What's up everybody? I'm Jaspreet Singh and welcome to the Minority
Mindset. Millennials are financially... Screwed. Student loan debt, credit card
debt, sucky jobs and avocado toast. It's expensive being a millennial. But just
because the majority of Millennials are financially screwed, does not mean you
have to be. It pays to understand money and I don't want you to end up... Like the
majority of people, which is why we're the Minority Mindset. And that's why
today I'm going to be talking about what you should be doing with your expenses
if you are a millennial under the age of 37, or 40, or whatever a millennial is
nowadays, but before we get into that, make sure you hit that thumbs up button
below, because Millennials do the type of thing, grab your avocado toast, and let's do
this. Okay, so you graduated school with a degree in economics and you landed a
great job in downtown Chicago as a market research analyst, paying $48,000 a
year in salary. Not bad, but you and I both know that the amount of money you
make is not the amount of money you can actually spend—as soon as you make your
money the government's going to want to take their cut—so you pay $10,000 a year
in taxes, and this leaves you with three thousand one hundred and sixty six
dollars a month to spend. Here's what the money flow looks like for the majority
of people; Now, I'm not gonna make these numbers up, most of these numbers are
from the Bureau of Labor Statistics. So, you make 3,166 dollars a month that you
can spend, but the first thing you have to do is pay four hundred and forty
dollars a month in your student loans. You share a one-bedroom apartment with
your best friend down in downtown Chicago and this cost you $1,000 a month,
and then you spend another sixteen hundred twenty-five dollars on
everything else. This includes your car, your entertainment,
going out, your avocado toast, your groceries, your utilities, and everything
in between. Add up all your expenses and that adds up to: three thousand and
sixty-five dollars a month, in your expenses. So, you are leaving,
or running a very fine line here, because you only have a margin of 100 dollars
every single month. But now, let's say you want to be financially smart and you hear
everybody around you talking about this "401k" thing, and so you invest just three
percent of your salary into your 401k. Now, you don't have this $100 margin
anymore, you are actually negative 19 dollars every single month. If you decide
to go out and finance the brand-new iPhone like all of your friends, now you're
negative $60 a month. If your mom happens to have a birthday sometime over the
next 12 months, now you're down a hundred and sixty dollars this month, because you
wanted to buy her a birthday gift. At this point you have two options: you can
pay the overdraft fee at your bank, which will put you down a hundred and ninety
five dollars every month, or you could put this overage on your credit card,
which might be why the average millennial has fifty eight hundred
dollars in credit card, I don't know why I wrote "s", credit card debt, which will
put you down not a hundred and sixty dollars every month, but negative three
hundred dollars every month. This is clearly an expensive lifestyle, but the
good news is: you don't have to live like the majority of people if you shift the
way your money flows. We're starting fresh; you want your money flow to look
like this. You have more money coming in to your system then what's coming out,
but what's happening here is, your money flow is actually looking like this. You
have all this money coming in, but you have more money coming out. You make
money, and then you pay your taxes, you pay your loans, and you keep buying a
bunch of things which make everybody around you rich, but it's keeping you
broke. And now you have no savings, you have some money invested in a 401k that
you can't touch until you're old, and your bills and expenses keep
piling up. At this point, everybody says: "Oh, all you need to do is make more money!"
Increase the size of the top of your funnel, this way you have more money
coming in, and all of your problems are solved. It sounds good in theory, but what
ends up happening in reality is, you work harder at your job and you might get a
raise, or a promotion, or a bonus, and so now you have more money coming in, but
now you've got to show off your new wage, so you go and celebrate by buying a new car,
or you take a trip to the Bahamas, and then Boop!
Your expenses magically go up, and what ends up happening is, you don't have a
funnel that looks like this, you have a funnel with a bigger top, but your bottom
is twice as big as before because you have more money coming in, but you have
twice as many expenses, and so... All your money keeps going out, and you have even
more money going out now because your expenses, your bills, and your debt
payments are even higher than before. What I need you to do before you worry
about earning more money is go and grab some watertight tape, and seal the bottom
of your funnel, this way, you have less money going out. That means, you gotta get
rid of the things that you don't need, so money stops leaking out at the bottom of
your funnel, but, before I tell you what I want to tell you next, I want to warn you.
The things that I'm going to tell you will hurt your feelings if you're easily
triggered so, hold your avocado toast. Right now I need you to stop eating out,
stop going to Starbucks, and stop going to the bars.
That's an extra $150 every month. Get rid of your financed iPhone and buy a used,
but working phone with cash. That's an extra $50 a month. If you drive a financed
Beamer, sell it, and then go and buy a used, but good working condition Toyota
Corolla, and there you have another $200 a month. And finally, cut the shopping,
live in a smaller apartment, and cancel the subscriptions you don't need. That's
another $150. These few simple changes can put an extra five hundred and fifty
dollars in your pocket, and it can move from the red to the green. Now, I already
know what you're thinking: Ugh, that's easier said than done Jaspreet.
I already live in a small apartment. Some of those things don't
apply to me. I am NOT giving up my Beamer. Just because something's hard, doesn't
mean it's impossible. Apply the same concept to whatever your finances are, I
need you to go and grab the duct tape and start sealing the bottom of your
funnel. Once you have some breathing room and all your money isn't leaking out the
bottom of your money funnel, now you could think about earning more money, and
putting more money into your funnel, because the bottom of your funnel is
sealed. You can start a side hustle, or you can invest your money into things
that will pay you a passive income. And if you're unfamiliar with how investing
works, we have an e-book on it and you can read the e-book for free when you
sign up for our emails. You can download our e-book by clicking the link up here,
or by clicking the link in the description below, if you're interested
in learning more about money and investing. But the key here, the important
thing that everybody forgets—I'll pull this back—is when you start making more
money, you cannot increase your lifestyle yet. For the majority of people, a 10%
pay raise means a 20% lifestyle increase. And that's why, really quick before you
go, I want to give you five things that I need you, need you, need you to remember
when you're trying to fix your money flow system. One: never, ever, ever finance
anything that will not pay you again. The only exception to this is your house, but
even that you have to do smartly. Two: before you buy anything, ask yourself if
you can afford it. Three: always remember my rule of 5; if you can't buy 5 of them you
can't afford one of them. Four: investing is what builds wealth, not buying fancy
clothes, and not saving your money so invest before you spend. And fifth: never
stop learning. Thank you for watching, if you enjoyed the video, share it with one
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are released, and as always KEEP HUSTLIN' *