5 Tips To Master Your Finances

Here’s what you need to understand about
your cash flow. This is you—let me draw a nice mustache—
now you look good, and this is the flow of your money. You need to have more
money coming in, so this is money from your job, your business, your investments,
whatever, you need to have more money coming in than you have
leaving your funnel. So, now you have to pay your rent, your mortgage, your car
payment, your food, whatever. If you have more money coming in than you have
leaving, you will feel rich. But, if you want to be wealthy and have freedom, you
need more than just this. What’s up everybody? I am Jaspreet Singh and
welcome to the Minority Mindset. This cash flow diagram is pretty
self-explanatory. You need more money coming in than you have leaving, if you
want to feel rich, but it’s a lot easier said than done. I mean, if it was so easy,
78% of Americans wouldn’t be broke. If you want to improve this, you can start
by cutting some of your expenses. You can live a little bit smaller, you can stop
eating out so much, but there will always be a limit to how much of your expenses
that you can cut because everyone needs a place to live,
everyone needs food, you have to pay for utilities, you have to pay to go on
vacations. You can work harder at your job to earn more money, but there’s still a
limit to how much you can earn because you’re capped by the number of hours
that you’re working. I mean, you can’t work 35 hours a day. So you can earn more,
but now you have to sell your freedom to get more money. If you do both of these
things, now you are working to earn more money, and you are living smaller, now you
have more money in here which is great, but right now you don’t have any freedom.
If you want freedom, now what you need to do is, you need to take this money that’s
in here, and you need to send it out into these things that will pay you—I’ll tell
you what I.S. means in a little bit—but you need to send it to these investments
that will pay you with passive income, which means, now you are making money
without physically working, and you need to keep doing this until you’re making
enough money here to live your life, and once you can
do that, you will have freedom. And today, I’m going to be going over five things you
can do right now to improve your cash flow, this way, you have more money here
to buy things that will pay you with more freedom. But, before I get into that
make sure you smash that like button below and subscribe to the Minority
Mindset YouTube channel, that way, you don’t miss our new financial education
videos, every single week. First and most obvious: Be smart with your money. Okay,
coming back to this funnel right here. The first thing, the absolute first thing
you have to do is start living below your means. You need less money going out
than you have coming in. If you have every dollar you make going out, or more than
every dollar you make going out, you don’t have a chance to build wealth or have
freedom. So that means, right now, you need to live smaller. It’s not the funnest
thing to do. but it’s the absolute necessary first thing you have to do.
That means no more Starbucks, no more multi-massages, stop buying bottled water
and drink from the sink, and—this one’s going to trigger some people—stop paying
$15 for avocado toast. Once you have this extra cash, every single month, this is
when people start to freak out. Oh my god, oh my god, what do I do with my money?
Look, I’m sorry to say this, but your parents, your math teacher, and your great
uncle, are wrong. Saving is not the secret to building wealth. Investing is. So now,
when you have this extra cash, you need to use it to buy, what I call, investment
seeds or I.S. which are things that pay you for owning them. I call them seeds
because they work just like seeds. You have to buy them, nurture them, and if you
do this long enough, you will be able to live off with the fruits that your seeds
produce. But, before you jump in and throw all of your money into the stock market,
because that’s the secret to building wealth, I need you to take a deep breath.
You need to learn how investing works first. I want you to dip your toes in the
water first. So, take a little bit of money, not your entire life savings, and
invest it so you can get a feel of what it’s like to win, and what it’s like to
lose, and what it’s like to research investments. You have to start small, this
way, you don’t lose everything you’ve saved your whole life for, and at the
same time, I want you to invest in your education by
reading books and investing in courses, this way, you have the tools necessary to
succeed, and while you’re doing this, I need you to two: Do a self audit.
Businesses spend millions and millions of dollars a year
auditing themselves because they want to check their wallets. Who stole the money
from my bank account? Was it you? Who me? You should not wait until you have a
million dollars before you start asking yourself: what’s in your wallet? Capital
One? So, what I want you to do is spend 30 minutes a month, every month, and do a
self audit of your money. That’s exactly what I do. Pick one weekend, every single
month, and lay out all of your credit card statements, all of your bank
statements, all of your pay stubs, and any other financial transactions that you
have, and lay them out on your kitchen table. Now, look at how much money you
made, and look at where all of your money went. Now, write this down so you can see
where your money is going, and so you can keep track of this. You’ll be surprised
at how much money you will get to keep in your pocket. When I did this last
month, I found out that my gym signed me up for this magazine that I never wanted
or signed up for, and they were charging me two dollars and 50 cents a month for
it. So, I called up my gym, I told them I didn’t want this magazine, and they said
“sorry for the inconvenience” and they told me that I was overpaying for my
membership so they reduced my monthly membership by 12 dollars a month. You
never know what you will find which is why you need to do this every single
month, but while you’re doing this, I also want you to three: Grow your income from
your home. Look, I’ve talked about real estate investing at least a million
times on a channel now, but now with the internet, you can start making money from
your home, even if you don’t have a rental property. Thanks to our sponsor
Airbnb, you can list your room, your basement, or your whole house, when you’re
not using it, and you can get paid with extra income. You’re in control, so you
get to choose when you want to list your extra space, and you get to choose how
many guests get to stay in your extra space. If you’re going on vacation for a
weekend, you can let a guest stay in your house and let their fee pay for your
vacation travels. This is a convenient way you can add extra cash into your
funnel without doing that much extra work. The best part is there’s no
commitment. You get to decide when you list your house, you get to decide who stays
there, and you get to approve all of your guests. I
don’t know, Jaspreet. What if somebody messes up my house? For one: that’s really
rare, and for two: Airbnb gives you 1 million dollars worth of property
protection and 1 million dollars worth of liability protection to make sure you
feel safe. So, if you want to see how much your home could potentially earn you on
the side, I’ll put the link to where you can do that and learn more in the
description below. There’s no commitment, and it doesn’t cost you to do this. All
you got to do is enter a few pieces of information, and it will tell you how
much your home can earn you. Minority Mindset is a partner with Airbnb so
if you use them we will get compensated, but there’s no additional cost to you.
They’re free to use, and if you want to see how much more you can earn on the
side, I’ll put the links in the description below. Fourth: Be a servicer.
Going out and starting a business can add unlimited amounts of income into
your funnel. But, not everybody wants to start a business, and not everybody wants
to deal with the headache, I mean, starting a business is hard work, and
if you start a business it’s going to be on your mind 24 hours a day, 7 days a week.
There’s no such thing as holidays off. But, even if you don’t want to start your
own business, you can go out and service other businesses, and these businesses
will pay you for your services while you work from home, and you never even have
to meet these business owners. Is this that sketchy work from home thing I
see billboards for all the time? Uuh, no. Look businesses and especially small
businesses need writers, designers, coders, marketers, and assistance that can
organize their emails for them, but not every business owner wants to or has a
resource to hire a full-time employee to do these jobs. That’s where freelancers and
virtual assistants come in. I know this because I have hired freelance writers,
marketers, designers, coders, and assistants who manage my emails. These
are people who I have never met before, who are working from their own home on their
own schedules. You can do the exact same thing. Know what your skill is, and then
market it to small businesses on Upwork and Fiverr. It’s free to do. And while
we’re talking about the internet, let’s talk about my personal favorite. Five: online
royalties. Royalty income is income that you make from something you did a long
time ago. So, for example, let’s say I wrote a book ten years ago, and people
are still buying it today. That means that book that I wrote 10 years ago
would still be generating me income today because people are still
buying it. Internet royalty income is officially my favorite source of cash
flow. It is not the easiest, it’s actually one of the hardest ways to create income,
which is why, if you want to do this, you need to have the entrepreneurial mindset,
and you need to be able to stick to something for a long time. But, if you
stick with it and you do it the right way, it will be able to create income and
cash flow into your funnel for years into the future. Here’s how it works.
Let’s say you love cooking so you start a blog called “Cooking with Jaspreet
Singh” where you share some of your favorite cooking recipes. So, you write an
article on my favorite gym food, my favorite foods to lose weight, you get
the idea. Now, you like the idea of being a blogger so you put out one new article
or one new blog post, every single week. Well, what’s going to happen is, in
the beginning, nobody is going to see your blog posts or articles because nobody
knows who you are. But, you had the entrepreneurial mindset, and you stick
with it for a couple years. And now, two or three years later, your articles are
getting something like a hundred views a month. So, nothing crazy, but you’re
starting to get a little bit of traction. So, what that means is, now every week,
when you put a new article, each of these articles are getting you something
around a hundred views a month. So, you put out an article on recipes to impress
your wife, and that gets you 100 a month which is, what, uh, 1,200 a year, and then
you put out an article on your best fat burning tips, and same thing—fat burning—
that gives you a hundred a month, or 1200 views a year. So, nothing crazy, but you’re
starting to get a little bit of traction on all of your articles. Well, what you
can do now is in each one of your articles, you can promote one of your
cooking products. Like, in your fat burn article you can talk about your favorite
protein that helps with fat burn, in your favorite recipe article you can talk
about your favorite candle that goes along with your dinner and that
will really impress your wife, and so you can talk about these products in
your article, and every time somebody purchases one of these products from
your article, you get paid. Now watch this. Let’s say, for every 200 readers you get
on your website or your blogs, you get one sale. So, for 200 you get one sale and
each sale makes you just ten dollars. So, nothing crazy. That means, here, with this
recipes article, you got twelve hundred views over the year, that means, this
article will make you sixty dollars over the year. Same with this fat-burn article.
This article is going to make you sixty dollars over the year. So these two articles,
over the year, will make you a hundred and twenty dollars. Not bad, but now, let’s
say, instead of just having two articles that are generating you money, let’s say
you have a hundred articles out there that are getting you the same return. So,
if you have a hundred articles, and let’s say they’re getting the same return,
instead of making a hundred and twenty dollars, you are going to make six thousand
dollars over the year. And if you have a thousand articles, now you’re going to be
making $60,000 over the year from your articles from royalty income, and it all
keeps compounding and building on top of one another. now sure, not every article is
going to get you 100 views a month, and not every article is going to get you the same
number of sales. Some will be less, some will be a lot more, but it averages out.
These numbers are very, very possible, if, that’s the keyword, if you stay
consistent, you keep learning, and you keep putting in the effort to keep
bringing in traffic onto blogs and learning how to build your cash flow. Thank you
for watching. If you enjoyed the video, share it with one friend, that way, you can
help spread the word. I hope you enjoyed seeing how the cash flow model works for
our finances, and if you want to learn more about why the majority of Americans
are broke, I made a video explaining why 78% of Americans are broke. I think
you’ll really like that video, and you can watch it by clicking this button,
right here, so check it out and as always, KEEP HUSTLIN’ *

Author: Kevin Mason

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