How To Get So Rich You Never Have To Worry About Money Again

If you don't want to ever have to worry about money again, there are three key concepts that you need to understand. These are three things you should have learned in school, but once you learn it, you can't unsee it. I'll show you. Number one, cash is king, but cash flow is queen. When you have a good king, it will bring you a good queen. To do this the right way, you really have to understand the difference between an asset and a liability. An asset is something that puts money in your pocket. A liability is something that takes money out of your pocket. Robert Kiyosaki famously said that the majority of Americans are buying liabilities that they think are assets. These liabilities include things like your car that you drive, the clothes that you wear, the vacation that you go on, even the house that you live in, because in all of these instances, you are spending money and you're not getting any money out. Now I already know what you're thinking, Jaspreet, what do you mean my house is a liability? Everybody says that when you buy a house, it's an asset. Well, not necessarily. The house that you live in is a liability because number one, you have to pay money every single month to live there. You're paying money for the mortgage, you're paying money for the property taxes, you're paying money for the maintenance and the upgrades. That's money coming out of your pocket every single month going into your house. It's not putting any money in your pocket. When things break, you got to pay to upgrade that, you got to pay to fix it. When you want to upgrade and finish the basement, you have to pay money out of pocket to do that. If things go really well in this house and the property value goes up, well, that money doesn't go in your pocket. Remember, equity is just hope. It's theory. It's not real money in your pocket. So when the property value goes up, you might feel rich, but what actually happens is your property taxes just got more expensive. Your property insurance just got more expensive. You have no additional money in your pocket. So unless you're actually making more money, well, you might struggle making those additional payments. And then when it comes time to actually get your money out of the property, that means you have to sell the house, which means you no longer have a place to live. So it's not actually an asset. Can it make you money? Sure, if the value goes up and you sell it at that time, but we know that real estate does not always go up in value. Just take a look at what happened during the 2008 great financial crisis. Every real estate agent and every banker wants you to believe that the house that you live in is an asset. That way you go out and buy a bigger house. I'm not against you buying a house. I don't think it's a bad thing for you to buy a house. In fact, I think it's a good thing for you to buy a house and pay it off. However, treat your house like a liability. That way you can focus your energy and your money on buying real assets. So let's go back to the beginning. Cash is king, cash flow is queen. The purpose of using cash for the majority of people is to buy this. They're buying liabilities. They're taking the cash that they're making, they're working hard at their job, they're buying themselves a nice car, they're getting themselves a nice Gucci, maybe a Rolex, they're going on that trip to Cancun, and then they want to have the nice big house that way they can show it off to their friends. All of these things are liabilities. You're taking that cash and you're dumping it down the drain. You look rich, but you're actually broke. But what wealthy people want to do is they want to take that cash, the king, and then they want to turn it into the queen, which is cash flow by buying the right assets. What does that mean for me? I like to buy assets that pay me money. They deposit money into my bank account either every month, every quarter, meaning every three months or every year. Those are the assets that I like. The majority of my investments are cash flow producing, meaning they pay me for owning them. What are these assets? Well, this could include things like real estate investments. Now, when I talk about real estate as an asset, I'm not talking about the house that I live in. I'm talking about rental properties, apartment complexes that I rent out to other people because now when I buy this house to rent out, I buy this property, the tenants are paying for my expenses. The tenants are paying the property taxes. The tenants are paying the insurance. The tenants are paying for the maintenance and the upgrades. The tenants are then putting money in my pocket every month. That's why this type of real estate is an asset, not a liability. I'm talking about stocks, more specifically dividend paying stocks. The majority of my stock market portfolio is dividend producing, meaning these are companies and funds that pay me in cash flow every three months, meaning every quarter. They're depositing money into my accounts and then I get to decide if I want to take that money and buy a car or if I want to take that money and reinvest it into more of these cash flow producing assets because I like that cash flow. A third type of investment would be my own business. Now, you can start your own business, you can invest in other businesses, but the idea here is you're investing in business because now when you own the business, you get your share of profits. The reason why doing this is so difficult is because when you start taking your cash and you put it here into these assets, all of a sudden you look poor. You don't have the nice car anymore for a little while. You don't have the nice place to live for a little while. You might not be going on the fancy vacations or the fancy restaurants or going out for a little while because now you're taking your money and you're buying these assets. You can't show off your stock market portfolio the way you can your BMW. You can't show off your real estate portfolio the way you can your Rolex, but these are the things that can buy you the BMW, that can buy you the Rolex, that can buy you the trip to Cancun without you having to worry about the price because now when you use your king, the cash, to buy the queen, your queen, the cash flow, can then fund that lifestyle. A simple rule of thumb to help you get started with this is for every dollar that you earn, the maximum that you can spend on these liabilities is three quarters. Take one quarter and spend that quarter on buying assets and saving money. That way now you're working to pay yourself, you're working to buy the assets before you go out and spend all of your money. The second concept you have to understand is do not spend tomorrow's income today. By the way, for those of you that are investors or want to become investors, my team at Briefs Media publishes a free daily report called Market Briefs where we're breaking down what's happening in the economy, housing, stocks, crypto, and global markets into a fun, witty, and easy to read newsletter. We have hundreds of thousands of investors that are reading Market Briefs every morning. Plus, when you sign up for Market Briefs as a complimentary bonus, you're also going to get my Investing Masterclass for free where I'll walk you through how you can get started as an investor and find hidden investment opportunities before everybody else. This is all completely free, so if you want to get Market Briefs plus the Investing Masterclass, all you have to do is click the link down in the description below. I want you to take a second and think about what is debt. Now you might think that debt is borrowing money, but what are you really borrowing? When you use debt, you are borrowing tomorrow's income, and you are allowed to spend that money today at the price of interest. Debt allows you to spend your future income, and the price that you have to pay is the interest rate. Now, the problem is people are taking this debt. Most people are doing that, and then they're going out and buying these liabilities. So not only are you taking that cash, and you're going out and spending it on things that don't make you money, but now people are taking next year's income, the year after that's income, through debt and spending it on things that take money out of their pocket. And this puts you into that rat race. It is a game, where now every single month, the very first thing that you do is you get paid, and now you've got to pay your Amex, you've got to pay your Visa, you've got to pay BMW, you've got to pay the other car payment, then you have to pay for your mortgage, and then you have to pay for your student loans, then you have to pay for your personal loans on every other thing that you purchased, and then if there's any money left over, that's when you get to spend some money on yourself, and so people say, I need to take care of myself, I deserve something nicer. So now you go to the mall, and now you finance that Gucci, and now you get deeper and deeper into that rabbit hole, and now no matter how hard you work, you can't get out of the system, because all you're doing is working to make other people rich, because you are stuck in the rat race. And if you want to get out of that cycle, you have to understand how this debt makes these people rich at your expense, because now not only are you spending all of your cash, but you're also spending your future cash today, plus interest that's going to make the banker rich. The good news is, there is a way out. The bad news is, it's going to take work, it's going to take sacrifice, and it's going to take time. There's a lot of people on the internet that will sell you this idea that, oh, if you're stuck in debt, you're struggling with money, all you have to do is buy my system, and you're going to be rich in six months. Unfortunately, that's not how it actually works. If you want to get out of the system, you're going to have to take serious sacrifice and start making real changes with your money, and that means stop spending money on all of these things and stop going into debt. I follow two simple rules here. Rule number one is, if it does not put money in my pocket, you do not finance it. The only exception is your house. That means no more financing your vacations to Cancun, no more financing that Gucci, no more financing the Rolex, no more financing the iPhone, and no more financing that car, no more financing the BMW or the Benz. Buy it with cash, and that is a very, very difficult concept to grasp because now you're going to say, Jaspreet, I don't have $50,000 to buy a car. Well, don't drive a $50,000 car. Take the $8,000 that you used as the down payment on that BMW and buy a car for $8,000. Now take that $700, $800, $900, $1,000 a month that you're paying on your car payment, depending on your credit score, and take that money and buy these, which you'll pay with cash flow. You don't have as nice of a car, you don't have as nice of stuff, but you have real money. Now you have assets. You have the king to buy you the queen. You have the cash to buy you the cash flow. Rule number two is, when it comes to luxuries, things that you don't need to survive, follow the rule of five. If you can't buy five of them, you can't afford one of them. You want to buy yourself a nice Rolex, you got $10,000 in the bank. The Rolex costs you $10,000. Most people now will say that you can afford it. We're not talking about going into debt to buy the Rolex. You got the 10 grand to buy the $10,000 Rolex. But when you spend all of your money, you have no ability to buy these assets. And that's why when it comes to luxuries, I want you to be able to afford them, but you better be able to buy at least five of them. If you're not worth five Rolexes, don't get yourself one Rolex. Now you can start to see why this is so difficult, because it's uncomfortable to not do the things that everybody's doing. Everybody is spending money on these liabilities. Everybody is going into debt to finance this Instagram lifestyle so they can show it off. And when you don't do that, people think that you lost your mind. And now you are the only one that knows that you're working to build this bigger thing in the future. But most people don't understand. But if you want to have the freedom and not have to worry about money and not be stressed about money like everybody else that you know, it's going to take sacrifice. It's going to take hard work. It's going to take time. But if you stick with it, it's going to give you that life that most people can only dream of. And this brings me to number three. Price is what you pay. Value is what you get. When I was a kid, my family and I would fly to India pretty often to visit my extended family. And that flight from the United States to India is long. We're talking 15 to 18 hours on the plane plus a layover sometimes. And the biggest decision, the driver of which flight we would book as a family was price. All we want to know is what's the cheapest ticket to get us to India. We're not looking at how long the layover is. We're not looking at how uncomfortable the flight is. We're not looking at how comfortable the seats are. All we want to know is how can we get to India at the cheapest price possible. And then you go into one of these nasty airlines that smell like crap. You're sitting like a sardine and you got to sit like this for 15 hours. It's not easy. Now because I've been more fortunate with my business and my investments, I've been able to see that there are nicer tickets out there, nicer airlines, business class tickets, first class tickets. And now when I book these long flights, I don't look at the price. What I'm looking at is the value because value is two things. You have the financial value and you have the life value. And now I don't want to take this uncomfortable flight. I would rather sit a little bit more comfortably where I can lay down and where now the air hostess is much nicer to you. They treat you like royalty. They give you hot towels. They give you warm food. They give you fresh food, at least it tastes fresh. That's a very different experience. It costs a lot more, but that's the value that you get. And this is where many times you have to take a look at price versus value because this can change how much money you're making. It can change how much money you're spending on the longterm and it can change the type of life that you live. If you would have asked me 10 years ago, Jaspreet, would you ever pay somebody $10,000 for a few hours of consulting? I would have told you you've lost your mind because that price is crazy. Who's going to pay $10,000 for a few hours of consulting? Because I wasn't looking at the value that I was getting. If I can make more than that $10,000 from that price that I have to pay, that would be a good investment. And well, a couple of weekends ago, I was texting this guy who could help me with some of my advertisements and he said, sure, you know, just pay me $25,000 and I'll give you a few hours of consulting. And my response was, sure, send me the link and I'll send you the money as soon as I get home. No sales calls, no fancy things. I just sent him the money because I knew that it was worth the value and that I was going to get a return on it. And this is where sometimes we get so caught up on the price of things that we're buying without taking a look at the value. Now, you have to understand where you are in the season of your life. If you are struggling with money, if you are struggling paying your bills, you shouldn't be worrying about flying first class. You shouldn't be worrying about buying the nice luxury things. Now with those situations, you've got to focus on price, but you've got to start thinking about the value you're getting when it comes to how you can get a return on your money. One lesson that I've learned so many times, God has taught me this lesson many, many, many times now, is one of the most expensive things that you can do is be cheap. I have learned this lesson by paying for cheap softwares. I learned this lesson by paying for cheap accountants. I've learned this lesson by paying for cheap contractors. Each one of those times, I paid a little bit of money and then it ended up costing me way more money than if I would have had somebody who cost me more money in the beginning. Sometimes being cheap can bite you in the asset. And this is where it is important for you to understand this because when you are trying to get a return, a financial return on what you're doing, we get caught up sometimes looking at the price, especially when you're struggling with money. But this is where I want you to take a step back and really look at the value because if you can spend $100 and get the value of $200, that could be a good investment. But don't spend money you don't have. Have the money first and now when you have the money to buy something, be smart when you're looking at price versus value because sometimes the picture goes way beyond than the price that you have to pay because if the value exceeds the price, that could be a good investment for you. If you make $80,000 a year from your job, you need to make $80,000 a year from your investment income to be able to quit your job and live your life without changing anything you're doing. With a job, you have to go into work every single day to keep getting paid with your investments. Once you put your money to work, it'll keep paying.