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If someone lives day to day, what is the first step they can take to break that cycle? Yes, one of the most unfortunate things about money is that we use it every day. It costs money to eat, it costs money to feed others. We're going to work to earn money. However, most of us are never taught anything about money. And what happens to many people is that we go to school to get a good job. And now we go and earn income, and then we go and spend the money. And that recipe is a disaster. Statistically, most Americans live paycheck to paycheck. And by majority, depending on the study you read, it's between 55% and some say as high as 78% of Americans don't have any money left over for a gift, a vacation, let alone an
investment after paying for their basic needs. And now the problem and the question everyone has is why and how can I get out of this? And to get out of it, because that's your question, you have to understand why. Because the reality, and this is going to sound harsh, is that I learned this the hard way. Our system is rigged for the rich and the financially savvy. But they never teach us to be financially savvy. What do I mean? When you understand money, it's much easier for you to get that money and make it grow. When you don't understand it, you're the one making everyone else rich. So, in this system where you work to earn money and spend money, you work to make everyone rich except yourself. Because? Because most of America, and
really the world now, is about making money and spending money. And every dollar you spend is a dollar that goes into someone else's pocket. And in our society, we live in what is called a credit-based economy. What that means is that if I earn $100 at my job, I have the ability to spend that $100 plus, thanks to Visa, Amex, MasterCard, Discover, and all the other forms of debt that exist. And so, if I go out and spend $100, I'm going to make you $100 richer. If I spend $100 plus $50 with my credit card, I just made you $150 richer. So, when we live in a society built around spending, but more specifically credit-based spending, and you don't have that shield, that financial education, that financial savvy to know what to
do with your money, well now, every corporation in the world, every bank in the world, will hire the smartest marketing specialists, the best MBAs to get you to spend your money there because that will make them rich; And you 'll work just to pay bills, just to make them rich, and now you'll never have a chance to get ahead. So this system is designed this way. So, how do we get out? And the way to get out, we can divide it into several steps now. And it begins with step number one, building the right mindset. So I'm going to break it down into seven steps. Step number one is mindset. And when it comes to mindset, there are four different layers to this mindset that you need to understand.
Number one is: I will become rich. Number two is: money is plentiful. Number three is: money is a tool. Number four: it is my duty to become rich. And the reason I say that is that many of us grow up with some kind of trauma with money, some kind of negativity towards money. And people say that poverty is generational. Well, it's not like we have a gene in our DNA that says you're going to be poor. The thing is, you grow up hearing that money is bad, money is evil, we don't have enough money, that's too much money, we can't afford that. We hear this kind of thing as we grow up. And so we began to normalize those things, like, oh, okay, as a kid I can't afford that trip to Disneyland. I can't afford these good things that I want. And then, as you get older
, you start having children yourself. What happens when your children want good things? We can't afford that, that's too much money, that's beyond what we have. So that gets transmitted. That's the mentality that gets passed on. So the first step is that you need to change the way you talk and say: I will become rich. And I did a little exercise. He used to teach as a guest in Detroit public schools. And it was a very tough school district, a very difficult school district, and I would talk to these kids about money, and I think we talked about this in the last podcast, but one of the things I would ask them is, what is your dream car? And many people have dream cars like a Ford Focus or a Dodge
Challenger. And I would say, why not a Bugatti? Why not a Rolls-Royce? And the answer I would receive is that someone like me, with my background, could never have such a beautiful car. So when you tell yourself "I can't," I guarantee you won't be able to . That's why you have to start saying "I will become rich". Number two is that money is a tool. Many people are afraid to talk about money because we feel insecure about our own money. But the reality is that money is a tool that can amplify who you are. You give a good person more money and they have a tool to do more good. You give a bad person more money and they have a tool to do more harm. That's why we need more good people with money who understand that, you know
what? It's just a tool that can allow you to do more to better care for your family, your children, your parents, and your community. Yes, I think the challenge is that we see how much we're worth as a sign of how much we're worth, right? As if there were this idea that we are almost seeing it that way. The reason we feel uncomfortable or insecure when talking about money is because we somehow believe that society values us based on what we earn. And suddenly, we may have begun to value ourselves in that way as well.
Well, this is 100% true. Just take a look at Instagram. Instagram has become a reel of highlights. I'm going to show my best self. But we often don't see it as someone else's highlight reel, we see it as someone else's average. And now let's say you 're in a relationship. Your wife is on Instagram and sees: "Oh my God, this couple is going to Cancun. Oh my God, look at the beautiful house this couple has. Oh my God, look at the car he just gave her." What's going to happen? "Hey, husband, why can't we have these nice things? What are we doing wrong? Why do we feel like I 'm missing out on something?" And so we return to the idea that my money is my value. But that's not true. Money is only one part of our lives. And
you have to understand that more money will allow you to fulfill the financial part of your life, which is important. But the only way to achieve this is by agreeing on the money and creating that separation between the emotional side of money and the logical side. And that can be difficult because often, especially when we have financial problems, we think emotionally. Why are casinos located in the poorest neighborhoods? Why are all these stores designed to profit from people who have no money? It's because when you don't have money, my friend, it's easy to say, "Hey, let me give you a dopamine hit. Buy this pair of nice shoes. Buy this Gucci bag. Buy this or that, aimed at those who can least afford it,
because it gives you that emotional high, that shopping therapy." But that's precisely what keeps you from having money. You look rich, you feel better for a moment, and then you have to pay for it with interest. And at the beginning of this podcast I said that our system is designed to profit from those who don't understand this. Well, the reality is that our system is designed to profit by keeping you poor. And this will sound harsh, but the reality is that banks make money when you are in debt. The more debt you have, the more money they make. Corporations make money when you spend it. The more you spend, the more they earn. The government wins when you lack financial education, because you'll pay higher taxes
and become trapped and dependent on the government. When in reality, by educating yourself financially, you can legally pay less in taxes and not need those same government services. That's why financial education is so important, but you'll only achieve it if you separate the emotional side from the logical one, and it all starts with that mindset. Money is a tool. Yes. And then, number three: money is plentiful. This point is difficult, but it is one of the most powerful tools for achieving financial success. Let's say you now earn $50,000 a year. And you start watching financial education content
on YouTube and you say, "Oh wow. I like this idea of investing my money." And you become extremely aggressive, you find a way to live on $40,000 and invest $10,000 a year. Well, what happens to a lot of people in this situation is that you say, "You know what, Jaspreet? I want to do more of this." I want to be more of an investor because I can see the light at the end of the tunnel. I'm going to live now, instead of on $40,000 a year, I'm going to live on $38,000 and set aside $12,000. Then maybe I'll live on 37,000 and invest 13,000. This is a scarcity mindset because you think the pie is limited and you can only squeeze more pennies out of it. I mean, everyone on the
internet is talking about why you should stop buying from Starbucks so you have an extra $5 to invest. Okay, let 's turn that around a bit. You earn $50,000 a year, you save and invest $10,000. But what if you now work to earn $500,000 a year? And if you saved and invested that same percentage of your income, that means you can now save and invest 100,000 a year. Now, the first time you hear that, your response will probably be: "Jasprit, you're out of your mind." My boss isn't going to multiply my income by ten. How am I supposed to go from $50,000 to $500,000 a year? Are you. you know, strong language. Okay, I want you to take a step back. What did we just say? I will become rich.
Money is a tool. Money is plentiful. There is a lot of money in the world. A lot of money. There are people who earn what you earn in a month. There are people who earn what you earn in a week. There are people who earn what you earn in a day, and probably people who earn what you earn in an hour. If you start changing the way you view money, you can now begin to do things differently. You might start watching more YouTube videos about how to make more money. Perhaps you'll start reading books about it. And maybe you won't reach $500,000 a year, but maybe you'll get 80% of the way there, 50% of the way there. It's still much further away, and you'll never get there unless you start thinking about money in terms of abundance. And
finally, it is my duty to become rich. In the Sikh religion, we have three main values. I'm not here to preach anything, but there are three fundamental principles. Nam Japna, Vand Chakna, Kirt Karni, which means remember God, serve others before yourself, and earn your living honestly. I believe it is your duty to achieve financial success so that you can take better care of yourself, take better care of your family, and take better care of your community. And once you understand these things and change your way of thinking-it's not easy, but if you can work on it, listen to your podcasts and the rest of the content-you can now move on to step number two: learning the rules of money. And again, I know
we're getting into the theoretical. Right after this, we'll talk about the practical side of what to actually do with your money, but you need to learn the rules of money because one of the things I learned is that rich people understand that money is a game. And everyone is playing this money game. But the way the rich play the money game is very different from everyone else. The average person thinks about money and how to attract it by saying: I have to go to work and I have to earn this money. I have to.I have to work hard to earn this money. However, you do have to work hard. There's no way around that. But the way rich and financially savvy people think about money is: I'm going to work hard
not to earn money, but to own an asset. And this asset is going to generate more money for me. I'm going to work to own things that will continue to pay me even after I stop working. And that's a completely different way of thinking, because the average person thinks: if I can earn a little more money, I'm going to drive a better car. If I can earn a little more money, I'm going to buy a better house. If I could receive a bonus, I would go on vacation. If I could get a good raise, I'd buy my wife a nice handbag. We think in terms of spending. Wealthy people think in terms of investments. And there are three rules of money that I learned and that you should understand. The number one reason is that money flows to the investor.
When I go to Chipotle and buy a bowl with extra guacamole, who am I benefiting? Am I really supporting the employees? Yes, in a way, because I'll be paying their salaries, but the real profits go to the owners of Chipotle. They're going to Chipotle's investors. Rule number two of money is that inflation benefits the investor. What does that mean? In the last 5 years, we have seen how the prices of things have gone up. This is due to inflation. Inflation didn't just start after the pandemic. It's been happening for a very, very, very long time. And maybe you've heard your grandparents or parents say, "When I was young, I used to go to the movies for five cents, a dollar, or whatever."
Now, it costs $25 to go see a movie. This is inflation. So, now that you're spending those extra dollars at Chipotle, who gets that money? They are the owners of Chipotle, the investors. And finally, our system is designed to benefit the investor. As a licensed attorney, not your attorney, I can tell you that when you earn money as an investor, you will pay a lower tax rate than when you earn money as an employee. That's why understanding the rules of money is so important, because our entire system is designed to enrich those who know about finance, while everyone else pays the price. And they never teach us how to become investors. They teach us how to become employees. Now,
having a job isn't a bad thing. That's not what I 'm saying. In fact, it's probably the best thing for most people. What I'm saying is that you have to understand that when you go to work, you now have to take some of that money and become an investor. Now, when you do that, you can start to see the practical steps on what to do with your money. Yes. We talked about how the number one step is to build a mindset. Now, you must learn the rules of money. Now we move on to the practical aspect, which is step number three: getting out of the financial danger zone. And what I mean by that is that the first thing you have to do is save $2,000 as quickly as possible.
Only 2,000? Just start with $2,000 to get started and then pay off your credit card debt. Half of the United States today does not have a thousand dollars saved to protect themselves in an emergency. So, if your car breaks down, your child gets sick, or a window breaks, the average person has to go into debt to pay for that expense. You have no room to maneuver. If you want to go on vacation, if you want to do anything, you have to go into debt to achieve it. So, we have to stop that. I call this the financial danger zone. You need to save $2,000 as quickly as possible, and the way to do that is by spending less or working to earn more, and you have to make extreme sacrifices if you don't have that amount. Do
you know what people are wasting the most money on right now in the United States? Is there any research on this? Oh, God. Well, if you're someone who doesn't have $2,000 saved up, there are a lot of things you have to cut back on, and this is going to sound harsh, but I'm not saying what I'm saying to make friends, I'm saying it to help people manage their money better. You shouldn't be eating in restaurants. You shouldn't be going on vacation. You shouldn't be driving a luxury car. You shouldn't be living in a big, luxurious house. Right now, you have to make extreme sacrifices if you don't have $2,000. So much so that what I tell people is that they shouldn't have a Netflix subscription. Not because it will save you $15 a month,
but because the average American spends between two and three hours a day watching Netflix. If you don't have $2,000, how can you feel comfortable sitting at night watching whatever is on Netflix? You have to have a little urgency, like, oh my God, I have to take care of my family. So, anything you can cut back on, do it. And then, once you have that $2,000, pay off your high-interest credit card debt. Because when you're in that situation of having those high-interest debts, it's like trying to climb a mountain with 1,000 pounds of chains tied to your back. You'll never get to the next step because every time you get some money, you have to use it to pay off the debt. In fact, let me give you an
example. Jay, if I gave you $6,500 today and you invested it today, never touched that money again, never invested another penny, and you could get, say, a 20% annual return on that money, in 40 or 45 years you would retire very rich . You're not going to have a million dollars, 5 million, 10 million or 50 million. You're going to have close to $60 million thanks to that single investment of $6,400 or $6,500 that I gave you today. Now you're going to say, very well, count me in, Jas. Give me that money, where should I invest it? Well, this is the reality. Do you know who is getting those returns? AMEX, Visa, Mastercard, Discover. And do you know who's paying for them? You. If you have credit card debt. And then, instead of you having
that wealth, you're the one paying for their private jets. You are the one who pays for their big buildings. You 're the one who pays for their luxuries. That's why I take this so seriously; If you want to be rich, you have to get out of this financial danger zone. Once you get there, we can move on to the next step. Step number four. This is where things start to get fun because you finally have a bit of a foundation. Now you can create a system for your money. The difference between rich people and everyone else is that rich people know what they will do with their money before they earn it. Everyone else receives the money and then wonders, "What
should I do? How should I spend this money?" And this is where having a system for your money becomes very useful. One that I teach is the 75-15-10 plan. It says that for every dollar you earn from now on, 75 cents is the maximum you can spend. 15 cents is the minimum you invest. 10 cents is the minimum you save. This way, whether you earn $30,000 a year, $300,000 a year, or $3 million a year, you'll always have a rule of thumb for how much you can save, invest, and spend. Explain that to us again. 75-15-10. So, the way I'd like you to do it is by opening three bank accounts. And you're going to make money. The money is deposited into a bank account. Create an automatic withdrawal and deposit. That money is
taken from a bank account and 15% goes into your bank account that contains your investment money. 10% goes to your bank account that contains your savings money. The reason you want to have three different bank accounts is because if you have $100 in one account and you think, "This is my investment money and my savings money." You go to the store and see that cute sweater on sale. It costs $90. I have $100 in my bank account. Well, I should be able to afford it, right? Well, you forget that some of that money should be saved and invested, and then you pay taxes on that sweater, and now you spent $98, $99 on that sweater and, oops, I just spent my
savings and my investment money. That's why you need three different bank accounts. Your savings won't make you rich. This is a big lie they've sold us. Your savings are there to protect you. Your investments are there to make you rich, and that spending money is what you use for your house, groceries, vacations, and everything else. Now, let's move on to the next step. How do you spend your money wisely? And this is where things start to get a little painful, but it's where you can really accelerate your wealth. You already know how to spend your money, you have a good system. Now, when it comes to accelerating your wealth, you have to spend your money wisely. And what I mean by
that is, don't fund things that do n't put money in your pocket. And then follow the rule of five when it comes to luxuries. So, when it comes to not funding more things, it's very normal. You want to buy the new iPhone. Why would you pay one thousand, one thousand two hundred dollars? Pay it off in fifty dollars a month, zero percent annual interest (APR). It's free money. Why wouldn't you take it? Okay, let me ask you a question. If I walked into the bank today and said, "Give me a loan of one thousand dollars at zero percent APR." What are they going to say? Of course not, there's the door. Why would anyone be willing to offer me a zero percent APR? Not just one person, a very profitable corporation. Because they know
how to make money off you with a zero percent APR. Because? Because at zero percent APR, first of all, it will make it much easier for you to buy the new iPhone more often. Second, you don't feel the pain of a thousand dollars leaving your bank account. It's only fifty dollars a month. Third, when you buy the new phone, well, now they can sell you the new AirPods, the new charger, the new case. And then, fourth: they know that many people won't pay on time, and now they're going to apply that fifteen, twenty, twenty-five percent interest, which makes them even richer, so you shouldn't finance things, not even at zero percent APR. If it does n't put money in your pocket, don't finance it. The only exception is the
house you live in. And then, my rule of five. If you can't buy five, you can't afford one. Especially for luxuries. That's a good rule. So you want to buy a nice thousand-dollar watch? You'd better have five thousand dollars. Then, from available income. Extra money. Yes. Now we can move on to the next step. What is "how do you earn more money"? This is step number six. Because now we know how to create a system with your money. You know I'm going to do 75 15 10. I know how to spend my money. Now let me make more money. And this is the part where many people get confused because they assume I just need to earn a little more money. Well, if you earn more money without knowing what to do with it, you earn more money but you make
others rich because you simply go and spend it. This is where it's important for you to discover how you can earn more money. Maybe you'll ask for a raise at your job. Maybe you'll get a second job. Maybe you'll start your own business. Perhaps you'll learn how to use artificial intelligence. Are you looking for ways to earn more money? But you stick to that system, the 75 15 10. And that's the key: as you earn more money, you keep investing more money, because that's what will make you rich. And then finally, at the top, step number seven, is that you have to protect your assets. And there are two parts to this. The number one thing is that you need to understand the legal aspect. That
means understanding taxes, because taxes can be one of the biggest expenses you have to pay. You need to understand how you transmit this wealth. How do you put up shields around yourself? Because when people realize you have money, they're going to want a share for themselves. And this also means: How do you give back? How do you help others? How are you going to leave a legacy for yourself and your family? That's what estate planning is now. And so we have now discussed the entire progression of these seven steps. But it starts with the mental side of understanding the mindset. Then you have to understand the framework of the rules of money. Then we started with the
basics of saving the 2,000, paying off the credit card debt. Then you build a system for your money. From there, once you have the system, you need to know how to spend your money the right way. Then you have to learn how to earn more money the right way. Then you learn to manage your wealth, grow it, and pass it on. The big question that comes to mind right now is for anyone who simply says, "I'm earning that $50,000." "I'm earning those $30,000." I want to earn more money right now. What's the fastest, most effective, and realistic way to earn more money today to achieve that 75/15/10 split and finally invest more? What do you recommend I do in these current times? And can I also advise you on what not to do?
Yes. You see, I'm talking about investments. That's my approach: the financial side of what you do with that money. And well, I was actually talking to someone about this, where many people end up in a difficult financial situation , whatever it may be. Perhaps you have debts, you have expenses, you are in a situation where money is tight. You go online and start hearing about a topic called passive income. And then you think, "Wow, if I could have more money coming in passively, I could pay all my bills and I wouldn't have to worry about money anymore." But that's not how it works. Investing, and everything I mention when it comes to growing your wealth, is when you have extra money that you don't
need and you put it into this investment, you put it into this asset that will then grow and generate more money for you. It 's not fast, but if you do it right, it works and can make you rich. And that's how it works. Mhm. Your question was: "How can someone start making more money quickly?" And the first thing you can do is ask your boss for a raise. But don't do it like most people, because what almost everyone says is, "Hey boss, I've been working here a long time." "Could you give me an extra $5,000 or $10,000 a year, or whatever?" And well, what your boss will probably say is: "No, do you want me to pay you more for doing the same thing?" No. Instead, I want you to
think about it from their perspective. The fastest way to earn more money at your job is by making your boss earn more money. And if you can show him: "Hey, I'm going to generate an extra $20,000 a year for you, pay me $10,000 more a year." They'll probably say yes, because you 're providing them with more value. How can you do that? It will depend on your position, but find a way to add more value, go to them and say, "Hey, look, this is what I'm going to do." Here's how much more in revenue I'm going to generate. Here's how much more money I'm going to make you earn. I only want a share of what I'm going to make you earn. If someone is thinking, "Okay, I want to start investing. What's the minimum amount I need to start
investing? What's the figure? Where do I begin?" Well, 1 dollar. You can start investing with any amount of money. And the whole idea of investing is to take this extra money and put it into something. You're going to buy something with the goal of making money from it, rather than just buying a watch or a pair of shoes. But the part I think a lot of people don't understand, especially if you didn't grow up learning about investing like we did, is that there's more than one way to invest. Because 10 years ago, what was investing? Or what did people think investing was? How do I find the next Amazon? How do I find the next Apple?
Today, many people think that investing is: "How do I find the next meme coin? How do I find the next cryptocurrency before it blows up?" We started to see investment as a gamble, especially since there's so much of it around us now. I mean, there's sports betting, there's the foreign exchange market, there are multiple markets. In other words, people are betting on what the Federal Reserve will do next. And then, without any financial education, we began to assume that investing is the same thing. We're just going to predict what will happen with something tomorrow. But that's not really what investing is. Investing is something you want to buy and own long-term, something you believe will increase in value and
perhaps pay you some interest along the way. I might deposit money every month. I might deposit money every 3 months. Perhaps it's depositing money into your bank account every year without doing anything. That's what investing is. So, how do you do it? And there are three levels you need to understand. Number one is the most automatic. And that's because I'm going to give my money to you, a financial advisor, and you're going to manage my money for me. And now it's completely automatic. So, if you just do some basic calculations, if I invest $1,000 a month for 30 years and my financial advisor can outperform the market, yielding 11% annually, I'll end up with $ 1.8 million. But I have to pay a commission. I have to pay a price.
You may have to pay 1.5% in fees. So you could end up paying $500,000 or $600,000 in fees. Therefore, that 1.8 million is what you get after the fees. Option number two, if you want to get a little more involved, but not completely, is what I call being a passive investor. And passive investing consists of finding a basket of stocks and continuing to invest your money in it consistently. For example, you can invest in the United States economy, in the general economy. And one of the most common and popular ways to do that is to invest in something called the S&P 500. That's a group of the 500 largest companies in the stock market. You don't have to go out and look for Amazon, Tesla, and all those companies.
You simply invest in this fund and you do n't have to touch it. And the great thing about this is that if you invest your money in this fund and, say, Amazon goes bankrupt, you don't have to do anything. The fund will divest Amazon as it gets smaller and replace it with another company, so it 's completely passive for you. Historically, this has averaged around 10% annual growth. A little more than that, but historically around 10%, despite recessions, despite market downturns, because we know they happen, it has averaged close to 10% annually. So, if you invest $1,000 a month for 30 years, that would be about $1.9 million. Then you have the third level, the most involved. This is called being an
active investor. And being an active investor is not trading, it's not speculating. It's about wanting to own good investments that I believe in, that I've researched and put effort into, and that I want to keep for the long term. This could mean investing in individual companies, in individual stocks. Maybe now I want to invest in Amazon, maybe I want to invest in McDonald's or whatever. Perhaps it's about investing in individual rental properties. And the goal of this is that you take on more risk for a higher potential return. We talked about how, if you only invest your money in the general economy, you average around 10% annually. As an
active investor, we're not talking about the 200%, 100%, or even 50% returns that people like to talk about on the internet, because that's not sustainable; It's a lie, it's a scam, and they're deceiving you. We're talking about a small advantage. Let's just say 13% annually. If you manage that, 13% annually, with $1,000 a month for 30 years, well, now you'll have around $3.5 million. We're talking about $1.6 million more than if you had invested passively. You take on more risk, it involves more work and more research, but there is a greater potential for profit. So you need to know where you want to be on this
curve, because active investing isn't for everyone. This is what our firm focuses on: research for active investors. But it's more risk for a greater potential gain. Yes, and it seems better to start and progress layer by layer rather than jumping right in. It's often best to start with what 's most accessible to you, because what's most accessible to most people is something like a 401k or an IRA. I personally don't use a 401k because it 's not right for me, but personal finances are personal, okay? What's right for you won't be right for me. Start with what you have at hand, then take the next step, and then the one after that;
You'll start to realize all the options out there, because it can be intimidating to think, "Oh my God, should I invest in stocks, real estate, or crypto?" Should I invest in individual companies, ETFs, or mutual funds? Oh my God! Should I be investing in apartments or single-family homes? Should I be using.? Take a deep breath. Alright. Just begin. The reason people don't see the success they want in their investments is usually not because they made the wrong decision. It's because they never made a decision. It's because they never even started. But once you get started, you can make adjustments. I always compare the investment to exercising, because I see the same thing at the gym. People who start exercising say, "Josh,
but what should I do?" " Should I do these high- intensity exercises?" "Should I do these low-intensity exercises?" " Should I go on the carnivore diet?" " Should I go vegan?" Should I.look, just get on the treadmill and put down the donuts, right? Start, take the next step and then the other, just begin and you'll see what works best for you. Yes. How do you track the stock market? Explain it to me. For someone who does n't know where to start. Something like what we were just saying, where someone thinks, "Oh, I'm thinking of doing this." "I'm thinking about doing that
." They don't understand. How would you explain it to me? Well, the stock market is a place where anyone can go and buy a share of ownership in a company. Not just any company; The company must be what they call a public company. For example, Briefs Media, my company, is private, which means you can't invest in it, but if a company is publicly traded, like McDonald's, you can buy a share. It's called action. And if you buy a share of McDonald's, you become one of the owners of that company. So, when I go to Nike and buy a pair of shoes, I am a Nike consumer. When I own a share of Nike, I become one of the owners of Nike. As the owner of Nike, I make a profit when you buy Nike shoes. As a Nike consumer, I'm enriching the
investors, but I look good because I'm wearing Nikes, I'm wearing Jordans. So, the idea behind the stock market is that you buy shares of these publicly traded companies. Now, the price of a stock will depend on what the stock is, and what makes its price go up or down is not how much money the company makes. It's supply and demand. And by that I mean that the price of any asset, real estate, stocks, cryptocurrencies, ultimately depends on how many buyers and sellers there are of that asset. So , if there are more people wanting to buy McDonald's shares than sellers of those same shares, the price will go up. If people sell more shares than there are buyers, the price of that share goes down, which leads us to the next question. What
causes it to go up or down? Why do people buy or sell? Why do people sell? There's a whole list of reasons, but you can look at the obvious ones. If McDonald's starts producing bad hamburgers, the owners might say, "I.I know about this." Well, maybe not the hamburgers because McDonald's is really in the real estate business, but if McDonald's starts having problems, the owners might say, "Maybe I should sell." If McDonald's starts to see lower profits, investors might now be worried. If they start making higher-than-expected profits, more people might want to buy, which could drive up the stock price. So you need to understand the psychology of buyers and sellers, because there are two parts to investing successfully. One is the
financial aspect, but there is also the emotional aspect. And in today's market, our markets are more emotional than ever before. Business Insider recently did a study on this where, I mean, it's not that hard to find, but they said that our stock market is more volatile than in previous decades. Which for the average person is not good because they say, "Oh my God, I'm scared, my markets.the markets are going to go down." "I'm going to lose money." But for the financially savvy, that creates more opportunities than ever before. In 2025, for example, we saw three stock market crashes. When we saw the first tariff announcement, the markets collapsed. Then the tariffs were paused, and the markets reached new all-time highs. Then we had the second
tariff announcement, and the markets collapsed. Once they were paused, the markets rose again. Then we had the day of the release, the third tariff announcement, and the markets collapsed at the fastest rate since the pandemic. Then they were paused and the markets broke new historical records. Look, for the average person, that was a nightmare. But for financial experts, all those drops created a great buying opportunity. What I like to tell people is that they're going to see ups and downs. But when you have those moments of madness, I want you to remember one thing. I want you to remember P O P (poop). POP? Why? Because panic leads to overselling, leads to opportunity, leads to profit. And that's where, you know, we've been talking a little bit
about the educational aspect of investing, but that psychology is just as important because if you're the one panicking, you're making someone else richer. Yes. And you need to understand what you're investing in and how that fits into your investment strategy. That way you can actually earn money instead of being the person who makes money for someone else. Yes, I was going to say that a mindset that adheres closely to what you're saying, which perhaps should come earlier in your system, is this idea of, I'm trying to find the right words. You'll name it better because it's your system, but this idea of simply not chasing quick money-because I think the reason we panic when markets crash, when we're not financially
savvy, is because we think, "Oh God, I lost all my money. Let me get it out, right?" Or let me avoid putting in any more money because things don't seem safe. And this idea of this mentality that we have around: "I just want to make money fast, you know, I want to put something in, that next year will be huge and then I want to cash out." And it's like, well, that's very, very rare for people to achieve that. And I think that quick cash is what prevents us from making good decisions, because by the time you actually put the money in, you say, "Oh, I should have done it last year."
TRUE? Because you're just looking for that quick win. Does that make sense Yes, and that actually brings us back to what you were saying a moment ago when you said, "What about that person who lives day to day?" What does that person want? I want relief from my current situation. So what is that relief? Often, it's quick money. It's like, "Oh my God, my arm hurts. What do I want? I want relief. Give me extra-strength Tylenol or whatever because I just want a quick fix." And then, what often happens with that person in that situation, and we hinted at it from a different angle before, is that they
end up scamming you. The system takes advantage of you because, well, you're a prime candidate to spend money. But now, if you start saying, "Oh my God, I just want to earn a little more money." What's happening? Well, you become the ideal candidate for that quick cash. And that quick money most of the time doesn't exist. And when it does exist, if it appears quickly, you'll lose it just as quickly. Because if you don't know what to do with that money, well, it can disappear as quickly as it came. They say that, I think, about 80% of lottery winners end up bankrupt in less than 5 years. Because? It's not because you didn't have enough money.
People have earned millions and millions of dollars. If you lack financial education and money comes in quickly, it will disappear just as quickly. And on the other hand, when you're desperate for money, you become the ideal candidate to buy those programs and services that try to sell you the dream of: "Hey, all you have to do is work 3 hours a week on a laptop on a beach in Bali, and you'll earn 10,000 a month, 10,000 a week." You don't have to do anything. It sounds incredible. Sign me up. $997, no problem. Well, that quick money. Yes, it does n't work that way. Yes. There is no sacrifice in hard work.
Yes. I hope everyone who listened and watched today has a roadmap. I feel that they have the necessary steps to improve their financial well-being and that they feel supported, because it is a very systematic process. And it doesn't matter how much or how little you have; It seems you've given people a realistic plan to start with. The reason I wanted to do this is because I was reading a statistic, just as your team sent me the email, which says that we know that between 50 and 70% of Americans live paycheck to paycheck. And then I read a statistic that said 72% of Americans have Netflix. What that told me is that the average American spends more money on Netflix than on their
investments. And that's a problem. That should be reversed. Well, it should go far beyond just being invested. And what are we prioritizing? And the reality is that the reason so many people do that is simply because we don't know there's an alternative. And that's our mission: to help people manage their money better. Because eating costs money, and feeding others costs money. And unless you learn, you're going to be the person who makes everyone else rich, without ever questioning, without ever understanding why. Why? Why can't I ever have freedom? Why can't I ever have those good things? Why can't I ever do the things everyone else is doing? But it all starts with your mindset. Start with your financial education.
Absolutely. Small changes add up. Yes. So start now. It doesn't matter where you are. Every little bit helps. And I'm going to give one last piece of information, because I just said that and I thought, oh, you know, I should say this. If you can invest $4 a day from age 21 until age 65 and simply invest your money in the markets, you will retire a millionaire. $4 a day. If this clip provided you with value and you want to see more, this next video has been specially chosen for you based on your viewing behavior. I hope you enjoy it, and if you do, please subscribe to the channel so we can continue bringing you fantastic conversations.
