By the end of this video, any risk that would have made you broke by the end of next year is going to
vanish and i'm going to show you how. ONE: 70% of Americans are living paycheck to paycheck.
Don't be one of them! TWO: use the rule of five if you don't want to be one of them. THREE:
use my advanced rule of five if you want to start investing your wealth and prevent
that barrier between you and the ultra rich and FOUR: hit that like button as hard as you
can to beat the youtube algorithm because i'm gonna go fast you're gonna learn a lot
that's professor meatball my name is andrew and let's get going
i'm gonna stretch my game see how standing feels why are 70% of americans living paycheck
to paycheck you are in the land of the free free opportunities free enterprise and free grinding
grinding to make yourself a better life find some time where you can learn some more do some more be
more than your parents were than their parents were and relatively from wherever you are that is
a goal worth having i'm a first generation immigrant or you might say a zeroth generation
american my parents brought me here when i was young and gave me a very clear understanding
of exactly what they are hoping for success success in the ways that asian parents mostly
care about being a doctor and being a lawyer have you ever thought about why doctor is so important
as a status symbol to these asian immigrants in order to have your success grounded in your own
achievements you need to have two things money and status doctors have the first down no matter what
you specialize in an entry level doctor after four years of bachelor's four years of med school two
to ten years of residency they're gonna be making way over your low-level six-figure salary that you
know a data scientist could be making but doctors have something way more than just
money in the bank they also have this little thing called status they have the ability to go into a
community and be respected immediately be someone who is taking care of your kids someone who you
turn to if you need advice not only medical but in a wide swath of other things in your life
think about it if you trust a doctor with your life if you constantly go to a doctor with your
heart in your palms and say here is all my trust don't you think that that person has a special
place in your community that's what asian immigrants are banking on so now that i said
my piece there are clear ways that you can start building your passive income and i've
covered that in previous videos there's also clear ways that you can start grinding towards
more money more financial security wherever you want to get started but most importantly and i
cannot stress this enough follow these next three rules one the rule of five jaspreet singh covers
the rule of five in a bunch of his videos and it works people love the rule of five but i want to
be able to enhance it a little bit by telling an inverse basically a logical paradigm that
wraps up his advice in a neat wrapper so that you don't forget when you are doing your day-to-day
spending the rule of fives essentially if you can't afford five of something then don't buy
one of something this usually applies to leisure and recreational activity if you want to go out
to eat and it's going to cost 20 to 30 bucks but you couldn't afford five times that much money on
a splurge or just a recreational excursion don't do it don't buy a five dollar foot long if a 25
5 foot long sandwich is something you cannot afford as of right now this applies to a ton
of things in your life and most of them give you pleasure and i love feeling pleasure i
love feeling like i can get the fountain drink at the restaurant i love feeling like i can buy
shots at the bar but one of the most important things to consider is that the inverse applies
as well you basically cannot afford to be financially illiterate and fail to invest
part of your paycheck into something that yields more than just your run-of-the-mill high interest
saving account compounded interest is a huge part of making yourself wealthy and starting
your path to financial literacy but let's just take graham stefan's example a dollar invested
30 years ago back in 1990 would have been worth ten dollars nowadays and the inverse is true
about that dollar ten dollars inside your pocket that's just been collecting dust is going to be
only worth equivalent of one dollar nowadays hell you can even see it year to year a dollar in the
beginning of 2020 is worth three cents less on average and that is just how inflation works so
what is my enhanced rule of five take a fifth of your walking around money the money that you
can afford to spend and invest it every single paycheck but every time you get paid subtract
whatever living expenses you need everything that you need to absolutely survive and then take the
rest take a fifth of that and invest it invest in index funds like robin hood or weeble invest in
whatever stocks you've done research into or just invest it into your own education again this is
gonna start creating a huge divide in the buffer that prevents you from being broke and here's why
this is going to work for two reasons one you are putting your money in a place that you're
probably not going to take it out anytime soon high yield index funds are the core of how to turn
your money into more money by keeping it locked away it's very similar to putting money in a 401k
or putting money into a roth ira this is just going to be money that is set aside for future
you and you're not going to be able to spend it on something frivolous like money that hangs out
in your pocket money is meant to be spent it is a financial account in your mind whenever you have
it hanging around the house or in your wallet now that said money inside an investment account is
meant to grow so that is already put away in your mind as money for future you not for current you
the second reason why the enhanced rule of five works is that it is proportional to how much
money you take in of course in ideal world you put away all of your walking around money but
this is not ideal or rational or even logical sometimes you need money on hand in order
to take care of emergencies or just to have a normal human life and have a little bit of fun
that's okay eighty percent of your walking around money can still be yours i'm just saying to take
20 of it and put it somewhere safe if you're not sure where to put it i have plenty of videos down
below that's going to show you where check out my channel because there's a ton more stuff down
there building a budget does not necessarily mean that you have to earmark money for food and water
and electricity and other minutia of details that is going to hurt your brain hurt your recreational
time and hurt your wallet over time and if you take any of the facts and figures from this video
away just remember that people making above six figures also have it hard the same nielsen study
that found that seventy four percent of families making less than fifty thousand dollars are living
paycheck to paycheck also found that one in four families making over a hundred fifty thousand
dollars are also living paycheck to paycheck you might need your next paycheck and that's okay some
of us can't afford to invest fifty to a hundred percent of our incoming money to future us but
if you start putting away just a fifth twenty percent into somewhere safe for the future you
you're really going to turn around to appreciate past you if this video resonated with you hey
give it a like that means something to me what does it mean it means that i should keep making
videos exactly like that if you want to tell me what you thought below in the comment section
i'd appreciate that because i read every single one i'm a small channel so i have to i respond i
like i you know give you a little piece of my day if you want to be shouted out on this video then
go ahead and take a screenshot of this video post it to your instagram story tag me andrew mo money
and you can get a chance to be featured in one of these videos hit that subscribe button if you're
new here for professor meatball because he's in basically every single video you can't miss him
battle axe guitar strumming andrew is here to say thank you i wanted to take a moment to say
what i'm thankful for because thanksgiving black friday is tomorrow i'm sure you guys
got a lot of shopping to do the main point of this section is to say i shout out a lot of different
creators i shout out people like my patrons but today all i want to say is i'm thankful for you
i'm thankful for the opportunity to start growing this small and humble youtube
channel i'm thankful for the diverse audience that you guys clearly are people who are investing in
themselves making important decisions spending the time to watch these videos and giving me a chance
to have this platform and teach you guys a couple of things i've been able to learn in
25 years of my life my birthday is coming up i'm planning to make a big announcement for my 26th
to make a goal for myself before i turn 30. but until then i want to show you something like this
this is my playbill of the hamilton musical it's signed by every cast member of the san
francisco cast and i've been able to be lucky enough to see hamilton almost half a dozen times
most of them here in the orpheum theater this is something that honestly a lot of people end up
waiting for the lottery and then the pandemic hits and they never get to see hamilton and they never
get to kind of live out their goal i've been lucky enough to be part of a community choir where i've
got to sing hamilton on stage and all these small things that we kind of take for granted suddenly
kind of disappear in the pandemic so whether you're with loved ones or not this year i'm really
feeling for you at the very least allow me to say i'm thankful for you guys now back to the video
as thanks for making it this far into the video i wanted to start asking logic questions at the end
of these videos so that you guys have some extra interview practice but also so that we can start
getting that engagement train rolling comment what you think the answer is down below i'm gonna take
all of the correct answers jumble them up and then give out a free consultation financial or
data science to whoever wins that raffle today's logic question is gonna be a simple one it's just
wondering it's just wondering about terminology how do you define overfitting if you can define it
in any way you want put it down in the comments down below and we'll pick a winner out of the
correct answers and until next time if it ain't bro continue to not fix it my name is andrew peace
throw me away i forgot the other things i was gonna say in this video some of us can't invest
and until next time if it ain't broke continue to not fix it