Being born wealthy is the simplest way to become wealthy. If that isn't a possibility, the goal is to simply limit spending, continue working, and invest your money wisely.
According to Jaspreet Singh, the man behind the Minority Mindset brand and a money guru. Singh, a first-generation American, is the CEO of Briefs Media, a company that publishes daily business news and sells newsletters. He is also a licensed attorney and serial entrepreneur. Singh claimed that his parents, who were immigrants from India, didn't teach him how to save money or invest when he was a child. However, they did transmit a set of values.
In a TikTok video from last year, Singh stated, "I saw how hard my parents worked, and I wanted to take care of them." I set out on my own journey to educate myself about money. After a great deal of trial and error (including numerous pivots, starting and closing a firm, and even being conned), Singh discovered his formula for success (mostly real estate investing), and he has made it his mission to develop and disseminate financial advice. The Minority Mindset, which focuses on "thinking differently than the majority of people" regarding money, was created to show others how to avoid making the same mistakes he did.
The target audience for Singh's advice—which he generously offers to his more than 2.5 million subscribers and followers on TikTok, YouTube, and Instagram—is individuals without significant prior financial experience or hereditary wealth. But Singh says that getting rich is shockingly simple. He recently provided a three-step strategy for anyone, in any financial circumstance, to amass riches in an interview with GOBankingRates.
You can almost certainly bet on never being able to advance beyond your station if you spend all of the money in your bank account, much less incur debt. He claims that most Americans fall short here. "Most Americans work to purchase pleasant things like quick vehicles, decent excursions, and extravagance garments," he said to GOBankingRates. However, if you spend every last penny, you'll never get wealthy.
That can be more difficult than it seems. The difficult-to-avoid aspect of moving up the social scale is lifestyle creep. People frequently find themselves in debt or very close to it when trying to spend in line with their income in order to stay up with peers. However, regardless of income, living within one's means is essential to accumulating wealth.
One simple way to do that is to deposit money directly from your paycheck into savings as soon as it arrives, keep a running list of all your purchases and invoices, and keep a careful eye on minor, daily expenses that may quickly pile up.
Step two: Work to earn more money.
In other words, resist the urge to settle in. Singh noted that there will always be a limit to how many expenses you can cut, no matter how conservative you are. There is no ceiling on how much money you can make, though, provided you work hard. Even in this uncertain economic climate, that is your cue to request a raise.
"If you're only making $40,000 a year, there are only so many costs you can cut before you're truly just living a miserable life," Vivian Tu, a self-made billionaire and Wall Street trader known as Your Rich BFF on TikTok, told Fortune."It's much easier to get there by cutting out every penny from your Netflix subscription, off of that avocado toast, or from that Starbucks than it is to try and get there by cutting out every penny from your job hopping every two years and getting a 25% raise, and then having that additional $10,000 when it's in your salary."
Reading up on side hustles and maximizing earning potential might be the gift that keeps giving if pay negotiations fail. Web development, graphic design, and data analysis are examples of lucrative side jobs that pay above $50 per hour.
Step three: Invest what you don’t spend.
Investments are essential not only for accumulating wealth but also for retirement. You won't get wealthy by saving all of your money, Singh added, "just like you can't get rich by spending all of your money." Depending on one's income, debt, and expenses, one will determine where and how to invest; nonetheless, Singh generally advises equities, rental properties, businesses, and one's own education as lucrative areas.
Experts generally advise making regular investments, ideally between 15% and 25% of after-tax income. According to Mark Henry, the founder and CEO of Alloy Wealth Management, "If you need to start smaller and work your way up to that goal, that's fine." "Getting started is the most important part,"
Super-rich clients of wealth advisors, as well as business giants like Warren Buffett, attest that investing isn't just for those with limitless means. According to advisor Jonathan Shenkman at Shenkman Wealth Management, "I can say unequivocally that the best money management strategies are equally applicable to all levels of wealth."
A 2022 Harvard Business Review article exhorts those who lack inherited riches to undergo a mental transformation by letting go of constrictive thoughts before they touch their bank accounts.
"You might be bound to accept that abundance is held for a limited handful when you grow up lacking cash or the assets to make enough of it, imagining that there is a deficiency of assets, or watching individuals around you live check to check," individual budget master Anne-Lyse Abundance composed. To change this way of thinking, one must practice "thought work," which involves "consciously paying attention to your thoughts and choosing to entertain different ones instead."
Singh admitted that entering the world of money and investment can seem intimidating, particularly for individuals who are living paycheck to paycheck or have little tolerance for error. However, he insists that "you just have to get going!"
