Jaspreet Singh: 5 Investing Habits That Will Make You a Millionaire
Written by
Adam Palasciano
Edited by
Cory Dudak
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In a recent video, financial guru, attorney and entrepreneur Jaspreet Singh said, “You can make money without having to physically go to work and you can make a lot of money without even being a doctor.” When Singh was growing up, he was told that to be financially successful, he had to be a doctor. Yet as he got older, he learned about the world of investing and eventually realized there were other ways to build wealth.
Many People Are Just Spending Instead of Investing
Singh explained that while many people are buying fancy items like the newest iPhone and Gucci bags, those same people end up not having any money to invest. In fact, CBS News reported that 4 in 10 high-income Americans, or those earning more than $100,000, say they’re living paycheck to paycheck.
“Before you can really see any success in the investing world you have to stop spending money on things that aren’t making you any money, and you have to start spending your money on things that do make you money,” said Singh.
Many people have a perception that wealthy individuals have big salaries and earn a lot of money, which is how they become wealthy. Contrary to this belief, realizing that investing in assets is what makes you wealthy will be the key to your own wealth.
5 Habits That Make Millionaires
Singh describes 5 investing habits that will make you a millionaire from his own perspective:
1. Stop Wasting Money When You Don’t Have Money to Waste
Many people live at or above their means– meaning that they spend whatever they earn each month. Alternatively, some people spend more than what they earn just to have nice things and accrue debt in the process. This behavior prevents investing because you don’t have any money left to buy investments each month. Once you start using your active income to buy assets that earn you passive income, you’ll start building true long-term wealth.
2. Living Off Your Passive Income Instead of Just Your Active Income
Active income is the money you make from your job or your business. If you stop working, you stop getting paid. Meanwhile, your passive income is when you make money through your investments, whether monthly or yearly. Passive investments are one of the keys to true wealth. You don’t have to go to work to earn money this way. You buy passive investments and they keep paying you again and again. This is a central reason why wealthy people make so much money. It’s not just because they have a big salary, it’s what they do with their money.
3. Understanding The Value Of Your Time
Time is your most valuable commodity and it’s one of the only resources you cannot create more of. You can always get more money but you cannot get more time. Finding ways to make more passive investments allows you to earn more money without having to go to work to get it. Over time through consistent investing, you should be able to reach a point where the interest, dividends or payments from your passive investments earn you enough money to give you back your time. Instead of working for all your earnings, your money will start to work for you.
4. Understanding The Long Game
Many people learn about the idea of investing and get excited. You might start investing money and then start hearing about investments like day trading and penny stock trading where you can seemingly make a lot of money very quickly. Yet the bottom line is that the investors who make the most money are the those who play the long game. With time on your side, your investment can grow and compound which makes you more money in the long term and carries less risk.
5. Understanding The Value Of Learning
You might think that college is necessary to become successful and that the better you do in college, the more money you’re going to make. While college is important, it’s very possible to learn a lot of things outside of the classroom.
From Singh’s point of view, these are five key investing habits and lifestyle moves that if followed from an earlier age can set you on the right path to becoming a millionaire.
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