Jaspreet Singh: Everything You’ve Been Told About Money Is a Lie
Written by
Adam Palasciano
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
In one of Lewis Howes’ latest videos, financial guru, attorney and entrepreneur Jaspreet Singh explained that much of what we learn in school doesn’t necessarily prepare us for financial success post-education. He add that once he started his financial education journey, “The more I learned, the more I realized I was lied to.”
This is supported by a Ramsey Solutions report that only 17% of U.S. adults surveyed said they took a personal finance class in high school and 88% of U.S. adults surveyed said high school did not leave them “fully prepared” for how to handle money in the real world.
Those who are truly wealthy don’t follow the norms, according to Singh. They do these things instead.
Avoid Societal Norms
Singh highlighted that we’re taught to go to school to get a degree and then get a job to climb the corporate ladder. However, truly wealthy people don’t do that. Wealthy people are working to own the corporate ladder.
Building your own business while working for someone else is a smart way to ease into entrepreneurship. By conforming to societal norms of getting a degree, getting a job and “working your way up” for your whole career, you likely won’t become wealthy.
Have Multiple Streams of Income
For many, their salary is their sole source of income. But if you only rely on your salary, you’re potentially one step away from becoming broke.
If you lose your job, something happens to you where you can’t work or the company folds, you can lose your salary with no additional income sources. Having to scramble for a new job or an alternate source of income can set you up for financial problems. Having backup savings can help, but depending on your lifestyle and expenses, those funds may not last very long.
Wealthy people establish and maintain multiple sources of income. This way, if they lose a job or a single revenue stream, they have others to rely on.
Most People Aren’t Taught Financial Education
Singh posits that we aren’t given financial education because it’s more profitable that way. For instance, banks profit from people’s lack of financial education by encouraging saving money in the bank and taking out debts including high-interest lines of credit.
When you deposit $1,000 in the bank, that cash becomes a liability for the bank. An asset is something that puts money in your pocket, but a liability is something that takes money away from your pocket. So, when the bank has your cash, it’s a liability for them. By lending out your money, it’s an investment for the bank and they make money on your money.
Ultimately, banks want you to save your money so that you give them cash so they can earn money on it. Make sure you understand exactly what’s happening with your money before saving or investing it.
Understand the Tax Code
Business owners and those who are self-employed have options for legally paying less money in taxes. There are also different ways that you as an individual can invest your money to pay less money in taxes. Just make sure you are doing this in adherence to the IRS code.
Wealthy people spend time understanding how this works or hire tax professionals to take advantage of the most deductions, invest money to defer taxes and find legal loopholes to reduce how much they pay in taxes.
Singh wants everyone to understand that through education and following an alternative path, you too can become wealthy and change your life.
More From GOBankingRates
