this on a Google sheet an Excel sheet or whatever but you need to see where all your money is coming from and where all your money is going"
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Spending less than one's income is crucial for having funds available for investment and wealth building.
"once you see how much money you brought in you cannot spend more than that money because if you don't have any money left over you can't invest your money to build wealth"
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Paying yourself first means prioritizing investing and saving to build wealth, not immediate self-gratification.
"paying yourself first does not mean treating yourself first that means building your wealth first which means always spending money here first investing your money first"
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A 75/15/10 plan suggests allocating a maximum of 75% for spending, a minimum of 15% for investing, and a minimum of 10% for saving from each dollar earned.
"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"
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Savings accounts are intended for financial emergencies, not for wealth accumulation; investments are for building wealth.
"your savings are not there to make you wealthy your savings are there to protect you against a financial emergency"
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Investing the equivalent of an average monthly car payment ($717) at a 7% annual return could result in approximately $2 million over 40 years, highlighting the opportunity cost of car payments.
"if instead of having a car payment you took the $717 a month and you invested it and let's say you could get just a 7% annual return on your money... in 40 years you would have almost $2 million"
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Prioritizing less speculative investments with long-term growth potential is recommended over chasing hot stocks or trends.
"instead of looking for the next hot stock or the next hot thing invest your money into something a little bit less speculative that's going to make you money over the long term"
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A long-term investment portfolio can be structured with 75% allocated to cash flow producing assets like physical real estate, dividend-paying ETFs, and dividend stocks.
"75% of my Investment Portfolio are cash flow producing assets this could be my physical real estate that pays me with cash flow this could be my stock ETFs that pay me with dividends and these could be actual stocks that pay me with dividends as well non ETF stocks so 75% of my portfolio are cash flow producing assets"
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Removing emotion from financial decisions, particularly in investing, is crucial for making better choices and increasing the potential for profit.
"if you can take the emotion out of the equation you will have the ability and the psychology to make way more money"
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A rule of thumb for determining affordability is that if one cannot purchase five units of an item, they cannot truly afford one unit.
"if you can't buy five of them you can't afford one of them"
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Paying off high-interest credit card debt (12-25%) offers a better guaranteed return than investing in the stock market (7-10%), making debt payoff a priority.
"if you have credit card debt you might be paying somewhere between I don't know 12% on the low end to let's say 25% on the high end for credit card debt well these numbers are bigger than these numbers meaning if you work to pay off your credit card debt that means you will get a faster and better rate of return than if you just invest your money in the stock market"
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An emergency fund should typically range from 3 to 12 months of living expenses.
"somewhere between 3 months and 12 months worth of expenses"
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Unused items collecting dust can be sold through online platforms to generate extra cash.
"if you have something that doesn't have the sentimental value that's just sitting there collecting dust and you want to make some extra cash well you can turn that dust Into Cash by selling it"
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Financial alignment between spouses is crucial to avoid conflict, as differing spending habits can lead to arguments and relationship strain.
"you and your spouse have to be on the same page when it comes to money because if you're there you're cutting back on your expenses you're working to earn more money you're working to invest your money and then you go home and you see your spouse spending all this money on a bunch of things that you think are stupid well that's going to create a lot of fights"
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Pursuing work driven by passion and purpose, rather than solely chasing money, can paradoxically lead to greater financial success and fulfillment.
"when I started doing things that I actually cared about like now I make these videos about financial education... I started minority mindset because I really just cared about talking about the things that I wish somebody would have told me... well now I make way more money even though I didn't do it to chase money"
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Scalability in business refers to building something that can grow without being entirely dependent on the founder's direct involvement.
"building a business that's scalable... where you want to build something that can grow that doesn't necessarily need you that's the definition of scalability"
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