Jaspreet Singh Says These Are the 6 Best Purchases To Make in Your 20s
Written by
Dawn Allcot
Edited by
Cory Dudak
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
If you’re in your 20s, you have a unique opportunity that older generations may not be able to take advantage of as easily as you can. Although it’s never too late to start building wealth and improving your life, it’s best to make these sorts of purchases in your 20s.
In his recent Minority Mindset video, YouTube finance pro Jaspreet Singh told his younger viewers, “You have the opportunity of a lifetime not just to build financial freedom for yourself, but to build true generational wealth for your future family down the line.”
To do so, it means making smart purchases now. These purchases may surprise you and may not be what you’d expect a financial expert to recommend. But, as Singh pointed out, if you’re in your 20s, this is a golden opportunity to make a few sacrifices today that can help you build a much better tomorrow. “You have the opportunity to build an immense amount of wealth in your lifetime,” he said.
Here are six purchases this millionaire YouTube personality believes you should make in your 20s.
A Good Book
Singh is a well-educated individual. He attended college, grad school, and law school before becoming an entrepreneur.
But there was one thing sorely lacking throughout his university education — and the same is true for most college students. “I never once, during my time in school, learned about how to build true financial wealth,” he said.
That’s where his first recommendation comes in. Singh recommended you buy, or even borrow from the library, a good book on personal finance.
He recommended the following titles:
- “Rich Dad, Poor Dad” by Robert Kiyosaki.
- “Total Money Makeover” by Dave Ramsey.
- “The Creature from Jekyll Island” by G. Edward Griffin.
- A biography or autobiography of a famously successful person.
A Cheap Car
Secondly, Singh recommended buying a cheap car in your 20s. He acknowledged that it can be tempting to go out, like your friends are doing, and purchase a nicer vehicle. Revealing that he wanted a BMW 3-series when he was younger and making $10,000 a month, he decided against the purchase, which he deemed a “dumb car.”
Expensive cars are “dumb,” he said, because they aren’t making you any money. “You make your banker rich if you go and finance that car, and then that car is going to be losing value,” he explained.
“Instead of paying this $500, $600, or $700 a month car payment, plus the premium gas, plus the expensive insurance, plus the expensive maintenance…. How about you work to take that money to increase your income?” he suggested. “That way, by the time you hit your 30s, you have the ability to buy whatever car you want, and not have to worry about the price.”
That brought Singh to the third purchase you should make in your 20s.
Two Methods of Cash Flow
Once you’re working in your 20s, some of your income will go toward taxes, and some will be spent on living expenses. Many people spend all their money without leaving any to invest. This is a mistake, according to Singh. “Before you go out and spend all your money, I want you to take some of this money and use it to buy cash flow,” he said.
He recommended that you buy an income-producing rental property even before buying a home to live in. If you do it properly, this property will put money in your pocket, even after the mortgage, property taxes, maintenance, and other costs are covered by the rental income.
Singh said that dividend-paying stocks are another way to generate cash flow by investing your income. Then, you can use the cash flow you’re generating to pay for your lifestyle.
Taking this path may not always be easy when you see others around you spending all the money they make. But if you consistently invest, you will ultimately have a solid stream of income.
Self-Education and Personal Development
Similar to reading books on personal finance and successful people, Singh recommended that 20-somethings should invest money in self-education. “This could be seminars. This could be conferences. This could be online courses. This can be online subscriptions to continue learning more,” he said. “But the key is you want to be investing in your self-education.”
He warned against falling for get-rich-quick schemes on the internet, but urged 20-somethings to seek out a group of mentors to learn from — and to seek out financial education classes — so they can continue learning throughout life.
A Gym Membership
Finally, taking a holistic approach to wealth-building and a successful life, Singh recommended investing in a gym membership.
He pointed out that when people enter the workforce, they often wind up sitting at a desk all day. “You just eat whatever you’re given and then you start to get bigger and bigger and bigger… Your health is so important. This is the only body that you get. Take care of it.”
It May Not Be Exciting, But it Will Pay Off
These purchases may not seem exciting in your 20s and they may not represent the way your peers are spending money.
But, Singh said, “If you keep doing what everybody else does, you’re going to end up like everybody else… The majority of people are broke, unhappy, and unfulfilled… It is very important to break out of that mindset,” he said.
“You have to go against the grain to start doing and thinking a little bit differently.”
More From GOBankingRates
