What To Do In Your 40s To Retire Wealthy In Your 50s

I used to guest teach in Detroit public schools and I would ask the students there, when is your dream car as an exercise? And then I would get answers from these students of things like a Ford Focus or a Dodge Challenger. And I said, okay, well, those are nice cars, but why not anything like a Rolls Royce or a Lamborghini? I mean, this is your dream car. You can think and dream as big as you want. And the answer that I got was Jasprit. Somebody like me in our situation growing up in this neighborhood could never have a And when your mindset limits your dreams and limits your beliefs, what do you think is going to happen in your real life? This is why your mindset is so important because if you don't believe that you're going to become wealthy, you will never have the opportunity to ever have that sort of financial success for yourself. There are four mindset shifts that you need to adopt. Write these down and start saying this to yourself every single day that we can drill this into your head. Number one, I will become wealthy. Number two, money is abundant. Number three, money is a tool. Number four, it is my duty to become wealthy. Let's start with I will become wealthy. We just talked about this before. If you don't believe that you can become wealthy, it is going to be impossible for you. You have to have kind of this like stupid belief that you are going to become successful. And if nobody believes in you, well, you got to be the person that believes in you. Number two is that money is abundant. Now, take a look at this. Let's assume that you make $50,000 a year and this pie diagrams your income and you start to learn about money and now you put aside, let's say, $10,000 a year for your savings and investments and now you get excited to start to see the possibilities of becoming wealthy and you say, I wish I could save more money. So what do you do now? Well, now you start to squeeze more pennies out of this pie. Maybe now you start to save $15,000 a year and you say, Jaspreet, well, what can I do now to invest more? Maybe you can save and put aside $20,000 a year, but that means you're only living off of $30,000 a year. But if you start to think more abundantly, now what you can do is say, you know what? Yeah, I am making $50,000 a year. I'm saving and investing $15,000 a year, but what if now I could earn $500,000 a year and now I can work to save and invest $150,000 a year. I'm still saving and investing the same percentage of my income. I'm just earning a lot more money. And the initial response that everybody says is, Jaspreet, my boss is not going to 10X my salary, and you're right. You probably won't see the 10X just tomorrow. But when you start to think in abundance, you start to change the way you operate. You start to change which information you consume. You try to change the things that you're doing because now you're thinking in terms of abundance and I want you to start thinking bigger because unless you start thinking bigger, you're not going to see those bigger opportunities in front of you. Number three, money is a tool. I grew up in a household where the concept of money and wealth was very taboo. You don't talk about these things. I grew up in a very traditional Indian house. My parents are immigrants from a state in India called Punjab. And we didn't grow up talking about money or wealth or investing. It was one of those things you just don't talk about it. Don't worry about money. Don't stress about money. Yet you go to work every single day, all day long, even on weekends, even on holidays just to make money. It's a very weird concept. And once you understand that the reason why a lot of people are insecure to talk about money, that we put these smoke screens up about money, is because we're scared. And when you can start to get through that smoke screen, you can understand that the reason why we have these insecurities is because we don't understand how money plays a part in our lives. Because we get caught up with this idea that, oh, if we start talking about money, it means we've become this greedy human being that's consumed with money. But that doesn't have to be the case. And I like to break it down with this. I call this my quadruped theory. That if you want to live a happy and fulfilled life, there are four aspects of life that you have to be fit in. Number one is you have to be physically fit. I'll put that at the bottom here. That doesn't mean you have to have a six pack. But if you're morbidly obese, you're on your deathbed, you're very sick, the only thing on your mind is being healthy again. And so, when you are healthy, now you can start to have millions of dreams and wishes and wants, but you can't do that unless you're healthy. Above physical fitness, now you have to be mentally fit. Mentally fit means now you surround yourself with people that keep you happy, not toxic people that are going to keep tearing you down and making you feel like crap. You are happy, and you feel loved, and you feel supported, and maybe that means you got to start cutting out some people out of your life. Maybe that means you got to start working on yourself. Maybe that means you got to figure out what actually makes you and keeps you happy. You got to have the purpose and figure out what does that mean for your mental fitness. Then above that, you have to be spiritually fit. This doesn't mean you have to be religious, but you got to have a purpose. What's the reason for wanting to get out of bed every single morning? If you achieve your financial freedom, you have $10 million in the bank, well, what's the reason for getting out of bed now? You got to have the spiritual purpose. What is your reason for wanting to still serve and help? And then on top, you have financial fitness. This now, when you have the money, this allows you to amplify every other part of your life, because when you have the financial fitness, this means now that you can pay for that house, and you can pay for the car, and you can pay for the vacations, you can pay for your wife's purse, you can pay for your husband's gift without having to stress about the price. You can pay for your parents' healthcare, you can pay for your kid's college. Money now allows you to do more things that keep you happy as opposed to being that thing that actually makes you happy. And when you understand that money is a tool, well, now you can use that money as fuel to amplify your life. The thing about building wealth is it's really hard to stay consistent on your journey of spending money the right way, and investing your money, and saving your money if you can't see what's happening, and when you have so many different bank accounts, and you have a 401k account, and you have a credit card account here, you have a bank account there, you have your investment accounts here, it's hard to track it all and see the progress that you're making. But that changes thanks to my sponsor, Monarch. If managing money and tracking your wealth has been difficult or overwhelming for you, you are going to love my sponsor, Monarch. You're not going to get 20 notifications a day letting you know about every purchase that you made. What Monarch does is it gives you a clear view of what's coming in, what's going out, and if you're making progress on your wealth journey. And now, you can even ask questions about your finances thanks to the Monarch AI. With their net worth feature, you can now see your net worth grow over time, that way you can see the progress that you're making day after day. And the cool thing about Monarch is they allow you to set goals that are tied to your actual accounts. So, if you want to set a goal to save up money for a down payment for a house, or you want to save $3,000 for a vacation, or you want to pay off a credit card, they can give you the tools to do that. Monarch will show you a timeline of how long it'll take to hit your goal based off of what you're contributing. This way, you can actually see if you're on track for buying that house, or paying for the vacation, or paying off your credit card. It's private, it's ad-free, and it uses bank-level encryption with read-only access. That means Monarch can see your money, but they can't actually move any money. And that's why thousands of users have given Monarch a 4.9 star rating. So, if you don't know where your money is going, you can't tell it where to go. And this is where my sponsor, Monarch, can help. You can use our discount code, MINDSET50, to get a very large 50% discount with Monarch. If you want to learn more, again, I have the QR code for you on the screen here. And I also have the link for you down in the description. It is my duty to become wealthy. Listen, I don't know how people feel comfortable sleeping at night when they know that they can't take care of their family, they can't provide. Look, it is your duty. It's not the government's duty. It's not your friend's duty. It's not your parent's duty. It is your duty to take care of yourself, to take care of your family, okay? Period. Like, it's your duty. Once you've laid the foundation with your mindset, now we can move on to the practical things of what you do with your money with number two, saving your first $2,000. Number two and number three are what I call the financial danger zone. If you do not have $2,000 saved up, you have to do whatever it takes right now to save that $2,000 as fast as possible. You should not be spending money on anything else until you save that $2,000. That means yes, no more going out to eat at restaurants, no more vacations, no more going out to the mall and just to shop, and no more Netflix. If you don't have $2,000 in the bank to cover an emergency, I mean, this is just the base. If you don't have that $2,000, how can you feel comfortable sitting in the evenings watching Netflix knowing that if the window breaks, if your kid gets sick, if something were to happen to your car, now all of a sudden you have to go into credit card debt. You have to have at least at the very bare minimum, $2,000 put aside to start your emergency savings. This is not money that you're going to use to buy a TV or to buy a car. This is money that's just there to protect you against an emergency, like you losing your job. Once you understand that, then you can move on to number three. And number three is paying off your high interest debts. These are things like your credit card debts. These are things like your payday loans. All of these high interest debts need to be paid off as soon as possible because these things are skinning you alive financially and we don't realize how expensive they really are until we start to do some math. So let's have a little bit of fun. Let's assume that I give you $8,000 today and you invest this into a great investment that you find that will pay you 25% a year and you never invest another penny. You only invest the $8,000 that I give you today and you let your money sit there and compound for 30 years. If you do that, you are going to have millions of dollars after these 30 years. You're going to have almost $6.5 million from the $8,000 initial investment. And now you're going to say, well Jaspreet, where am I going to get the $8,000 and where am I going to get this 25% return every single year? Well, this is the average credit card debt in America today for households of credit card debt. And this is about the average APR on that credit card, which means this transaction is happening all day, every day, and you're the one that's paying this interest. Who are you paying it to? To Amex, to Visa, to MasterCard. So yes, this can happen and it is happening. And it's you, if you have credit card debt, that's paying that, which is why I call this the financial danger zone. If you don't have $2,000 saved up, or if you have credit card debt, you got to use all your might to get that stuff paid off as fast as possible. No restaurants, no vacations, no Netflix until you were out of the financial danger zone. Once you fight your way out of the financial danger zone, now things get fun because now we can actually start creating a system for your money to put your money to work. What every wealthy person does is they give their money a job before their money even hits their bank account because they need to know how much money they can spend, how much money they are going to invest, and how much money they're going to save versus everybody else. The majority of people is they make money, they spend their money, and then they wonder where all their money went, and then if there's any money left over, that's when they consider saving or investing some. And this is where you have to change the way that you think because we know now that wealthy people become wealthy because of their investments, period. So you have to have money to invest first. Wealthy people want to invest first. Everybody else spends first and then invests if there's anything left. So this is where you want to have some sort of system with your money, and a simple rule of thumb that I teach is the 75-15-10 plan, which says for every dollar that you earn from here on out, $0.75 is the maximum that you are allowed to spend, $0.15 is the minimum that you are going to invest, and $0.10 is the minimum that you're going to save. Now the first thing you're going to say is, Jaspreet, where in the world am I going to find this extra money because I'm struggling paying all my bills from spending all of my money? And I want you to think about it like this. If the government were to come tomorrow and raise your taxes by 25%, what are you going to do? You're going to complain and scream and cry and be upset, and then you're going to find a way to pay it because if you don't pay it, you're going to go to jail. Now I want you to think about this like a tax. You are taxing yourself. You're not taxing yourself to make the government rich now. You are taxing yourself to make yourself rich. But the way I want you to do this is much more strategically, and what I mean by that is I want you to go to the bank and create three different bank accounts. I want you to have one bank account for your spending money, one bank account for your investment money, one bank account for your savings money. And what's going to happen now is when you get paid, this money should be deposited into this account. But this is where you have to use some automations. Yes, your bank should allow you to do this for free. If they don't allow you to do this for free, find a new bank. And what I mean by that is create an automatic deposit here and deposit here. That way you don't have to think about it. And the reason why I want you to do that and create those three different bank accounts is because when you manage your money all out of one bank account, it is very easy to accidentally spend this money or this money when you see that sale on the brand new TV. So instead of doing that, create separate bank accounts. That way you know that this is all that you can spend. And this is actually the same reason why the government takes their taxes out of your paycheck automatically because they know that if it was your job to pay your taxes at the end of the year, well, most people would have spent all of their money and they're not going to have money to pay their taxes. That's why I want you to separate your money. That way you know how much money you can spend, how much money you can invest, and how much money you can save. And it's automatically put into the separate bank accounts. The way you build wealth in the stock market is not by chasing hot stocks. It's through what I call ABB, Always Be Buying. And I just wrote a brand new book called ABB, Always Be Buying, how you can build wealth in any market where I break down the exact strategy of how you can build wealth in the stock market and turn your extra money into income or more wealth. That way you can now use the stock market to build wealth. And because you're watching my video, I'm going to give you a digital copy of my book completely free. I have that link for you if you want to download it down in the description below. And when you sign up for the book, you're also going to get access to Market Briefs, which is my newsletter for investors completely free, where my team is breaking down what's happening in things like the economy, housing, stocks, crypto, and global markets. It's read by hundreds of thousands of investors every single morning. So if you want to get my ebook and Market Briefs all for free, all you have to do is sign up. And I have that link for you down in the description below. And when it comes to actually investing your money, there's a lot of different strategies that you have because you can invest your money into stocks, you can invest your money into real estate, you can invest your money into your own business. You can invest your money many different ways. And I'm not going to go too deep into that in this video, just because I've done so many videos on how do you actually invest your money. And that's going to derail us from everything else that I want to go over. So just understand that there's many different ways to invest your money, but you just have to put this money to work to actually build your wealth. Oh baby, we are moving on up this climb to wealth, which brings us to number five. How can you get out of the payment scheme? We live in a system and world of payments. As soon as you get paid, well now you've got to pay your mortgage payment, you've got to make a car payment, you've got to pay the furniture payment, you've got to pay your credit card payment, and all these other payments that people have. And one of the most rewarding things that you can do is just eliminate these payments from your life. And this is where if it does not put money in your pocket, you should not finance it, period. The only exception to this should be the house that you live in. That means when you go and buy the new iPhone, don't buy it with 0% APR, buy it outright with cash that we don't have to worry about the payments. That means when you go and buy a car, don't buy it with a lease, don't buy it with financing, buy it outright with cash. Now if you're a business owner and you're going to strategically use a lease for your business for a tax write-off, sure, I understand that, but I'm speaking about now for the average person now, you're thinking about buying a car, leasing is like flying first class. It is a luxury. If you can afford it, great, but not everybody can afford to fly first class. When you're thinking about buying a car, buy a car that you can afford with cash. Now the first thing you're going to say is, Jaspreet, what the heck are you talking about? Why would I want to buy a $1,000 phone with cash when I can finance it for $50 a month with 0% APR? And the reason why is, let's take a look at the business perspective, because I'm a business person, okay? If you wanted to go out and get a loan from the bank for $1,000, would they give it to you with 0% interest? No. So why is Apple or any company going to lend you a product for 0% APR? And the reason why is because they know it's extremely profitable for them. Why? Because number one, when you can buy it with 0% APR, they know that many more people are going to buy this product because you don't feel the full pain of $1,000 leaving your account. Because if you had to pay the full $1,000, you might say, you know what, let me not buy the new one. Let me buy the two-year-old version one for 450 bucks. Instead, because it's $50 a month, now you can upgrade to the $1,000 one. Not just that. They also know that if you don't have the full pain of $1,000 leaving your account, you're much more likely to buy the other accessories like the phone care and the phone case and maybe the AirPods to go along with it. And then they also know, number three, that when you buy it with 0% APR, that a lot of people are not going to pay it off in the 18 months that they say they're going to pay it off. And then when you don't pay it off within the 0% APR time period, you now get slapped with 20, 25, 35% interest. And we all know that that interest is making those companies rich, but it's coming out of your pocket. So no, 0% APR is not a winning transaction and you're not going to beat them in their own game. Then number two, when it comes to your car, look, I get it. The average person is not buying their car with cash, but you don't have to buy a $50,000 car. Because if you take the $8,000 down payment that you used for the $50,000 car and you use that $8,000 down payment to actually buy your car, well, now you have a car that can drive you to where you need to go with no car payment. That means you could take the $800 a month that you were putting towards your car payment and put that towards your savings and your investments to actually make you wealthy. That way your investments can pay for your car for you in the future. You no longer have to pay for the premium gas. You can pay for regular gas and you don't have that expensive insurance payment anymore because your car is, well, cheaper. And now you also don't have to pay for the expensive oil changes because, well, you have a Toyota instead of a Mercedes. And now you start to see how much more money you can keep in your pocket just by keeping that car payment in your pocket. And I get it. It's difficult. I ran a business with multiple employees that was doing millions of dollars a year while I was driving around in a car that was worth about $500 that didn't have a bumper on it, that had multiple different types of rims on the car, that had rust on the sides of the car. I've been there. But you got to prioritize what's more important to you. Is it looking like you're rich or is it actually becoming rich? I'll let you decide. Once you start getting out of that payment scheme that everybody in America loves playing, now we can actually start amplifying your wealth by now working in number six, earning more money. Do you know why I like the 75-15-10 plan so much? Because this can scale with you. Whether you're making $30,000 a year, $300,000 a year, or $3 million a year, this system can work and scale with you and it allows you to spend more money, but it also makes sure that you're always investing and saving more money regardless of how much money you earn. And now once you understand how to use your money, you understand how to create a system for your money, you understand how to invest your money, you understand how to not spend your money stupidly, now it's all about how do you earn more money in the right way. And there are an infinite number of ways that you can do this, but you got to find what's right for you. I get it. There's a bunch of people on the internet that love to sell you this idea, you need to dump your job and start a business. Well, the reality is starting a business is hard. It's not for most people. It's going to require a lot of hours and everybody's selling you this idea that you can work for six hours a week, make six figures a year, and live this laptop lifestyle, traveling the world. It's selling you a whole bunch of crap and the only person getting rich selling you that system is the person that's actually selling you that system. So if you want to actually start a business, great. I love entrepreneurship. I love entrepreneurs. Go ahead and do it, but understand it's going to take a lot of work. You better be ready to make that sacrifice, especially in the early years of working on weekends, working on evenings, working on holidays, and working around the clock. If you're not ready to do that, then probably you're not interested in starting a business. You could be interested in starting a side hustle. There's a lot of different things that you can do. You can be a freelancer. You can be a contractor. You can drive an Uber. There's a lot of ways that you can add some supplemental income to your lifestyle by being a 1099 somewhere. You can look at now how can you get a raise at your own job? How can you work to provide more value at the company that you're at? You can work to get a career change. You can work to get a certificate. You can work to go back to school. I mean, there's so many ways to do it. You just got to find what's right for you. But the key now is as you work to earn more money that you follow this system because now when you get that $10,000 raise, oh baby, you're not just going to go and blow it on a trip to Cancun. Now you're going to take that money and you have more money to invest. You have more money to save. And yeah, you got a little bit more money to spend too, but this now your investments mean that your money is working for you. And now as you work for more money, you got more money working for you. This money is working for you 24 hours a day, seven days a week. That way soon you'll be able to have the assets that will pay for your expenses. Now you're free because once you have the investments that come in and make you as much money or more money than your job, well now you have the freedom to do whatever you want and not have to worry about the price because this will keep paying you even when you're not working. But it requires you now to continue to fuel the system of putting more money in. That way you have more money to make you more money. And then finally at the top of this climb to wealth mountain is you protecting your assets and leaving a legacy. And there's a couple of things that I want you to understand here. Number one is as a licensed attorney, who's not your attorney, what I can tell you is as you start to build your wealth, people will want to take their hand, put it in your pocket and take some of your money for themselves. So you want to start building the right legal shields here. And this is going to depend on what you're doing. If you're starting a business, you want to have the right business attorneys to create legal shields around you. They might be an LLC, they might be an S corporation. There are multiple ways to create some legal shields, having the right insurances around you and having the right incorporation structure that way in case you do get sued, that you have protection. You want to make sure you have the right insurances there no matter what you're doing, because well, unfortunately people don't like paying for insurance. Trust me, I don't either. But when that bad thing happens, you want to make sure you have insurance there, whether it's for your investments, whether it's for your house, whether it's for your health, you want to make sure you have the right insurances to protect you. Then beyond that, you also want to think about having your estate plan in place. As you start to have assets, you want to think about how are you going to pass these assets down? Because the last thing you want to happen is something to happen tragically, unexpectedly, and now the government decides how your money is going to be distributed and how your family is going to be taken care of. The last person you want to tell your family where your money is going to go is the government. Think about this ahead. As you start building your assets, talk to an attorney, yeah, it's going to cost you a few hundred bucks, maybe a couple thousand dollars depending on the scope of your wealth and your finances to build that will, to build the trust, to build whatever estate planning needs that you have, but you want to have that there. And then the final part to leaving this legacy now is also giving back. Because now as you start to build that wealth, you can also start to think about how you can help more people, how you can give back and how you can serve more people. Because the reality is when you have the ability to help, well, you can help more people get to the next level because sometimes people just need a little helping hand and now you have the resources to do that. Whether it be money, whether it be time, whether it be knowledge, you have the ability to help more people. And that's how you get to the top, climb to wealth. And to go through this, listen, it's not easy. I call it a decade of sacrifice. And this decade of sacrifice is you put in 10 years of spending less and earning more to invest like crazy. And if you're willing to stick through that decade of sacrifice, you are going to be a completely different person with a completely different financial situation where your friends and family are not going to recognize you. But notice what I said. It's not a six-month process. It's not a two-year process. It's not a five-year process. We're talking about a decade. And the reason why a lot of people don't want to say this is because it's not very attractive. It's not very sellable. Who wants to buy a get rich in 10 years system? The reality is this is how you actually build wealth over the long term. And the way it works is year one, you put in all this effort and you see zero return. Year two, you put in a whole bunch of effort and still really no return at all. Year three, you put in more effort and still very little return, if anything at all. Year four, you start to see a little bit, but you're questioning yourself. I just put in four years of work and I'm seeing pennies as my result. Year five, you start to see a little bit more and now you're starting to see, oh, maybe things are starting to pick up. Year six, things are starting to get a little bit better. Year seven, now things are starting to get a little bit better. Year eight, you finally start to see the light now. Eight years into the process. Think about where you are today and where you were eight years ago. In eight years, now you start to see the real lightning. Year nine, now you start to see the real returns of this. And by the time you hit year 10, now you can start to see the compound effect of that decade of work that you put in. If you've been trying to figure out what business you should start in this economy, in this video, I'm going to show you five different business ideas that you can start this weekend, even if you don't have a lot of money. Now, here's the thing. Every generation goes through a major economic shift, which creates new business opportunities. In the 1800s, it was railroads. This was the first time that people were able to move easily from one...