SOG EP 1644 BONUS: Money Expert: “This Keeps You Broke! Do This to Build Wealth & Financial Freedom” | Jaspreet Singh

0:00Hey everyone, this is Lewis Howes and I am so excited to invite you to the Summit of Greatness 2024 happening at the iconic Shrine Auditorium in Los Angeles, California. This is more than just an event. It's a powerful experience designed to ignite your passion, boost your growth, and connect you with a community of other inspiring achievers. Join us Friday, September 13th, and Saturday, September 14th for two days packed with inspiration and transformation from some of the most incredible speakers on the planet. Don't miss out on this chance to elevate your life, unlock your potential, and be part of something truly special.

0:34Make sure to get your tickets right now and step into greatness with us at the Summit of Greatness 2024. Head over to lewishouse.com slash tickets and get your tickets today and I will see you there. Hi, my name is Lewis Howes and welcome to the Daily Motivation Show.

0:57Buy Now Pay Later is one of the fastest growing industries in the financial space. It used to be credit cards, right? If I wanted to go and buy something, I don't have the money, I'm going to put it on my credit card, but the interest rate is very high. The buy now, pay later industry says, well, now how about instead of worrying about the big purchases like a TV and a sofa, you could buy extra groceries and three easy installments of$18 a month. You market it with a 0 % APR, and it sounds interesting because now the buy now, pay later companies, they charge a fee to the seller. So if you go buy something off of Walmart online with buy now, pay later, Walmart is going to pay buy now pay later a small percentage of the purchase price, which is why they can offer you 0 % APR.

1:38However, the majority of purchases on buy now pay later end up with interest because most purchases do not end up getting paid off within that period. So now instead of paying the$50 upfront, you paid off installments, but then you also buy a mug. You go and you buy a nice new shirt. You go out and buy a vacation. You do it all on buy now pay later and then, oh no, I have to pay my rent. So I'll just ignore the buy now, pay later right now. And then you get slapped with a 25 % interest or you get slapped with late fees and other fines, which is why now that it keeps stimulating spending. And so when we talk about, you know, spending cooling, what does that mean?

2:19Well, inflation makes things more expensive. And what we've seen is that the cost of living has grown faster than wages for the average person, which means that you have less spending ability but how do you keep spending well what we saw is number one credit card debt rose at the fastest rates really ever credit card debt is at a new all-time high and then we had banks like wells fargo come out and said well this is a great time for you to pull equity out of your home because now you can use this equity to continue living your lifestyles so people were pulling out a lot of cash especially when interest rates were low.

2:54And then we saw some new interesting things happen, which were number one, they'll call this less interesting. People were saving less money and digging into the savings. But we also saw a record number of 401k hardship withdrawals earlier in 2024. That report came out. Wow. So what does that mean? The people are now digging into their investments. Why? For some sort of hardship. Again, what does all this mean? Well, people are now looking for unique ways to continue spending. Maybe it's credit cards. Maybe it's buy and I'll pay later. Maybe it's no longer saving or investing money. Maybe it's digging into my savings or investments to keep spending.

3:32Now, what we're starting to see happen, again, we are not at the end of this, but we're starting to see a little bit of less spending. We saw recent reports saying that the beginning of 2024 economy grew slower than what was originally expected. Originally, it was considered low, and then they just found out that it was lower than what was originally thought. Inflation is still hotter than what a lot of people would like. So, you know, this is where now, is the job market starting to cool? Is the economy also starting to cool? What do all these things mean? Ultimately, look, this is what's happening.

4:12There's going to be a lot of news. Crazy news. Crazy news is the first thing that always happens because the media company's got to make money. That's going to drive - That would still fear into the world. Exactly. And that's where number two is you got to distill the news from the trend and understand that this is going to create opportunities. And opportunities are there for people that are financially educated, prepared and understand the trends. And it really comes down to that. I mean, are there going to be changes? Yeah, I mean, the government might need to raise taxes in order to keep funding their bigger and bigger spending.

4:45If we see more economic slowdown, what does that mean? Well, that could mean maybe something happens to the stock market or maybe we see more stimulus. maybe that means more inflation. You know, I can't predict what's going to happen tomorrow. Nobody can. But what I can do is prepare for whatever will happen. That way, you know, I'm ready. Like, I don't know if it's going to rain tomorrow. I might say it's going to be sunny in Los Angeles, but it might rain. You can keep an umbrella. All you can do is be prepared, sure. Versus what ends up happening in the financial markets, I'll give it in the real world, is people see rain, and then they start crying.

5:21versus, okay, but if you have an umbrella, you don't got to cry, right? I mean, this is where being prepared for the rain during the sunny days is what you got to do in the financial markets. You got to prepare when times are good that when times are not so good, you're already prepared. And what do you think are the biggest mistakes that someone could make over the next six months that will drastically hurt them financially? whilst he's trying to play the Instagram game, Instagram flex, which is, wait, they just went on this vacation. How come I can't go to the Bahamas? How come I can't go to Cabo?

6:00How come I can't go to Cancun? I want to do that too. That's number one, because that Instagram, Instagram has contributed so much to our economy that I don't think people really realize. Because before, if you bought a nice thing, you bought a nice BMW, how would you show it off? You got to call them, but you still can't really see it. You know, you got to drive to somebody's house and show it off versus now I can take a buy a BMW, take a picture of it and show it off Instagram and show it to thousands of people and get a whole lot of likes, which can then create the same. Oh, ah, like, you know, they're keeping up with Joneses on steroids.

6:37Distance yourself from social media. And if I add on that just a little bit. There's going to be winners and losers. With everything, with money, there's going to be winners and losers. When the markets go down, there's going to be winners and losers. When markets go up, there's going to be winners and losers. Losers are people that are not in. The winners are people that are seeing their investments go up. When markets go down, the losers are people that are selling. The winners are people that are now buying good assets at a discounted price. It's the same thing with social media. You got winners and you got losers.

7:08And this is where a lot of people hate it, but it exists. Some people are going to win. People that are using social media as a tool to learn, as a tool to improve, or as a tool to build something, you're winning. Versus the majority of people are using it to make themselves broker and stupider. There's going to be winners and losers.

7:38Thank you so much for listening to today's episode of The Daily Motivation, and I hope you have an amazing rest of your day. If you enjoyed this episode, make sure to click the link in the description. That will take you to the full episode of our main podcast on The School of Greatness. And if you are loving The Daily Motivation, please follow us over on Apple Podcasts and Spotify and leave us a review over on Apple podcast right now. And if you want more exclusive content and ad free listening experience, make sure to subscribe to our greatness plus channel on Apple podcast right now. And if you want to get even more inspiration from our world-class guests and learn how to improve your life and take it to the next level, then make sure to sign up for the greatness newsletter and get it delivered right to your inbox over at greatness.com slash newsletter.

8:28Again, have an amazing day and I'll see you tomorrow with another episode of the Daily Motivation Show.