What's up everybody, I am Jaspreet Singh, and welcome to
the Minority Mindset. Today, I want to talk about some things that you should
never do with your money. Like burn it? Hmm. Okay, so beyond the three things that I'm
gonna go over that you should never do with your money, there are some
common-sense things that you shouldn't do, like burn your cash, bury your cash, eat
your cash and wait for change to come out the other end. Oh! Hey would you look
at that, it's a quarter! Hopefully those were common sense, because the next three
I'm going to tell you aren't so obvious, but before we get into it, make sure you hit
that thumbs up button below, and subscribe to the Minority Mindset
YouTube channel, that way you don't miss our new videos every week. The first thing
you should never do with your money is treat it like gold. Gold is a tangible
asset—it has intrinsic value—you can touch it, see it, and even eat it. You know,
with gold flakes. Gold has real intrinsic value while your cash doesn't. Our cash
only has make-believe value. The only reason your green piece of paper with
$100 written on it can buy you a pair of shoes, is because the government says
that your hundred dollar bill has value. Your cash is not backed by gold, or
silver, or oil or anything like that. It's just monopoly money with a promise by
the government saying it has value. If the government says is good enough, I'll
take that. Shoot, give me the hundred dollars if you don't want it Jaspreet.
Well it can become a problem when you understand what your paper money really
is. there is a limited supply of gold in the world. Like, if we wanted more gold, we
would have to physically go and mine for gold, and that's why it has
intrinsic value, because you can't just print gold, even if you had a 3d printer.
Paper money, on the other hand, is a little bit different. If the government
wanted more money, the Federal Reserve would just print a whole lot more money,
and the cost to make a one hundred dollar bill is something like twelve
cents. That's why if you hoard your cash as if it was gold,
you are becoming poorer. What you talkin' bout Jaspreet? If I have a
lot of money, I can buy a lot of things. Well, because more and more money is
printed every single day, the value
of your cash that you have saved up is losing two to three percent of its value
every single year. If you saved one million dollars in your bank, paying an
average interest rate of 0.1%, you would lose around $20,000 worth of buying
power in just one year, because you thought you were being smart by saving
your money. What you should be doing is taking your extra cash and using it to
buy things with real value, like gold, or even better, you can use your extra cash
to invest in companies that you like through the stock market, or you can buy
businesses by franchising something, or you can start your own real estate
portfolio, and these things will pay you with supplemental income, so now you're
using your cash to become wealthier, instead of hoarding it to become poorer.
Second, you should never finance things that you don't need, that you can't
afford, that don't pay you, with money that's not yours. Look, here's the way the
world works: Everybody wants to take their hand and
put it in your pocket, and take some of your money and then put it in theirs.
What's up guys? You see this basketball? It's on sale today only, so get it while
supplies last. There's nothing wrong with spending money to buy things that you
like, or that you want, I mean, that's the whole point of making money, but the
issue is how much money we're spending. In 2019, the Federal Reserve Bank of New
York did a study, and they found that total household consumer debt is one
trillion dollars more now than it was during the 2008 peak. One trillion
dollars. Americans are spending like it's their job, but our real jobs aren't
paying enough to support all the spending. There's obviously a lot of
reasons for this, but I would say that the number one reason why it's so hard
for the majority people to control their spending, is because you can't show off
your new Apple stock the way you can your new Apple Airpods. Delaying some
gratification might make you look like a loser for some time being, but it will
keep you out of consumer debt, which will keep more money in your pocket, which you
can use to invest in your future to build your wealth, which means that you
have enough money to afford all the Apple Airpods you want
in the future, interest free, with cash without any stress. Oh, I can't believe
you want me to look like a loser Jaspreet. The simplest thing you can do is,
from now, on don't finance anything, and only buy what you can afford. And, how
do you know what you can afford? Well, you can follow our rule of five, which says: if
you can't buy five of them, you can't afford one of them. And finally, the third
thing you should never do with your money, is trust it with somebody who's
never made any money. Let me ask you this: if LeBron James, one of the best
basketball players in NBA history came to you with tips on how to improve your
shot, would you listen to him, or would you rather listen to your fat uncle who
has never stepped on a court before? It might seem obvious, but the majority of
people would rather listen to fat uncle's advice instead of uncle James's
advice, because your fat uncle's advice is so much easier to accept.
It's okay Sonny, you don't got to practice that hard, sometimes you just
gotta chill. Everyone, your parents, your banker, the pizza delivery guy will have
strong opinions on how you should be spending your money. Listen man, you
should invest in pizza making machines. You will make a killing! They will sound
very confident, and they will make you feel like a fool for not listening to
them, but you should listen to the advice of very few people. One of my favorite
examples of this was this meme we posted on a Minority Mindset Instagram page where
somebody said: my roommate just finished writing a book on "How to get money",
and now he needs money to publish it, and somebody responds with a
Tweet: tell him to read the book. Knowing what to do with your money and talking
about it is very different than actually doing it, so listen to the people that
have actually done it, instead of the people that are just talking about it.
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