Jaspreet Singh's 3 Biggest Wealth-Killers: Don't Make Everyone Else's Mistakes
Entrepreneur and personal finance expert Jaspreet Singh, of "The Minority Mindset" YouTube channel, makes investing information easy and accessible for people without a background in finance. That includes what not to do.
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Singh's engaging videos and straightforward advice provide a blueprint for building wealth. If you're wondering about his three biggest "don'ts" to avoid if you want to become rich, he's outlined them in a video titled, "DON'T Do These 3 Things With Your Money."
1. Don't Spend All the Money You Make
"You cannot outspend a broke person," Singh said. "They are going to drain your bank account and then they're going to beat you with experience."
Warning against spending to keep up with your neighbors, buying things you can't afford before you have investments bringing in money and revenge spending, Singh said that we live in a consumerism culture that makes us want to drain our bank accounts each month.
"It is American culture to think in terms of net-zero spending. When you have $10,000 in the bank account, you think, how can I spend this $10,000?"
The correct question, however, is to consider how you can invest it to earn money you don't have to work for.
"Conceptually, becoming wealthy is pretty simple," Singh told viewers. "All you have to do is spend less than what you make and then take the money that you don't spend to work, that way it can make you more money."
2. Don't Save All Your Money
You might therefore think Singh would be a proponent of saving money. But he warned against saving more than you need for an emergency.
"There are benefits to having cash in the bank," he said. "But if you're just leaving your cash in the bank, it's going to be extremely difficult to achieve any real wealth and you're never going to be able to enjoy that money."
Instead, he advised that you set aside emergency savings worth three to 12 months' worth of living expenses. Then, invest the rest in dividend-earning stocks, real estate or something else that will turn your cash into cash flow. It's important to keep at least some of your investments fairly liquid — don't tie everything up in retirement or long-term bonds.
3. Don't Justify Bad Purchases as Investments
Singh doesn't believe in wasting money, but he also acknowledges that people sometimes want to buy things they enjoy. As long as you are realistic about the money you spend, he said, that's okay.
"Everything you spend money on doesn't have to give you an ROI — a return on investment," he said. "Sometimes you can spend money on things you like."
But don't classify expenses like gambling, cars or timeshares as investments. You are fooling yourself because these things won't make you money in the long term.
"When you've got your money right, go buy whatever you want, assuming you can afford it," he said.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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