These Money Habits Keep Most People Poor (Stop Doing This) |@ShivaniPauPodcast x Jaspreet Singh
Published: 2024-01-09
Status:
Available
|
Analyzed
Published: 2024-01-09
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
A significant portion of the population struggles financially, leading to unhappiness and a desire to earn more money.
"The majority of people are struggling with money the majority of people are broke unhappy and unfulfilled and a lot of people want to know how they can make money"
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Money should be viewed as a tool to build personal wealth, rather than solely benefiting others.
"you have to know how to use your money as a tool that way you can use your money to make you wealthy instead of making everybody else rich"
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Achieving wealth is possible for anyone, regardless of their background, current income, or educational qualifications.
"you can become wealthy it doesn't matter what you look like where you live how much you're earning today or what degree you have"
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A high percentage of young people in the UK (46%) and over 60% in the US are living paycheck to paycheck, indicating widespread financial precarity.
"46% of young people paycheck to 48% of people are living paycheck to paycheck well if I kind of put that in context in the United States it's just over 60%"
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Many individuals lack savings and investments, and are unaware of how to improve their financial situation.
"the majority of people have little to know savings and the majority of people have little to know Investments and they have no idea of what to actually do to get out of that situation"
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Adhering to common practices will result in similar outcomes to the majority, who are financially struggling and unfulfilled.
"when you follow what everybody else is doing you're going to end up just like everybody else and unfortunately the majority of people are broke unhappy and unfulfilled"
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A fundamental aspect of wealth building involves developing the emotional belief that one can become wealthy.
"the first part of becoming wealthy is understanding what I call the emotional side of money which is now understanding one that I can become wealthy"
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Negative associations and beliefs about money and wealthy individuals can hinder one's ability to attract wealth.
"money's bad money's evil wealthy people are bad it's just this taboo thing you're never going to be okay trying to attract that money yourself"
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Money itself is neutral; its impact depends on how it is used and the intentions of the user.
"money is just paper it doesn't have an emotion money is not a bad thing or a good thing it's just a piece of paper"
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Money acts as a catalyst, magnifying an individual's existing characteristics and behaviors.
"money is really just fuel it amplifies who you are"
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Overcoming the mental barrier of accepting wealth is a crucial first step towards achieving it.
"you have to be okay with that and that's that first mental hurdle once you can break that now you can be okay with I will become wealthy"
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Manifestation alone is insufficient for wealth creation; practical actions are required to generate income.
"some people get caught up in I'm just going to sit here close my eyes and I'm going to manifest wealth well you can sit there and manifest all day and night long but that's never going to actually bring any money into your bank account"
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Wealth building is comprised of two key aspects: the emotional and the practical sides of managing money.
"there's really only three things you have to understand about money if you want to become wealthy... one is what I like to call the emotional part of money... one is the Practical side of money... one is what I call the emotional part of money and one is the Practical side of money"
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Managing and limiting money outflow is a fundamental aspect of financial management.
"you have to understand how do you control the cash outflow"
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Controlling and increasing the amount of money coming in is essential for financial growth.
"how do you control the cash inflow"
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Expanding one's capital through investment or other means is a key component of wealth creation.
"how do you grow your cash"
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It is crucial to identify and stop excessive spending that drains financial resources.
"how do you stop the financial bleeding how do you let stop the money from always leaving your bank account"
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Addressing and reducing unnecessary spending should be a priority before focusing on increasing income.
"before you focus now on trying to how do I get more money how do I make an extra thousand pounds a month or an extra th a month you got to seal the bucket"
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To achieve genuine wealth, one must cease prioritizing the appearance of wealth and instead focus on the underlying financial practices.
"it's very easy to look rich but it's a lot more difficult to actually become rich and ironically in order to become rich you got to stop looking Rich first"
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Increased income can lead to greater debt and spending, potentially worsening financial situations if not managed carefully.
"As Americans make more money they end up in a bigger Financial hole why... you make more money you can qualify for more debt you qualify for bigger credit cards you can qualify for more spending"
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Multiple avenues exist for increasing income, including job advancement, career changes, side hustles, and entrepreneurship.
"how do you control the inflow of cash Now there's a million and one ways that you can do this you can do it through your job you can do it through a career change you can you can do it through a side hustle we can do it through starting your own business"
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The possibility exists to significantly scale income from a lower amount to a much higher one.
"how do you go from 330,000 to 3 £100,000 a year"
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Believing in the potential to increase one's income will naturally lead to seeking out resources and knowledge on earning more and starting businesses.
"if you believe that you can increase your pie from 30,000 to 300,000 what are you going to do you're going to start watching YouTube videos on how can I earn more money you're going to start reading books on how can to start a business"
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Significant income scaling may not happen immediately but can be achieved over a few years with focused effort.
"maybe you won't do it tomorrow maybe you won't do it next year but maybe in the next few years you'll start to see how you can really start to scale that income"
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The internet provides a platform and resources for anyone to increase their income, provided they understand and utilize it.
"because of the internet it is possible for anybody who's watching this video understands what we're saying and has the ability to do that if you have the internet and you can understand this you have the ability to increase your income"
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Redirecting money from consumer goods to assets like real estate or stocks is key to building personal wealth.
"putting your money and not giving it to Gucci not giving it to Lu Vuitton not giving it to BMW... but now you're going to give it back to you and that means now you're going to go out and you're going to buy the asset"
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True wealth is generated from owning assets, not from salary income alone, though salary can facilitate asset acquisition.
"you will never become rich from your salary or loan you'll become rich from the assets that you own and your salary can help you buy more assets but your assets are what make you rich"
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The speaker defines wealth not by monetary accumulation, but by the freedom it provides.
"my definition of rich is freedom"
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There's a stark contrast in spending habits between traditional Indian culture (high savings) and American culture (high spending, often via debt).
"in the traditional Indian culture people make a dollar to spend 20 cents correct in the American culture people make a dollar to spend $2"
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The tendency to save heavily in some cultures stems from past financial hardship and provides a sense of security.
"I think that concept comes from this fear because a lot of people who grew up in India like my parents they tell me a lot of stories of troubling times... so I think the savings provide that Comfort"
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Savings alone are unlikely to keep pace with inflation, leading to a decrease in purchasing power over time.
"your savings will never be able to outgrow inflation"
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The cost of living consistently outpaces savings growth, making it difficult to maintain purchasing power solely through saving.
"the cost of living will continue to grow even if the reported numbers say something different what we have seen time and time again is that the cost of living will grow faster than savings"
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Saving money should be purposeful, specifically for emergencies, large purchases, or investments, rather than for its own sake.
"you need to know how to save save your money strategically because why do we save our money why should we save our money I should say you should save your money for three reasons save your money to protect you against an emergency save your money to make a big purchase and save your money to make an investment"
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Investment is a necessary component for achieving wealth.
"if you want to become wealthy you have to invest"
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The common belief that successful investing requires identifying the 'next big company' is a misconception for most individuals.
"most people assume is I need to find the next Amazon Yeah I need to find the next apple I need to find the next meta or Facebook but that's not how investing works for the vast majority of people"
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Historically, the stock market has shown an upward trend over a century.
"the stock market is up over the last 100 years"
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Instead of picking individual stocks, investing in broad market indices or large companies provides diversified exposure.
"what if you could just invest your money into the stock market or what if you could just invest your money into the largest 500 companies in the stock market"
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A simple approach to investing involves regularly contributing funds to the overall stock market.
"take a little bit of money and just throw it into the total stock market"
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A belief in future economic expansion suggests that investing in the stock market is a rational strategy.
"if you believe that the economy is going to be bigger 10 years from now than it is today you should put your money into the stock market"
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Market crashes, recessions, and economic downturns are recurring events that have occurred approximately every decade over the past century.
"every decade or about every decade for the last century we've gone through Market crashes we've gone through recessions we've gone through economic downturns"
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Market downturns present significant opportunities for purchasing assets at lower prices.
"those are the greatest opportunities to buy"
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For those uncertain about specific investments, investing in the overall market or economy is a viable option.
"if you don't know what to buy just buy the market buy the economy"
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ETFs, mutual funds, and index funds offer a way to invest in a diversified collection of stocks.
"ETFs mutual funds and index funds these funds can give you exposure to a basket or a group of stocks"
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The duration for which money can grow and compound is a critical factor in wealth accumulation.
"time is how much time your money has to compound and grow"
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The speed at which money grows, particularly its doubling time, directly correlates with the pace of wealth accumulation.
"R is the return which is how fast you can grow your money... how fast you can double your money the wealthier you become"
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The amount of capital invested is a direct determinant of the potential for wealth.
"D is dollars how much money can you invest"
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Reinvesting earnings from investments is crucial for accelerating wealth growth.
"as your money starts to make you money you reinvest that"
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A systematic approach of consistent contributions and reinvesting earnings creates a self-sustaining wealth-building mechanism.
"you have this machine where you're working to add 100 pound a month and your money is working to grow"
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Consistent monthly investments of a modest amount, starting in one's early to mid-twenties, can lead to millionaire status over time.
"if you start in your early to mid 20s the 100 pound investment can make you a millionaire"
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The desire for immediate gratification often conflicts with the long-term goal of achieving wealth, requiring present sacrifices.
"I want to have the nice car today I want to have the nice stuff today why would I want to be rich tomorrow"
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A period of dedicated sacrifice is proposed as a strategy for significant financial improvement.
"I call it a decade of sacrifice"
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Prioritizing investment in one's own development and capabilities is a common trait among wealthy individuals.
"every person who became wealthy... made that decision to invest in themselves first"
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A significant amount of daily time is spent on passive entertainment like television by the average American.
"the average American is watching almost three hours of Television a day"
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Reducing time spent on activities like Netflix can free up significant hours for more productive pursuits.
"cancel your Netflix subscription... so you could save that two three hours of time a day and what you said was the exact feedback that I got"
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Reallocating time previously spent on entertainment towards learning or income-generating activities can be transformative.
"turning the Netflix time into learning time or into earning time"
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Making deliberate financial sacrifices, such as downsizing or selling possessions, can free up resources for wealth building.
"make those financial sacrifices maybe you downsize a little bit more maybe sell some of your stuff"
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When income increases, the priority should be to increase investments before lifestyle expenses.
"increase your Investments first"
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The speaker desired to pursue a career as an entrepreneur.
"I wanted to be an entrepreneur"
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It is possible to pursue formal education while simultaneously dedicating significant effort to building a business.
"I was going to law school fulltime for the first year and a half then I went parttime but I was in law school but I was working on my business fulltime"
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Achieving significant goals often necessitates making difficult sacrifices.
"you got to be willing to make a a sacrifice when the sacrifice has to be made"
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The speaker began engaging in entrepreneurial activities from a young age, starting in high school and college.
"I started my first real company when I was in college um in high school"
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Observing and interacting with DJs provided valuable insights into their business operations.
"I got to learn about their business"
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The speaker adapted a previous business model of hosting parties to the college environment.
"why don't I take this teen party business idea bring it to college"
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A revenue-sharing model was implemented where a portion of the cover charge was split between the venue and the promoter.
"I charge somebody $10 to come in the club takes five bucks I take $5"
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A realization that possessions like cars and watches were liabilities, not assets, prompted a shift in financial strategy.
"I started reading books about money and I started learning about you know assets versus liabilities and I was like holy moly I have zero assets I have nothing that's making me money but I have a whole bunch of liabilities which make me look rich"
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Real estate is frequently identified as a key investment vehicle for wealthy individuals.
"wealthy people invest in real estate"
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Rental properties can generate passive income, where rent covers expenses and provides monthly profit without direct labor.
"you could buy rental properties and you can rent it out and then a tenant would pay rent and that could then cover the property expenses and put some money at your pocket every single month"
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The 2008 recession led to a significant downturn in real estate prices, creating opportunities for investment.
"real estate was hit exceptionally hard so I decided Well you know what I have a little bit of cash in the bank how about I start looking for rental properties"
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A property was available for purchase at an exceptionally low price of $8,400 due to market conditions.
"it was on sale for $8,400 the total price insane"
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The speaker purchased a condo for $8,000 at the age of 19.
"I bought it for $8,000"
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The first real estate investment revealed the power of owning assets that generate income passively, distinct from active work.
"that was the first time I had ever experienced the power of investing because now I was making making a little bit of money every single month and I didn't have to host a party I didn't have to go work at a wedding I didn't have to do this thing I owned an asset that was paying me"
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Traditional education systems often fail to teach crucial concepts like investing, passive income, and wealth creation.
"never once I learn to thing about investing never once I learn think about passive income never once I learn to think about becoming wealthy"
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Earning money and building wealth are distinct processes, with the latter requiring asset ownership and strategic growth.
"there's a difference between making money and becoming wealthy"
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The speaker advocates for buying stocks during market downturns, viewing them as opportunities.
"stock market's crashing I'm buying I'm buying stocks every time we see these big down days"
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Periods of panic and fear in the market often present significant investment opportunities.
"anytime you see Panic anytime you see fear it creates opportunities"
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Following a significant drop, the stock market experienced a rapid recovery later in 2020.
"went down down down and then it rocketed back up later in 2020"
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The scale of money printing by central banks to boost the economy and markets was an unexpected event, even for those studying financial history.
"I would have never thought that the central bank were going to print that much money and grow the economy and the markets that much"
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Market behavior is cyclical, with fear driving people away during downturns and optimism leading to buying during upturns.
"markets go up markets go down when markets go down people run away they Panic they get scared... when markets go up that's and everybody says this is the time to buy"
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Relying on mass media for investment decisions can lead to emotional decision-making and poor outcomes.
"you go through these emotional swings because you're just looking at the mass media"
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A newsletter called Market Briefs aims to provide financial news devoid of emotional sensationalism.
"Market briefs where we cover the financial news without all the emotion"
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Content with less sensational titles is less likely to gain traction on platforms like YouTube.
"if you have the boring title nobody watches it and YouTube will never promote it"
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Individuals must break away from a system that encourages debt and spending to prioritize their own financial well-being and wealth creation.
"break out of the system of just fueling the system going into debt to fund the system spending all of your money to now making your your self wealthy first"
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Personal wealth should be prioritized over contributing to the wealth of others through excessive spending.
"I don't want you to sacrifice your wealth your chance of becoming rich just to make somebody else Rich make yourself rich first"
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The economic system relies heavily on consumer spending; a widespread reduction in spending could lead to its failure.
"our whole economic system would fail because no one's spending money in buying things"
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There is a financial incentive for some entities to maintain a state of financial illiteracy and poverty among the general population.
"it is profitable to keep people financially uneducated it's profitable to keep people poor"
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Individuals are ultimately responsible for their own life outcomes, including happiness, success, and wealth.
"you are the one that's responsible for your life for your happiness for your success for your wealth"
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Taking personal responsibility for problems, even if not directly at fault, can lead to finding effective solutions.
"if you blame yourself you will now find Solutions"
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Failure in achieving success often stems from impatience for immediate results or from a complete lack of initiation.
"the reason why so many people fail is because they either want the success tomorrow or they never get started"
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Making mistakes and experiencing losses are inevitable parts of the learning process when starting new endeavors.
"once you start you will learn will you make mistakes yeah will you lose money yeah it's a part of the process"
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Choosing to do nothing, especially in investing, is a guaranteed way to lose out on potential gains and opportunities.
"never doing anything never getting started never investing your money is also a risk too you're guaranteed to lose"
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It is advisable to begin investing with a small, manageable amount and gradually increase contributions as comfort and knowledge grow.
"start with a little bit start with one pound or 100 pound a month or 10 pounds a week whatever you're comfortable with start with where you are"
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The fear of initiating an action often leads to a cycle of inaction and self-recrimination.
"so many people are so scared to even start so then they never do it and then they work themselves up thinking about how the fact that they've never started"
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Embracing calculated risks is essential for progress and growth.
"it's so important to sometimes take risks take more risks and then build them up"
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There's no need for immediate large-scale investments; a gradual approach is acceptable.
"we don't all have to jump to invest a million dollars in apple tomorrow"
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Regardless of perceived age or circumstances, it is always beneficial to initiate changes and take action now, as time will inevitably pass.
"The time is going to go on so might as well start making that change now because you still have time ahead"
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Excessive concern about external opinions can hinder personal freedom and the ability to live authentically.
"if you're always worried about what other people think you're never going to be able to live your life"
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Actively engaging in activities that induce discomfort is a powerful method for personal growth and expanding capabilities.
"go out and do something you're really uncomfortable with... get out of your comfort zone"
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The impact of societal opinions and the concerns of others fade significantly over time, highlighting the ephemeral nature of external judgment.
"they will forget about you in a year two years three years 5 years in fact everyone will forget about you in a 100 years time"
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Individuals have the agency to choose whether their life path is dictated by external expectations or internal desires.
"am I going to base my future and am I going to create my path based on what you want me to do or am I going to do it based on what I want me to do"
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The realization of having personal control and power can be daunting, as it implies a need for self-direction.
"we have that control we have that power... we don't want to feel empowered sometimes"
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Blaming external systems or circumstances for lack of wealth offers an easy out, avoiding personal accountability and the effort required for change.
"I want to believe that the school education system has taught me the wrong decisions... I want to believe that I will never be rich because that's an easy option I have to take zero responsibility"
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When blaming others for personal setbacks, it's important to recognize that a significant portion of responsibility lies with oneself.
"when you're pointing fingers at it's the government it's corporations it's Banks... you're pointing your finger at somebody else but what you don't realize is there's three fingers pointing right back at you"
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A lack of understanding of the economic system, and the profitability associated with keeping people financially uneducated, is a key issue.
"people don't understand the way the economic system works and the reason why that's important is because fortunately or unfortunately rather unfortunately it is profitable to keep people financially uneducated"
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