Jaspreet Singh, founder of Minority Mindset and a popular financial influencer, shared his step-by-step plan to become a millionaire in 2024 in a recent YouTube video. Not only are Singh’s tips practical and actionable, but they are also applicable to every audience — whether you have $25 in your bank account or hundreds of thousands.
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Singh emphasized that contrary to traditional money books advising that “wealthy people invest in real estate,” he prioritizes using your money as a tool to become wealthy. Singh then breaks down the steps you need to follow to succeed financially. Keep reading to discover his six-step guide to becoming a millionaire in the new year.
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Step 1: Start With a Positive Money Mindset
Growing up, people often have a negative mindset when it comes to money. For Singh, he saw wealthy people as evil, while hypocritically wanting to become a doctor and achieve his own wealth.
“When you have this negative mindset and association between money and those who have money, it’s going to make it very difficult for you to become wealthy because you don’t want to do something that you think is bad,” Singh said. “Naturally, we try to avoid things that we think are bad.”
If you have a negative attitude about money and constantly find yourself thinking, “I will never be able to afford that,” you are holding yourself back from achieving your financial goals.
“Becoming wealthy is just as much a practical part and math part as it is a mindset part,” Singh said. “The reason why some people become successful isn’t because they have something in their DNA and isn’t because they are gifted. Many times they are just crazy enough to believe they can do something big. That crazy belief causes them to do things that most people would deem impossible.”
Singh recommends that if you have a negative association with money and success, it’s crucial to invest in your personal development. His recommendation includes reading five personal development books of your choosing. He believes that if you commit the time to change the way you think and operate, you are going to start living a completely different life.
“If you cannot get past the mental barrier, it is going to be impossible for you to succeed,” Singh said. “Your mindset is the foundation of all growth.”
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Step 2: Lay the Foundation
If you are going to build a house, the first step you would take is building the foundation. The same principle applies to becoming a millionaire. At this stage, it’s important to take a step back and focus on two things: saving your first $2,000, and getting out of high-interest debt.
If you have not accomplished these two things, this is likely a stage that is going to include some serious sacrifices and tough decisions. However, making a few sacrifices now to build a strong foundation is essential to building wealth in the future.
Singh emphasizes that if you do not have $2,000 saved, you are in the “danger zone” because anything might happen to you financially that could land you in debt. It’s important to get out of this financially hazardous zone by saving a couple thousand as quickly and efficiently as possible.
It’s also crucial to rid yourself of high-interest or “bad” debt. According to Singh, payday loans and credit card debt are “skinning you alive” and keeping you from investing your money instead.
“Credit card debt is costing you 15% to 25% in interest every year,” Singh said. “If you pay your credit card off early, that’s a guaranteed return on your money.”
Step 3: Put Your Money To Work
If reaching millionaire status is the goal, having money to work with is crucial. That means setting aside about 15% of your income and investing it, according to Singh. The YouTuber’s preferred investment strategy is cash flow investing. In this type of investment, you buy an asset, such as stocks or a rental property, and get paid just for owning it.
“The thing that holds so many people back from investing is that they assume $50 isn’t enough. They think they need to wait until they have $2,000 or $20,000 of $100,000 to get started with investments,” Singh said. “With that mindset, you are slowly killing your ability to become wealthy. The key is you just have to get started. Getting started is the hardest step and then you just keep throwing money into it.”
Singh stressed that the most important move is getting started. If you can afford to invest $50 per month, start with that and stay consistent. Later you might be able to invest $75 per month then $100 and be able to stack investments. Eventually, the money you earn will start earning a little bit too, and you can take the money you are earning and reinvest it.
“This is where small baby steps compound and stack on top of one another,” Singh said.
Step 4: Spend Your Money Smartly
When it comes to spending money, most people follow a net zero mindset. In other words, if they have $1,000, they think they can spend $1,000, which Singh considers a “broke way of thinking.” If you want to grow your money and become a millionaire, it’s crucial to break away from this net zero thinking.
Here’s another way to look at it. For many spenders trying to determine if they can afford a new $1,000 phone, they may justify the purchase if they can make the $50 monthly payment minimum. According to Singh, being able to afford the monthly minimums and afford the phone in full are two completely different things.
“If it’s not putting any money in your pocket, you got to make sure you can pay for it with cash,”he said.
Sign recommends following the rule of five instead. “If you can’t buy five of them, you can’t afford one of them, especially for things that are not necessities in your life. If you want to buy a $1,000 phone, you’d better have $5,000 in your bank account. While it’s not easy, if you can budget and spend wisely, it is going to allow you to have more money for your investing so that you can become wealthy.”
Step 5: Earn More Money
For most people, step 5 of Singh’s plan features the most significant challenge. To get ahead financially, Singh emphasizes the importance of earning more money without giving into lifestyle inflation.
“Statistically, what we’ve seen happen is when the majority of Americans make more money they end up in a bigger financial hole,” Singh said. “Why? Because when you make more money you drive a bigger car. When you make more money you go on a nicer vacation. When you make more money you get to celebrate and show it off. And this is why so many people make more money and end up broke.”
While earning more can lead to this financial slippery slope, it also holds great power when you know how to capitalize on it. More income gives you the potential to invest more, save more, and build your wealth.
“Most people assume that your wealth is built through your salary but that’s not true,” Singh said. “Your wealth is built through your assets. What’s more important than how much you earn is what you do with what you earn.”
Step 6: Protect Your Assets
Lastly, it’s essential to protect the wealth that you’ve worked hard to build.
“America is the most litigious country in the world and when people realize that you have money they can try to take their hand, put it in your pocket and take some of it for themselves,” Singh said. “This means you’ve got to start investing in the right attorneys to protect you.”
Singh also emphasizes the importance of investing in a tax advisor and being able to discern a good tax advisor from a bad tax advisor.
“A bad tax advisor is just going to file your taxes,” Singh said. “A good tax advisor is going to handle your bookkeeping and then meet with you regularly, tell you what your tax liability is and lay out your tax strategy options.”
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This article originally appeared on GOBankingRates.com: Jaspreet Singh: Your Step-by-Step Plan To Becoming a Millionaire in 2024
