These Are Your Biggest Financial Mistakes (Achieve Financial Freedom In 2024) | Jaspreet Singh

"at that time I remember the Ford stock was right around $2 a share I didn't have thousands of dollars to go out and buy the Ford stock but I had a little bit of money maybe a hundred or a couple hundred bucks and I went out and I bought the Ford stock at $2 a share now if I took that $1,000 and I didn't buy that watch which made me look rich and instead I took that ,000 and I invested it into the Ford stock well that money would have been worth a lot more today I would have at at least five or six times my money if I would to just bought that Ford stock instead of buying that watch that watch today is worth nothing the Ford stock if I had bought $1,000 would be worth at least $5,000 today"

"what every single wealthy person does is they understand that they do not want to earn all their money through their labor because there's a limit to how much you can work there's a limit to how many days you can work there's a limit to how many hours you can work and so what they do is they take this money right here we'll call this your EI your earned income this is money that you have to go work to earn and now they're going to make this money and they're going to put some of this money aside right here and they're going to take this money and they're going to put it to work somewhere else for their Pi passive income because there's a difference between your earned income where you have to go to a job or you have to go to your business where you have to do something to earn money and your passive income where your money goes out and makes you money"

"wealthy people take as much of this money here and they put it here because they understand that this is not going to make you rich because it doesn't matter how much money you make as soon as you stop working that money stops coming in and so if you look at really what becoming wealthy is wealthy is how much Freedom you have here it doesn't matter if you're running a business or if you have a job it doesn't matter because now if you stop working you stop getting paid now this is assuming that you don't have a big business where you don't have to work in there to get paid but if you have a small business or if you're working a job you have to work to get paid now what you got to do is you got to take this money put it here that way now you're getting paid even if you don't go to work even if you don't do a specific task and this is where real wealth is built"

"the second wrong thing that we're all told about money is that money is evil or some sort of variation of this like in my house money wasn't something that we really talked about because in my culture you don't really talk about money in that way like it's just kind of something that you just kind of assume is going to be okay you don't talk about money so at the same time I know when I was growing up my parents always told me that if I wanted to become successful I should become a doctor but we never talked about money management or investing or saving because these things were kind of just bad and distractions so we never talk about money"

"money at the end of the day does not make you a good person money does not make you a bad person money is just a tool okay it does not make you bad it not make you good it is a tool that you can use to take better care of your family it's a tool that you can use to take better care of your parents it's a tool that you can use to take better care of your spouse it's a tool that you can use to take better care of your community we live in this culture right now where people hate rich people why because they're rich and this is where we have to kind of start breaking out of this mold and take a step back and say why are we thinking like that why do we think this person's Rich because they have become successful maybe instead of us hating on success and this richness or whatever you want to call it how about we figure out how this person became successful so we can do it too because being broke has never helped anyone period okay you can help more people if you have money money is just fuel it amplifies what you do"

"money is just one part of your life and yes there are things that are way more important than money like you got to be physically healthy if you're on your death bed it doesn't matter how much money you make because if you're about to die or you're so obese where you can't live your life doesn't matter how much money you have you got to be mentally healthy if you're depressed or you have all this anxiety so you can even live your life doesn't matter how much money you have if you cannot live happily you have to have spiritual health that doesn't mean you have to be religious when I say spiritual health I mean you got to have a purpose in your life you got to have a reason to get out of bed in the morning if you don't have a reason to get out of bed you can have $10 million in the bank but it doesn't mean anything because you don't have a purpose to your life once you had the physical fitness the mental Fitness and the spiritual Fitness now is when being financially healthy is the most beneficial"

"money is not going to buy you happiness but being broke is not going to make you happy either money can help buy you the things that you want to do that way you can do things that make you happy and money can buy you freedom but you got to understand where money plays a part in your life and when you just put up the smoke screen by saying things like money is evil so you don't got to talk about it now you're just ignoring the issue and you live in in fairy tala land"

"the average person's Financial advice is work hard make money and save whatever you can and this is the reason why most people will never become wealthy a wealthy person would never follow that Financial advice it wealthy person is going to work hard take whatever money they can and invest it and only save what they need a wealthy person is only going to save money for three reasons they're going to save money for an emergency and so now you got to have an emergency fund this might be three months worth of expenses up to a Year's worth of expenses depending on how conservative you want to be a wealthy person will save for big purchases this might be a home this might be a car and a wealthy person will save to invest their money if saving a money does not fall into one of these three categories you got to do something with that money this goes back to what I was talking about earlier where financially educated people will take their money their earned income and they're going to convert it to passive income"

"when you make money and you leave it in your bank account your money stays flat it's dead but at the same time the price of everything else keeps getting more and more expensive so your money in your bank account is dead but everything else keeps getting more expensive so you are effectively becoming poorer and poorer day by day that's why what wealthy people do is they take this money and they convert it to something else they convert it to assets this might be stocks this might be real estate things that now make them more money"

"you need to understand how our economic system works and there's five different factors that you need to understand you got to understand money what what is the money that we use then you got to understand consumerism how does our economic system continue to function how does it slow down then you got to understand credit because we live in a credit based society where people don't spend money based off of how much money they have they spend money based off of how much credit they qualify for then you got to understand our economic cycles and our asset cycles and our debt Cycles this is what creates booms and busts in our society then you got to understand the risk that this economic System creates for your finances and your money these are the five things that I'm going to be going over in this video"

"economic Cycles do happen and this happens every 8 to 10 years where you'll see the economy go from boom to bust now every boom and bust doesn't have to be huge like the 2008 crash that we saw the economic crash that was kind of like a once in a-lifetime type of economic crash now interestingly we were lucky enough to see two once in a-lifetime crashes in just a couple decades because in 2020 we saw another once in a-lifetime type of Crash but every boom and bust in the economy doesn't have to be very large sometimes these recessions are very small and a lot of people might not even notice it but sometimes they're going to be big 2008 level but that usually doesn't happen very often however these economic Cycles continue to happen every 8 to 10 years"

"asset Cycles typically last somewhere between 8 to 20 years now sometimes it could be less sometimes it could be more but typically it's within that range"

"debt Cycles or interest rate Cycles are much harder to track because these are a very long and slow moving cycle typically interest rate Cycles take some between 50 to 100 years before they move through a whole cycle like back in around 1930s interest rates were right around 0% then in the early 1980s interest rates peaked at something like 20% so if you wanted to get a mortgage for a home in the early 1980s you might have been paying something like 20% interest a year on your home now at the time of we recording this video interest rates have come all the way back down to right around 0% and so it takes almost 100 years to go through this entire interest rate cycle"

"politicians and the government have this kind of pressure to push our economy to grow even faster which means that we might have to take on even more risk to keep our economy growing at a certain rate that way we can stay competitive as the world's economic superpower so what does that mean how do you encourage the economy to grow even faster well that's everything that we just talked about that might mean getting more money into the hands of people that might mean encouraging people to spend more money that might mean encouraging people to go into more debt or to make interest rates even lower that way people are incentivized to go deeper into debt now when you create all of these more incentives where you're pumping more money into the economy you're lowering interest rates you're encouraging people to spend more money now you're increasing the risk which could cause more of the booms and busts or bigger booms and busts just because we're trying to do so much to grow our economy which means we take out more risk"

"if you did not have a car payment now and you took this $566 a month and now you are investing it and you can get a 7% return on your money over the long term so we're not talking about great returns just average returns over the long term and this does not mean that you have to get 7% every year just over longterm which is below the average stock market below the average real estate return over the next 45 years if you start this when you're 21 you will have over $2 million versus if you just kept buying cars you got a car which is worth whatever a car is worth right there's a lot of money to be made if you just invest this money and if you can get a better return on your money if you can get a 10% return on your money which is closer to the long-term average so now instead of having the this car payment you're going to invest this money into whatever you want instead of paying $566 a month for your car you're going to be investing this money well now you're going to have over $5 million actually close to $6 million if you can invest this money instead and get a 10% return on your money"

"we just saw in America credit card debt hit a brand new record high what does that mean that means people are spending money they don't have and now when you spend money on your credit card not only do you have to pay this money back but you have to pay this money back plus interest and the crazy thing is you've probably heard of people talking about the credit card perks credit card rewards credit card benefits I get those I use a credit card for pretty much everything I love spending with my credit card I get a whole bunch of cash back I get a whole bunch of rewards I get a whole bunch of perks but I've never paid a penny in interest on my credit card and so if you are paying interest on your credit card you're paying for everybody else's rewards and per not to mention all the perks and rewards for the credit card companies because now when they're flying around in private jets is because you are paying for their interest and this is where you have to make the conscious decision of understanding if I don't have the money to go out and buy something I should not go out and put it on my credit card because when you put money on your credit card you are essentially shackling yourself up you are putting yourself into this financial prison where it is very difficult for you to get out of because I only have to pay that money back back but you got to pay it back at 19% interest"

"let's think about this for a second if you went to the bank and you wanted to borrow money for 6 months would they give it to you for free no they're going to charge you interest why does the bank charge you interest because there's a cost on borrowing money so now if you use buy out pay later and they tell you that you have the 0% APR for a certain period of time how is it that they can give you this money for free and still be one of the most profitable or money-making cash generating Industries in fintech how does that make any sense well it's because the buy now payat companies know that if you go out and you buy something with buy now pay later with 0% APR the first thing that you're going to do is you're going to go out and buy more stuff because you don't feel any pain of seeing the $1,000 leave your account it's only $45 leaving your account month after month after month so now when you only see $45 leaving your account and you still got $955 in your account now you can go and buy something else maybe you go buy a new sofa maybe you go and buy a new TV maybe you're go and buy a new laptop because you still got some cash in your account so number one is you go and spend more things and this has been scientifically and mathematically proven which is why these buying out payor companies make so much money and then number two is they know that when you go out and you spend more money you're also less likely to pay your stuff off in time so now when you don't pay your stuff off in time what happens you get slapped with a brand new fine brand new fees and now you're not paying 5 or 10% interest now you're paying 25 to 30% interest on your buy now pay later or as I like to call it broke now broke later 0% APR financing"

"the one asset that none of us can buy more of is time that is the most valuable asset that everybody has rich people poor people middle class people it does not matter you cannot get more of it if that is the most valuable asset that you have and our time is slowly ticking away do you want to spend that time sitting there watching TV or do you want to spend that time building your family's financial future I'll let you decide"

"your EI your earned income this is money that you have to go work to earn and now they're going to make this money and they're going to put some of this money aside right here and they're going to take this money and they're going to put it to work somewhere else for their Pi passive income because there's a difference between your earned income where you have to go to a job or you have to go to your business where you have to do something to earn money and your passive income where your money goes out and makes you money this EI this earned income right here is not going to make you rich I don't care what job you have I don't care if you're a doctor you are never going to become rich just with your salary right here what you need to do if you want to become wealthy this is whether you're making $25,000 a year or $2.5 million a year is you got to take some of this money aside and you got to start putting it towards your passive income"

"money is what we work for every day at our jobs money is what we save in our bank accounts but what is this money that we're earning and we're saving this $100 bill is a physical representation of value this is what we call money in order for me to have this $100 bill in my possession either I got to steal it from you which is illegal or I got to earn this money which means I have to provide $100 worth of value to the world and in exchange for the value that I provide I earn this $100"

"as more money gets printed and enters our circulation the value of each dollar that you save and the value of each dollar that you earn now gets diluted so if you were making $3,000 a month and more money gets printed that $3,000 a month in a few years is not going to have the same buying power that $3,000 a month does today because $3,000 a month in a few years is going to be more deluded because of all the dollars now in circulation than $3,000 a month does today and so what happens the price of your rent goes up the price of your groceries go up if you want to go on a vacation your vacation costs go up gas prices go up yes so the prices of everything around you keep going up while the wages don't necessarily keep up with now the higher cost of living"

"assets are things that make you money so when you buy asset this is things like a stock or a real estate investment or a business you are spending your money in something for the sole purpose of making money so if you spend your money to buy a business not spending the money at a business you're spending your money to buy a business now you're using your money to make you money because when you buy a business the goal is to make some more money because the business will make money when you use your money to buy real estate as an investment you're are using your money to create a new income stream because people will live in this property they'll pay you rent and now you have this asset that will hopefully go up in value and when you invest your money in the stock market now you're again investing in companies which will hopefully make you more money so when you invest your money in assets the whole goal is to invest your money into things that produce value real estate companies whatever that way you can make more money liabilities on the other hand are things that you spend your money on to take money away from you they should be spending money on things like clothes and shoes and cars and vacations these are things that are nice and these are things that you need but these are things that don't make you any money"

"credit or money acts the same in our economy and so now you're just able to spend more money and so now if you can spend twice as much money as before now businesses are making more money which means if this restaurant can just double the amount of money they're making because people have access to Credit Now this restaurant has just doubled their revenue they can hire more employees they can open more restaurants and now economy can grow twice as fast because we have just increased the amount of money in circulation because people have access to credit because now they're not spending money based off of how much money they earned they're spending money based off of how much credit they qualify for"

"now remember what I talked about before buying assets versus liabilities an investor is somebody who's using the money to buy assets before let's say you had $100,000 and you wanted to buy some real estate if you didn't have access to credit you could use this $100,000 to buy a $100,000 property and let's just say over 20 years this $100,000 property makes your money back and the property value doubles so you made yourself another $100,000 but now because you have access to credit you can go out and take the $100,000 and use it to buy a half a million dollar property now when you own this half a million dollar property you will continue to make rental income and if you continue to see that same growth now this money will be paid off and the property value let's just assume doubles so you took your $100,000 you bought a half a million dollar property and over 20 years this half a million dollar property doubles to $1 million so now you have a million dollar property you only paid 3% interest on it and now you made $900,000 as opposed to just $100,000 if you didn't have credit"

"so from a consumer standpoint financially this credit is not good for the consumer because you're spending your future earnings you're using tomorrow's earnings and next year's earnings and next decade's earnings to buy things that are making you broke today so from a consumer standpoint financially this credit is not good for the consumer because you're spending your future earnings you're using tomorrow's earnings and next year's earnings and next decade's earnings to buy things that are making you broke today"

"you need to understand how to use your money that you're working hard to earn and how to deploy it that way you can use your money to build your own wealth instead of just making wealth and making everybody else around you rich you need to know how to use your money the right way that way you can use this economic system to your advantage instead of just being one of the people that's just getting abused by the system"

"we talk about building a business that's scalable I've talked about that many times where you want to build something that can grow that doesn't necessarily need you that's the definition of scalability that it can grow and it doesn't necessarily need you to grow"