Money Expert: “This Keeps You Broke! Do This to Build Wealth & Financial Freedom” | Jaspreet Singh

Singh kickstarts a conversation about the journey to wealth by addressing one's financial mindset and the beliefs surrounding money.

Understand your personal relationship with money

Jaspreet Singh underlines the importance of considering the source of financial advice, stressing to heed guidance only from those who have what you aspire to achieve. He shares insights from the Sikh religion about the virtue of earning an honest living and frowns upon welfare or handouts, which articulates his personal relationship with money as tied to work ethic and self-reliance. Singh also talks about the difficulty of caring for oneself and others without ample resources, reflecting a sense of personal struggle and responsibility that accompanies financial matters.

Adopt empowering beliefs such as "it is my duty to become wealthy", "money is abundant", and "I will become wealthy"

Singh highlights four key beliefs:

1. "It is my duty to become wealthy."
2. "Money is a tool."
3. "Money is abundant."
4. "I will become wealthy."

He insists that recognizing these beliefs is essential for affirming one’s capacity for financial success. He further emphasizes the importance of having a conviction in your beliefs, not only that you can but indeed will become wealthy.

Lewis Howes suggests that it is crucial to take responsibility for one's money beliefs and stresses the need for adopting empowering beliefs to counter decades of negative financial conditioning. He encapsulates the sentiment by saying, "The whole purpose of becoming wealthy is, one, so you can take care of yourself, and two, take care of the people around you. Give back, help others, help other people that can’t help themselves."

Recognize the impact of generational money beliefs and traumas

Singh mentions the experiences of traditional Indian immigrant parents who, due to financial illiteracy, may stress careers like medicine as the only certain paths to wealth. He points to the political turmoil in Punjab during the 1980s, impacting Sikh people, to evidence generational traumas that influence monetary perceptions and security. Poverty, he notes, is often generational, entwined not just with external circumstances but with deep-seated beliefs instilled early on like "we can't afford nice things" or "rich people are evil." This gives rise to lifelong perceptions of money as scarce and reserved for others. Howes adds that failing to address these money beliefs risks perpetuating a cycle of financial trauma to the next generation, highlighting the continued vulnerability due to inherited beliefs.

Overcome limiting beliefs and money scarcity mindsets

Singh asserts the importance of believing in success despite adversities or past sufferings, advocating a mindset to surmount scarcity thinking. He counters the belief in scarcity with the observation that circumstances may be challeng ...

Jaspreet Singh, Lewis Howes, and others illuminate the issues plaguing the United States' financial and economic systems, encompassing government overspending, debt growth, and consumerism—issues that exacerbate inflation and contribute to wealth disparities.

Government spending and debt

Continued government overspending and borrowing leads to rising taxes and hidden inflation costs

Singh and Howes touch on the issue of government overspending. The U.S. government’s national debt is rapidly approaching $35 trillion, with the largest expenses being Social Security, healthcare, and interest payments. The interest payments on the national debt are now more than what is spent on the military. There is concern that the government could be misleading citizens about the true state of the economy, and government profits from keeping citizens in debt unaware of the financial system. The borrowing primarily comes from the Federal Reserve Bank, which creates new money and injects it into the economy, leading to inflation.

Student loans on the United States balance sheet are cited as an asset that encourages continued government expenditure. Singh describes the system that allows the government to engage in excessive spending as problematic, potentially needing higher taxes and causing economic slowdowns, which could lead to more stimulus and more inflation. The fastest growing expense for the government, interest payments, benefits no citizens, implying mismanagement.

Inflation and wealth inequality

Inflation disproportionately hurts the financially uneducated, while benefitting investors

Inflation—a persistent issue—is highlighted as primarily impacting the financially uneducated and the poor while benefitting investors. Singh points out that reported inflation from 2019 to 2024 is roughly 22%, while wages grew just enough to keep up with this, at around 20-21%. In contrast, the wealth of investors, with the S&P 500 growing around 80%, increased much faster, exacerbating the wealth gap. He adds that inflation is one of the biggest costs to Americans, suggesting that it has long-term impacts on the economy and can harm the financially unineducated.

The system is designed to make the rich richer and the poor poorer

The economic system, Singh asserts, maintains the wealth gap through designed inflation. He alleges that the Federal Reserve Bank’s target of 2% inflation creates a system to ensure the rich get richer while the poor get poorer. The conversation implies that a lack of financial education and opportunity leads to wealth accumulation for those who understand the system, leaving others behind.

Consumerism and overconsumption

The system incentivizes people to spend more than they earn and make others rich instead of th ...

Jaspreet Singh advises against spending all of one's income as a foundational step towards building wealth, aligning with the principles of the 75-15-10 rule, even though he does not directly mention it. Singh strongly advocates for this approach and provides insights on investing the unspent money and developing a mindset for long-term wealth accumulation.

Avoid spending all your income

Singh recommends not spending all your money and has developed his own 75-15-10 plan, which allocates 75% of income for spending, 15% for investing, and 10% for saving. He emphasizes the importance of prioritizing expenses to build wealth and suggests a "decade of sacrifice" leading to greater financial autonomy. Singh underscores the need to spend less than one's income to allow for investment in wealth-generating assets.

Invest your unspent money consistently

Singh is passionate about investing the money not consumed by expenses. He advises taking savings and investing in assets like stocks and real estate over time. Singh recalls investing in real estate early on and reflects on the slow but consistent growth of investments like the stock market. Even during the 2020 pandemic, Singh actively purchased stocks throughout the market downturn, demonstrating the importance of consistent investment.

Increase your income over time

Singh notes the difference between making more money and building wealth. He mentions high-income professions, like doctors, implying that a high income should lead to greater investment, not just increased spending. Singh and Howes discuss the necessity of increasing income to create more opportunities for investment. Singh also highlights a mindset shift and lifestyle changes that may be necessary to increase one’s income dedicated to investment.

Be patient and persistent through the ups and downs

Sin ...