What's up everybody? I am Jaspreet Singh and welcome to the
Minority Mindset. The people who never learn the rules of money, will always be
ruled by money, which is why you, who me? Yes, you need to learn the rules of money.
The ten laws of money that I'm going to go over today, are not things that you can
just find in a textbook somewhere. These are things that I learned from starting
and running my own business, from investing, and most importantly, making a
whole lot of expensive mistakes. But before we get into the ten laws, make
sure you hit that thumbs up button below, because if you don't hit that thumbs up
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Money law number one: money is emotionless. Having money doesn't make you an evil
person and having money doesn't make you a good person. Having money just gives
you fuel for your life, and you, as the controller of your fuel, get to decide
how you want to use your fuel. Your money
is emotionless. It doesn't care what you
tell it to do. Aww, I didn't mean to hurt your feelings Benji. Your money does
whatever you tell it to do. If you want to be an a-hole, hey, having money will
let you be an even bigger a-hole. If you love serving meals to hungry people,
having money will let you serve even more meals. Money law number two: money
does not reward hard work. If money rewarded hard work, then the highest-paid
people would be the construction workers, the laborers, and the people working
retail and restaurant jobs. Newsflash they're not. If you work as a consultant
making a hundred thousand dollars a year, and you work ten hours a day, and you
wanted to make more money, you could work harder at your job, and now you might be
working fifteen hours a day, and you might get a 10% or a 20% pay bump if
you're lucky. You're working really really hard to make more, but you're only
marginally making more money. But at the same time, your boss might be making 10
times more than you, but they're not working any harder. It's because money
does not reward hard work. Money rewards unique
value creation. But, this is where things get tricky, because if you want to create
a whole lot of unique value, you need to work really really hard to create this
unique value. But the difference here is, now you're working hard to create more
unique value where you have an unlimited earning potential versus, before you are
working hard to make more money where you only have a marginal return. Money
law number three: money hates sitting still. The Federal Reserve Bank can print money a
million times faster than you can work for it. When you make your money sit
still, it's becoming less and less valuable. Your money would much rather be
out working, attracting you friends, and making you more money. Ulysses, meet your
new friend Ben. That's when money goes to people who know how to use their
money. Like, when you go shopping, the business owner is the one making money,
because they use their money to buy things that will make them money
versus you, you're using your money to buy things that will lose your money. And
when you save your money in the bank, you are forcing your money to sit still.
Don't move Benji. That's when your bank comes in and says, OK, you are abusing
your money, so we're going to come in, and we're going to use your money for you,
because your money hates sitting still, and you don't know how to use your money.
That's when your bank comes in, and they take that $1,000 or whatever you deposited
in your savings account, and they turn around, and they loan your savings to
John. So that way, he can get a mortgage, or so he can get a line of credit, or so
he can get a credit card. Now your money is working really hard for your bank,
attracting them a lot of money through interest, while you get next to nothing,
because you wanted to abuse your money, and this brings me to money law number
four: with no risk, comes no return. If you want to be wealthy, you need to ask
yourself two things. One: what are my life goals? And two: how fast can I double my
money? And then see if these answers align. If you start off with $10,000 and
you double it, you have $20,000. Double that, $40,000. Double that, $80,000.
Double that, $160,000. Double that a few more times,
you're at $1,280,000, and now every time
you double your money, you are making millions. The faster you can double your
money, the more money, the more wealth, and the more freedom you will have. But, this
is where your risk needs to align with your life goals. When you save all of
your money in a savings account, paying 0.05% a year, it will
take you a hundred and thirty-eight years for your money to double. Your
money isn't going anywhere, and you will never achieve your goals. If you put your
money into a high interest rate CD —certificate of deposit—paying
2.5% a year, it will take you twenty-eight years to double your money.
Still, nothing significant or meaningful is going to come out of this. If you invest
your money in stocks or real estate, and you can get a 10% return a year,
now you can double your money every 7 years, and now we're talking, because now you
can double your money seven times over your lifetime. If you started off with
$10,000, over a lifetime you could end up with over 10 million, if you start your
own business. Now, you are physically working to grow your money, and it gets you
returns of 30% to 100% a year. If we just stick with the lower amount, 30%
a year, now your money will be doubling every 2.6 years. And so what
took you a lifetime to do here, you could do in 30 years. The further you go down
this list, the better your returns are, but it comes with more risk. When you put
your money in your savings account, you got no risk. You give your money to
the bank, and you can access your money whenever you want, but that's all you get.
No reward. No returns. When you put your money into a CD, now your money's tied up
for a few years, which is why you get a better return, but it's still nothing
meaningful. Now, when you invest your money into the stock market or in real
estate, now you can get a better return on your money, but you can also lose
money a lot easier, because this comes with more return, and when you start your
own business, now you have to invest your time and your money, to grow a business
with no guarantees, but you have the highest potential. You need to ask
yourself what kind of life you want to live, and make sure that your risk is
aligning with your life goals. Money law number five: money is a game. If you want it to be a
good basketball player, you have to learn the rules of the game,
and then you have to practice, practice, practice until you can make free throws
with your eyes closed. Money works the same way. It's just a game. If I bring
back this chart, the good news is, all of this can be learned. This is what
financial education is. You probably don't have a class on this in school, but
this can be learned. If you want to get good at these games, you got to learn the
rules, practice, practice, practice, make mistakes and get better. We have tons of
videos on a Minority Mindset YouTube channel that can help you with that, and
we even have a free ebook on money management and investing that you can
read for free, when you sign up for my emails, and you can download that by
clicking the link up here, or by clicking the link in the description below.
Money law number six: negative minds repel money. If you wanted to repel Superman, all you
need is some Kryptonite. And if you just want to repel money, all you need is a
negative mind. When you criticize somebody else's success, you're not
hurting them. They're successful, they're doing their thing, and they're not going to
stop being successful because you're upset. But, you are stopping yourself from
becoming successful, when you criticize success. And that's not all. You will 100%,
without a doubt, never become successful, if you tell yourself you cannot do it.
You can do it Jaspreet. When you tell yourself you can't do something,
your brain shuts off, and it will stop trying, which is why instead of saying
you can't do something, ask yourself how can I do something?
Money law number seven: what you're worth on paper is not what you're worth in cash.
The cash in your hand is how much money you can spend today without selling any
of your assets, and without selling any of your investments. The amount of money
you're worth on paper is how much you think you're worth, based on the assets
that you own. Just because your stock portfolio is worth $1,000,000 today,
doesn't mean it'll be worth a million dollars tomorrow. So what does this mean?
It means, you should absolutely not live a lifestyle based off of what you think
you're worth on paper. You should be living a lifestyle based
off of how much cash you have in your hand. I cannot tell you the number of
business people that I have worked with, that start living this huge lavish
lifestyles, because of what they think they're worth on
paper. And then when things go wrong, these are also the first people in line
to lose their shirts. Money law number eight: protect your assets. I'm an
attorney, and as an attorney, I can tell you that, when people see you have money,
they will try to take their hand, put it in your pocket, and take some of your
money from you, just because they see you got it. Get insurance, use legal shields,
hire an attorney, and hire a tax professional to help you with your taxes,
because you want to keep your wallet for yourself, instead of sharing it with the
whole world. Hey! Get your hands off my wallet. Money law number nine:
act your wage. Everyone on instagram has a Nissan GTR, a Lambo or a Porsche. At
least that's what it feels like. But, just because you can buy it, doesn't mean you
can afford it. If you cannot buy your car with cash, you cannot afford it. Sorry
fake Instagram flexors. And when it comes to buying a car for the show, so I'm
talking about luxury and exotic cars here.
If you cannot buy five of them with cash, you cannot afford one of them. Ooh, then
I'm going to need a lot of money, before I can buy a Lambo. Yeah, that's the point.
When I was finally starting to see some success as an entrepreneur, I really
wanted to go out, and buy a brand new Beamer, and all of my friends around me
kept saying, Jaspreet, go buy the BMW, it will look sweet. It would have cost me
like, fifty thousand dollars, which I had ready to go, but do you know what fifty
thousand dollars can do when you're starting off as an entrepreneur
starting a business? Fifty thousand dollars is a full-time
employee salary. Fifty thousand dollars is rent for a year. Fifty thousand
dollars is a new software that can make us more money. There's nothing wrong with
buying nice things, or buying luxury things. But, you should only be buying
luxury, when you can afford to buy it without worrying about the price tag. And
money law number ten: diversification isn't always the right
answer. You've probably heard people say that millionaires have seven streams of
income. But, what you're missing at the end of that statement, is that the
millionaire didn't become a millionaire, because they had seven streams of income.
They became a millionaire, because they mastered one thing. And once they figured
this one thing out, that's when they moved on to two. And once they mastered
the second, that's when they moved on to three. If you try to do seven things at
once, because you think that's what millionaires do.
So you try to start a business, you try to start lending money to your
cousin, try to start flipping real estate, you're trying to start the Shopify
business. You will go nowhere. Be the master of one first, and once you
dominate that, then move on to two. Thank you for watching, if you enjoyed the video,
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always, KEEP HUSTLIN' *