Yahoo Finance Jaspreet Singh’s 7 Rules To Follow To Retire a Multi-Millionaire
Jaspreet Singh, CEO of Briefs Media and host of “The Minority Mindset Show,” recently said in a YouTube video that if you want to retire a millionaire, there are seven specific rules to follow.
“But in order for these rules to work, there are three numbers I need you to understand: TRM — time, return and money. Because these three numbers are going to determine whether you retire rich or broke,” he said in the video.
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Here are the seven rules to follow in order to retire a multi-millionaire, according to Singh.
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Buy Only What You Can Afford (With Cash)
Singh said that if you don’t have the funds in your bank account to make a purchase, just don’t do it.
“[When] I said what you can afford with cash doesn’t mean that you need to use physical cash, it means you can’t buy something if you don’t have the money for it,” he said. “Don’t go out and finance that Gucci.”
Singh further argued that while it can be easy to buy whatever you want because “everybody’s got lines of credit,” looking rich and being rich are not the same thing. In the end he said you are only making someone else rich by making frivolous purchases.
Prioritize Assets Over Liabilities
With this rule, Singh argued that you should put your assets — what you own — before your liabilities — what you owe. According to him, there are a few ways to go about it.
“Number one is buy what you’re already spending money on,” he said. “If you’re spending money at Apple buying AirPods, buying iPhones, well then you could use some of the money to go and buy the Apple company [stock]. If you’re going to spend $11,000 at Apple, spend $200 buying some of the company.”
The other tip is about real estate. For instance, Singh states that buying a rental property can become very lucrative even though it requires a huge initial investment.
Value Your Time
As the saying goes, “time is money,” and for Singh, taking this mantra into consideration will help you get rich.
“Time is one of the most valuable tools that you have when it comes to building wealth because it gives your money time to grow and compound,” he said. “Warren Buffett’s wealth really grew and accelerated after his 50th birthday. He was rich before 50, but after 50 he became incredibly wealthy, and the reason why is because now he had a lot of money that was working for him.”
Those Who Are Prepared Build Wealth
For Singh, this means both having enough savings to cover for an emergency or an unexpected expense, as well as having enough cash to be able to take advantage of an opportunity when it presents itself.
First, this will enable you to not get into debt if you don’t have the means to financially cover for unforeseen events, such as a medical emergency or a layoff. Secondly, having sufficient cash to jump on an opportunity is something that can make a huge difference.
“If you can prepare when times are OK it can give you the opportunity to capitalize on investment opportunities when times are not OK,” he said. “Because the reality is markets go up and they go down and people always get blindsided when the economy goes down. And then they freak out and then you see a lot of people just selling out of fear, but that all creates opportunity for those who are prepared.”
Don’t Get Your Money Advice From a Gym Bro
Singh said that everyone has some type of financial advice or opinions about which stocks or cryptos are worth buying or what the latest money trend is. That doesn’t mean you should listen to much of it.
“It’s cool, but I want you to understand that your money is your decision, and you shouldn’t now go out and just listen to a random person because they’re telling you that they think that the stock is going to double in the next six months. Because if it doesn’t, it’s you who loses the money, not them,” he emphasized.
If You Can’t Track it, You Can’t Optimize it
Not knowing where your money goes and how you spend it can be immensely detrimental. Taking the simple step of tracking where it goes can change the way you use it, according to Singh.
“It is an instant change because when you see what’s happening with their money, you’re going to want to start changing it,” he stressed.
Learn the Rules of Money
Finally, Singh believes financial literacy is key to getting rich. He also argued that the economic system “is designed to benefit the financially educated and the wealthy and it’s at the expense of the financially uneducated.”
Singh added that once you understand the rules and how to navigate financial markets, you can start to invest in the stock market or in real estate.
“When you become an investor, number one you start benefiting from the way our economic system works. Because when you’re an investor you own a piece of something, you own an asset,” he said.
You can also benefit from the tax system.
“Because our tax code incentivizes investors through lower tax rates and higher potential tax write-offs,” he added.
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