What Every 20-Something NEEDS To Hear About Money

What Every 20-Something NEEDS To Hear About Money


What’s up everybody,
I am Jaspreet Singh, and welcome to the Minority Mindset. You are a young
professional and you want to be smart with your money, this way you can be rich
while you’re still young, this way you can enjoy your life, and be financially
stress-free. But uh, how do you do it? Well, you’re in the right place because
today, we’re gonna talk about the best ways to use your money when you’re young
to build your wealth, so hit that thumbs up button, and subscribe to the Minority
Mindset YouTube channel, that way you don’t miss our new videos every single
week, and now, let’s get into it. You can think of building wealth kind of like
rolling a snowball. You start off with a small snowball the size of your fist, and
you pack it real tight, and then you go on top of a snowy hill, and then you
start rolling the snowball and slowly, slowly, slowly, after a little while it’s
gonna grow to the size of your face, and now, you keep pushing it and rolling it,
and it’s growing a little bit faster, and after a little while longer, you’ve
realized that the snowball grows to about the size of your hips, or to your
hips rather, and you’re pushing it and it’s growing faster, and faster because
now the snowball is bigger, so it can attract snow faster, and you’re going, and
you’re going, and you’re going, and then oh my God! The snowball is about to roll
over your house! The earlier you start, the faster you’ll be able to build this
wealth snowball, which is why the best thing to do in your 20s is to invest
very aggressively, this way you can build a machine that’s making you money
faster and faster each year. Time is so important for your wealth snowball to
grow, this way once you get it really big, it can attract snow, or money, much faster.
Like, Warren Buffett, one of the most successful investors of all time, ninety
nine percent of his wealth was built after his fiftieth birthday. Before he
was 50, he was still super rich, but after 50 he became unbelievably rich. Now
that you understand the importance of starting young, the next thing you have
to understand is that investing isn’t just something you do once.
Aaand done. I just bought some stocks. Well, I guess I’ll check back in 50 years…
Being a successful investor means making consistent investments to your
investment portfolio every single month, even if your contributions are small. The
best thing you can do is create a financial plan for yourself, this way you
don’t have to tell yourself how much to invest, your plan will tell you how much
to invest each and every month, and I’ll grab my whiteboard so I can show you
exactly how to do it. If you are young, and you don’t have a lot of financial
responsibilities, I want you to follow our 50/30/20 plan, which says you should
be spending a maximum of 50 percent of your income on yourself, you should be
investing a minimum of 30 percent of your money, and you should be saving a
minimum of 20 percent of your money. So, for every dollar you make, you can spend
50 cents, you can invest 30 cents, and you should be saving 20 cents. If you have
more financial responsibilities, like you have people relying on you financially,
it’s gonna be a lot harder for you to live off of just fifty percent of what
you make, which is why you should follow our 75/15/10 plan, which says you can
spend a maximum of 75 percent of every dollar you make, you should be investing
a minimum of 15 percent of every dollar you make, and you should be saving a
minimum of 10 percent of every dollar you make. Now, I know what you’re probably
thinking: “But Jaspreet, why are we investing more than we’re saving? I mean
my math teacher told me that saving is the key to building wealth”.
Well, sorry Billy. Your math teacher is wrong. Saving is losing. Investing is the
real key to building wealth, which is why we’re gonna be investing more than we
save, and not just that, after you save six months worth of expenses, so after
you’ve put aside six months worth of expenses in your savings account, you
will not save another penny, because saving is losing, and after that, you will
double down on investing, and then take this saving money, and invest it. And if
you don’t believe me when I say saving is losing, I already made a video where I
explain exactly why, and I’ll link it in the description below for you to watch after
this video. So, now that you’ve made the decision of how much money you should be
investing each and every month, now it is time for you to make a decision: how hard
do you want to work? There are two ways to invest your money: you have the active
way, and you have the passive way. The active way is when you invest in
yourself. If you have a business idea, you can be your own investor by taking your
money and investing in your idea, or you can buy an existing business through a
franchise, or buy an online business, essentially you are investing this
money to create more income, but you are actively working to grow your money
through this business creation model. Passive investing on the other hand is
where you send your money to work, and then you walk away, and you let your
money do its thing, and that’s it. At first glance the answer might be
obvious; Why would I want to do an active investment if I could just be a passive
investor? Well, the returns are very different. If you are a passive investor,
the returns tend to be a lot smaller than if you were an active investor. Like,
if you invested one thousand dollars in the stock market, after one year, you can
expect to earn an average $70 to $100 after a whole year of doing nothing
except just sending your money to work. But, if you took that $1,000 and you use it to
start your own business, you could turn that $1,000 into ten thousand dollars
after one year. If you are young and want to live big, well then this is your time
to go the active route and take more risk and put in that time. And, of course,
this upside does come with sacrifice too, I mean, it takes a ton of time and work
to build a business. It can be stressful and there’s risk involved, so it’s not
for everyone. But, if you can build your own profitable business and you can
start this on the side or in addition to your work, well now you will have more
money to fuel your passive investments. And if you’re young, and don’t have kids,
and you’re not married, it’s a lot easier to do this, because you have less people
relying on you. Whether you decide to go this active route or not, you have to do
this passive investing, and there are a number of ways to do this sort of passive
investing. Whoa! A beard oil company just went public. Let me invest in that! I’m a
very simple investor; I don’t like to invest my money and then have to wait 10,
20, 30, 40, years to see a return on my money. I want to start seeing my
returns a lot sooner, which is why I invest for passive income. In the stock
market that means investing in companies that pay dividends. Dividends are regular
cash payments that companies pay you just for owning them. Like, I used to own
a lot of shares of the McDonald’s Company, and every three months
McDonald’s would deposit money into my account, and I never had to sell a single
burger. You don’t need a ton of money to do this, I mean, you can start investing
with a couple hundred bucks and start getting those dividends. No, you’re not
gonna become a millionaire off of your dividends from a two hundred dollar
investment, it’s just gonna be a few bucks, but some passive income is better
than no passive income, and everybody has to start their wealth snowball from
somewhere. Now, my favorite way to invest for passive income is to invest in
income producing real estate, which are things like homes or apartment complexes
that I buy not to live in myself, but I’m buying them to rent out to other people
who have to pay me rent every single month for living in my property. The
thing that a lot of people get confused about real estate is they think:
“Oh, I don’t really want to do this whole real estate investing thing, because I
don’t want to have to clean toilets, and deal with tenants, and do all of that”.
Well now, my real estate investments are completely passive. What you can do is
after you buy some real estate that you want to buy as an investment, you can
just hand over the keys to a property management company—who don’t necessarily
want any money upfront, they’ll just take a percentage of your rent that you get—
and then they’ll handle all the work. Would you be surprised if I told you
that I already have a lot of videos on real estate investing? Yes? Well, then my
friend, you are easily surprised, because I have made some videos on this, and I’ll
link them in the description below for you to watch after this video. But, don’t
forget about the financial system we created in the first place! If you’re
making an extra $1,000 a month from passive investments, well you want to
send this $1,000 down this financial system again, this way you’ll be spending
some of it, you’ll be investing a piece of it, and you’ll be saving a portion of
it, until you save six months worth of expenses, this way, you can live a little
bit better, you’ll be investing some more so you can make even more passive income,
and you’ll get to your savings goals much quicker. The key to making smart
financial decisions is, one, understanding what to do, and second, knowing what’s
happening in the finance and business world, this way you can make smart money
decisions, and that’s why we created the free Minority Mindset newsletter, where
we break down the most relevant finance and business news stories, and then we
show you how this news affects your wallet, this way you can be money smart.
This newsletter is completely free, and you can subscribe to it by clicking the
link up here, or by clicking the link in the description below.
Thank you for watching, if you enjoyed the video, hit that thumbs up button and
share with one friend, so we can help spread the word.
Don’t miss our new videos on entrepreneurship, business and money
every Monday, Wednesday, and Friday at 7:30 a.m. Eastern Standard Time, so hit
the subscribe button, and the notification bell below, that way you
actually find out when our new videos are released, and as always KEEP HUSTLING
*

98 thoughts on “What Every 20-Something NEEDS To Hear About Money

  1. First

  2. Nice video!

  3. gday mate.. from down under..

  4. 3rd

  5. Notification squad

  6. FINALLY, THE MUSIC IS BACK

  7. I am old. I was too foolish to be serious about building my wealth. I am now 43 and am beginning to invest and trying to get right. I have become a huge fan of Minority Mindset. Have you or will you make a video for us "late-bloomers"? Blessings to you Jaspreet.

  8. Nice video tho I want to see something new… Mind blowing

  9. One of the best things to take advantage of a company 401k matching. It is FREE money.

  10. Super awesome!! Thanks!!!😊

  11. Great tips for 20 somethings but also true for anyone! 👍

  12. I’m only 20 this is not for me

  13. I’ve never heard it like this, but couldn’t agree more! Great video! Save, invest and get your money right to build wealth! Thanks for sharing!

  14. Thank you for making a great video for young adults today.😊👍

  15. How can I buy stock that pay dividends?

  16. Currently In Detroit for Christmas. Would love to meet you !!

  17. Hey jasprewt huge fan I've been watching ya videos everyday since I found u in August keep up the good work

  18. 17th!!! 😜

  19. What advice do you have for us 30-something-year-olds?

  20. Always a bonus to start the day with a Minority Mindset video.
    #RewardYourself #MIH

  21. reporter: why did you open up a second restaurant

    Mr.crabs: Money

    I think that's the best financial advice I've ever gotten

  22. Use the golden rule of 20/60/20! Good video

  23. I’m trying to save my money. I already spent over $1,000 in tools and soon I need to buy some safety harnesses and gear for ironworking.

  24. I had to find Doc Brown’s Time Machine to watch this video…..I’ve traveled back to the year 19** now I’m 20 years old again! 😄😄

  25. One of the most important things I learned was how to make a financial plan that works for me. It’s also important to revisit the plan and adjust as needed.

  26. Jaspreet, I love the snowball analogy. I tell my kids it is all about the base. Build a base and over the years the interest on the base will soon pass your earned income. Ten percent on $1,000 is $100. However, ten percent of $100,000 is $10,000. Ten percent on $1,000,000 is $100,000. Now we talking about real money.
    I disagree with the dividend philosophy. This may work for some people, but since dividends are taxed it would be better if the company reinvest gains or do a share buyback like Warren Buffet's company Berkshire Hattaway. Warren Buffet is anti dividends. He sees it as a needless taxable event for the shareholders.
    Also, while I agree that entrepreneurs are more likely to become filthy rich on their own efforts, most people (80%) who start small businesses lose money within the first five years. Most never recover their losses.

  27. The biggest is that what you do in your twenties more certainly will define the kind of person, success and specially financial life you will have, so many people dont realize how important that is. If youre older you still can make change, dont get discouraged, dont give up.

  28. Listen to him people.
    Start now. Live well below your means.

    The fun really starts when you have passive and active investing going.

  29. Great video as always, Jaspreet! Budgeting is essential no matter what age you are.

    One person in the comments said they were late to financial education. If anyone else feels like this, please understand that its NEVER too late. Watch Jaspreet's videos (and some of mine while you're at it 😊) and you'll learn all the information you need to be financially literate.

  30. Jaspreet has been going to the gym before the New Years. Nice guns there man. When is the minority mindset fitness channel coming?

  31. Most Americans have a debt snowball… but it’s chasing them down then hill. 🤦🏾‍♂️

  32. Thank you for watching! If you enjoyed this video, you should watch – 7 Ways To Make MORE Money In 2020: https://youtu.be/n_OlKTO4SGA

  33. 👍🏾👍🏾👍🏾

  34. Everything in life is sacrifice. No sacrifice no victory.

  35. Right now I'm just contributing to my 401(k), but right now my employer is contributing more than me. Last paycheck I contributed $75.55 and my employer contributed $125.92. After my pay raise goes through I can begin looking into investing, cash is a little tight at the moment.

  36. Jas, what wristwatch is that? It’s bang on👍 I also agree with some of the other comments on doing a vid for those in their mid 40s who are now in a better position to invest especially in markets outside of the tri-state area.

  37. How'd you know the snowball rolled over my house??

  38. Great video! Do something that adds value to who who you are. Invest in who you want to be. 50/30/20- Powerful formula!

  39. Whatever moves you make in your 20s basically become exponential as you age 🤷‍♂️

  40. Property management companies, yummm. Great content as always. Love your work!

  41. Anything worth fighting for has risk that needs to be calculated before jumping in.

  42. You always tell us that economic downturns are the best time to invest. My concern is if I only have 3 or so months of money set aside, how can i invest in realestate. If all my non liquid cash is in the stocks that could be alot less at the time than what aas initially invested

  43. Saving is defienlty losing. I had (estimated number of) 30$ saved and now it's down to 27.08 (due to fees of 2.99). Now 30 to 27 may not be a lot but it's a lot for me. Especially when that 2.99 didn't go anywhere to my benefit. Do Not Just Save Alone. Invest, Invest, Invest!

  44. But what do we invest in?

  45. I appreciate your videos 🔥🔥

  46. Feel like I am watching Dave Ramsey

  47. Hey I just wanted to let you know because of you I got my butt in gear and learned how to invest in Robinhood it’s nothing special but it’s a start I will be documenting my journey with Robinhood on youtube soon, but thank you for teaching me the value of investing and investing in general never change and keep being awesome looking forward to more amazing content!!

  48. Every month? How about every pay check? 😃 At a rate of 25/70/5!

  49. If you do this at early 20s you’re almost guaranteed to succeed

  50. Veerji
    What's your take on the CrowdStreet platform. Can I get into it as an international? Please make a video on that

  51. This is great!! Helps me not rely on my 9-5. But you should be rich bro!!

  52. Thank you! ❤

  53. Can you do something for 31 years old?

  54. Dude this is awesome. Thank you for sharing. First I need to pay off all this silly credit.

  55. Unfortunately I hear it, practice it, and preach it to my friends, but they don't do the same.

  56. How do I start investing? Is there an app you recommend?

  57. In my early, early 20s. Finally at a point where I can pay off more and more of my credit card debt.

    I’ll definitely be looking into investments in a near future.

    For now, I’ve decided to go all in with taking out all my debts over the next few months.

  58. Love your stuff, my business is starting February, thank you for the inspiration

  59. So what should I do, Jaspreet? Should I just invest in index funds through Vanguard? I'm not sure where to put my money and I def don't have enough money for a financial advisor

  60. When you open another two accounts. One for the investing and another for savings. Would you open both of them as savings accounts or both as checking accounts?

  61. Hello Jaspreet…Please make a video on how to start real estate investing in India…here the property seller demands you to give him upto 50% of the total value of the real estate in cash i.e. black money…so that he can save up on taxes…and that decreases the value of the property on paper…so banks wont give u that money u paid in cash to him in loan…so how can i pull this off…please make some videos dedicated to real estate investing in India 🙏🙏🙏

  62. Can a house purchase for myself work as an investment or as savings? I’m confused here lol

  63. I make a total of around $200 a month (yes quite a little I usually get 8 hours of work weekly and minimun wage is $7.25 per hr) but from that amount I basically save (Sometimes i make more if i get extra hrs or side stuff but not too often that happens)

    $80 a month for future investments
    $50 a month for a future cruise with my Gf
    $20 a month for Emergencies Only
    The other $50 Is for Gas, Offerings and other maintenance stuff like car check ups, Doctors etc i don't really spend if i don't have too
    And occasionally i go out with my Gf cheap places etc.
    Just waiting for my darn Nursing license! Then I'm going to be way better off.

  64. What if the companies decide to stop paying dividends during a multi-national recession? How bout that video? Really.

  65. Can you please explain why you want dividends? They're less effective because of how they're taxed. I just don't understand dividend investors

  66. 3:30 Might that advice stem from a time when the interest on a savings account was (much) higher than it is these days?
    7:59 No, because I've heard you talk about it a number of times already.

  67. compound interest is a beautiful thing, any fellow teenage investors watching?

  68. I’ve been binge watching your videos for the past two weeks. I’m 22 and recently quit my job to focus on bettering my health and to grow my own business. I went from $400 saved up in the bank and nothing else, to 1k in the bank and $200 in stocks from investing through the app Robinhood with $100 in cash! I’m still all new to this but I’m much farther than where I was. Thank you so much for your help!

  69. Hey! I love your videos! I was wondering if you could direct me to how to educate myself on taxes and where to learn this in my state of california. Where would i begin? Who would i have to talk to to gain more knowledge.

  70. Saving is loosing … Well said mate.

  71. Facts

  72. the youth have been robbed, Native Americans have been decimated, Black Americans displaced, set back and all but eradicated – and THIS guy still wants to talk about money…like its the 80's and 90's …

  73. Usually love the vids but this one gets a rare thumbs down. You're completely missing the fact that so many 20-somethings (every single one I know as just one example) is working 2 to 3 jobs and NOT MAKING ENOUGH TO SUPPORT THEMSELVES — there is no "30" or "20"! It's either break even at the end of the month at best or a negative balance and having to go without!

  74. How do you invest money?

  75. Giving myself a little raise this year- August to December I started investing and threw in $7k to start- putting 8% more annually this year minimum. However for dividend stocks I want the portfolio to at least be $100k before I even think of taking back any of the dividends from it.

  76. I've seen this video from you before

  77. Just make sure that property manager is legit

  78. I only have 30 days left to be a 20 something, so… I reckon I'll listen. Lol

  79. Jaspreet 'The Lion' Singh! This was a really great piece of investment advice. Thank you,

  80. Have you looked at a 20 year old lately ??

  81. Im 22. Evey one says invest invest invest. What does that even mean!? How/ what do you invest? Saw your video on not investing in 401k but….. what else do you invest in.

  82. Perfecttt I’m on track for financial success 🙂 started at the ripe age of 19 years old.

  83. Great information as usual thanks again.

  84. AMEN!!!

  85. Love the video next time can you go more in depth in stock

  86. I’m glad to have found this channel because no one has ever explained to me how the financial system works

  87. Where do you invest your money to? Like how do you know who or where to invest your money? I'm confused.

  88. Good stuff Jaspreet!!

  89. Great video!!!!!

  90. Enjoyed! Keep on husslin’

  91. Very True Jaspreet

  92. What if I don't want to spend 50% of my income XD

  93. Much love Jaspreet! Keep doing your thing.

  94. Good advice!

  95. Happy New Year 2020!
    Really appreciate your videos and great content.
    Keep up the great work!

  96. You say saving until you have 6 months wage. What if I want to buy a home for my family do I use that 10% of my wage and add it to the 15% to invest in stocks once I have saved 6 months or should I then put it separate and use the 10% to save for a mortgage?

  97. This is the only video you needed to make. Now you need to teach fractions and percentages so that people that don't know how to calculate how much to invest, save and spend on themselves can figure it out.

  98. Where does short-term saving (like for a car or house or mobile phone) fit into this plan?

Leave a Reply

Your email address will not be published. Required fields are marked *