Jaspreet Singh, known as “Minority Mindset” on YouTube, is an attorney and entrepreneur with a goal to spread financial education. The Minority Mindset brand has grown into a number of companies including Market Briefs, a free financial newsletter and Market Insiders, an investing education app. His brand has helped countless people get out of debt and start investing.
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As one of GOBankingRates’ Top Money Experts, Singh shares his go-to plan on how to effectively build wealth.
Also see 10 things Singh said to stop doing if you want to build wealth.
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Singh’s Top Money Advice
“The one piece of money advice I wish everyone would follow is: make yourself rich before you make everyone else around you rich,” Singh said. “When you go out and wear Lululemon pants with your Gucci belt and Apple AirPods — you look rich, but the people who are actually getting rich are Lululemon, Gucci and Apple (not to mention their shareholders, too).”
With financial security as a driving force, Singh’s advice is clear.
“The person who isn’t getting rich is you. I want you to flip it around. Make yourself rich first by using your money to buy investments. Then, go out and buy all the Lululemon, Gucci and Apple you want when you can afford it,” he said.
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How To Build Wealth
Singh explained that “[b]ecoming wealthy is surprisingly simple. That doesn’t mean it is easy, it’s actually really tough, but there are only three steps:
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First, you have to spend less than what you make.
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Second, you have to work to earn more money.
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And third, you have to invest the money you don’t spend.
Starting with step one, if you spend all of your money, you will never have a chance to become wealthy. This is where most Americans fail.”
Singh also warns against lifestyle creep.
“Most Americans work to buy nice things like fast cars, nice vacations and luxury clothes. But if you spend all your money, you will never become wealthy. Then, you have to work to earn more money. Regardless of how cheap you are, there will always be a limit to how many expenses you can cut,” he said.
Instead, Singh promotes earning more and using money as a tool to invest.
“But there’s no limit to how much money you can earn. That means you have more upside by learning how to make more money. YouTube has made this financial education much more accessible and it’s free,” Singh explained. “Finally, you have to invest the money. Just like how you can’t get rich by spending all your money. You also won’t become wealthy by saving all your money.”
“You have to invest your money if you want to become wealthy. Where do you invest? Stocks, rental properties, businesses, and your own education. While this can sound very daunting, the good news is you can start investing with less than $100. You just have to get started,” he said.
How To Fight Inflation
“High inflation disproportionately benefits asset owners and it hurts consumers. In other words, inflation makes investors richer and it makes regular people poorer,” Singh said.
But according to him, there is a way to work with high inflation.
“So, what can you do? Own investments. Diversification doesn’t hurt either,” he said. “For example, 2% of my investment portfolio is physical gold. When you have high inflation, the value of the dollar falls, causing the price of gold to go up. But, of course, always do your own due diligence before you make an investment and consult a licensed financial advisor.”
Start Building Wealth Now
Singh’s final piece of advice is to not wait any longer and to make money moves now.
“The biggest money mistake people make is not doing anything. Time is our most valuable asset [and] wealth takes time to build. If you don’t start, you will never see any of the success — while your time gets sucked away,” Singh said. “Get started. Experience is the best teacher and you can’t get experience until you start.”
Jaime Catmull contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: Money Expert Jaspreet Singh: ‘Becoming Wealthy Is Surprisingly Simple’
Source Money Expert Jaspreet Singh: ‘Becoming Wealthy Is Surprisingly Simple’
