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What Can You Afford? Budgeting For Wealth | Minority Mindset – Jaspreet Singh
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If you want to buy luxury things, meaning things that you don’t need,
Yo Jaspreet I need these new $200 shoes No
remember my rule of 5. If you can’t buy 5 of them, you can’t afford one of them. If you want to buy a $100 pair of shoes and you don’t have $500 saved up, you can’t afford it.
What’s the point of doing this? It forces you to live below your means. It forces you to save for something bigger, something to invest it, something that will make you more money. Make the sacrifice now so you can live bigger tomorrow.
And listen, just because a sales person says you qualify for something more expensive doesn’t mean you can afford it. I briefly was a real estate sales agent for people who wanted to buy and sell their homes. We were paid based on the value of the home, the more the home costs the more we get paid.
The same worked with banks, bank loan officers are often paid based on the value of the loan. Now although the bank officer and the real estate agent have to look out for your best interest, they aren’t doing anything illegal by approving you for the highest amount possible. So it’s in the bank officers best interest to get you the biggest loan as possible so they get the biggest paycheck. And it is in the real estate salesperson’s best interest to sell you the most expensive home so they get a big check.
These people don’t have to deal with the consequences If you end up buying something that’s a little too expensive for you. You have to be the one in charge and know what your budget is. Don’t rely on sales people because their interest isn’t always the same as yours.
And its not just houses and mortgages. Payment plans are becoming more popular for everyday items. Appliances, furniture, electronics, even our cell phones. I’ve said this before but it is nearly impossible to build wealth when you are constantly making payments to pay off things that you can’t afford.
This year, Forbes reported that 63% of Americans, 63% don’t have enough funds saved up to cover a $500 emergency. Don’t be the majority. Put in the work and the sacrifice now so you can live better tomorrow.
If your goal is to build wealth, you have to start living below your means. If you can’t buy 5 of them, you can’t afford one them. I know it’s hard, but you will set yourself up to stand out from the majority. #ThinkMinority #MIH #Budgeting
Based in Detroit.
Jaspreet Singh
DISCLAIMER: This description may contain links from our affiliates, sponsors, and partners. If you use these products, we will get compensated – but there’s no additional cost to you.
DISCLAIMER CONT’D: I’m just a random guy on YouTube – do your own research! Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but is he is not providing you with legal advice in these videos. This video, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.
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25 Comments
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Love your advice
why have you what you have done to yourself! 😀
Rule of 5 is great!
Thank you 🙌🙏💪
Just curious where you got this rule from
Wow – early Minority Mindset video. You've gotten so polished over the years but always great and always have been. Like
This is essentially Dave Ramsey's approach that your mortgage shouldn't be more than 20% of your take home pay which I think is a good goal but not very realistic.
For about 2 years I been following that 5 rule it makes perfect sense!
hello dude
Where do you first mention the rule of 5. I can’t seem to find that video.
Jaspreet first I really liked the rule of 5. I came across your videos today and really found it useful. I myself make budgets and although I know I spend little more than I should(50% of my salary including my travel and clothing n all remaining I kinda save or send home).
I had a question, as per my analysis I found that taking a home on Loan like I’m currently living in Waterford in rent of 340 per month. So, if I buy a 2 bhk Appartment which is around 90000 with a emi of 750 that I can pay by letting second room to someone else at 400 eur and live the same life. I know I would be losing 4 % worth of money every year but I am building asset and can gain a profit in long term. What do you think?
The 80/20 Rule is still relevant today as it was back then. If you cannot buy 5 of them, you cannot afford 1 of them…aka the 5/1 ratio which is basically the 80/20 Rule. Thank you for your videos as this is the financial literacy that the whole world needs right now, especially due to the corruption of the debt based monetary system that has big support from the crooked legislative institutions and financial institutions of this world machine of economics.
Thanks a lottt.. u got an amazing posture.. big fan of urs
I feel like Indian Sikhs living in the west aka Punjabis need to see this video, too many brown people trying to show off to their relatives buying expensive cars and trying to live lavish and buy spoil the shit out of their kids rather than teaching them hardwork and the value of a dollar
Does this count towards big investments like a house or car?
So if I want a new truck worth 40,000 I must have 200,000 in the bank? That’s crazy
wow! nice mucchi 🙂
I did exactly that when I came to America from the Dominican, I saw that I wasn't making enough money so I got two jobs, I've always wanted to be independent and have some security, people can't have money because they want to blow it out immediately, having money saved makes me want to save more because now I see that I can.
Houses in my city are over 700000 al least. It’s going to take the rest of my life to save five times that 😂
Boy has passion. I like it.
You should do a weekly q&a same bat time same bat channel style
Really good rule "If you can’t buy 5 of them, you can’t afford one of them"
You are a great mentor!! Keep the great job!!
Love your 5 rule. When I was a very young Mom I actually had a times 10 rule because when I compounded the interest over the next 40 years on just a 99 cent item it added up too fast. . . . Newborn babies don't NEED a pair of Jordans, they can't even walk!!! Believe me, it's ALL for the adults.