What's up everybody? I am Jaspreet Singh, and welcome to the Minority
Mindset. There are a lot of factors involved when it comes to building your
wealth, starting from financial education, to understanding how to earn more money,
to creating passive income, but sometimes it's those weird little things that you
don't even notice that are holding you back from taking your finances to the
next level. So, to keep your finances healthy, let's go over five weird things
that are actually making your finances worse, but, before we get into it, make
sure you hit that thumbs up button below and subscribe to the Minority Mindset
YouTube channel, this way you don't miss our new videos every single week. Weird
thing number one: having a big bank account. Waiiiwait, what? Isn't the whole point
of making money so you can have a bunch of money saved up in a big bank account?
Ah, see that's what many of us have been told... But you've been lied to. The majority of
people think that having a bunch of money saved in your bank account means
you are wealthy. The only problem with that is when you save your money in your
bank account you're not becoming wealthier, you are slowly becoming poorer
each and every day because of something called inflation. Inflation makes the
value of your money go down, which makes the price of things go up. So, your money
has to grow by at least three percent a year to at least break even. And I'm not
your bank statement, but I know your money is not growing by three percent a
year in your savings account if you live in America. And beyond just becoming
poorer, you also have this lost opportunity cost, because you are missing
out on the opportunity to invest your money, and have your money grow, and make
you more money. I knew I should have bought the Amazon stock when it went
public... Like they say: sometimes the worst investments are the investments you
didn't make because of the lost opportunity. Weird thing number two: being
addicted to the sale. You know that feeling you get on the
inside, that rush when you see that amazing sale on that sweet shirt for 60%
off, and then you can show the system who's boss by legally robbing the store,
with a great deal? Uh... Wrong. Being addicted to the sale means you were not
thinking of your long term finances, because
you let the store trick you into
spending money on something you didn't need, because you thought you were saving
money. Let's put it this way: let's say you buy a shirt on sale for $100, and its
original price is a hundred and fifty dollars. You didn't save fifty dollars,
you actually spent a hundred dollars. You've got to get your mindset right. Now, don't
get me wrong, there's nothing wrong with spending money and buying nice things, I
mean, that's the whole point of having money, but, you have to get your money
right in your Mindset right first. And you didn't hear this from me, but
sometimes stores take that $100 shirt, and then bump the price up to $150, this
way they can slap on a red clearance
sign, this way when you buy it for $100
you feel like you're getting a steal, even though you're just paying regular
retail price. It is a store's job to get customers to buy, which is why it needs
to be your job to know what you should buy, and what you can afford. Weird thing
number three: thinking investing is gambling. "But, but
if the market crashes I will lose all my money. It's gambling I tell you,
gambling!" Yes, there are market cycles. There are
times where the market comes up, which is called a bull market, and then there are
times where the market comes down called a bear market. These cycles have happened
for decades, and they will continue to happen. On average, over the long run, the
stock market grows between seven to ten percent a year,
which beats the heck out of your savings account, which pays what, like 0.1% a year?
And that beats the heck out of gambling your money, which gets a negative return.
If gambling your money was a profitable venture,
the casinos would not be in business anymore. Plus, investing your money comes
with a bunch of tax breaks too. If a doctor and an investor both make one
million dollars after one year, you think that they're both equally rich, right? I
mean, they both made a million dollars. Well, you'd be wrong,
because after paying taxes, this doctor would be left with about half, or around
five hundred thousand dollars to use, and the investor would be left with around
eight hundred thousand dollars, because these people pay different tax rates.
Remember: investors get tax breaks, which is why it's now how much money you
make that matters, it's how much money you get to keep. Are you guaranteed to make
money when you invest? No, absolutely not, you might even lose money, but you can
mitigate your risk by learning, and losing is a part of the process. And, if
you want to make the smartest money decisions you have to also know what's
happening in the finance and business world, this way you can use your money
accordingly, which is why we created the free Minority Mindset newsletter, where
we break down the top finance and business news, and then we show you how
this news affects your wallet, and this newsletter is completely free, and you
can subscribe to it by clicking the link up here, or by clicking the link in the
description below. Weird thing number four: not having a written budget. Why do
these puppy pictures people keep billing me fifteen dollars a month? Not having a
written budget to keep track of your finances and knowing where your money is
going is kind of like driving without directions. Yeah, you'll end up somewhere,
but it probably won't be where you were hoping to go. It's the same with having a
written budget. A budget shows you where your money is going, this way you can
make changes if you realize your money's going to the wrong places, and a budget
tells you where you can send your money after you get paid, this way you don't
have to decide if you can afford this clearance sale or not, your budget will
tell you if you can afford it. You can't afford it, don't go shopping.
That wasn't me talking, that was your budget.
And finally, weird thing number five: buying things based on how much they
cost, instead of how much value they give you. Have you ever heard the saying: "don't be
penny wise and pound foolish"? What that means is, don't just buy something
because it's cheap, buy things because of how much value they give you. Because
sometimes cheap can be very, very expensive over the long run. I'll be
honest, my family are immigrants from India, so I grew up being cheap, and I
carried this Mindset when I started off as a real estate investor. When I would
renovate properties, I would find the cheapest labor possible, and it was great
because I got to keep so much more money in my pocket,
and then, I realized that the work wasn't very good, so then I had to find
somebody else and hire them to undo the work that I got done initially, and then
I had to pay them again to do the work again properly the second time. What I
thought was saving money in the beginning, ended up costing me twice as
much money, and ten times as much the headache over the long run. That's why
you should be looking at the amount of value you get instead of just how much
money you have to pay. And then you can look at things like quality of work,
experience, assurances, professionalism, and the amount of long term benefits
that you can get from buying this thing. In the beginning of my investing career,
I was very hesitant to invest in myself, like, I remember I was analyzing buying
this $3500 course, which was very very expensive especially for me at the time,
and I didn't know what to do, because I didn't really know if I was going to get my
money back. Well, I had the money for the course, so I went ahead and bought it, and
I made my money back, many, many, many times over, so in hindsight, the $3500 was
almost nominal compared to the value that I got from the education. That's why
I want you to focus in on the value that you get instead of just the price, and if
you are interested in learning more about real estate investing, I will link
a video for you to watch in the description below, and what are some
other things that people are doing which are making the finances worse? Let me
know what your thoughts are in the comments below. Thank you for watching, if
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and as always KEEP HUSTLING! *