Latest / Success Story with Scott Clary / Jaspreet Singh - Founder of Minority Mindset | The Lies That Keep You Poor

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Jaspreet Singh - Founder of Minority Mindset | The Lies That Keep You Poor · Success Story with Scott Clary

• 0:00
  My parents wanted me to do something very stable, but I had this hitch that I wanted to build a
• 0:04
  business. I started investing in real estate in 2011, then I built this sock company. Our goal was
• 0:10
  to sell $10,000 worth of socks in the first 30 days. We ended up doing $41,000. Imagine being on
• 0:17
  a path set by tradition, one that promised stability, but never felt like it was yours. Now picture
• 0:21
  making a drastic pivot not just once, but time and again to redefine your purpose. Today's guest is
• 0:27
  Jaspreet Singh, the mine behind the minority mindset. He's a self-taught finance expert, a licensed
• 0:32
  attorney, and the host of a YouTube channel with over a million subscribers. But it didn't start
• 0:36
  with fame or financial freedom. He's faced failures that would make most people walk away.
• 0:40
  I believe that for an investment or anything that I want to do, number one, it has to make
• 0:44
  financial sense. Number two, it must make legal sense. Got to balance everything together. You
• 0:48
  don't know the rules of money. This is where so many people get screwed over. The average person
• 0:52
  spending money they don't have trying to look rich, but one of the vastest ways to go broke is
• 0:57
  to try to look rich. The one thing that we cannot control is time, but what we know is a longer
• 1:02
  your money has to grow the more wealth you can build. The way you build wealth is by investing
• 1:06
  your money. Seven to ten out of Americans are living paycheck to paycheck. They have no extra
• 1:11
  money to save, no extra money to invest. From starting an event company in college to inventing a
• 1:16
  water-resistant athletics sock, the minority mindset isn't just a brand. It's a philosophy about
• 1:20
  thinking differently and creating wealth in ways most never see. This is the story of a man
• 1:25
  who chose passion over profit, impact over convention, and turned personal setbacks into a platform
• 1:30
  that's now helping millions escape debt and take control of their financial future.
• 1:51
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• 1:54
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• 1:58
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• 3:00
  I just want to understand when you started your YouTube channel, why did you choose to name it
• 3:04
  the minority mindset? Yes, so when I started my YouTube channel, I started it kind of on accident.
• 3:10
  I was in law school at the time. I didn't want to be an attorney. I went to law school to make
• 3:15
  my parents happy because of a very upset when they found out that I wasn't going to be a doctor.
• 3:20
  And I had run a number of entrepreneurial ventures. I wanted to be an entrepreneur, but in my house,
• 3:26
  a traditional Indian house, my parents are immigrants, a must-aid in India called Punjab.
• 3:31
  They want me to do something. My parents wanted me to do something very stable, like become a doctor
• 3:35
  or an attorney as a backup. But I had this, I don't know what it was, as each that I wanted to build
• 3:42
  a business. And so I had done a lot of entrepreneurial ventures and I was fortunate enough to see
• 3:48
  a number of successes. I also saw a number of failures. I also got involved with investing in
• 3:53
  real estate when I was in college. So I was doing a lot of different things and to put it in
• 3:58
  perspective, this was back. I started investing in real estate in 2011 when housing prices were
• 4:04
  way cheaper than what they are today. But I had been scammed on a number of occasions. I had kind
• 4:10
  of a running joke that every time I start a new business, I have to get screwed over or scammed
• 4:15
  in some way. I had my first real, it's not good. Yeah, it was, it was rough because I really didn't
• 4:21
  know what I was doing. My first real business was when I was in college. I started a party promotion
• 4:27
  company, which became an event planning company. So I was essentially posting parties at clubs.
• 4:32
  And the first event that I did, the club got shut down the night before my first event. So it
• 4:39
  just became a huge mess. I got involved with real estate investing and I got screwed over by a
• 4:46
  contractor. I got dealt with a horrible property manager, a horrible tenant. So it was just a
• 4:51
  nightmare to get started. I got involved selling things on Amazon and then got in trouble that
• 4:57
  apparently we were selling counterfeit products, not real products. So it was my late teens,
• 5:04
  early twenties were a lot of learning. And then I built this SOC company that I was going to
• 5:11
  launch my first year of law school. And I was approached by a fake marketing company. I say fake
• 5:20
  because I don't know they were fake at the time, but they came up to me and they promised me a lot
• 5:23
  of big and bold things that were what is fake exactly what this fake more than they were real in
• 5:29
  my mind at the time, but they promised me a lot of things. I paid them a lot of money. And then
• 5:37
  I never heard from them again. So my marketing budget was gone. And then I still had to launch the
• 5:44
  business. Our goal was to sell $10,000 worth of socks in the first 30 days of pre-orders. We
• 5:50
  ended up doing a little bit over to $21,000. And so it was a successful launch, despite the fact that
• 5:57
  this marketing company had kind of burned me with my marketing budget. So at that point I was just
• 6:05
  frustrated. So I put out a class on you Demi on how to launch a business without getting screwed
• 6:10
  over under the earliest minority mindset. And I sold it for like $7. And a lot of people
• 6:18
  liked it. And I did it under the earliest you were asking minority minds that why? Because in my
• 6:23
  mind, you had to think differently than the majority people if you wanted to build a successful
• 6:27
  business. And the people that were in that course said, you know, I really liked this. Do you have
• 6:33
  a social media page? And I said, no, because again, I was working on my sock business. That was my
• 6:38
  my real thing that I was running in addition to going to law school. But I said, okay, I can create
• 6:43
  a social media page. Then I got on Instagram, created a minority mindset page and I would post
• 6:47
  the same stuff of like things that I wish somebody would have told me about launching a business
• 6:52
  or about investing in just general money management because these were things that I was never
• 6:57
  taught. And I would get these comments from people saying, can you make a blog post? Can you start a
• 7:04
  blog with more in depth posts? And my response was, no, English is my second language. You
• 7:09
  don't want me to write a blog is not going to be very good writing. But I could talk. So I just
• 7:15
  started making YouTube videos and I did it again under the earliest minority mindset. Now again,
• 7:21
  I didn't start minority mindset with the goal of trying to make money. I did it just because
• 7:27
  I wanted someone to talk to about the things, the crap that you have to go through as an entrepreneur
• 7:33
  and like the things that I wish somebody would have told me because I would tell my friends this
• 7:36
  stuff about money management and investing and eventually they would get bored and they would
• 7:39
  want to talk about all the things and I'm like, dude, you don't get it. Like you have to invest your
• 7:42
  money. So I figured it'd be easier for talk to a camera because the camera doesn't complain.
• 7:48
  And I remember when I was at around 10,000 subscribers and this is back before you had monetization
• 7:57
  requirements on YouTube. So you can monetize any channel with any number of views as soon as you
• 8:01
  start. There was no minimums. And I remember one of my really good friends. He asked me how much
• 8:08
  money am I making off of YouTube? And I was like, what do you mean? Is it, you know, off of the
• 8:12
  advertisements that you have off of YouTube? I was like, I don't know what you're talking about.
• 8:17
  So he goes into my YouTube platform with me and he looks at it and he goes, you know, if you click
• 8:22
  this button right here, you could turn on advertisements and start making money. I was like, oh,
• 8:26
  I don't know that. I was just doing this because it was something that I enjoyed doing and then
• 8:30
  started making a little bit of money off of YouTube. But again, this was my kind of secondary or
• 8:34
  tertiary thing because never when I was making money from the sock business, then I was using that
• 8:38
  money to buy real estate. And then I was making YouTube videos on the side kind of here and there.
• 8:42
  I just I was making two or three videos a week at the time. So it wasn't like a huge thing. It was
• 8:47
  just something I kind of did on in the background. The minority mindset channel then started to grow
• 8:54
  and I had to make a decision now. What do I do? Do I want to build a sock company which
• 9:02
  I like the idea of building them business, but I'm not so passionate about socks.
• 9:07
  Or do I want to build this financial media thing? I don't know what it is or what it will be. It's
• 9:13
  not really making that much money. We had about a hundred thousand, I had about a hundred thousand
• 9:17
  subscribers on YouTube, which was, which is really good. But it wasn't making that much money
• 9:21
  compared to what I was doing in the sock business. So I was like, where do I want to put my attention?
• 9:25
  And this thing does not make money, but I actually love like I really enjoy this financial
• 9:29
  education, this financial news, this financial stuff. The socks, it's a business and I enjoy that
• 9:36
  and it's making money. And so I kind of just thought to myself, but I'm 65, 75 years old and I
• 9:42
  look back at my life. What would make me more happy and proud? And I thought it would be doing
• 9:48
  something that I really enjoy, spreading the financial education, the things that I wish
• 9:53
  that I would have learned. And so I decided to do that. And then minority minds started to grow.
• 9:58
  And then that became then the kind of launch pad for briefs media, which is the business that I run
• 10:05
  today. So ironically, many people know me for minority mindset. But most of my time is spent
• 10:13
  running briefs media. Like I call minority minds at my hobby because I do that outside of work hours.
• 10:18
  My time is spent running briefs media, which is a financial media company. We have like our free
• 10:24
  newsletter I was talking about market briefs where we publish what's happening in the financial
• 10:29
  markets every day. Then we have other products like paid newsletters and other education platforms as
• 10:35
  well in our app. But it all started kind of with this whole idea of kind of being upset. And then
• 10:44
  usually get upsetness to go do something. I love that. And I also believe I mean there's a
• 10:49
  couple things that you pointed like you you applied the regret minimization framework perfectly.
• 10:56
  Like you know pushing yourself out to 65 and then looking back and saying what am I going to do
• 11:02
  with my life that I won't regret and what I'm going to be happy with. But also I truly do believe.
• 11:07
  I believe that I mean I think your story your father along in your journey than me. I don't have
• 11:12
  a million subs in a home media company. But also came from building and running businesses. And
• 11:18
  I believe that like if you figure something out and this podcast is kind of the result of that
• 11:23
  you figure something out or you have access to people or you can tell stories you can pull out
• 11:27
  insights and wisdom. I think that I think that you're doing the world a little bit of a disservice if
• 11:33
  you don't if you don't teach and you and you don't take that opportunity. I mean you you went
• 11:38
  through all this bullshit. And this is what you're teaching people now. And so that hopefully
• 11:41
  don't have to go through all that bullshit in their own lives right. Like people don't have to
• 11:45
  reinvent the way. Yeah. And you know you're doing an amazing job as well. I mean you're you're
• 11:49
  brand and your channel your podcast is crushing it. So you know definitely don't say anything bad
• 11:54
  about that because you're doing a great job. But I think to kind of just elaborate on what you said.
• 11:59
  I think everybody has to go through the crap if you want to do something different.
• 12:04
  I was fortunate enough to kind of go through it earlier. And I think that's what allowed me to kind of
• 12:09
  you talk about the regret minimization. And I had never heard that time before until you said it.
• 12:15
  But what it got me thinking was I had to learn that in college. And the reason why is because
• 12:21
  you know I said I started off in the party promotion and event planning industry. But the part
• 12:25
  of the story that I didn't mention is I don't like partying. That's not my scene. Like I don't
• 12:29
  drink alcohol. I didn't drink alcohol. I wasn't into partying. It was just something that I understood
• 12:34
  because I had been working with DJs for a while. I was working in the wedding industry since I was like
• 12:40
  in early high school or early high school maybe middle school. So I knew the DJs in the industry
• 12:46
  and I kind of understood the event planning space. So it just made sense for me to kind of enter
• 12:50
  that industry. And by the time I was you know software or junior, it had this party promotion
• 12:58
  business became pretty big. Like it became a full event planning company where we were hosting
• 13:02
  parties, concerts and shows. I had a contract with one of the biggest clubs on campus. I went to
• 13:06
  the University of Michigan in Arbor. So it was a big school. And I had a contract with one of the
• 13:10
  biggest clubs on campus. And I wasn't even 21 at the time. I was probably 19 or 20 to host the
• 13:15
  college night every Thursday. I was going to be able to host a lot of different things. I got
• 13:19
  it to concerts and new and some other things in that industry too. That's big. That's big scale for
• 13:27
  somebody who's not in the right. That's like, so you must have felt super misplined when you're
• 13:31
  doing this. What happened was around my senior year, I really now had to make a decision of what
• 13:40
  I wanted to do because I started to hate this. It was a really weird feeling because now I was
• 13:44
  making more money, but I was hating the business more and more. And I was really conflicted because
• 13:51
  I looked at myself and I was like, I don't like this. I don't want to promote alcohol usage. I don't
• 13:58
  want to promote partying because I'm against that. And yeah, here I am making money off of it.
• 14:02
  It didn't make sense to me. So it kind of really made me start to think about what do I want to be?
• 14:08
  What do I want to do? Because I did this because it was a hustle. When you're 17 years old and you're
• 14:13
  just trying to figure out how to make a dollar, you just kind of do whatever. You find whatever
• 14:17
  side hustle you can make to make some money. That's when it wasn't the beginning and then I was
• 14:21
  lucky enough that it grew. And then I had to realize that this is not something I wanted to do.
• 14:26
  So instead of trying to grow this where I am very confident that I could have made that into a
• 14:31
  pretty large business, I just stopped doing it. I didn't even think about selling it. I had a
• 14:36
  number of people talking to me about saying, hey, you should consider selling this business or
• 14:40
  doing something. We didn't have the systems to sell. It would have taken me more time to do that.
• 14:45
  I didn't even care about doing that. I just wanted to stop. So I just stopped and it was abrupt.
• 14:52
  And I just hated it. And so I didn't want to go through that again.
• 14:56
  So the one thing that I think is very, I mean, I get it. And I think that that's actually an
• 15:01
  interesting point. And there's actually let's, we could talk about that now because then I have
• 15:05
  one more question about is sort of like the naming of the channel and the nomenclature of the channel.
• 15:12
  Because I think it's interesting that you mentioned that you have to think differently. And I do
• 15:15
  want to understand what that different mindset is, what that minority mindset is compared to the
• 15:21
  sort of like what everyone, what the majority mindset is when it comes to money and business,
• 15:26
  I want to go there in a second. But first, so you mentioned something interesting. So you're
• 15:31
  building this business. It's totally misaligned. And, and you just feel like you need to stop it
• 15:38
  because like you're making money else on that you don't believe in. Now it's interesting because
• 15:44
  it's still making money. And I've heard you speak before about, you know, there's sort of like
• 15:50
  five rules of creating wealth or five pieces of creating wealth. And the first thing you have to
• 15:57
  figure out is how do you make money and, and, and make that money in whatever way possible,
• 16:02
  obviously, legally and ethically. But it doesn't really matter what business you go in to just find
• 16:06
  a way to make money. When you tell people that they have to make money, is there a component of
• 16:12
  that message or that lesson that is focused on not just making money, but making money with
• 16:18
  something that you're aligned with or that you're passionate about or that, you know, fits that
• 16:23
  ikki guy of what the world needs and what you're good at and what the market needs. Like say
• 16:28
  somebody is in a job they hate. Are you saying that they should stay in that job and make money
• 16:34
  for the next five years or is there sort of a better spot where they should spend their time
• 16:39
  and their skills and their talent to make that money where they can eventually invest it and
• 16:43
  sort of grow their well. When you think about just where they should put their work in.
• 16:47
  Yeah, I think there's two parts of the question. The first part that I'd like to highlight is
• 16:53
  what is something that is right for you. And so one of the things that I talk about pretty
• 16:58
  openly in that I teach is that I believe that for an investment or anything that I want to do,
• 17:04
  it has to have three parts. Number one, it has to make financial sense. Meaning it has the
• 17:08
  ability to make money. Number two, it must make legal sense. It's got to be legal. And number three,
• 17:13
  it's got to make moral sense. And that moral compass is going to be different from you. It's going
• 17:18
  to be different from me. It's going to be different for every person listening to and watching this
• 17:21
  video. So that's the first part. Then the next question that you asked is, well, what if you
• 17:28
  had something that you hate? Yeah, it's financially really good. It's legal and morally yet. It's
• 17:36
  completely fine. I just hate the job. Well, you got to do what pays the bills first. I mean,
• 17:42
  you got to do what you got to do to eat. You got to do what you got to do to take care of your family.
• 17:47
  You know, the way I look at this for me as the man of the house, I got to support my wife,
• 17:51
  I got to support my family. And that is my job. And if that means doing something I absolutely hate,
• 17:55
  I will do that because that's what I got to do as a man. And so, you know, you got to be willing
• 18:01
  to do what you got to do. Now, if you hate it a lot, then you got to figure out how do you get out
• 18:06
  of it and how do you make enough money to support your family to get out of it. And that might
• 18:12
  mean you're working 9 to 5, 9 to 6, 9 to 7 at your job. And then from 7 to 10, you got to figure out
• 18:19
  how you are going to make some other money doing something that you love. If you really hate it
• 18:23
  that much, you know, there's a saying that I'm honestly kind of sick and tired of hearing,
• 18:27
  but there's a saying that goes, when you get sick and tired of being sick and tired,
• 18:30
  then you're going to find something. It's true in the sense that you got to really find what's
• 18:39
  important to you. Now, you might say, well, I got to spend time with my wife and my kids or
• 18:42
  whatnot. Okay, 7 to 10, your wife and kids 10 PM onwards figure out what you got to do. And you
• 18:49
  got to make some sacrifice somewhere. I mean, maybe you got to sacrifice some sleep for a little
• 18:53
  while. Maybe you got to sacrifice your weekends for a little while. Maybe you got to sacrifice
• 18:56
  holidays for a little while. But if you really don't want to keep doing that, you got to figure
• 19:00
  something out because you have to be able to provide a support your family to. And what you said
• 19:04
  is 100% right. When you do something that you love, you're going to be able to do a lot more
• 19:09
  of that. You're going to be able to work a lot harder. You're going to be able to be a lot more
• 19:12
  innovative. The time that I was sleeping the most taking the most snaps and just I felt the most
• 19:19
  drained and most exhausted in my life was when I was studying for the bar exam after law school.
• 19:25
  I was so physically and mentally and emotionally tired when I was studying for it. I mean,
• 19:35
  the bar exam is a no joke exam. It is stressful, but so is running a business. And I have worked
• 19:42
  very long hours running a business. But there's a different type of stress and just drainage
• 19:52
  when it's something that you don't really care for. Like, yeah, you know, I liked law,
• 19:56
  but I was doing it not for me. And I knew I didn't want to practice as an attorney. Like, I
• 20:00
  am a licensed attorney, but I've never worked a day as an attorney. I did it for my parents.
• 20:05
  But that dread really sucked a lot of energy out of me. Then as soon as the bar exam was over,
• 20:11
  the day the bar exam ended, I then started working on my business again. I got back into it.
• 20:18
  And the next day I went right into my office and it was like a new life. So, you know,
• 20:25
  you got to balance everything together. It's so interesting. And I think it's actually what you
• 20:29
  sort of highlighted is that there are seasons to your life. So when you hated that sort of event,
• 20:36
  party, promoter, organizer, job, you were young and you took risks and you tried things and you,
• 20:44
  I'm assuming at that point, you didn't have like a wife and you would have had kids yet. So,
• 20:47
  you can't just quit. So, I mean, that's something that's some of the benefits of taking those risks
• 20:55
  really young in your career, really early in your career. Absolutely. If you do have those
• 20:59
  responsibilities, then you just got to be a little bit more strategic. You can't just, if you're in
• 21:04
  a business that you hate or a job that you hate, you can't just shut it down. If people are
• 21:08
  depending on you, it's going to suck a little bit more, but that's the game you're playing.
• 21:12
  And I think that people have to understand what season of their life they're in and the risk
• 21:16
  profile and their time allocation and their bandwidth and then structure any advice that you
• 21:21
  hear out of this from that lens or from that perspective. I think that's super important.
• 21:26
  Absolutely. I was going to say, so, okay, so we will. We will move. This is the first question.
• 21:33
  I've been doing it for 20 minutes, but I think it's very important. We'll move off at the name of
• 21:36
  your YouTube channel very soon. But again, just bringing it back to what I mentioned before,
• 21:41
  the minority mindset, the different mindset that you had to have to succeed in almost anything in
• 21:48
  your life and your business, what is different about that mindset than the mindset of 99% of the
• 21:54
  population of the majority? Well, for most things, if you see the majority of people doing something,
• 22:00
  then you might want to take a step back and ask why. And this goes for really everything. I mean,
• 22:05
  when I got to college, I'll just keep in my personal stories. When I got to college,
• 22:09
  I said, everybody partying. And for me, I said, I don't really want to go to the parties, but maybe
• 22:14
  I can make money on these parties. And that's kind of how it started. When I was 19, I started
• 22:21
  this party promotion business. I was 17 when I was 19, I was studying for the MCAT, the medical
• 22:27
  college admission test, because I thought I was going to be a doctor at that time.
• 22:31
  And I had some money saved up. And this was 2011 when housing prices had hit rock bottom.
• 22:37
  And I started to read books about money management and investing in these books,
• 22:42
  talked about how wealthy people owned real estate. I didn't know what that meant.
• 22:45
  I didn't know any real estate investors. This was a completely foreign concept to me.
• 22:49
  And I started talking to people that I knew who had money and everybody said that real estate is
• 22:53
  something you want to stay away from because it builds for closures. It creates bankruptcies.
• 22:57
  It makes people broke. That was the, that was the mindset around real estate after 2008.
• 23:04
  But for me, I saw that as an opportunity. So when everybody else was spending money,
• 23:08
  blowing money and not wanting to invest money because I didn't have a lot of money. I mean,
• 23:11
  I had decent money for a 19 year old, definitely decent money. But I knew kids who had a lot of money.
• 23:18
  And when I talked to them about this idea of investing in real estate, everyone said that I was stupid.
• 23:22
  But that was when I started buying real estate. The first property that I purchased was a condo out
• 23:26
  of foreclosure. This is going to sound a little crazy. But it shows you kind of the dynamic of
• 23:30
  that time. It was a 1000 square foot condo that the previous owners had purchased for a little over
• 23:37
  150,000 square feet, sorry, a little bit over $150,000. It went through foreclosure, foreclosure,
• 23:43
  foreclosure. The banks couldn't sell it. And I came in and purchased that same condo for
• 23:48
  $8,000. Not the down payment, the total price of the condo,
• 23:52
  up for $4,000 with the work. And then I read it up and stood for $100 a month.
• 23:57
  Now I made so many mistakes. I mean, I could talk for two hours about the scrupes that I made with
• 24:02
  that condo because I ended up just I ended up getting sued with that condo. I ended up having a
• 24:07
  horrible property management company. I ended up having a horrible contractor. But I learned a lot.
• 24:12
  And so, you know, it's the willingness to try. I think they're willing to take mistakes.
• 24:16
  They really need to take risks and the willingness to go against the grain. I mean,
• 24:20
  they're willing to just the whole idea of if you see everybody doing something, look at America
• 24:23
  today. The average person is spending money they don't have trying to look rich. But one of the
• 24:29
  fastest ways to go broke is to try to look rich. I mean, you're in Miami. Just look at all Miami.
• 24:35
  I just want to take a second and thank the HubSpot podcast network for supporting success story.
• 24:39
  Now if you enjoy success story, you're going to love other podcasts and their network like business
• 24:43
  made simple hosted by Donald Miller. If you've ever wondered why some businesses take off,
• 24:48
  many struggle. Donald Miller takes the mystery out of growing your business with actionable
• 24:53
  strategies that you can implement today, whether you're trying to build a stronger team,
• 24:57
  craft a clearer message or boost your bottom line business made simple delivers the frameworks
• 25:01
  that you need to succeed. Listen to business made simple wherever you get your podcast. Oh,
• 25:06
  dude, I was laughing when you said you think New York is flashy. Oh my god.
• 25:11
  I'm using another level. It's not so much flashy in the sense of my look at my car. It's
• 25:16
  flashy. If if you're not worth $25 million, don't talk to me. It's just a different vibe
• 25:21
  where they're by love New York. I don't want to put down New York. I don't want to make a scene
• 25:24
  like that. It's just it's a different culture. No, no, I love New York too. And listen,
• 25:28
  I like the weather in Miami, but I've never seen so many $500,000 watches. Who knows if they're
• 25:32
  real or fake, but Miami's a Miami's definitely a different vibe for sure. You got to be really
• 25:38
  to do things that are a little bit different. Yeah. And you know, the story. Look, I'm stubborn.
• 25:43
  Okay. And I think that's one of the things that has been a pro and a con for me that I am a
• 25:48
  I'm very stubborn. I'm less now than I was thanks to my wife who was kind of breaking my
• 25:53
  hardhead a little bit, but I used to be extremely stubborn that if someone told me I can't do something
• 25:58
  I am going to go fall into doing that thing. And so one of the things that I would I realized
• 26:05
  the difference between an asset and a liability. I changed my life like I
• 26:11
  in the beginning when I first started making money. My money was thinking about like a direct deposit
• 26:16
  that my money went from earning money in my bank account to going into my car going into you said
• 26:21
  watches. That was where my money went. I had studded out. I mean, I was probably 16 years old or
• 26:27
  15 or 16 when I bought my first studded out $1,000 watch because I was hosting. I was doing all
• 26:32
  this stuff in high school as well. So anytime I made money, I spent it. My car was tricked out to
• 26:38
  the max. And when I read books about money management and I learned about assets and liabilities,
• 26:46
  I did not know what an asset was. I did not know what a liability was. And my mind, I mean,
• 26:52
  I kid you not that I was so shocked, so concerned because I'd never read a book cover to cover. Like
• 26:58
  even when books in my English class, I sucked to English. I almost failed my English class in
• 27:02
  middle school because I was not good at reading. But when I started reading these money management
• 27:07
  books and business books, it was a completely different world that I had to keep reading.
• 27:12
  I stopped spending money on anything. Like I would, I had rental properties,
• 27:18
  but I had shoes with holes in them. I had duct tape my shoes together because I did not want to
• 27:21
  spend money on the shoes. Like I went from one extreme to the other. And I did that for a long time
• 27:27
  because I wanted to now buy assets. I made money to buy assets. I made money to buy real estate
• 27:33
  rental properties. I made money to buy stocks. I made money to just invest because that was
• 27:38
  something that I had never learned about. And when I learned it, I did not want to screw that up.
• 27:42
  So I went 110% full forward with that. You think that's a, so this is, I mean, let's talk about
• 27:49
  wealth building versus just making money or just trying to get rich because what you're,
• 27:54
  what you're describing is, it's sort of like wealth building 101. So I think it's important
• 27:58
  to highlight sort of that process that you went through and how you looked at assets and liabilities
• 28:04
  and investing and describe what most people do versus what you were doing. But then also I think
• 28:11
  an interesting point is the way you did it is at the way people should do it if they want to build
• 28:18
  well. The way you should do it is what's right for you. Personal finance is called personal
• 28:22
  finance because it's personal. And at the end of the day, building wealth comes down to three things
• 28:28
  TRD time return dollars. The one thing that we cannot control is time. But what we know is a longer
• 28:37
  your money has to grow the more wealth you can build. But let me back up just one minute.
• 28:43
  The way you build wealth is by investing your money. It's not by saving your money. It's not
• 28:47
  by spending your money. It's by earning money, not spending that money and then investing it.
• 28:53
  And the two or three asset classes that have built the most wealth and anything else in
• 28:57
  America over the last century are building a business, buying stocks, buying real estate.
• 29:02
  Now the majority of people should not build a business, but everybody in America should be a
• 29:06
  business owner. How do you do that by investing in stocks or by investing in real estate?
• 29:13
  And so you have to be an investor if you want to build wealth. Now the question is
• 29:20
  how do you invest your money and how do you become wealthy that goes back to the TRD?
• 29:24
  So when you invest your money the more time your money has to grow the wealth you're going to
• 29:28
  become. But we can't go back a time and start investing five years ago. So that can't change
• 29:33
  the best thing to do is to start sooner rather than later. Then is our return.
• 29:38
  The better returns you can get on your money. The faster your money can grow the faster you're
• 29:43
  going to build wealth. I mean you could think of it in terms of how long is it going to take you
• 29:47
  to double your money. If it's going to take you 100 years to double your money you're never
• 29:50
  going to become wealthy. But if you could do it in five years well now you can really start
• 29:55
  to see the power of compounding because now you can invest your money, double it, grow it and
• 29:59
  just keep doubling it that way. And the final part is D dollars. The more dollars you invest the
• 30:05
  wealth you're going to become which ultimately goes to how do you invest for dollars. Well you can
• 30:10
  either spend less money or you can earn more money. There's no other way around it.
• 30:16
  And in the beginning spending less is the simplest thing to do. That's how I started. I spent no
• 30:22
  money that way I had more money to invest. And so I spent as little money as possible.
• 30:26
  The problem with that is there's a limit to how much you can cut back on. There's a limit to how
• 30:30
  many pennies you can squeeze out of your budget. But there's no limit to how much you can earn.
• 30:36
  That does not mean you shouldn't try to cut back. You have to be able to spend less because if you
• 30:40
  don't know how to spend less than what you make you're never going to build wealth. But just don't
• 30:44
  get caught up into the game where all you do is spend less. That was what I originally focused on
• 30:50
  was just how to cut expenses cut expenses cut expenses and I cut back really hard which was fine for
• 30:56
  me because my personality aligned with that. But I don't think the average person would want to
• 31:00
  do what I did. So if you can't spend less to you know whatever level you spend less what you can
• 31:10
  where you can as extremists you can then you look for ways to earn more money. And now you're going
• 31:16
  to say well how do you do that? And again it's going to be dependent on you because personalized
• 31:20
  finance is personal. Maybe you work to ask a boss for a race. Maybe you get a second job. Maybe
• 31:27
  look for a new job. Maybe look for a career change. Get a certificate aligned. If you spent $500
• 31:32
  online you can get a certificate to get some sort of new job that might be able to pay you $70,000,
• 31:37
  $80,000, $110,000 a year depending on what the job is. Maybe you go and start a side business
• 31:43
  or a side hustle or maybe start a whole business. But that's going to depend on what's right for you.
• 31:48
  Do you have I mean personal finances personal. But when you look at a healthy
• 31:56
  healthy ratio maybe for people to understand if you just again this this the audience for this
• 32:02
  is a wide range. Some of them have been investing for a long time and they get this game. Some of
• 32:06
  them are probably new to finance and they're trying to figure out they're in nine to five W2 and
• 32:12
  they're a little bit entrepreneurial but they're also focused on finance and they're not super
• 32:17
  financially literate but they understand like they're you know some of their friends do real estate
• 32:20
  and stocks and well they also want to start their own business. There's all these ideas that
• 32:24
  are sort of just like you know you know ruminating in their head and they're trying to figure out
• 32:29
  what to do and there's so many different options. So what would be like from an entrepreneurial
• 32:38
  perspective I would say don't leave your nine to five and if you want to make a little bit more
• 32:42
  money maybe start a side hustle or find a talent or a skill and you can go find ways to close clients
• 32:48
  like you said you know you work nine to five or nine to seven then you take your seven to nine
• 32:52
  or seven to ten or your weekend and you do some freelancing work and you can start to see what
• 32:56
  entrepreneurship is like and that can make you a little bit more money but say you have this bucket
• 33:01
  of money that's coming in from your work and your side hustle and your entrepreneurship or you're
• 33:05
  whatever. What are good ratios the people should think about so they can put X amount of money
• 33:12
  towards their rent or their market and X amount of money towards investing just some best practices
• 33:18
  based on an average risk tolerance of somebody from like 25 to 35. Yeah a simple rule of thumb
• 33:25
  that I say is a 75-15-10 plan which says for every dollar that you earn from here and out 75
• 33:31
  cents is the maximum that you can spend 15 cents is the minimum that you invest 10 cents is the
• 33:37
  minimum that you save create three different bank accounts one for your spending money one for
• 33:42
  your investment money and one for your savings money and then automate this process automate it
• 33:47
  most banks are going to do this for free if your bank is trying to charge you find a new bank
• 33:51
  and the reason why you want to automate it into different bank accounts is because you don't want
• 33:54
  to accidentally spend your investment money on a new TV you don't want to actually spend your
• 33:58
  savings money on a car your savings money is there to protect you against an emergency your investment
• 34:03
  money is what's going to be used to invest in your real estate your stocks the books that you want to
• 34:09
  learn or to whatever your investments might be you're spending money is what you used to pay your
• 34:14
  mortgage or your rent to pay for your car to pay for your groceries to pay for your vacations and
• 34:19
  everything in between and the reason why I say it like this is because everybody is different some of
• 34:24
  you are going to say I want a nicer car others are going to say I rather live in a nicer place
• 34:29
  all the people are going to say screw all that I can live in a small box I rather travel and that's
• 34:34
  fine but as long as you're spending within your means and putting money aside to invest and save
• 34:41
  then it's within your spending plan and I would say this is a simple way to start do we have in
• 34:48
  in the US in particular exam sure I know the answer to this but you you live in this space so you
• 34:52
  must have some some data or some insight do we have a massive wealth building problem like if we
• 34:59
  just look at because I mean I think I'm and definitely am super biased because I speak to entrepreneurs
• 35:04
  all day and I speak to successful people who sold their businesses so I have no I have no
• 35:09
  understanding of the average individual and what people are going through because I'm just it's
• 35:14
  I'm very fortunate my little circle of friends here is it's fabulous but it's not the reality
• 35:20
  I don't think many people are financially literate I don't think many people are investing if I
• 35:24
  even look at give you a personal example I look at my parents like they don't invest in real estate
• 35:30
  and stocks the way they should they have a money manager and a financial manager and that's fine
• 35:34
  but they're not the strategies that the most successful people in my circle of friends are using
• 35:40
  for example so what's the state of wealth building in the US right now about 70 to 80 percent of
• 35:49
  Americans and the reason why I give a range is because it depends on the study but some of
• 35:53
  you should seven to ten out of Americans are a little bit paycheck to paycheck that means they
• 35:57
  have no extra money to save no extra money to invest half of Americans are not investing at all
• 36:06
  and have not invested at all that means no savings no investments no stock market no gold no
• 36:13
  real estate no nothing no retirement no 401k so if you walk down the street that means for seven
• 36:21
  out of ten people that you see actually closer to eight out of ten people that you see but we'll
• 36:25
  run it down these are people that have next to nothing of their bank account more than half of
• 36:32
  Americans do not have a thousand dollars to their name and that's the average state of America
• 36:39
  now there's two reasons for this there's the you problem and then there's the me problem
• 36:45
  the me problem is I spend too much money I don't automatically earn money and I buy too many dumb
• 36:51
  things that applies to everybody but there's also the you problem which is how the economic system
• 36:59
  is keeping a lot of people broke and this is something that's out of control and what I mean by that
• 37:05
  is if we take a look at the last five years between 2019 and 2024 the average household income
• 37:11
  in America has grown by a little bit under 18 percent but I'm going to round it up to 18 percent
• 37:18
  so the the median household income in America has grown by 18 percent while the average inflation
• 37:23
  rate reported inflation was just over 23 percent over the same time period housing prices have grown
• 37:32
  by a little bit over 50 percent that's renting and buying and at the same time the S&P 500 has
• 37:39
  grown by over 80 percent so what does that mean over the last five years the average American
• 37:46
  who works to get a salary has become poorer because your salaries have not kept up with inflation
• 37:53
  that means you have to spend more of your money to buy groceries you have to spend more of your
• 37:58
  money to pay for your rendering mortgage you have to spend more of your money to just survive
• 38:02
  and you have less money to save and invest if any at the same time the average investor has become
• 38:08
  disproportionately wealthier the average rate of inflation over the last five years has
• 38:13
  been 23.1 percent while at the same time housing prices have gone up by 50 percent which means if
• 38:18
  you invest in real estate chances are your rental income has grown chances are your rental properties
• 38:24
  have grown unless your own office buildings which have really been heard but the stock market has
• 38:30
  also grown the S&P 500 has grown by around 80 percent which means investors got a windfall the
• 38:35
  average person became poorer why because of something called inflation and inflation didn't start
• 38:41
  in 2019 or 2020 inflation has been happening for decades but it just became a hot topic after 2020
• 38:48
  because of how extreme it got over the period of five years but this same thing has been happening
• 38:54
  decade after decade after decade if you look at what the Federal Reserve Bank says the Federal Reserve
• 39:01
  Bank is our central bank in the United States and what they say is that they want two percent
• 39:06
  inflation and what I'd like everybody to think about when they say that is why 2% mean how do they
• 39:14
  come up with a number why is it not 3% or why is it not 1% actually why is it not 0% inflation
• 39:21
  because inflation means that you have to spend more money to buy groceries you have to spend more
• 39:26
  money to buy things and inflation is there to benefit the investor because when you see inflation that
• 39:34
  means more dollars go into the hands of businesses which means more dollars go into the hands of
• 39:37
  the investors who own those businesses inflation disproportionately benefits the investor while
• 39:42
  disproportionately hurting the average American who's not an investor because inflation means that
• 39:47
  consuming becomes more expensive at its core I mean inflation is with the value of the dollar goes
• 39:52
  down causing the price of things to go up so if you if you have to spend more money to buy things
• 39:57
  like you have to spend more money by groceries to buy a flight to buy a car that means consumption
• 40:01
  gets more expensive which means more dollars are going into the hands of businesses which means
• 40:05
  again investors who own those businesses benefit and this is where now you have to understand
• 40:12
  that is happening this economic shift is happening it has happened in the past it will continue
• 40:18
  to happen in the future and it has happened since way before the pandemic the reason why the
• 40:23
  Federal Reserve Bank wants 2% inflation is because 2% inflation is no one low enough that the average
• 40:28
  person doesn't notice a day to day under the pandemic era we went way above that which is why it was
• 40:34
  so extreme and now people starting to feel that pinch of inflation but 2% inflation is low enough
• 40:40
  that the average person doesn't notice a day to day but it's still happening which means that if
• 40:46
  you just become a consumer and an employee and you are not an investor you are a victim to this
• 40:52
  economic system we're never taught this and this is where a lot of people get upset but in order
• 40:58
  for you to win now in order for you to beat this system you then have to look at the me problem
• 41:02
  which is stop spending so much money and dumb stuff that you can't afford and that means you got
• 41:07
  to now cut back on your expenses that way you have money to invest you don't have to be a millionaire
• 41:12
  to capitalize on this but you have to understand how to control your money to do it when we look at
• 41:17
  this system that's really just hurting I didn't realize that the I mean the numbers that you just
• 41:22
  mentioned like the 70 to 80% that's huge so this is the majority of Americans are not doing very
• 41:29
  well right now at all and this system of inflation if more money is supposed to flow back to the
• 41:35
  businesses I'm assuming in theory that average wages are also supposed to rise to some degree
• 41:42
  because some money is supposed to go back it's supposed to and air quotes supposed to go back
• 41:46
  into the workforce but it doesn't and it doesn't keep up and investors are greedy and shareholders
• 41:51
  are greedy and stock prices go up and investors get more money and they pay themselves out more and
• 41:56
  and I think probably very little trickles down to the average employee which just it just squeezes
• 42:00
  their budget like you're saying so so I think that I'm just curious because I know that you have
• 42:09
  opinions on it why financial literacy is so poor in not just not just the US I mean coming from
• 42:17
  Canada as well there was like I don't think there was really any financial literacy I think it's
• 42:23
  a very similar education system there was really not much at all why I think it's because it's
• 42:29
  profitable to keep people financially stupid and what I mean by that is let's just take a look at
• 42:36
  a few examples banks profit when you're in debt it isn't their best interest for you to not be
• 42:42
  very financially smart because if you were maybe you wouldn't go out and book money in your credit
• 42:45
  card maybe you wouldn't finance that car maybe you wouldn't go out and pull money out of your
• 42:50
  home to buy a boat banks make money when you're in debt so they want you in debt corporations profit
• 42:56
  when you're spend it's not in their best interest for you to be financially smart because maybe
• 43:01
  you'll think twice before buying a $3,000 Gucci bag the governments profit when you are just an
• 43:08
  employee now as a licensed attorney who is not your attorney what I can tell you is our tax code
• 43:13
  is designed to benefit investors more than employees what does that mean if you are an investor
• 43:20
  you get to qualify for either lower tax rates or be higher tax rate offs when you are a
• 43:26
  doubly to employee you get to qualify for neither as a doubly to employee you pay what's called
• 43:33
  ordinary income tax rates which are the highest tax rates that a tax code has to offer when you
• 43:38
  are an investor you get to qualify for long term capital gains rates which are lower tax rates
• 43:44
  and order you get to qualify for lower or bigger tax rate offs these are things you get when
• 43:49
  you're financially educated as an investor but you don't get as an employee you profit when
• 43:55
  you're financially educated you profit when you are an investor but this is where you have to
• 44:01
  learn how the system works and I'm going to take this one step further because this stuff really
• 44:06
  bothers me because I never learned this I did not learn any of this in school I did my parents
• 44:14
  are immigrants from a state in India called Punjab they worked their butt off they worked very hard
• 44:20
  to give me a good education because what they wanted was for their son to become an educated person
• 44:26
  that way he could then become wealthy but the problem with that is we assume that the way you
• 44:34
  become wealthy is by doing good in school getting good grades but there's a disconnect here
• 44:39
  we live in what's called a capitalist system and in a capital is system most people don't
• 44:47
  understand how a capitalist system works right now it has become a political term and still most
• 44:52
  people don't understand it yet don't you think that we should learn what that means if we live and
• 44:58
  work in a capitalist system because I'll break it down a capitalist system means that you have two
• 45:02
  ways to make money you can make money off your labor where you can make money off your capital
• 45:07
  which is your money school teaches you how to make money off of your labor you go to school to
• 45:12
  get a job that way you can work as a doctor as an attorney as an accountant as an engineer as a
• 45:17
  whatever you want to do as a nurse you could do whatever you want but you learn to make money from
• 45:22
  your skills as a laborer but if you look at the wealthiest people in this country and the world
• 45:30
  they're not working to make money off of their labor they're working to make money off of their
• 45:34
  capital they're money they own investments they own businesses they own stocks they own real estate
• 45:40
  and with the value of those assets go up they become wealthier if the value of those assets go down
• 45:46
  they lose money on paper but they can also create income from these things and so if you look at the
• 45:53
  wealthiest people they make money from their capital our entire education system teaches us how
• 45:58
  to make money off of our labor I never once learned to think about investing I never once learned
• 46:03
  to think about dividends or royalties or rental income these are things that I had to go out and
• 46:07
  learn on my own and I was very lucky I got lucky that I stumbled across some financial education
• 46:15
  books that started reading these things and it picked my interest but the average person doesn't
• 46:22
  and so you could screw it if you don't go out of your way to learn this now I'm very happy
• 46:26
  that YouTube makes this information much more accessible but still you have to be the one to go
• 46:31
  and take that first step yeah it's not as great as YouTube is it's not the formalized education
• 46:38
  that everybody every everyone's kids going through you know like great if they discover a great
• 46:44
  channel like yours but still this should be and listen we're not going to change the education
• 46:49
  system in one podcast but this should be part of you know grade one grade two grade three like
• 46:55
  this is when kids start learning about this stuff because this is what can change someone's life
• 47:00
  so now you have an issue so you have lack of financial education I love I've never heard it
• 47:07
  phrase that way but in a capitalist system you have opportunities to make money via your
• 47:11
  labor or via your capital they just teach via your labor so everyone's focusing on that coming out
• 47:16
  of school unless your parents or you have a friend or something that's very entrepreneurial or
• 47:20
  does invest but if you don't have that you have to go out and find that info and the other thing
• 47:24
  that really just it's like you're getting screwed by from all sides because the other thing is
• 47:30
  debt culture and and credit cards and I actually just I it's so interesting so timely I just saw
• 47:36
  I don't know if it was TikTok or something like that it was a short little video and the guy
• 47:41
  was acting out a skit about how his credit card company had canceled his credit card without
• 47:47
  even notifying him because he wasn't using it because for them if he wasn't using the credit card
• 47:53
  and he wasn't putting charges on it then he wasn't they weren't making money off of him so
• 47:57
  why keep him as a customer and I was like shit that's pretty wild that's that they don't even let
• 48:02
  you just keep a line of keep a credit card open if you're not using it and they're not making
• 48:08
  money off you that's that's it just it's just a little bit like a light bulb moment it makes
• 48:14
  sense when you say it out loud but that's how shitty some of these credit card companies are and
• 48:19
  that's really you can tell what their incentives are is the best way to put it absolutely and
• 48:25
  you've got to learn how to use the system right this doesn't mean that banks are evil or that
• 48:29
  corporations are necessarily evil I use banks I mean that's where I keep my money I use high
• 48:34
  yield savings accounts right and more interest on my money I like corporations because I can buy
• 48:40
  my stuff from them right I want to be able to have nice things they're the ones that pay for
• 48:46
  hotels or buy the hotels or they own the airlines I want to be able to go on nice flights or have
• 48:50
  a nice hotel or have nice stuff I got to pay somebody for that but this is where your education
• 48:56
  comes into play how do you use a credit card to your advantage I use credit cards but I never pay
• 49:02
  a penny in interest on my credit cards because I pay my ballots in full on time every month
• 49:08
  I and so it's that financial education of how do you use the system because sometimes people
• 49:13
  get angry and they just say oh banks are evil corporations are evil everybody's evil
• 49:18
  but look we live in a world where banks exist and corporations exist learn how to use
• 49:22
  the system chair advantage and you know what I always say is you got to learn the rules to money
• 49:27
  it's a game and it's like football I I played football in high school and if you play football
• 49:34
  you walk on the field without a helmet you're gonna get knocked out you don't know the rules
• 49:38
  and that's what's happened into the game of money people are walking on the field with no helmet on
• 49:43
  and not even knowing that you're supposed to have a helmet you don't know the rules of money
• 49:46
  and this is where so many people get screwed over so people have to know the rules of money people
• 49:50
  have no the rules of investing and I want to talk about sort of like best practices just to start
• 49:55
  understanding where to invest in a second but you just mentioned something like banks aren't evil
• 50:00
  corporations aren't evil they're playing their own game and and you're just a piece of that game
• 50:06
  and if you don't understand the rules and you will get played to a degree are there things
• 50:12
  outside of avoiding I mean there's good debt there's bad debt we can talk about that
• 50:20
  you know I would say the credit card debt would be bad debt real estate that could be good debt
• 50:26
  but outside of that are there are there predatory practices or just
• 50:31
  what are the most important things that if somebody is trying to get their finances right
• 50:36
  that they should pay attention to from all the institutions that they will interact with banks
• 50:42
  corporations and they may not be predatory maybe they're just things that people don't understand or
• 50:46
  don't know well that are really hurting them what are the things the the few things that people
• 50:52
  should pay attention you just gotta think about somebody's intention everybody has some sort of
• 50:56
  intention or some sort of bias from where they come from but most people have a financial question
• 51:02
  they go to their banker because most people don't have financial advisors so when you go to the
• 51:07
  bank and you say hey how how nice about car how expensive a car can I afford they're gonna say
• 51:12
  nicer if you ask the banker how big of a home can I afford they're gonna say bigger then you're
• 51:18
  gonna go to your realtor and say hey how how big of a home do you think I can afford and they say
• 51:23
  oh even bigger why because the bigger home that you buy the bigger commission checks that they get
• 51:29
  now that doesn't mean that all realtors are evil or bad some are bad but some are also very good
• 51:35
  some bankers are also very nice and they're good everybody's in the business of making money right
• 51:41
  they're just making money for themselves banks want to make money for themselves not for you
• 51:45
  realtors want to make money for themselves this is why you got to have that by nature of education
• 51:48
  to know what's right for you because again there are certain things that you're gonna want
• 51:54
  you're gonna want cars a car salesperson's gonna want to sell you their car they're gonna
• 51:59
  want to sell you the upgraded package you might want it the question you have to understand
• 52:05
  to be able to answer for yourself this hand you afford it and that's the ultimate question
• 52:12
  and you got to just go back to that because again you want to buy a nice home
• 52:17
  every bank is gonna want to sell you the mortgage on it every realtor's gonna sell you get
• 52:20
  the commission on it nothing wrong with that you want to have a nice home by process we all like
• 52:26
  when you have good customer service when you have a nice realtor that takes care for you a nice
• 52:30
  banker that works with you you want to have that nice process nobody doesn't nobody wants to go
• 52:36
  through a crappy customer service process and there's a fee for that but you got to make sure you
• 52:43
  can afford with your bike I want to take a second and thank Range Rover Sport for supporting
• 52:46
  today's episode now let's talk about tools that match your ambition that match the ambition of
• 52:52
  everybody who's listening today who has taken risks who has upleveled their personal professional
• 52:57
  development who's tried to build their own thing everybody listening gets it there is a moment
• 53:03
  when the thing you're trying to build the challenge that you're taking on it finally starts to take
• 53:09
  there's like this rush of excitement and possibility and that feeling that feeling that you get
• 53:16
  when you get behind of the wheel of a Range Rover Sport because we've all had that perfect drive
• 53:21
  when the road the car and you you're all in perfect harmony but that's not just by chance the
• 53:27
  Range Rover Sport is designed to make every drive feel that way and the Range Rover Sport is not just
• 53:32
  for impressing others it's how you feel behind the wheel it's how you feel when things are going
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  the way they're supposed to go whether or not you're navigating city streets you're exploring
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  backroads the Range Rover Sport combines refinement with a sense of adventure it matches your own
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  versatile lifestyle with features like adaptive off-road cruise control you can tackle challenging
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  terrain with confidence the dynamic air suspension always makes sure you get a smooth ride
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  it responds to road conditions for optimal performance so from daily commutes to weekend getaways
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  the Range Rover Sport is ready for whatever you have planned it's more than just a vehicle
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  it is a companion for all of your journey so if you're ready to elevate your driving experience
• 54:13
  visit Land Rover USA dot com and configure your Range Rover Sport today so let's talk a little bit
• 54:20
  about all the different wealth building options so people are looking at stocks bonds real estate
• 54:30
  startups crypto what what what else could there be they could invest I guess invest in a business
• 54:38
  I mean if you're a little bit more advanced you're looking at like reets or funds
• 54:44
  tea bills like it's like a million and one different things that you can put your money into
• 54:49
  so let's let's start from the beginning where should people start looking you know
• 54:56
  again I don't recommend what I do to anybody else all I can talk about is what I do
• 55:01
  why don't why don't you recommend what you do I don't recommend what I do because
• 55:05
  you're gonna have a different risk tolerance in me you're gonna have a different goal than me
• 55:10
  you're gonna have a different time horizon than me you're gonna have a different way that you
• 55:13
  want to get paid than me and so you can make the same investment says me but you might be very
• 55:19
  unhappy with the way the investments turn out so I invest some money in five primary places
• 55:24
  number one is my own business briefs media number two is in physical real estate
• 55:31
  number three is in stocks number four is in my speculative assets which is a small piece of
• 55:37
  my portfolio speculative is about maybe maybe 18% maybe a little bit less but around 18% of my
• 55:44
  portfolio and then gold physical gold is about two percent of my portfolio now what I invest
• 55:51
  in real estate I'm looking for cash flow that's the what I look for when investing stocks I have two
• 55:59
  strategies one strategies what I call active investing which is more fundamental investing investing
• 56:04
  in individual companies the other is passive investing which is what some people call dollar cost
• 56:10
  averaging investing into funds like ETFs and again the majority of my stock market investments
• 56:19
  especially my passive ones are for cash flow meaning dividend paying funds because I like cash
• 56:25
  flow that's my goal is to just stack cash flow that way I can get paid every month or every quarter
• 56:30
  and use that income or reinvest it then in the speculative side of things this is where I invest
• 56:37
  in things that I think could go up very quickly but could also fall just as hard I did not
• 56:44
  start getting into any speculative assets and tell that built a very strong foundation and stocks
• 56:48
  in real estate and so for me speculative assets came last essentially because that was like this is
• 56:55
  more of like a little more fond more risky a lot of people get into the speculative stuff first
• 57:01
  because they're trying to find the thing that's gonna pop off and make you a lot of money but that's
• 57:04
  the same thing that can also lose you everything so I like to for me I wanted to build the foundation
• 57:09
  first stocks in real estate they came real estate first then stocks but then from a speculative
• 57:14
  investments that's things like startups that I invested and then also cryptocurrencies as well
• 57:21
  and then lasting a physical gold which is a very small piece of my portfolio and I've been investing
• 57:27
  in gold for a little bit of a number of years but for me I look at physical gold as a way to save
• 57:33
  hard money I don't really look at it so much as an investment because my gold isn't really producing
• 57:38
  value it just sits there and so for me my theory is if I took $10,000 with the cash today and $10,000
• 57:45
  with the gold today and buried them both in my backyard my theory is that the gold in 10 years is
• 57:51
  gonna have more buying power than the cash so that's why I own a little bit of physical gold and
• 57:56
  it's a little bit of insurance doomsday protection but again it's a small piece of my portfolio
• 58:02
  the bulk of my assets are all their places I think the issue is that and I love the diversification
• 58:09
  I think the issue is that people who aren't investing they put 100% of their money into speculative
• 58:16
  assets and they don't do they don't do all the best practices because they heard that somebody bought
• 58:21
  Bitcoin and got rich which is not what you should do diversification is key and when you think about
• 58:26
  sort of like safer blue chip real estate versus stocks which I think is the safer the safer decision
• 58:36
  that people can make for real estate is there an active component or a management component or an
• 58:45
  education piece that you'd recommend people understand before they start to invest in real estate or
• 58:52
  when you have somebody who's just starting to invest would you just recommend they put their
• 58:56
  money into a fund or read or something where they don't have to worry about property management
• 59:05
  any of the like like trying to find tenants or like all the other nuances that come with
• 59:10
  like owning property yeah for me I don't manage my own properties I never wanted to I never
• 59:15
  wanted to be the person that was getting calls with a toy that was clogged I never wanted to be
• 59:19
  that person yeah so I bought properties with the intention of hiring a property manager because
• 59:25
  I wanted to be an investor I don't want to be a manager of properties a manager of properties
• 59:30
  is essentially an employee I wanted to be the investor and so that was kind of my start I do I did
• 59:39
  also that invested real estate funds kind of like what you mentioned but I like investing in properties
• 59:44
  itself that's something that's interesting to me but the education component that you talked about
• 59:50
  is you got to be ready to get screwed over if you want to invest in real estate and you got to be
• 59:54
  ready to go through a stressful initial period of time because when you don't know anything when
• 1:00:02
  you're getting started in real estate it's the whole business so you're gonna go out and figure out
• 1:00:06
  how do you buy a property how do you find a good realtor who's gonna find your properties and then
• 1:00:12
  you're gonna start looking at properties then you got to figure out what types of properties you
• 1:00:14
  want and then the next thing you got to figure out is how do you actually close a deal how do you
• 1:00:18
  find the right attorneys to help you with that and then once you close a deal how do you find a good
• 1:00:24
  contractor that's gonna be a whole thing in and of itself once the property is renovated then you
• 1:00:30
  want to find a good property manager again there's a whole lesson to be learned on there and you
• 1:00:37
  I do recommend you read books I do recommend you take classes but you're gonna get screwed over
• 1:00:41
  and that's gonna be a real life education happens to everybody it's a part of the process and you
• 1:00:45
  got to be willing to go through that if you want to invest in real estate and then you got to find
• 1:00:50
  the right tenant and again the whole process know when you have a good property manager they're
• 1:00:56
  gonna do a lot of that work for you but you got to know how to find a good property manager and the
• 1:01:00
  best way to find a good property manager is by having a couple bad property signatures so at
• 1:01:04
  least that's what it was for me so you guys it's just got you got to be willing to get punched in
• 1:01:09
  the mouth you got to have that entrepreneurial like yeah like hey I want to do this and I'm really
• 1:01:13
  to do what it takes if you don't want to don't do it because there's gonna be a nightmare then
• 1:01:18
  but at the end of the day like you you live once and you really just have to go through this painful
• 1:01:22
  period once in your life to figure it out and then and just I mean because you're in it now and
• 1:01:28
  again I just want to point people I guess to start who are just started to invest towards sort of
• 1:01:33
  blue chip diversified stock portfolios or real estate and I think that people can understand and they
• 1:01:39
  can look they can look for a lot of advice on on on what kind of companies are a little bit safe
• 1:01:45
  for bets to buy into or what kind of groups of companies where they can just go into the S&P 500
• 1:01:51
  and that also is just a great way to start investing as well but for for real estate people there's
• 1:01:57
  a lot more moving parts or feels like a lot more things you have to figure out yourself and even
• 1:02:03
  for a property management I mean you've got through some bad ones but just so somebody understands
• 1:02:09
  what does good property management look like so people can be the best real estate investor is
• 1:02:14
  not employees and what's a good percentage of income or how does their financial model work
• 1:02:21
  just so people know what to look for if they're trying to do real estate the way you're doing it
• 1:02:25
  which I think is just a smart way so property manager is gonna charge you either a flat fee or a
• 1:02:29
  commission or a fee based off of how much rental income you drive I have worked with boats
• 1:02:37
  they both can be good they both can also be bad I generally prefer the percentage of rental income
• 1:02:44
  because that means if you're not getting paid your property managers are getting paid
• 1:02:48
  and it gives them a little bit of incentive to keep up on what market rents are and to keep the
• 1:02:54
  property leased the second thing I like to really look at when it comes to fees is maintenance costs
• 1:03:01
  because every property is going to have maintenance costs and every property manager
• 1:03:07
  company is going to have a different way to go about that some property management companies are
• 1:03:11
  going to have one preferred contractor some are going to do it completely in house some are going
• 1:03:17
  to have a few different contractors that they work with but the key key key key thing that you
• 1:03:23
  want is number one are you paying the property manager a separate fee to oversee the work there
• 1:03:30
  was one property manager that worked with briefly they charged a 10% oversight fee on all maintenance
• 1:03:37
  that was done so if a contractor goes out there and does a $3,000 job the property manager would
• 1:03:42
  then charge 10% on top of that to oversee it they're not overseeing anything and that means there's
• 1:03:48
  no incentive for the property manager to find you a cheaper price because they make more money
• 1:03:53
  when the contractor charges more money so I don't like that I'm not a huge fan of property managers
• 1:03:59
  charge a oversight fee of maintenance I think that should be included in the maintenance charge
• 1:04:04
  because I don't want them to be incentivized to do more maintenance I want the right amount of
• 1:04:09
  maintenance and then just understanding kind of what is the property manager going to do the full
• 1:04:16
  day-to-day duties how do they screen tenants a lot of property managers really tout the importance of
• 1:04:24
  how fast they can get a property leased which is good but then you got to ask them the second
• 1:04:28
  question how long do the properties stay leased for because if they can lease a property in two days
• 1:04:34
  great but if that tenant moves out in 90 days that's not so good and so you want to know are they
• 1:04:39
  keeping their tenants for 12 18 24 36 months or are they keeping their tenants they're finding
• 1:04:45
  bad tenants just to put in there because they can get a lease commission and then do it again in
• 1:04:50
  a few months so you know I would say start with those questions very good and is there on the on the
• 1:04:55
  stock side I'm not gonna I'm not gonna ask you but speculative because that's not where people
• 1:04:59
  just start at all but on the stock side what would be sort of best practices for just looking at
• 1:05:07
  where to start I guess some of the few funds I say the average America should not be investing
• 1:05:12
  in individual companies just because that's gonna require you to keep up with the financial
• 1:05:16
  statements the earnings calls and everything in between there are funds like you said to keep
• 1:05:20
  the exposure to the general stock market or to the S&P 500 which is a group of the 500 largest
• 1:05:26
  companies in the stock market so instead of trying to find the next Amazon the next Tesla the next
• 1:05:31
  Apple you could invest in the stock market and we know that the stock market has historically
• 1:05:37
  gone up over the long term yes we see market crashes yes we see recessions as a part of the system
• 1:05:42
  but if you look at the markets long enough you'll see the markets have gone up and so if you don't
• 1:05:48
  want to have to deal with the psychology of how do I know what the right investment is and this
• 1:05:52
  is company going to go into bankruptcy there are funds that will give you exposure to the total
• 1:05:56
  stock market for example I'm not telling you what to invest in this in the example VTI is an ETF
• 1:06:03
  gives the exposure to the total stock market SPY is an ETF that gives the exposure to the S&P 500
• 1:06:10
  those are two places where you can just start by looking yeah in research and that's not investment
• 1:06:14
  advice but just know where no no the options I think that's very important I mean you look at
• 1:06:19
  these options I mean uh so let's talk to the to the 80% of the American population that does not
• 1:06:27
  invest and is trying to figure this out and all they've heard about is 401k so what do you think
• 1:06:34
  about the 401k is this a a program that people should take part in is it better than nothing
• 1:06:40
  or is it just a waste of time no it's better than nothing I mean it's a it's the most
• 1:06:44
  accessible way to start investing but I don't do it I don't invest in a 401k I don't use tax
• 1:06:52
  to further comment accounts that I don't have an IRA or a 401k because you can get a lot of
• 1:06:57
  tax advantages through real estate so for me it just it doesn't make sense for me but they do make
• 1:07:03
  sense for other people so yeah I mean if you have a 401k if you've never invested before start
• 1:07:10
  there but then start doing something else on your own as well learn about expense ratios and fees
• 1:07:17
  if you have a 401k understand that your 401k is charging you a fee it's called your expense ratio
• 1:07:23
  take a look at what that is and then I want you to go onto google and search expense ratio calculator
• 1:07:30
  and then see how much is the expense ratio costing you because a small one percent fee could be
• 1:07:36
  eating up hundreds of thousands of dollars of your investor portfolio and fees and you might be
• 1:07:44
  able to find lower fee funds that can give you similar returns so you know just do a little
• 1:07:51
  bit of research and that's where your education can start but then as you're doing a 401k
• 1:07:57
  start investing on yourself by yourself as well and then see what the options are do what's
• 1:08:02
  better for you and I think that people probably don't think about those fees because if I think
• 1:08:06
  about some of the larger companies I'm sure some large companies I mean I haven't worked in the
• 1:08:09
  company for a while now but there was a time when I did and they had their own like they had
• 1:08:16
  their own investment options and you could allocate a portion of your paycheck to this like pool
• 1:08:22
  of different companies so there's like companies do offer options for investment some of them do
• 1:08:26
  I guess in Canada was RRSP matching and I guess here before a 401k matching and there's some options
• 1:08:32
  there but I think that it's important like that's better than nothing but just I think the self
• 1:08:38
  education is this key because like you mentioned you may not be aware of the fees or you may not
• 1:08:42
  be aware of how it works like everybody's making money somewhere if you are investing so you got
• 1:08:47
  to figure out how you can keep the most of your own money I think that's very very important um
• 1:08:54
  what would be you speak a lot about like mindset and I think that's just something that I love to
• 1:09:02
  reframe what is like a major mindset shift if you just want to sort of leave this piece of wisdom
• 1:09:08
  with the audience what is a major mindset shift that you want people to have around money
• 1:09:12
  and investing if they have not started yet uh two there's just two I would say number one is that
• 1:09:18
  you can and will become wealthy if you don't believe you're going to become wealthy it's going to be
• 1:09:23
  impossible if you believe you're going to become wealthy you're going to find a way to do it
• 1:09:29
  and the second thing is understanding how money plays a partner life money is a tool
• 1:09:34
  it doesn't make you a good person doesn't make you a bad person just amplifies who you are
• 1:09:39
  you have to understand how money plays a partner life what I say is you want to be fit in four
• 1:09:44
  areas this is my quadruped theory you want to be physically fit financially fit
• 1:09:51
  sorry physically fit mentally fit spiritually fit and at the top financially fit
• 1:09:58
  firstly you got to be physically fit because if you're morbidly obese or on your deathbed the only
• 1:10:02
  thing you want us to be healthy again when you don't feel good you don't care about how much
• 1:10:06
  money you have at the bank all you want to do is feel better if you're not mentally fit if you're
• 1:10:11
  not happy if you're surrounded by toxic people if you feel depressed or anxious all you want to be
• 1:10:16
  is happy and that is something you have to work on it is own quadrant spiritually fit doesn't
• 1:10:24
  have to mean religious this is what's your purpose what's your reason for getting out of bed
• 1:10:28
  every morning you might feel like you're getting a sense of purpose you're fulfilling your sense of
• 1:10:33
  purpose I try to earn some money but once you get that money you're going to feel very miserable
• 1:10:37
  so you got to understand what gets you excited and what what are you doing this for it and then
• 1:10:41
  your financial fitness just buys you more freedom and it's a different aspect but it's an important
• 1:10:49
  aspect of your life and each one of these four things physically fit mentally fit spiritually fit
• 1:10:53
  and financially fit have to be worked on independently I love that what would be the biggest
• 1:10:59
  misconception about money and investing that you see with all the people that you interact with
• 1:11:05
  with all the people that consume your content the biggest misconception I mean there's a lot
• 1:11:09
  when we discussed quite a bit of them but I think the biggest misconception just goes back to
• 1:11:14
  that somebody like me can't become wealthy when in reality you can you just have to number work
• 1:11:21
  do you people feel that people legitimately feel that why do you think people feel that is it
• 1:11:26
  just based on where they came from what they either where their family taught them there's a number
• 1:11:31
  of factors uh what you said is definitely a factor oh the reason why poverty is many times
• 1:11:37
  generational isn't because it's in your DNA but when you grow up being told we can't afford that
• 1:11:45
  we're not rich they are rich we don't have the money for this as you start to get older that
• 1:11:52
  becomes ingrained in your mind and then you get married you have a kid and your kid wants to have
• 1:11:57
  nice things and you say we can't afford that we're not rich we don't have the money for that
• 1:12:04
  and then that mindset kind of becomes the standard and so you have to break that mindset
• 1:12:09
  sometimes it's a you know nature versus nurture what else you could expose to in your life
• 1:12:13
  if you get beat again and again and again sometimes you know you do get beat and you gotta be
• 1:12:20
  having that grit to keep getting up so you have to believe that is possible you gotta be willing
• 1:12:26
  to put in the work you gotta have that grit to keep going even with things get hard
• 1:12:32
  because that's where the real success comes yeah that's that's that's so smart um
• 1:12:37
  what would be I mean we spoke about a lot today what's something that that I didn't ask you
• 1:12:43
  that I that I should have asked you something that that you think people need to hear um I think
• 1:12:49
  the if if if if we break it down of how do you find them who focusing on the financial side
• 1:12:53
  because we've talked about now just general life the way you find the best returns the way
• 1:12:59
  you find the best opportunities is to understand any three things number one you gotta be
• 1:13:02
  financially prepared that means understanding that you gotta have money to invest the mistake
• 1:13:10
  a lot of people make is you start preparing with things go wrong but you want to be prepared
• 1:13:16
  what times are okay that way you could take advantage of opportunities when times are not okay
• 1:13:19
  so that means get out of credit card debt save some money have money to invest
• 1:13:24
  second you want to be financially educated that means knowing how to find a good investment
• 1:13:29
  whether it's an ETF an index fund or an individual company or a real estate investment that means
• 1:13:33
  analyzing those investments studying that watching YouTube videos on it reading books on it maybe
• 1:13:38
  taking classes on it and then you want to be able to identify financial trends nowhere the money is
• 1:13:44
  moving no which industries the money is moving into and what is moving out of because you don't want
• 1:13:49
  to put your money into an industry where all the money is moving out of you want to go where the money
• 1:13:52
  is moving into and in the intersection of those three that's where you can find the best opportunities
• 1:13:58
  I love that and this is this is I mean this is what you start to you start to incorporate into your
• 1:14:03
  life right now like you said like that that whole framework of breaking down how much of your income
• 1:14:10
  goes into what you can spend what was it say it was 75 it was it 15 can so that starts now so
• 1:14:18
  that you are you are creating this this safety net for when things don't go well for when your
• 1:14:23
  business is no longer going well when you lose your job when unexpected medical bills come in you
• 1:14:30
  have a car accident got for bit any of these things that happen that you're not expecting you're
• 1:14:36
  not worried about it because you're not paycheck to paycheck and when you adopt this mindset of
• 1:14:40
  education building a safety net before you need it that's when I think first of all it impacts
• 1:14:46
  your life in a major way because now you're not stressed or not burdened you're not when these
• 1:14:50
  things happen but also you said you could take advantage of these situations whenever they present
• 1:14:55
  themselves so that you don't you don't feel like you you won't miss out because you have this
• 1:15:00
  safety net that you've already built I guess great advice very very good advice where so you have
• 1:15:06
  a whole media company now so obviously people know you from YouTube but they also can go check out
• 1:15:11
  your newsletter so where do you want to send and all your other sales so where do you want to send
• 1:15:15
  people is there one website that has everything or are there different links social links whatever
• 1:15:20
  we'll put it all in the show notes too but let me yeah so if you like to join market briefs is my
• 1:15:24
  free financial newsletter where every day my team is breaking that was happening in the financial
• 1:15:28
  markets that's the economy stock market housing crypto and the global economy you can just google
• 1:15:33
  market briefs or you can go to briefs that's CO slash market and then if you want to check out
• 1:15:39
  my YouTube channel where I talk about all things financial education that's minority mindset on
• 1:15:43
  YouTube good perfect I was going to say the last thing that I love to ask because you've had an
• 1:15:49
  incredible life you've gone through different seasons in your life if you look back and you
• 1:15:53
  wanted to tell your 20 year old self one piece of advice what would that piece surprise me you know
• 1:15:58
  the funny thing is I probably wouldn't say anything because I got to go through the crap you got
• 1:16:03
  to go through the crap to learn the lessons but if I was going to say anything it's just keep going
• 1:16:07
  and take bigger risks you know yeah I don't regret anything that I did so for me it's just
• 1:16:14
  just keep doing what you're doing and just take don't be scared to take bigger risks
• 1:16:19
  you