our system is designed to keep the majority of people broke financially and poor mentally now what do I mean by that well Banks profit when you're in debt corporations profit when you keep buying their stuff and governments profit when you're just an employee and you're not an investor and you're not a business owner because that means you're paying the highest taxes and that's where if you don't want to keep being the person that's making everybody else Rich if you don't want to keep being the person that's stuck in the system you got to stop doing
the things that are keeping you there and what I want to do in this video is go over 10 things that if you stop doing these 10 things it will help you break out of the system and build real wealth for yourself so let me start by talking about number one don't spend money you don't have what that means is watch out for the three C's cars credit cards and lines of credit starting with cars when most people think can I afford a car they think can I afford the monthly payment on the car can
I afford the $600 a month lease payment can I afford the $584 a month on my monthly payment but when you want to actually afford a car I want you to understand that your car is a liability that means it's losing value so now you know that this car 5 years from now is going to be worth less money than it is today and now that being said your car also has a limited time span because it's only so many years so many miles that you can put on this car before it really just stops
working and on top of that if you're going to be buying this thing that has a limited time span that's going to be losing value why do you want to pay interest on top of that in order to drive this car it's a triple whammy and that's why if you want to go out and buy a car I want you to afford the car meaning not afford the monthly payments but be able to afford the total cost of the car buy it with cash that way now you understand that this car is a liability it's
losing money every single month and then if you can afford the car with cash that means you might be have to downsize which car you buy but now you get to save the monthly payment and you get to keep that money for yourself to build wealth to build your savings to build your Investments the second C are credit cards stop stop spending money that you don't have if you continue spending money on your credit card what you're doing is now you are buying something that you can't afford and then you have to pay interest that
you can't afford to pay and not just that the interest on your credit card is 15 18 24 27% a year now to put that in perspective if you had $6,500 of credit card debt which is the average household credit card debt in America today and you were paying 25% a year in interest your APR which is the average APR in America today well you're going to be paying a lot of money in interest in fact if you make the minimum payment you're going to be paying close to $155,000 in interest just to pay off
the $6,500 in credit card debt but let's flip it around a little bit what if you had $6,500 in your pocket today and you invested that money today and now instead of you paying the 25% a year interest what if you could get the 25% a year interest well now if you could do that for 30 years and you never invest another Penny your $6,500 is going to grow to over $5 million why because 25% a year is an insane interest rate but that's what you're paying to your credit card company every time you keep
swiping and you can't afford to which brings me to the third C which is a line of credit why do people get lines of credits you pull out a home acre line of credit or some other sort of line of credit to buy things that you don't have money for but what is debt I want to think about this from a theoretical perspective what is debt debt is you're spending your future income today and in exchange of you spending your future income today you pay a price that price is interest so what do people use
this line of credit for people take this line of credit and they go out and buy a car they buy a boat they buy some clothes or they buy a vacation so now let's put this in perspective you're taking next year and the year after that income and you're spending it today on a vacation as soon as you spend the $110,000 on the trip to Cancun that money's is gone but then you have to spend next year and the year after that paying off this trip and then you have to spend the year after that
paying off the interest on the trip instead what I want you to do is stop spending money you don't have that way you were to save up the money first so you don't have to pay the bank in order to pay the fee to go on the trip you're already going to have to pay fees you got to pay for the flight you got to pay for the food you got to pay for the hotel but you don't want to pay interest on top of that if you work to save up the money first then
you don't got to worry about paying the bank too number two is don't just be a consumer let me explain how the American economic system works I'm telling you this as somebody who learned this the hard way because in the American economic system you have consumers you have investors and then you have entrepreneurs and the way this system works is entrepreneurs if you're starting a business you might go out and get money from investors investors give you money and in exchange investors take an ownership in your business but the people that are buying things from
the entrepreneurs are consumers now what you got to remember is every single person is a consumer you have to consume everybody needs food everybody needs a clothes on their back everybody needs shoes everybody needs things right that's what the world is I mean you need things but the problem is most people in America are only consumers now part of the reason for that is our education system because we're only taught to work a job and consume things we're never taught to start a business we're never taught to invest and we're never taught how to use
our money instead what we're taught to do is go work for somebody else and just spend your money however you want that's what we're taught to do but in this economic system where you have consumers investors and entrepreneurs guess what happens consumers spend money they give it to entrepreneurs they give it to a business and then the the benefits are the investors and the entrepreneurs what does that mean well consumers dollars are flowing into businesses and that benefits investors that means consumers keep spending money and the entrepreneurs investors keep collecting the money which means if
you want to win in the system you don't have to go and start a business I mean if you want to that's great but you don't have to but you have to at least become an investor because that's the way that you get rich in this economic system you don't get rich by becoming a doctor you don't get rich by playing in the NBA you don't get rich by becoming a s fer I mean all those things can bring you a huge salary but as soon as you stop doing surgeries you stop making money if
you're in the NBA as soon as you stop dribbling the ball you stop making money if you are a celebrity and as soon as you stop singing you stop making money but if you want to continue building that wealth that means you got to take the dollars that you earn and you take these dollars and you start owning assets stocks real estate other types of Investments that way now your wealth can continue growing even Beyond you working and this is where most people get confused they think if I just make more money I'm rich no
if you make more money you can buy more things because now you can qualify for more credit card debt you can qualify more credit you can qualify for more cars the 3 C's but if you really want to build wealth what you got to do is you're working to make more money so you can own more assets you got to stop being just a consumer that means you work to earn more money without spending all your money so you have more money to invest that's the way that you win in this economic system in America
number three is don't rely on the government now we've been covering this a lot in Market briefs but we had this tough situation in America we're facing this retirement crisis where we have a lot of old people that are entering retirement age but they have no money or they have a little bit of money nowhere near how much money they need to retire and these old people I'm not saying this disrespectfully I'm saying this just in terms of age these old people who are retiring are realizing that their retirement plans didn't work out they were
hoping for a pension they were hoping for their savings to be there and then they were hoping that their social security would be enough for them to retire well now you're getting this news flash that Social Security is nowhere near enough and not just that what we're realizing is that the social security funds are dropping year after year and what that means is social security the money that you're paying into Social Security every time you get paid is taking your money to fund somebody else's retirement it's supposed to go to fund your retirement but your
money is going to fund somebody else's retirement and this is why if the Social Security System doesn't change that the funds in the Social Security fund are going to run out now that will change just practically speaking okay they're going to make some adjustments maybe they'll raise the taxes maybe they'll do something to find more money for Social Security but what people are realizing is you cannot rely on Social Security in order to live a good retirement and that's why I want you to stop relying on the government to fund your retirement or to really
fund anything in life because I want you to be able to live a life the way that you want instead of the way that somebody else wants you to live it and you're in control of that because if you know how to put your money aside if you know how to invest your money you can live your life the way you want and not have to rely on somebody else to take care of you and that's why I want you to plan for your own finances don't rely on somebody else to take care of you
you need to figure out how you can take care of you and if you get a social security check use that as icing on the top because the real way for you to live your life the way you want is by building your own wealth building your own Financial Freedom and not relying on social security by the way if you don't know what Market brief is Market briefs is my free financial newsletter that I created through briefs media where my team is working to break down what's happening at things like the economy housing stocks crypto
and the global economy it's a fun witty and easy to read newsletter you can read it in less than 5 minutes every morning and it's completely free so if you haven't joined Market briefs yet I got the link to can join down in the description below and if you don't love it well you can unsubscribe at any time because it's free number four is don't settle and I want you to understand something if you can understand the words that I'm saying and you're living in a first world country you have the opportunity of a lifetime
to build wealth because guess what other countries don't have that and so now if you are in a country like America you have the ability to build wealth I don't care what you look like where you come from what degree you have if you don't have a degree or what type of background you have you have the opportunity to build a wealth but that means you got to stop settling that means you got to stop being comfortable with where you are and the difficult part about this just depends on where you are because it's the
initial hurdle that hard I have friends that when they were 25 years old they graduated engineering school and they got a job and they hated the job they were making good money but they hated the job and I said well why don't you do something different you're 25 26 27 years old why don't you do something different you know what they told me I'm too deep I'm 25 26 years old I got an engineering degree I've been working up the corporate ladder I'm in to deep well guess what happens now where they're 33 years old
now they're in even deeper now it's even more difficult and it's also even more pressing that I wish I did something different when I was 28 but this is where it's never too late I don't care if you're 33 43 or 53 you can do something different but that requires you not to settle but also be smart now that can mean a lot of things that can mean you get a career change that can mean you try to start a business that can mean you change what you do with your money but you are in
control you have the opportunity of a lifetime because in countries like America you have the ability to build wealth you have the ability to invest money and get profits you have the ability to start a business and control what you do other countries don't give you that luxury other countries don't let you just start a business other countries don't let you try to go out and innovate other countries don't let you get the profits other countries don't allow you to do this but you can do that here why do you think immigrants around the world
are risking their lives literally risking their lives to come to this country is for a shot at a better life and this is where I want you to kind of build the IM mentality why do immigrants bust their butt to come here work like anything it's all for a shot at a better life and if you're sitting there complaining about where you are but then you're watching two hours of Netflix every day we kind of got to figure out what can we change here because if you got those two hours going into Netflix killing your
brain cells how about you start by changing what you consume so you can start changing what you get number five is don't hate the system in this economic system guess what the system profits when you are broke the system profits when you don't understand money the system profits when you're financially stupid what do I mean by that Banks profit when you're in debt if you don't understand money and you just keep financing your cars your clothes your vacations Banks love it because that means you get to pay them for the rest of your life corporations
profit when you're financially stupid because that means you can buy anything and everything that they offer you and they keep making the money government's profit when you're financially stupid because well that means you are an employee and you're not an investor and you're not a business owner now again nothing wrong with being an employee but you can't just be an employee you also have to be an investor because let me tell you something as an attorney who's not your attorney what I can tell you is that our tax code taxes income differently what that means
is your money that you make as an employee is taxed differently than the money you make as an investor I'll give you an example if I was a doctor and I made a million dollars as a surgeon I'm going to pay half of that money in taxes when you factor in your federal taxes your state taxes your FICA taxes it's going to be at least half depending on which state you live in sometimes even a little bit more but if I made that money as an investor I bought this stock and I made a million
dollars in profit and I sold it a few years later that's called long-term capital gains and that's taxed differently than my job income which is called your ordinary income your ordinary income is taxed at the highest tax rates that a tax Cod has to offer and you also get the lowest tax deductions your investment income like your long-term capital gains income comes with lower tax rate today at the time we recording this video the top tax rate for long-term capital gains is 20% Which means if I make the same million dollars as an investor the
most I'm going to pay is 20% versus if I have to work every single day as a doctor doing surgeries doing all these things I have to pay half of that in taxes and that's not all if I go out and invest in real estate there are even more tax breaks and tax deductions that I can take advantage of so what I mean by this is I don't want you to hate the system instead I want you to learn how the system works because this was something I had to figure out because I didn't understand
this I didn't grow up with financial education when I first started learning about the wealthy people in America when I first started learning about how economic system works I was angry because I was studying originally to become a doctor I didn't go to medical school but I was studying to get into medical school and my whole thinking was if I did good in school I'm going to do good in money but what I realized is those are two completely different things we're taught to go to school to get a good job so we can make
a lot of money thinking that that's going to make us wealthy when in reality if you talk about wealth it's you got to know what to do with your money what Financial education is in order to actually build wealth that way you can take advantage of the system and the system that we have here benefits the financially educated now the benefit that we have today which we didn't have 15 years ago is we have things like YouTube which makes Financial education so much more accessible because now you don't have to go and actually read a
book or hire a coach I mean you can just watch a YouTube video and get a lot of financial education for free and then start reading books or what whatever you want to do after that but this is where if you want to win in this system heating it doesn't do any good for you but if you understand it you can learn how to win in the system number six is don't chase the shiny object when you start to build your financial education this happens to pretty much everybody myself included you start to realize okay
I got to start living below my means I got to work to earn more money so I have more money to invest this investing process to build wealth is a long-term game can't I just figure out how to do this quicker I mean who wants to get rich slowly everybody wants to get rich quickly right and so as you start to do this you're going to come across things that can hopefully make you rich quicker it might be a crypto that can boom very quickly and make you a lot of money it might be a
meme stock that is shooting up in value that might double your money in just a few days or it might be a class on how to make six figures in six weeks without doing anything on the beach but what I want you to understand is that these get rich quick things these shiny AA things will make some people rich but most people will lose everything they put in and they end up slowing your path to long-term wealth now I get it some people got to get burned I had to get burned a few times to
actually realize that you got to do things the right way not always the most attractive way but I want you to keep it in the back of your mind that if something is too good to be true it probably is number seven is do not invest more than you're willing to lose and what I mean by that is I get these very frantic messages occasionally from people saying just PR I invested my money but now my Investment Portfolio is down and I got to pay my mortgage or I got to pay my car payment I
need to buy groceries what do I do well what you have to understand is the money that you're putting into your Investments is different than your spending money your investment money isn't just a bank account this is money that you want to use for long-term wealth if you're dipping into your investment money to fund your daily purchases you're doing it all wrong when you think about investing your money you got to understand that you are going to lose money you've probably heard me say this a million times that I'm just a random guy on YouTube
you should never blindly trust a random guy on YouTube and you will lose money at some point not that you might you will that's what happens to every investor even Warren Buffett has lost money in the past so if you are going to lose money at some point because that's part of the educational process you got to be willing to understand that you can't always be ready to touch that investment money that is there for a completely different purpose that's not there for your spending so when you put money into your Investments kind of think
of that money is gone if you put $1,000 into your investment account think of that money is gone now hopefully that ,000 is going to grow to 2,000 5,000 10,000 something a whole lot more but you don't want to think of it as an external bank account that you can just tap into at any time because the real way that wealth is built is by letting your money compound and grow over the long term years or decades because that's where the real wealth is built but if you're just sitting there frantic emotional watching the markets
watching it go down and getting that anxiety it's going to be very hard for you to build any real wealth because you kind of have to separate yourself from your spending money and then your investment money and let your invest money grow and compound over the long term oh and uh don't invest on margin especially if you're just getting started number eight is don't save all of your money so I grew up in a traditional Indian house and in the traditional Indian culture it is a save heavy culture what I like to say is the
Indian people make a dollar to spend 20 cents while American people make a dollar to spend $2 with lines of credit and credit cards now what you got to understand here neither one of these are the thing that you want to do what you want to do is understand that it is important to live below your means but you don't want to just save all of your money the traditional Indian culture is save save save have a lot of money in the bank account because that's what's protection now there are a lot of probably historical
reasons for this I mean there was a lot of conflict in India there was a lot of political turmoil in India a lot of financial turmoil in India and then Indian immigrants that come to America it's a stressful thing and you you see that Financial pain and you want to be protected and you don't want to take any risk because you've already gone through all the risk but all that cash sitting in your bank account it's not doing you any good now you might say but desper I have a high interest savings account it's paying
me 45% it's higher than what the reported inflation numbers are isn't that good now it's better than saving your money and not getting anything but you're also not getting the full possibilities now I have high interest savings accounts if you have money that's sitting there put that in a high interest savings account that way at least you're earning something but the difference between investing your money and getting a high interest savings account is when you invest your money you can see bigger potential growth again I say potential because it's not guaranteed I mean markets go
up and they go down but you can also get tax breaks and you have the ability to earn more wealth from your Investments than just a high interest savings account so this is where you got to understand that real wealth is built through Investments it's not through just saving your money in the bank I mean you could just look what banks do banks are not keeping their money in the bank I mean they make money by investing their money the way that they invest their money is by lending their money out they don't keep the
money in the bank so if you don't believe me just take a look at what your bank does number nine is don't be a lifestyle inflator one of the biggest ways to increase your wealth and to get to the wealth number faster is next time you get a pay raise don't increase your lifestyle or don't increase it as fast as the bonus that you got because what ends up happening to a lot of people is is you get a bonus or you get a raise and then you got to celebrate if you got a Bonus
you got to have a party if you got a big bonus you got to go to the Bahamas if you got a raise you got to get a nicer car if you got a big raise you got to buy a bigger home this is the standard you make more money you live a bigger lifestyle you make even more money you live an even nicer lifestyle but the fastest way to start building your wealth is to stop doing that Game Stop racing with your money stop competing against your neighbors stop competing on Instagram and just kind
of separ ate yourself for a little bit and next time you get a raise invest more money faster than increase your lifestyle now everybody's kind of got an extreme here of what do you do some of you are going to say I can't do that but at least increase your Investments faster than increase your spending now some of you are going to say oh yeah I can do that I'm not going to make any additional spending purchases I'm going to invest all that additional money for at least a couple of years and if you do
that you will invest more money and you can accelerate how you get to your wealth but is all about putting your money aside owning the assets and then letting the assets make you more money and finally we have number 10 which is don't forget your bigger purpose I'm going to take a little step back here because we are living in a weird time where we have a record number of people that are on anti-depressants we have a record number of people that are unhappy with where they are in their life we have a record number
of people that are unfulfilled at their jobs but at the same time we have all these opportunities available at the same time we have all this financial education available and at the same time we also have all the comparison happening on social media and so I want you to kind of separate yourself because one post that I made on Instagram recently talked about this whole idea of making $100,000 a year because what the internet makes us seem like is if you don't make $100,000 a year you're going to be broke you're going to be miserable
and you're never going to actually have any wealth the reality is eight out of 10 Americans are making less than $100,000 a year and so sometimes you got to detach what's reality from what's fiction and in addition to that also understand what's important in life money is important I'm not saying that it is not okay I don't live in this woo woo World thinking that money doesn't matter because the reality is it costs money to eat and it costs money to feed other people but in addition to that you know what else matters your physical
health because this is the only body you're going to get the food you put in your body the exercise you take your mental health the people you're surrounded with are you surrounded by toxic people or are you surrounded by people that you love and they make you happy and then your spiritual health this doesn't have to be religious but what is your purpose what are you excited every single day I mean you got to you got to have a drive what is getting you out of bed to get you excited to do something these are
things that matter in addition to your financial health and that's where I want you to remember on your journey to build wealth your other important parts of life as well don't completely ignore them now yes you're going to have to make sacrifices when you're getting started on your wealth Journey especially if you're starting a business you're going to have to make some sacrifices you might have to say no to the gym you might have to say no to healthy food you might have to say no for your friends you might have to say no to
a lot of things for a little while for a couple years but then I want you to start to reel yourself back and understand what's going to allow you to live your bigger purpose and allow you to live a truly fulfilling life money is great but it's even better when you have a good life to live it with there are two different types of statements that you want to look at 10ks and 10 Q's 10 Q's are your quarterly financial statements your 10ks are your annual financial statements what you want to look for are three
different things the balance sheet the income statement and the cash flow statement these are the three main financial statements that every publicly traded company every stock in the stock market has to publish
