Jaspreet Singh: 7 Steps To Escaping the Rat Race
Written by
Catherine Collins
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Chris Cluff
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Are you tired of being caught in the rat race, hustling to make ends meet and just get by?
In a recent episode of his podcast, “Minority Mindset,” popular money expert Jaspreet Singh shared seven steps you can take to break out of the daily grind and become wealthy.
He reminded his viewers that these steps won’t happen overnight. In fact, he cautioned, they likely won’t happen within the next year. However, if you follow his advice, you can learn how to build long-term wealth and escape the rat race.
Know You Have a Choice
In the video, Singh emphasized how important it is to have a mindset where you believe you can change your situation. He said the choice to better your life is in your hands and you can’t blame your situation on your boss, landlord or the government.
In fact, Singh emphasized that no matter how bad your situation is currently, if you take full responsibility for your life moving forward, you will have the ability to change it.
Never Give Up
Singh’s second tip is another one that relates to mindset and emotions. He said it’s easy for people to get frustrated with the process, and it can be incredibly easy to stop worrying about money and blow it on trips, cars and more.
If you’re in the middle of financial stress, he said, keep going until you get out. And, he emphasized, you can’t get out or make progress if you’re financing trips to the Bahamas or a new car.
Cut Back Spending
If you’re stuck in a bad financial situation and can’t get out of the rat race, Singh said, a practical first step is to cut back spending. He said you might already feel like you’re cutting back a lot. Maybe you’re not eating out or already living in a small apartment.
However, you likely can still find $50 to $100 a month to save, he said. Saving is the most straightforward way to add money to your bank account, he advised. Plus, he added, if you spend money, every dollar you give to someone else is making them rich. So, add your dollars to your own pile.
Invest After You Are Out of Debt
Once you start to build savings, “you need to put it to work,” Singh said. One of the best ways to do that, he explained, is to invest. You can invest your money in the stock market but also in education, coaching and more.
However, if you have credit card debt, pay that off first before investing, he said. Credit cards typically charge much higher interest rates than what you can earn in the market.
“If you have credit card debt, you shouldn’t be worrying about investing your money into the stock market,” he said. “The stock market is going to get you a [5% to 10%] return on your money. That is the goal. But you can also lose your money in the stock market; it’s not guaranteed.
“Your credit card is costing you [15% to 25%] a year in interest; so, if you might be able to get a 10% return in the stock market, but you’re going to pay 25% on your credit card, you’re going to get a better return by paying off your credit card one year early.”
Earn more
Of course, one of the best ways to pay down debt and get more money you can invest is to earn more. After all, Singh said, there’s only so much you can cut back on your expenses. “But there’s no limit to how much you can earn.”
In the video, he reminded his listeners that earning more money isn’t about being able to buy more luxury items. It’s about being able to put more money to work for you through investing.
How do you earn more money? You can work more at your job, add a second job or side hustle or start a business, Singh said.
“You can’t get anywhere you want without actually putting in some effort,” he said, “without actually making some sacrifice and putting in the work.”
‘Turn Your Netflix Time Into Learning Time’
Singh is a huge proponent of investing in yourself. He said people waste hours a day watching TV. Instead, he said, “You need to turn your Netflix time into learning time.”
Read books, listen to podcasts and watch videos on topics that help you grow, he suggested. The goal isn’t to work yourself to death but to spend your time wisely on activities that can help you achieve your long-term goals.
“One of the things that you can do is convert the Netflix time into learning time,” he said. “That is the best ROI that you can get. Not because you’re going to save $15 a month but because you’re going to save those two to three hours a day where now you can use that time to read books, listen to podcasts, watch YouTube videos. If you do that, you’re going to be in a completely different situation in six months … and you’re going to be in a completely different financial situation in two years.”
Invest the New Income
The final step, Singh said, is to put your new money to work for you. After changing your mindset, cutting your spending, earning more and investing, commit to the process by continuing to invest in yourself.
Singh stressed that you have to work hard to earn money, and it’s important to follow the steps above to ensure your money works for you in return.
“As you spend more money and time learning, you find more ways to earn,” he said. “Then, as you earn more, you put more money toward your investments and then … one day you’re going to wake up and realize, ‘Wow, I actually have savings, I’ve paid down my high-interest debts, I have a whole new income stream from my investments.’ And now that you have started to build this wealth, you can start to change the way you live your life as well.”
