Money Expert Jaspreet Singh: 10 Hacks To Get Rich Before You Get Old
While many people aspire to build wealth and become rich, achieving this goal can seem like an impossible feat unless you get very lucky. However, it’s achievable if you make the right everyday money decisions and stay dedicated to investing your extra money.
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In a recent video on his “Minority Mindset” YouTube channel, money expert Jaspreet Singh shared these 10 hacks for how to get rich before you get old.
Use Three or More Bank Accounts
For better money management, have a checking account for receiving income and paying bills, at least one investment account, and a savings account for emergencies.
Singh recommended saving 10%, investing 15% and spending 75% of your income.
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Skip Lavish Things
Unless you already have significant wealth, don’t waste cash showing off with luxuries, such as expensive vacations, timeshares and fancy cars.
“The way you become wealthy is by owning investments, period,” Singh said.
Avoid Saving All Your Cash
While Singh acknowledged the need for an emergency fund, he warned about inflation and increasing costs of living hurting your cash’s value. Since even a high-yield savings account may not keep up, he recommended investing most of your spare cash.
Don’t Gamble On the Next Big Investment
Singh warned that betting on the next big stock can be very risky.
“But if you want to mitigate some of the risk, one of the simplest things you can do, especially if you’re just getting started as an investor, is just use your money to go and buy the stock market,” he said. Exchange-traded funds are one option.
Avoid Paying Too Many Taxes
Since taxes cut into your wealth, use deductions and other tax breaks to save. Singh recommended business owners and big investors hire tax advisors, while others might consider tax review services.
Double Your Income
According to Singh, you could double your income in five years if you build skills and find ways to attract additional cash.
Examples include using online resources, hiring professionals and taking classes. Just make sure not to increase expenses with your income.
Focus On Daily Improvement
Whether it’s reading a few pages in a financial book or investing a few bucks daily, becoming disciplined can help you build wealth. Singh advised sticking with such daily habits, despite any discomfort, since they’ll lead to improvement.
Open a High-Yield Savings Account
Rather than keeping cash in your wallet or a traditional savings account, open a high-yield savings account, which can pay 4% to 5%. Singh just cautioned to make sure you pick a reputable, insured institution.
Buy Back Time
Singh explained that delegating or outsourcing personal and business tasks buys you time to make more money, invest or enjoy life. For example, you can get an Uber for your work commute and use that time for other activities.
Learn To Be a Winner
To get rich, you’ll need to be more than just average at working, investing and other money-earning activities. Singh emphasized improving yourself and making sacrifices that can eventually lead to freedom.
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