Everything You Need To Know About The Housing Market w/ Jaspreet Singh EP 1313

Jaspreet Singh, the Minority Mindset, is an attorney, investor, and CEO of Market Briefs. Although he didn't receive any formal financial education, he is on a mission to make financial education fun and accessible. In this episode you will learn:How the economy and real estate markets are connected. To utilize a growing financial education as a tool. Why you should be living below your means and investing. Three things to ask yourself before you know if you can afford something. For more, go to lewishowes.com/1313Click below to hear Jaspreet’s previous episodes,Take These Steps If You Want to Become Rich - EP 1301Money Habits To Prepare Against Inflation, Market Crashes & A Recession - EP 1283The Biggest Lies You've Been Told About Money, Debt & Building Wealth - EP 1257How To Prepare For Financial Freedom In A Changing Economy - EP 1254 Get more from Lewis! Get my New York Times Bestselling book, Make Money Easy! Get The Greatness Mindset audiobook on SpotifyText Lewis AIYouTubeInstagramWebsiteTiktokFacebookX

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00Jaspreet Singh?

  We assume that the reason why we're not successful is because we don't have the right toolset when in reality for most people is we don't have the right mindset. It's not a toolset issue, it's a mindset issue that so many people have where if you have the right mindset, you'll realize that the toolset is right in front of you.

• 0:16Lewis Howes?

  Welcome to the School of Greatness. My name is Lewis Howes, a former pro athlete turned lifestyle entrepreneur. And each week we bring you an inspiring person or message to help you discover how to unlock your inner greatness. Thanks for spending some time with me today. Now let the class begin.

• 0:40Lewis Howes?

  So do you think there will be another kind of housing crash like there was in 2008? What do you think is happening right now? Where do you think it's going to be heading in the next year? I want to talk about the housing stuff for a little bit with you.

• 0:52Jaspreet Singh?

  So that's a very good question and the reason why is because there's a lot of scary stuff happening out there. Inflation is still near record highs.

• 1:01Lewis Howes?

  What's it at right now?

• 1:02Jaspreet Singh?

  Our last report was 8.5%.

• 1:04Lewis Howes?

  Do we think it's going to keep going up?

• 1:06Jaspreet Singh?

  Well, we'll get into inflation in a little bit. We have our GDP, our economy, which is slowing down. We've seen two quarters of economic slowdown. Our market, stock market is way off its highs. Now, real estate is starting to slow down. Interest rates are starting to go up. And this has a lot of people wondering now, what's going to happen to the housing market? Like you said, are we going to see a repeat of 2008? And the reason why that question is asked so much is because 2008 has really left a huge impact on so many people's lives because you have a lot of people that are still paying the price of the 2008 aftermaths today.

• 1:38Lewis Howes?

  Really?

• 1:39Jaspreet Singh?

  Yeah.

• 1:39Lewis Howes?

  Because a lot of people took out loans and they had to, you know, they had to give up their home. They bought all these homes, right? They had to foreclose on them and the banks.

• 1:49Jaspreet Singh?

  Losing your home is not an easy thing to do and that, I mean, it's traumatic for a lot of people. And that's something that's very difficult to stay under credit score for seven years. So this is what people are really worried about. Is something like that going to happen again? And the first thing that I want to say, because there's a lot of headlines, a lot of news stuff in there, that this is not a repeat of 2008. So let's understand that first.

• 2:11Lewis Howes?

  It's not, because it's not a housing bubble crisis like it was then.

• 2:15Jaspreet Singh?

  Yes, it is not the same as 2008 because 2008 was a financial crisis started by the real estate market.

• 2:22Lewis Howes?

  Right, and it's funny because I just watched The Big Short.

• 2:25Jaspreet Singh?

  Did you?

• 2:25Lewis Howes?

  A few weeks ago, again, I love that.

• 2:27Jaspreet Singh?

  Beautiful movie.

• 2:28Lewis Howes?

  And to see like the analysis of people forecasting and no one believing because they're like, oh, the banks are gonna like bail it out, but then it's crazy.

• 2:35Jaspreet Singh?

  So 2008 was the real estate market that trickled down into the rest of the economy. This is more of an economic issue that could then trickle down into real estate. So it's very different.

• 2:46Lewis Howes?

  Interesting.

• 2:46Jaspreet Singh?

  Which is why.

• 2:47Lewis Howes?

  That was a real estate problem, this is an economics problem.

• 2:50Jaspreet Singh?

  Yeah.

• 2:51Lewis Howes?

  The economy problem which could affect real estate in a big way.

• 2:55Jaspreet Singh?

  Right, so you know, I think your readers, your viewers already know this, but I like to go backwards to understand where we're going forward.

• 3:02Lewis Howes?

  Yes, look at the history and see where the future is gonna go.

• 3:05Jaspreet Singh?

  History doesn't repeat itself, but it does rhyme.

• 3:07Lewis Howes?

  I like that, you said that last time, history doesn't repeat itself, but it rhymes.

• 3:11Jaspreet Singh?

  So in 2008 or before 2008, what happened? Well, there was four major factors that led to the 2008 housing bubble bursting.

• 3:20Lewis Howes?

  Okay.

• 3:21Jaspreet Singh?

  The first was something called ninja loans, no income, no job, no asset loans. So you don't got an income, you don't got a job, you don't have any investments. You walk into the bank and you say, hey, I want to buy this $200,000 home, can you help me? And they'll say, sure, you don't need a job, all homes keep going up, so we will give you the money. Then the next thing you say is, but I don't have money for a 20% down payment.

• 3:48Lewis Howes?

  Give you 10%.

• 3:49Jaspreet Singh?

  Well, no, they said zero percent.

• 3:51Lewis Howes?

  Oh, and your first home was like a 0%.

• 3:53Jaspreet Singh?

  You could go 0% mortgages, so it was a huge boom of 0% mortgages. But even beyond that, there was this push for actually 110% LTV loans. Meaning if you wanted to buy rough numbers, a $100,000 home. Not only would the bank give you the hundred thousand dollars, do you need zero down? They'd also cover your closing costs, they'd also give you some move-in costs, and then give you a free TV so you can move in because home prices never go down. See, the banks are in the business of making money, and their mind was the more money we lend out, the bigger commissions we get, and if home prices keep going up, well, we'll just give you a little bit extra cash, and then a couple of years down, home prices will go up and we'll be okay. So now you have no income, no job, no asset loans, ninja loans, zero percent down.

• 4:37Jaspreet Singh?

  But what happens then if you don't have a good credit score? Well, that was where we had this huge subprime lending issue, where banks created programs to help people who had bad credit scores, subprime credit scores, that you could now qualify to get a home. So you're subprime, you're no income loans, no income, no job, no asset loans, with zero percent down. But then you say, oof, that's a big monthly payment. I don't want to pay whatever, fifteen hundred dollars a month. And that was the fourth factor, which was adjustable rate mortgages. There was a big push for arms adjustable rate mortgages, which meant that, let's just say typically that this home would cost fifteen hundred dollars a month for you to purchase. You might not be able to afford that, or maybe you don't want to pay that.

• 5:22Jaspreet Singh?

  The bank might say, well, how about we give you a low teaser rate for the first few years? So you only have to pay nine hundred dollars a month. So you get a low interest rate for the first few years.

• 5:34Lewis Howes?

  So you can afford the house.

• 5:35Jaspreet Singh?

  So you can afford the home, and now once you're in the home, it's your problem. It's no longer the banker's problem, right? Because the mortgage agent, they just get paid as soon as you sign the paperwork, and then they walk away. So now you get this low teaser rate, and there's two aspects to this, because now you who was buying the home, you don't have that financial education, because it's a tool without the financial education, where now you don't understand how an adjustable rate mortgage works. You don't understand that in a few years.

• 5:58Lewis Howes?

  Mortgage is double A.

• 5:59Jaspreet Singh?

  It's going to readjust. And so if mortgage rates go up, or even if they don't go up and they stay the same, your payments are going to increase. And so all of these things happen together, and everybody was making a ton of money. Homeowners are making money because you bought a home for two hundred thousand dollars, and now it's worth two hundred and fifty thousand dollars, you feel great. Bankers are making money because they're lending out loans, they're handing out loans like crazy. Wall Street is making money because then the extra factor was that Wall Street would take these loans, chop them up, package them up into their own investments and then sell them off.

• 6:33Lewis Howes?

  Yes.

• 6:34Jaspreet Singh?

  Oh, you saw the big short.

• 6:35Lewis Howes?

  They're talking about packaging all these B loans, making them A loans.

• 6:38Jaspreet Singh?

  Exactly, and then the insurance companies got involved, so it just kept getting bigger and bigger and bigger. So everybody's making a ton of money off of the real estate market, it's no big deal. And then comes the year 2005. 2005 came, this was the first year that there was concerns about the housing market. Ben Bernanke, who was then the chairman of the Federal Reserve Bank, came out openly and said, what real estate bubble? There is no real estate bubble to burst, meaning how can there be a real estate bubble bursting? Because there is no real estate bubble. That was what he said in 2005. Well, 2006, we started to see home prices start to go down a little bit more, and now people are starting to get underwater on their homes. So the pitch was, if you took this adjustable rate mortgage, well, if in a few years you

• 7:21Jaspreet Singh?

  can't afford the payments, no big deal, you could just sell the home, walk away with some cash, or you can refinance and we'll try to give you something else, that way you can manage your payments. But the caveat, which many people did not understand or they didn't know, was that it requires your home to be worth more in the future, or at least the same, that way you can refinance. So if you bought a home for $200,000, then comes a few years later and you're trying to refinance, and now you owe $190,000, but it's only worth $180,000. You go to the bank and you say, hey banker, I can't afford the payments, they've readjusted, you told me that I can refinance or sell, what do you think I should do? Well, then they say, oh man, so I just pulled up the numbers, your home is not going to

• 8:05Jaspreet Singh?

  sell for more than $180,000. So we're not going to refinance you because you're underwater, so you're going to have to figure something out on your own. Now, you can't sell it either, because if you wanted to sell your home for $180,000 and you owe $190,000, you need to bring $10,000 to the closing table, which most people in this situation did not have. So what are you left with? You can walk away or get foreclosed on. So this then became a much bigger issue, because then we started to see some foreclosures. And this built a huge house of cards, which people didn't realize, because now we're just talking about the housing market. But this then became an everything issue because Wall Street was then gambling on the housing market.

• 8:48Jaspreet Singh?

  Mortgage-backed securities, there was all these things that we were talking about, where now Wall Street was double dipping, creating all these new investments based off of people's mortgages, creating all these, I mean, I can't emphasize enough how many different investment scenarios and things that they created. And so now, when the base layer, which is the housing market, started to collapse, the whole house of cards started to fall down. And I'm gonna say this now, because I think we're gonna talk about this later on, but this is where you have to be financially educated and be aware, because sometimes the media and people in power will lie to you in your face to keep you calm. Hmm. Because if I remember the date correctly, I believe it was May seventeenth, two thousand and seven.

• 9:31Jaspreet Singh?

  Big day, because Ben Bernanke, the then chairman of the Federal Reserve Bank, who remember in two thousand and five said- Two years prior. Two years prior said, there's no housing bubble that could burst. Came out and said that the subprime housing issue will not trickle down to any other parts of the economy. It is contained to the housing market, so you don't need to worry about the economy. He said that openly in two thousand and seven. And then a year later. Then a year later, the whole thing imploded. Crumbled. The whole house of cards came crumbling down. So now, that was what caused two thousand and eight. It was a real estate issue that trickled down into the rest of the economy. Today, our real estate market is very different. People have equity in their homes. Very few people are buying homes with zero percent down, nothing like two thousand and eight.

• 10:15Jaspreet Singh?

  Adjustable rate mortgages are not as popular, although they are growing in popularity now. Because mortgage rates are going up, adjustable rate mortgages are making a big comeback. Uh, but they're not out there to the extent that they were before two thousand and eight. We don't have the same subprime lending. And so it's a very different housing market. People have equity in their homes, people have skin in the game, and many people have a thirty-year fixed-rate mortgage. Meaning, if interest rates go up and you have a thirty-year fixed-rate mortgage, it doesn't affect you as long as you still have a job, because your job can continue paying, paying off that mortgage. So, different situation. However-

• 10:52Jaspreet Singh?

  This is where now we have to look at the economic issues. Because if you lose your job because the economy is going down, now you can't pay your mortgage. And if that happens on a broad scale, where people don't have the ability to pay their mortgages, now you can see how that would then trickle down into the housing market. So that is the concern. And this is where you have to dissect what's actually happening in the economy. Now, of course, nobody can predict what's going to happen. And I do not recommend anybody trying to trade what could potentially happen. Be an investor, look for opportunities, be a long-term investor. If you find a good opportunity, buy it and hold for the long term. Don't try to trade or try to predict what's going to happen in the market. What I want to talk about is what is possible. That way you can make sounder and better decisions for you and your money.

• 11:34Lewis Howes?

  What do you think is the worst-case scenario and the best-case scenario?

• 11:38Jaspreet Singh?

  So let's go right into it.

• 11:39Lewis Howes?

  For the housing market over the next couple of years?

• 11:42Jaspreet Singh?

  So let's, I think if we go into the economy, if I answer that question, the economy, it will by default answer the question in the housing market. So in the economy, it's a weird situation where our economy is slowing down because of high inflation. So 2020, 2021, the Federal Reserve Bank and the government.

• 12:02Lewis Howes?

  Pump all the money into the economy.

• 12:03Jaspreet Singh?

  We print a lot of money. This devalues our dollar, causing the price of things to go up. So now your rent is more expensive, your groceries are more expensive, your gas is more expensive, your airfare is more expensive.

• 12:13Lewis Howes?

  Why do they do that, knowing that everything's going to go up in price?

• 12:17Jaspreet Singh?

  See, you said knowing they will go up in price.

• 12:20Lewis Howes?

  Right.

• 12:20Jaspreet Singh?

  In 2020, they said the opposite. When they were printing trillions of dollars through things like the PPP lending program, through the stimulus program, the concern was not inflation, it was actually deflation. Because in 2020, when the economy shut down, the concern was the prices of things are going to drop. We don't want that to happen.

• 12:40Lewis Howes?

  Because no one's spending enough, is that why?

• 12:42Jaspreet Singh?

  No one was spending. And so deflation is a very bad thing for the government. It's great for people, because now you're saving, it becomes valuable. If you make 50 grand a year and you have deflation, your 50 grand can buy you a whole lot more because the price of things drop. But it's bad for the government, because today our government has something like 31 trillion dollars worth of national debt. And so if deflation were to happen, that means their debt, their 31 or so trillion dollars, is now more expensive. And so the payments become more expensive.

• 13:11Lewis Howes?

  So we're paying. For their mistakes.

• 13:14Jaspreet Singh?

  Yes.

• 13:15Lewis Howes?

  The American people are paying then for the debts of the government.

• 13:18Jaspreet Singh?

  Yes, the United States government does not make money. They generate revenue by taxing you when you work hard.

• 13:26Lewis Howes?

  And they print money.

• 13:27Jaspreet Singh?

  They print money and then you pay the price for that through inflation. So the government, there's no such thing as free money. The most expensive kind of money is free money. Because now.

• 13:37Lewis Howes?

  Look at the cost now.

• 13:39Jaspreet Singh?

  It is everybody that pays through inflation. So free money is the most expensive kind of money. And so in 2020, when the concern was deflation, they started printing money through stimulus programs, through bailout programs, through money printing programs to fund out, you know, whatever they wanted to do. That was when the money printer opened up. And you said they knew inflation was gonna happen. No, they did not.

• 14:02Lewis Howes?

  How can they not predict that, though? Knowing that you're gonna give all this free money out, isn't inflation gonna go up?

• 14:07Jaspreet Singh?

  Let me rephrase that. Either they willingly lied to the American people or they're just completely ignorant. But these are some of the smartest people in the world. I mean, they're Ivy League economic school graduates, right? I mean, these are very supposedly smart people who said that this was gonna happen. Now, what's interesting is a lot of people predicted this. Like, I talked about this very openly on YouTube. I said, look, this is what's gonna happen. 2021 came. Inflation is transitory was the, like, the phrase, where inflation started to go up. And I kept saying, hey, don't expect it to be transitory because the Federal Reserve Bank doesn't have some fairy dust to make inflation magically come down.

• 14:50Lewis Howes?

  Right.

• 14:50Jaspreet Singh?

  How are they gonna do that? They're still printing money. Inflation is gonna get worse. And when inflation hit around 6% in August of 2021, it, it was slightly lower than where it was previously. And that was when they said inflation has peaked. We're all good now. Inflation's on its way down.

• 15:07Lewis Howes?

  Now it's at.

• 15:08Jaspreet Singh?

  It's at 8.5%. And so it was, it was quite, I mean, it was a long process. But this is where you have to understand that either they're lying or they're completely ignorant. And now, we don't want to assume, I mean, you shouldn't want to assume that they're lying to you, that would create a lot of chaos. They're ignorant. So again, we want to be financially educated. Why is it that in two thousand, actually, let me mention this because this is interesting. In two thousand and seven, when Ben Bernanke said the subprime market will not affect any other part of the economy. Did he not know any better? I mean, I think most people who were aware financially aware at that time could have

• 15:48Jaspreet Singh?

  looked at a spreadsheet and said, hey, this is a big issue. Ben Bernanke actually spoke about that after he was done being a Federal Reserve

• 15:54Lewis Howes?

  What did he say?

• 15:55Jaspreet Singh?

  And he said that I was asked not to say anything because I could not incite panic. I didn't want to incite fear. So

• 16:01Lewis Howes?

  That's what he said?

• 16:02Jaspreet Singh?

  This is what he said.

• 16:02Lewis Howes?

  So he essentially lied.

• 16:03Jaspreet Singh?

  Essentially, because they don't want to create panic. Now

• 16:07Lewis Howes?

  Keep spending the way you're spending. Keep living your lives. Don't worry. Everything's gonna be okay.

• 16:11Jaspreet Singh?

  I mean, like, look.

• 16:12Lewis Howes?

  Don't save a little bit more. Don't, you know, they're just like, ah, just keep spending.

• 16:16Jaspreet Singh?

  I know, you know, you gotta be careful because I'm not trying to be a conspiracy theorist, but like, look. The Federal Reserve Bank are made up of highly educated people to think that money printing, printing trillions and trillions and trillions of dollars. I mean, on the low end with the Federal Reserve Bank, the government spending on the extreme low end at six trillion dollars to think that that's not going to create lasting inflation is insane. And so either someone's lying or they're completely ignorant as to the way that money works.

• 16:42Lewis Howes?

  Yeah.

• 16:42Jaspreet Singh?

  And so, you know, these are the things that I've been trying to talk about on YouTube to get people educated. But this is where now the question is, what's next?

• 16:49Lewis Howes?

  So what's the worst case scenario?

• 16:50Jaspreet Singh?

  So the worst case scenario, I mean, this is the worst, worst, worst case scenario is you face some sort of currency crisis, hyperinflation. I mean, that, that is not

• 17:00Lewis Howes?

  Rare.

• 17:00Jaspreet Singh?

  Very likely.

• 17:01Lewis Howes?

  Yeah.

• 17:02Jaspreet Singh?

  But let's focus in on now, what is the worst case kind of

• 17:07Lewis Howes?

  Likely.

• 17:09Jaspreet Singh?

  In, in terms of the economy. So

• 17:13Jaspreet Singh?

  the inflation problem is still very high and this high inflation is contributing to a slowing economy. Now, the Federal Reserve Bank is working to fight inflation. They're doing that through raising interest rates and they're doing something called quantitative tightening where they are pretty much giving back some of the money that they printed over the last few years. So they bought up a whole bunch of bonds, mortgage backed securities, they bought up a bunch of Uh Treasury bonds as a way to stimulate the economy. And so the Federal Reserve Bank has built up this balance sheet of almost nine trillion dollars of assets.

• 17:49Lewis Howes?

  Hmm.

• 17:49Jaspreet Singh?

  So the Federal Reserve Bank doesn't have cash, like they don't have a pile of cash anywhere. They had to print nine trillion dollars to buy up these assets over the last number of years. And now what they're doing is they're finally starting to sell them off. Now, they're not selling them off very quickly. They are selling them off a little bit slower than what they expected, but they are starting to sell them off now to help free up some of this inflation. The second thing that they're doing is raising interest rates because when you raise interest rates, it makes borrowing money less attractive, which creates less inflation to help cool down the economy. Like the Federal Reserve Bank wants a stock market crash.

• 18:27Lewis Howes?

  Really?

• 18:27Jaspreet Singh?

  The Federal Reserve Bank wants real estate prices to go down.

• 18:30Lewis Howes?

  Has the stock market crashed yet fully?

• 18:33Jaspreet Singh?

  Well, it depends what you mean by crash. So if we go just by, now it's funny, I'm going to say technical definitions because nowadays, technical definitions seems like they can be changed.

• 18:41Lewis Howes?

  Yeah, yeah, it don't matter.

• 18:42Jaspreet Singh?

  But traditionally, the definition of a quote unquote crash would be something going into a bear market, meaning that the stock market has fallen twenty percent off of their highs. We saw that happen. And then we have also seen stock market rise since then. So the stock market is very volatile. It has gone down and the Federal Reserve Bank wants stock prices to go down. They want real estate prices to go down and they also want unemployment to go up. They want some people to lose their jobs.

• 19:10Lewis Howes?

  Why?

• 19:10Jaspreet Singh?

  They want wages to go down. And this is going to sound very bad, but they've also made this very public. So the reason that why they want these things to go down is because it's a way to cool down the economy. That's why they're raising interest rates. So when the Federal Reserve Bank raises interest rates, there's two things that they're looking at.

• 19:29Lewis Howes?

  And when they're raising interest rates, they're doing that on the housing market or where are they raising it?

• 19:33Jaspreet Singh?

  So they're raising something called the federal funds rate, which is. Overnight lending. So essentially, think of it as when you go and get a mortgage from the bank, you're buying something from the store. You're getting the retail price. The store, in this case, the bank, gets a wholesale price. They get a discounted price, right? They're buying it in bulk. So the banks can borrow money at a cheaper rate and then they lend it out to you. So when banks have to pay a higher rate, then they're gonna have to charge you a higher rate. Just like when stores have to pay a higher rate from their wholesaler manufacturer, they have to pay it more down to you. So when you buy from the bank, when you get a loan from the bank, it is the retail price. So the Federal Reserve Bank does not affect- How do you get the wholesale price? That's the Federal Reserve Bank. So this is now the federal funds rate that the Federal Reserve Bank controls.

• 20:18Jaspreet Singh?

  Can an individual get it at wholesale? That's what I'm trying to figure out. No, we cannot. So we get from the bank. Unless you are a bank, you're not gonna be able to do that. Right, right. So the Federal Reserve Bank gets to control these things and then they impact mortgage rates, which then impact spending. So when the Federal Reserve Bank raises interest rates, so when the Federal Reserve Bank raises interest rates, now you're gonna have to pay a higher price to get a mortgage. Now that affects inflation, which can also affect the housing market. So the Federal Reserve Bank is looking at two things when they're determining what to do with interest rates. They're looking at inflation and then they're looking at the general economy. When inflation is high, that's more fuel for the Federal Reserve Bank to continue raising interest rates to fight inflation.

• 21:02Jaspreet Singh?

  But in order for that to happen, there's a second factor that they look at. They're looking at the economy. They're looking at things like unemployment rates. They're looking at the strength of the economy. Because if people have jobs, well, that means then we have a strong economy. So it's ammunition that the Federal Reserve Bank is okay to go and keep raising interest rates. Because if it was flipped, where we have a super high unemployment rate, people don't have jobs, the economy is crashing- You said the government wants that. So the Federal Reserve Bank- The Federal Reserve wants people to lose their jobs. They want people, they want a lower unemployment rate. Sorry, they want a higher unemployment rate, meaning they want some people to lose their jobs and they want wages to come down because that will help cool down inflation. And it's a very-

• 21:46Jaspreet Singh?

  Weird thing, you're gonna go search it on Google because they've said this because you're gonna think just what the heck are you talking about? No, Jerome Powell has openly said this where the labor market is too tight. It's too strong, meaning too many people have jobs. They want wages to cool down. They've said this very openly where. They want people to getting paid less. Exactly. They don't want wages to keep rising at this rate because they're worried about something called the wage price spiral. I'll talk about that in just a second. So they don't want wages to keep rising. And on top of that, they're looking at this economic data comparing it against inflation and that's gonna help drive their decision about interest rates. And so if people have jobs, wages keep rising, that means. Interest rates are gonna keep going up. They're just gonna keep going up and they're gonna keep doing that until more people lose their jobs, until wages stop going up.

• 22:31Jaspreet Singh?

  And then that will hopefully bring down inflation because now we talk, let's talk about this wage price spiral very briefly. Because this was a big thing that happened in the nineteen seventies into the early nineteen eighties. Where you made money, but you struggled to survive because inflation was high. So now you went to your boss and you said, hey, boss, I need more money. And your boss said, well, I don't want to lose you. So their boss paid you more. Even though you're not doing more, you're not producing more value, the boss is paying you more just because it's more expensive to survive. So now you're getting paid more money. So the business has to go earn more somehow. The business has higher costs. Or they're losing margin. Right. So now you have the money to go out and spend, but then the business then has to start charging more money because.

• 23:16Jaspreet Singh?

  To their customers. Costs. So now the price of things go up. Now the price of things go up. You go back to your boss and say, hey, look, the wage wasn't enough. I need another raise. Now it starts to create this spiral. And this is what the Federal Reserve Bank wants to avoid by breaking that by saying, we don't want wages to keep going up. We want to break this inflation thing. Because we want to raise interest rates to stop this whole inflation mess. And so one of the things they want to do is they want to see more people have lesser wages. They want to see a little bit higher unemployment. They want to see the stock market come down. They want to see real estate prices cool down because that cools down inflation. Because that's their number one issue right now.

• 23:55Lewis Howes?

  So I guess the people will, I mean, it'll eventually happen because if employees are like, I need more and more money and the company's like, we don't have any more money to give you. They're eventually going to leave or they're not going to be able to pay them and they have to shut the business down.

• 24:08Jaspreet Singh?

  Something has to break.

• 24:09Lewis Howes?

  Something has to break. The business has shut down.

• 24:11Jaspreet Singh?

  What's going to break first? So what's going to break first? Is it going to be the housing market or is it going to be inflation? Is it going to be the stock market? Is it going to be inflation? Because the Federal Reserve Bank is going to keep jacking up interest rates based off of the economy and inflation until inflation comes down or until the economy goes up. Or, so do you see what I'm saying? Like inflation is going to come down or the housing market is going to break. Where now it's the Federal Reserve Bank. You have to look at their tensions. I know I'm kind of scattering around here because there's so many different aspects here. But the Federal Reserve Bank today, and this can change. Today says that their number one goal is to bring inflation down to 2%.

• 24:49Lewis Howes?

  And it's at 8 and a half?

• 24:50Jaspreet Singh?

  It's at 8.5% right now.

• 24:51Lewis Howes?

  They want to bring it down to 2% by when?

• 24:54Jaspreet Singh?

  They haven't said that. They want it as soon as possible.

• 24:56Lewis Howes?

  And how high do you think it could go? What's the likely worst case scenario of how high it can go? Before it drops?

• 25:03Jaspreet Singh?

  So let's, let's, let's talk about history, right? Because in the early 1980s, if you wanted to go and get a mortgage, you were paying upwards of 18 to 19% to get a mortgage.

• 25:13Lewis Howes?

  Oh, my gosh.

• 25:14Jaspreet Singh?

  Today, we're talking about 5.5% to 6% on a fixed rate 30 years.

• 25:18Lewis Howes?

  So it's still the lowest.

• 25:19Jaspreet Singh?

  We're still historically extremely low. So a lot of room to grow. Now, if mortgage rates went from 6% to 10% next month, the housing market is going to crash.

• 25:30Lewis Howes?

  I mean, costs are going to go way down.

• 25:31Jaspreet Singh?

  There's, there's, there's no alternative because no one's going to be able to afford those homes because home prices are so high. And the reason why they're so high is because people have been able to borrow more money at a lower interest rate. And so this is where now it goes back to the question, what is going to break first? Is it going to be inflation or is it going to be the housing market? And you can replace housing market with stock market, with crypto market, with the economy. It doesn't matter. And this is the dilemma that the Federal Reserve Bank is facing. And this is where their goal and what they say is we're going to have a quote unquote soft landing, where we're going to raise interest rates gradually enough where we can cool down inflation without crashing the housing market, without crashing the stock market, without creating too much of a problem. Like they do think the housing market is going to go down. They do think that we need to see stock prices go down.

• 26:15Jaspreet Singh?

  They do think that we need to see unemployment go up slightly. That wage growth has to slow down. However, they don't think it's going to create a massive crash.

• 26:24Lewis Howes?

  Right.

• 26:25Jaspreet Singh?

  So that is what they're saying. Now, the question is, what is going to actually happen, right? Because this is where.

• 26:30Lewis Howes?

  What rhymes?

• 26:31Jaspreet Singh?

  History, exactly. History rhymes. So this is where you want to pay attention now, obviously, to what's happened in the past, but what's actually going on. And this is where now you can dive a little bit deeper into the data, because now if you're looking at the housing market, you're going to say, okay, interest rates look like they're going to keep going up unless the Federal Reserve Bank completely does a 180, which is also possible.

• 26:50Lewis Howes?

  Right.

• 26:51Jaspreet Singh?

  That's why it's so hard to predict and why I do not recommend trading, because six months from now, the Federal Reserve Bank could say, you know what? Inflation is no longer number one priority. It is the slowing economy. We're going to cut interest rates. We're going to pump money into the economy.

• 27:04Lewis Howes?

  Oh, my gosh.

• 27:05Jaspreet Singh?

  You could see the stock market and real estate prices crash upwards. I mean, just think about this. If tomorrow.

• 27:10Lewis Howes?

  It's what happened to the stock market in 2020.

• 27:12Jaspreet Singh?

  Exactly.

• 27:12Lewis Howes?

  They started printing. It's like everyone started buying and.

• 27:15Jaspreet Singh?

  Went up.

• 27:16Lewis Howes?

  Real estate went through the roof, especially in L.A.

• 27:18Jaspreet Singh?

  Think about if tomorrow mortgage rates went down to 2.5%, what would happen? Everyone and their moms are going to want to buy their home. They're going to say, oh, we were waiting. Now we're going to go take advantage of this opportunity. We're not going to wait. And now home prices won't go up.

• 27:31Lewis Howes?

  There's going to be no inventory or it's.

• 27:32Jaspreet Singh?

  Same issue, right? And so this is where you have to understand that you cannot try to perfectly time or predict what's going to happen, but you can understand the different scenarios where the Federal Reserve Bank today says that they want to bring in interest rates up to bring inflation down. What is going to help them make that decision? Well, they're looking at inflation rates. They're looking at the economy. The economy meaning our economic slowdown, and they're looking at unemployment rates. So the fact that today unemployment rates are quote unquote extremely lower, the lowest ever in 50 years, and the fact that our economy is not slowing down that much, based on that, well, they have more ammunition to keep raising interest rates. Well, the more you raise interest rates, what's going to happen?

• 28:15Jaspreet Singh?

  The more the housing market gets hurt, the more the stock market gets hurt, the more the economy gets hurt. It's very obvious how it works in the real estate market because now you have to pay more money to buy a home. Well, it works the same way in the stock market and in business. You're a business and you want to go borrow money to finance operations, to finance growth, to buy some new machinery. You have to pay more money to do that. Well, if you're gonna have to pay more money to do that, you need bigger returns. If you need bigger returns, you need to be able to sell more stuff. If you need to sell more stuff, you need more people that have money. The situation right now is people don't have that discretionary money because they're spending so much extra money on things like rent. Gas. Yeah, gas. Gas prices have come down, but it's still significantly higher. Right. So this is the situation where the root. And rent, rent seems like it's going up too, right?

• 28:59Jaspreet Singh?

  Rents are about twenty to twenty-two percent higher now than where they were a year ago. Around the USA. Around the US, just on average, right? In some instances, some cities, it's more, some cities it's less. And this is where you just have to, I mean, understand, these are the options. And this is where people start to panic. They start to freak out and they assume that I need to make a rash decision today because, oh my God, this is gonna happen. I need to, need to sell my home, I need to buy a home, I need to do this, I need to do that because this and this might happen. But something else could happen. So you don't want to make rash decisions. This is where you want to understand what's going on, take a deep breath, calm down and first understand that the real estate market, if you're focusing on that, moves much slower than the stock market. Moves slower.

• 29:43Jaspreet Singh?

  It moves slower and that nothing happens overnight, right? So you want to be aware of what's happening. And to give you an example of that, when the two thousand and eight crash happened, stock prices collapsed in two thousand and eight and they bottomed in two thousand and nine. So in two thousand and nine, the stock market started to go back up. Real estate prices really started to get hard in two thousand and eight. They continued to go down in two thousand and nine, it continued to go down in two thousand and ten. Really? It continued to go down two thousand and eleven and then they bottomed in two thousand and twelve. Took four years. Four years. So real estate prices bottomed in two thousand and twelve and in two thousand and twelve, the stock markets started hitting new highs. So the real estate market moves significantly slower than the stock market.

• 30:28Jaspreet Singh?

  Because you can't buy and sell a home the way you can buy and sell a stock.

• 30:31Lewis Howes?

  Takes more time.

• 30:31Jaspreet Singh?

  You can buy and sell a stock in a second. So people get emotional, they get excited, they get scared, they panic. Whatever the emotion is, you can do that in a second and that can cause massive swings up and down in the stock market versus the real estate market. It could take months to sell a home, maybe even a year. And so it moves significantly slower and that's what you have to understand about the real estate market.

• 30:51Lewis Howes?

  So we're starting to see, it seems like prices are going down, you know, in the real estate market. At least I'm seeing, if I go on Zillow in LA, because I'm just curious about the market. You'll see homes that were up there for a few months and now they're cutting prices. You see homes that have been there for three, six, seven months now.

• 31:10Jaspreet Singh?

  Yeah.

• 31:10Lewis Howes?

  That aren't moving. So now they're dropping the price because they don't want to keep paying the mortgage on something. They're not going to live in it. And we're starting to see it happen a little bit. So if we're, if history is rhyming. And you know, the stock market's been kind of crashing, it seems like for the last, whatever, six to something months now. Is this now, okay, we're seeing this a little bit and it's going to keep going as we go into the next year? Or what could history teach us about potentially what could happen now?

• 31:39Jaspreet Singh?

  You want to keep your eye on the Federal Reserve Bank and you want to keep your eye on the economy.

• 31:43Lewis Howes?

  If inflation keeps going up?

• 31:45Jaspreet Singh?

  If inflation keeps going up, or rather if the Federal Reserve Bank keeps raising interest rates. That is the better indicator that you want to keep your eye on. Because if they keep raising interest rates, that means mortgage rates are going to keep going up, which will make housing more expensive. So I'll give you a quick example. If in the end of 2021, you wanted to buy a half a million dollar home. You could put down 20%, which is a hundred thousand dollars, meaning you would borrow four hundred thousand dollars. Now you can borrow the four hundred thousand dollars at 2.8% for a 30-year fixed rate mortgage in 2021. And so your monthly payments would be like 1650 a month for that half a million dollar home. If now today you wanted to buy the exact same home with no modifications, no upgrade,

• 32:26Jaspreet Singh?

  it's not going to cost you $500,000. It's going to cost you about 20% more, which is about $600,000. So now if you put down the same 20%, you're not burning down 100 grand, you're burning down $120,000, which means you're no longer financing 400,000, you're financing 480,000. Now, back then, you were able to finance the 400,000 at 2.8%. Today, you're going to finance that 480,000 dollars close to 6% on a fixed rate 30-year mortgage. So you're borrowing more dollars at a higher interest rate. Back then, it cost you 1650 a month. Today, it's going to cost you about 2850 a month to borrow the 480,000 dollars for the exact same home.

• 33:08Jaspreet Singh?

  So you went from paying 1650 a month to 2850 a month, which is about a 70% increase in monthly costs on the exact same home, assuming no modifications, no upgrades. That's kind of unsustainable unless, you know, there's more money coming into the markets, unless you keep having, you know, a way for people to keep affording that. And this is driving the issue now, whereas how much higher can it go? Because if you keep raising interest rates, what's going to happen? Your costs to buy the home are going to keep going up. So unless you have a 70% raise in your monthly salary, it's going to be much harder for you to afford that higher cost to buy that home. So that's the situation that we're in right now. And like you were saving, saying, it's driving this kind of shift in the housing market

• 33:52Jaspreet Singh?

  where you have a lot of people who want to buy a home saying, "I can't really afford the same home anymore. I don't want to live smaller, so I'll just keep the same house that I'm in right now. I'll keep renting, I'll keep, I won't sell, I won't move, because I don't want to pay this higher price." And this is where, you know, the question is again, what's going to happen next if we keep raising interest rates and the monthly cost keeps going up? Well, it's going to become more expensive. And that 2850 that I mentioned, it also does not factor in the higher property taxes you have to pay and the higher insurance. Because your property taxes are based on the value of your home. So when you're buying a $600,000 home versus a $500,000 home- Paying more, you know, the property tax, yeah. You have higher property taxes. You're insuring a more expensive property.

• 34:35Jaspreet Singh?

  So your costs to own this home are significant, I mean, almost double what they were a year ago. Month to month. And that's where it becomes, I mean, it's, it's, it's not rocket science to see why less people can buy homes today than they could a year ago, just because the cost to buy a home has gone up so much. So who is it the right time to buy a home for? Well. Is it the right time for anyone? Yes, look, okay, if you want, no, you gotta understand, are you buying the home as an investment or are you buying the home to live in? Because those are two different things. Right. And a lot of people get this confused and I'm gonna explain why. I really wanna get into that because that's one of the biggest misconceptions in America, I would say. When you buy a home for yourself to live in, we're told it's the biggest investment of your life, it's gonna go big.

• 35:19Jaspreet Singh?

  It's not a good investment for a lot of people. It is not. You should buy a home because you wanna create memories there. Lifestyle, environment. Exactly, and because you can afford it. You should not be trying to time the market with the home that you wanna create memories in. Right. The biggest thing is gonna be, can you afford the home and do you want to live there? Now, to answer that question of can you afford it, there's three different things you wanna ask yourself. Can you afford the down payment? Can you afford the monthly payment? And can you afford the move-in costs? Because that gets overlooked a lot, because now when you wanna move into this home. Furniture, moving, all this stuff. Exactly, first you have the closing costs, and then it's the cost of furniture, the cost to move in. And then when you want to move in, you gotta upgrade, right?

• 36:02Jaspreet Singh?

  Because now you wanna have a nicer kitchen, you wanna finish the basement, you wanna have the new appliances. And furniture is not cheap, and so you wanna make sure you factor that in before you can move. Now, if you can afford the down payment, you can afford the monthly payment, and you can afford the move-in costs, and you find a home that fits your needs, go out, buy it, get a thirty and fixed rate mortgage, don't worry about it because now you can afford it. If interest rates go down, just refinance, get the lower monthly payments, don't stress about it. Right, because you can refinance in a couple of years. If interest rates go down, you can always refinance, because you know, if you're trying to time the interest rate market. You never know what's gonna happen to this refinance if they go down. So that's the main thing you need to know that if you wanna buy a home, don't try to time the market. If you can afford it, hey, go out and buy it.

• 36:46Jaspreet Singh?

  You know, everyone's saying, well, what if home prices crash, then I can buy then? Sure, but what if they don't? What if they go up by twenty percent?

• 36:51Lewis Howes?

  Waiting and timing, yeah.

• 36:53Jaspreet Singh?

  So you know, it's it's it's the same thing, right? When you talk about investing your money in any asset, stocks, the best advice is time in the market beats timing the market. This is what every fundamental investor says. So now, if you're trying to buy a home, why are you trying to time the market? It's not even an investment. Are you gonna, you know, wait to buy your shirt until you see cotton prices come down? You're not looking at that. If you like the shirt that you buy and you can afford it, go out and buy it.

• 37:20Lewis Howes?

  Now, what's your thoughts on, you know, Grant Cardone always has this famous line, he says, live where you rent and rent what you own.

• 37:30Jaspreet Singh?

  You know, it's a great line, it's a great pitch. If you want to own a home, there's nothing wrong with that. Just understand that it's not an investment. For a lot of people, for a lot of people, the freedom of owning a home and paying off your mortgage is all that you want. You just wanna have that stress-free life. And this is where it comes down to your lifestyle, right? Do you wanna live big? Do you wanna live large? You wanna have all the luxuries and the nice stuff? And you wanna go for it all and you're willing to take that risk? Then yeah, don't put all that cash down into a down payment and tie yourself down into the home. Rent, take the down payment, invest it in your business, invest it somewhere else, that way it can grow bigger. But if your lifestyle goal is, hey, you know what?

• 38:06Lewis Howes?

  I wanna great space, I wanna have family, I wanna have memories.

• 38:09Jaspreet Singh?

  I don't care about all that fancy stuff, then go out and buy a home. There's nothing wrong with that. And this is where you just have to understand. Like, I'll give you a personal example. We have an office for Minority Mindset Companies, market briefs and all that.

• 38:22Jaspreet Singh?

  I rent it. We could easily buy the office.

• 38:24Lewis Howes?

  You don't own the office.

• 38:25Jaspreet Singh?

  I don't own the office space. I'm paying forty-four hundred dollars a month, plus utilities and all that.

• 38:30Lewis Howes?

  Michigan's cheap, man. You got that cheap rent in Michigan.

• 38:34Jaspreet Singh?

  You know, it's still a lot of money. Forty, so we're paying, what, fifty grand or so a year in rent? And I could go out and buy the property.

• 38:41Lewis Howes?

  Yeah.

• 38:41Jaspreet Singh?

  But why don't I? Well, if I wanted, it's probably, I don't know. Let's just say it's a million-dollar building. If I wanted to buy the building, I gotta take two hundred thousand dollars from the business and go out and get by the property. Then I can own the building and then see some return. The average real estate return, somewhere between seven to ten percent a year. Okay?

• 38:59Jaspreet Singh?

  If I took that $200,000 and reinvested it back into Market Briefs, my financial newsletter, It could grow. I'm trying to get a better return than 10% a year. And so for me, in the business sense, that's why I'm renting. Because I know that I can get a better return by investing that money back into the business to grow the business. And this is where you just have to understand the goals in your lifestyle and make sure your actions are aligning with your goals and your lifestyle goals. Because if you say, hey, I want to live large, I want to have the nice things, I want to have a big investment portfolio. But at the same time, you have Gucci, Louis Vuitton, you have a Beamer, but you have no investments. Your priority is in the wrong place. Sell the Louis Vuitton, sell the Gucci, sell the Beamer. Go on and start investing your money, start building your investment portfolio if you really want to be wealthy. So you can't speak out of both sides of your mouth.

• 39:42Jaspreet Singh?

  You've got to figure out what you want and just make sure your lifestyle aligns with that. Because a lot of people try to push this, this is the right way to do something. But that's not the case. I mean, if we just take a step away from finance for a second and look at, for example, health. Many people say, this is the diet you need to have. These are the exercises you need to do. Well, there's so many different things you can do. And at the end of the day, it's eat healthy and exercise, right? And now you can dig down deep and find what's right for you. But at the core, it's eat healthy and exercise. In finance, it's very similar. You can say, invest all your money into real estate, don't own your home, invest it all into real estate, buy as many rental properties as possible. Some people would say, you know, buy it in stocks, do this, or build a business.

• 40:26Jaspreet Singh?

  At the end of the day, it comes down to, live the glory means invest the difference. Right, right. You know, it's eat healthy and exercise, live the glory means invest the difference. That is at the core. And then it can get down to the nitty gritty. Like I, that's what I talk about, right? Because I'm interested in that and that's where I try to learn more. But I also don't try to say that this is the only thing that you can do because your goals are different than mine. Your background is different than mine, your risk tolerance is different than mine. And so you're going to want to make different investment decisions than me, which is why I don't try to say, this is what you need to do. I'll say, hey, this is what I do. This is how I invest in real estate, this is how I invest in my business, this is how I invest in stocks. But what you do is going to now depend on what is interesting to you, which is why the financial education is so important.

• 41:08Jaspreet Singh?

  Because I'm not trying to, I don't want to lead a herd of sheep. Right. Right? I want you to be educated, that way you can make smarter Make your own decisions. decisions for yourself, but make an educated decision. Because the issue that so many people have is We assume that the reason why we're not successful is because we don't have the right toolset, when in reality, for most people, is we don't have the right mindset. It's not a toolset issue, it's a mindset issue that so many people have, where if you have the right mindset, you'll realize that the toolset is right in front of you.

• 41:36Lewis Howes?

  Yeah.

• 41:37Jaspreet Singh?

  And you've just got to be able to harness the power of that.

• 41:39Lewis Howes?

  So what's the best-case scenario then for the housing market in your mind over the next 12 to 24 months?

• 41:46Jaspreet Singh?

  Well, the best-case scenario really depends on who you ask, because if you ask somebody who wants to invest in real estate or buy a home, you're going to say the best-case is real estate prices crash, because now I can come in and buy it at discount. But I think what you're trying to get at for the economic, right, if you're looking at it from we want a strong economy, we want a strong real estate market, the best-case scenario is the Federal Reserve Bank can continue to raise interest rates slowly. Interest rate, sorry, inflation comes down drastically and the economy doesn't get hurt. That's the best-case situation.

• 42:13Lewis Howes?

  Say it one more time?

• 42:15Jaspreet Singh?

  So, interest rates go up slightly.

• 42:17Lewis Howes?

  So from eight and a half to?

• 42:19Jaspreet Singh?

  No, interest rates.

• 42:19Lewis Howes?

  Oh, sorry, interest rates from a five and a half to?

• 42:22Jaspreet Singh?

  So mortgage rates, those are mortgage rates, different than the Federal Reserve Bank federal funds rates, so five and a half to maybe six, six and a half. We don't really go up on mortgage rates.

• 42:32Lewis Howes?

  But interest rates is different than the mortgage rates?

• 42:35Jaspreet Singh?

  Right, because the Federal, remember, that's mortgage rate is retail, the interest rate is?

• 42:39Lewis Howes?

  What's the interest rate right now?

• 42:41Jaspreet Singh?

  The interest rates, we're hovering around the two to two and a half percent range right now.

• 42:44Lewis Howes?

  So it goes up to 3%?

• 42:46Jaspreet Singh?

  Ideally, ideally no more, that would be best case, right? So mortgage rates, interest rates don't really change. And we see inflation come down magically, and we see the economy not slow down. So that's the best-case scenario, if you look at it from an economic perspective.

• 43:01Lewis Howes?

  What do you think could happen? If you're like, you know what, if I had to make a great prediction?

• 43:08Jaspreet Singh?

  Well, Louis, look at this, man. You print the most amount of money in the history of time, in 2020 and 2021, we're talking about, you know, at least $6 trillion, at the very low end. You print this money injected into the economy, now you're trying to take this money out. You're trying to burst the bubble that you created without crashing the markets, without trying to crash the economy. There is a cost to free money, we are paying the price for that through inflation. So now, if the price of everything has gone up so high, people are struggling to pay their bills, they can't buy more stuff because inflation is so high. And we're already seeing the economy slowdown. We've seen six months of an economic slowdown, which technically, traditionally, before 2022 would be considered a recession.

• 43:49Jaspreet Singh?

  Because before 2022, if you saw two quarters of GDP, meaning economic decline, that was defined as a recession. This year, we're deciding that

• 44:01Lewis Howes?

  That's not true.

• 44:01Jaspreet Singh?

  We're gonna look at other factors, broader factors.

• 44:04Lewis Howes?

  So if we go one more quarter, do you feel like they would say, okay, now we're in a recession?

• 44:08Jaspreet Singh?

  I don't know.

• 44:09Lewis Howes?

  They might try to keep the can down the road and say, yeah, no, it's not true.

• 44:13Jaspreet Singh?

  It's one of those things where, you know, when did we start saying that inflation is not transitory? It was very late. So it was November of 2021 that we said inflation is transitory. It was around March or April of 2021 that we said it is transitory.

• 44:27Lewis Howes?

  What's transitory mean?

• 44:28Jaspreet Singh?

  Transitory means a short period of time, right? It's gonna come and it's gonna go. Because the original thought was we'll see a little bit of inflation in 2021.

• 44:35Lewis Howes?

  It'll go away.

• 44:35Jaspreet Singh?

  It'll go away by the end of 2021. Well, that clearly did not happen. Then it said it'll go away by the middle part of 2022. That clearly did not happen. We're breaking new highs in the middle part of 2022. Now they're saying that it'll be gone by the end of 2022 to the beginning part of 2023. So that's one side on the inflation side. Now on the economic side, it's

• 44:55Jaspreet Singh?

  we don't want to say anything. We don't want to create fear or panic because people have jobs. The economy is strong. However, if you dig deep, you can start to see all these like red flashing warning signs that, yeah, potentially they could just blow by. But you have a lot of warning signs on saying, hey, look, like the inflation is still extremely high. Gas prices are still high. We have an economy that is slowing. We've been seeing unemployment numbers start to go up. And these are the things that you want to pay attention to. And even unemployment, if I can mention that for a second.

• 45:33Jaspreet Singh?

  There's a difference between unemployment which is reported and what's quote unquote real unemployment. So I don't want to get too technical, but when you see these headlines for what unemployment is, this is something called U3 unemployment. And what that means is it looks at a specific set of unemployment numbers and this is what they're reporting. Because now if you say, what does somebody unemployed mean? You might say somebody who doesn't have a job. But what about somebody now who's an engineer? You used to work at a great engineering company, but you got laid off and now you're working at McDonald's because you can't find another job. That doesn't qualify under that. Or what about now if you are a full-time worker?

• 46:15Jaspreet Singh?

  You're working at, I don't know, you're working at a factory. You had a great job and then your factory is doing layoffs and now they've cut your hours to part-time even though you want to work full-time because the factory's struggling. That doesn't count in this data. As unemployed. That doesn't count, yeah. So none of that data is recorded here. But those aren't the the stablest jobs is what you're saying. It doesn't have to be stable. I mean, we could talk about doctors, we could talk about engineers. It's just a matter of what is the definition of unemployment. So the U3 is not looking at that. U3, all it's looking at is. Fully unemployed. Well, let's define it. What it's looking at is you don't have a job and you haven't actively been looking for a job for the last four years. Sorry, four weeks.

• 47:00Jaspreet Singh?

  So what that means is, let's just say that you lost your job and you decided that after four weeks that you no longer want to continue looking for a job. Maybe you want to stay home with your kid, maybe you're taking care of a parent or relative, whatever. So after four weeks, you stopped looking for a job. You're no longer considered unemployed under U3. So you're no longer in that data. So there's another thing called U6, which does look at this. It looks at things like if you are underemployed, you're an engineer working at McDonald's, but you want to be an engineer, you are a factory worker, any type of worker, you're a doctor who used to have a full-time salary, but now you're working part-time. It doesn't really matter what the career is. It's looking at somebody who's not getting the full employment that they want.

• 47:43Jaspreet Singh?

  You are somebody who is more than four weeks out of looking for a job. All these things are looked at in U6. And if you look at U6, it tells you a little bit of a different story than U3. So this is where you have to be again, right? It's being able to understand data a little bit better. Now, I'm going to do a little bit of a pitch here because this is one of the things that we try to talk about in market briefs. Is this financial news and understanding what's actually happening because this gets a little bit complex. And I don't want to go too into depth because I don't got a whiteboard to diagram it all out, but it gets a little confusing. And this is where headlines don't tell the full story and you want to be able to dig deeper. But it requires that financial education and that willingness to learn.

• 48:24Jaspreet Singh?

  And if you don't want to spend all the time doing that, that's where market briefs, which is my financial newsletter, completely free, breaks it down into a fun, witty and easy to read email that way. Now, even if you don't understand this, we explain it that way. Anybody, anybody can understand, even if you don't have any sort of financial education, because these are the things that most of us are never taught, we're never told this. So you read the headlines saying unemployment is this and you assume that that's right. But what is unemployment? You have to understand these things and this is where, you know, understanding this level of finances becomes so much more complex. Because we're never told this.

• 48:56Lewis Howes?

  So if you could predict the next 12 to 24 months of what you think is going to happen to the housing market and the economy.

• 49:04Jaspreet Singh?

  Sure, look.

• 49:05Lewis Howes?

  Your best case, what you think is going to happen.

• 49:08Jaspreet Singh?

  I definitely think that our.

• 49:09Lewis Howes?

  Based on all this information.

• 49:11Jaspreet Singh?

  I do, look, our, our economy has a lot of trouble ahead. We are not out of the water. And the question is, when are we going to see the price of that? There, I mean, look.

• 49:21Lewis Howes?

  Have we paid the biggest price yet?

• 49:22Jaspreet Singh?

  Absolutely not.

• 49:22Lewis Howes?

  Really?

• 49:23Jaspreet Singh?

  Our inflation, our inflation issue is not going away. And either we're going to kick it down the road further.

• 49:29Lewis Howes?

  We might just pause it for a little bit, but then it's, yeah.

• 49:31Jaspreet Singh?

  Either the Federal Reserve Bank is going to kick the can down the road because they're going to say, you know what? Unemployment is rising, it's a bigger concern than inflation, so we're going to stimulate, we're going to pump, and that's going to create a bigger bubble.

• 49:41Lewis Howes?

  Jeez.

• 49:42Jaspreet Singh?

  Or they're going to start fighting it now and we're going to start paying a bigger price right now. Because this inflation problem is not going away. The economic slowdown will probably continue because of this inflation issue. And the person who's going to decide what's going to happen is the Federal Reserve Bank. So the question is, are we going to pay the price now or are we going to do it later? If we do it later, it's going to be a bigger price that we have to pay then. If we pay it now, it's going to be painful, but not as painful as later. So this is the situation that we're in, where the economic slowdown is a real concern. Inflation is a real concern. You don't want to panic, because nobody makes good decisions out of panic or fear. But you want to understand this, that we're not shocked 12 months down the line, where if the Federal Reserve Bank stays true, and they keep raising interest rates, they keep doing quantitative tightening, and they push the economy into a deeper recession,

• 50:27Jaspreet Singh?

  that you're not like, nobody saw it coming. Because that's what they said about inflation. That's what they're going to say about the economy, too.

• 50:34Lewis Howes?

  Because they don't want to put fear into the world, just like they said in 2005, about 2007.

• 50:40Jaspreet Singh?

  Exactly.

• 50:40Lewis Howes?

  So what are you personally doing to prepare for the next, for when that happens? With your own money and assets? And are you saving money, cash? Are you investing now?

• 50:50Jaspreet Singh?

  Yeah.

• 50:51Lewis Howes?

  Real estate, all that stuff? And what do you recommend someone to do? Whether they're an employee, or maybe they have some extra cash?

• 51:00Jaspreet Singh?

  Sure. So I would say, you know, this is a lot going to depend on you, because I'll be very personal with what I'm doing. Because I'm an entrepreneur, so I look for different types of opportunities than somebody else might. So if you are an employee, there's going to be different opportunities for you. If you're a business owner, there's going to be different opportunities for you. If you're an entrepreneur, there's different opportunities for you. So I invest my money in five places. Invest my money into my own business. I talked about market briefs. I invest my money into real estate. Invest my money into stocks. Invest my money into crypto. Then I invest my money into physical gold. This is the order that I invest my money into. This is my type of diversification. Now, I understand what's going on, and I do have some cash.

• 51:42Jaspreet Singh?

  I always have some cash put aside for, like, you know, things going wrong, investments. I always have some cash putting aside there. And what I've been doing is... I passively invest my money, meaning no matter what's happening in the markets, whether the market is up, whether the market's down, it's automatically

• 51:58Lewis Howes?

  Every month you have a certain amount going in, yeah.

• 52:00Jaspreet Singh?

  And this is happening into stocks, into crypto, and into physical gold. That does not change, that never changes. So I get paid, money is automatically invested no matter what. Then, in the past, I've had my more active strategy where I would take money and actively go out and buy real estate, actively go and buy stocks. And in this situation, I'm looking for good deals, meaning a good price. So I haven't been doing that as much recently, not because of what's happening in the market, but because I see more opportunities for me in the entrepreneurial business side. So I've been investing money into market briefs like I talked about.

• 52:36Lewis Howes?

  Hiring more people on your team.

• 52:37Jaspreet Singh?

  Hiring more people, building infrastructure. And then I'm also working on a tax firm. So I'm gonna talk about tax for one second, if that's okay, because there's a very interesting thing happening right now, because going off of inflation, President Biden just signed something called the Inflation Reduction Act.

• 52:53Lewis Howes?

  Was it eighty billion or something?

• 52:55Jaspreet Singh?

  It was a huge, it was a huge, huge, I think it's even bigger than that. Eighty billion is just the IRS.

• 53:00Lewis Howes?

  The IRS.

• 53:01Jaspreet Singh?

  So the tax side.

• 53:02Lewis Howes?

  So they're hiring, they're investing eighty billion in the IRS to start auditing more people, essentially, right? To start trying to get more money from people.

• 53:10Jaspreet Singh?

  And that's only one part of the Inflation Reduction Act. So let's go big to go small, because the Inflation Reduction Act is supposed to reduce inflation, that's what the name says. The fun is, I'm laughing because it's kind of silly, because how do you reduce inflation? You spend less money, because the government has spent so much money they didn't have, which caused money printing.

• 53:28Lewis Howes?

  And you tax more people, bro, you collect more.

• 53:31Jaspreet Singh?

  Exactly. So that's, how do you now pay off all this debt? Remember, the government doesn't make money. They tax you, they tax me, they collect taxes, and then that's what they use to pay off their expenses. Now, it's not surprising that the government is running into an issue because they have thirty-one, almost trillion dollars of national debt that they need to pay off. This is not fixed rate debt, so as interest rates go up, their payments on this debt go up as well. So we talked about what happened in the housing market, imagine that on a thirty trillion dollar level now, so the payments are Getting bigger. So what does that mean? Well, if they have this pool of money, either they're gonna need to inject more money to the government. The Fed has to print more money, but they can't do that anymore because of inflation, or they're gonna need more tax dollars. So that's one of the reasons why through this Inflation Reduction Act,

• 54:16Jaspreet Singh?

  one of the things they wanna do, which is one of the most financially interesting topics, is they want to invest very heavily billions of dollars into the IRS to help them beef up and collect more tax dollars and past tax dollars. Now, I do wanna clear up some of the false information out there because the Act is working to hire eighty seven thousand more IRS workers. That's crazy. It is crazy, especially considering that today there are about eighty thousand IRS workers. They're gonna double. Yes, and no. So the eighty seven thousand people that they're hiring are not all IRS agents, and they're not all being hired today. They're gonna be hired over the course of ten years. And the whole idea is, this is what they say. Again, this is what they're saying.

• 55:01Jaspreet Singh?

  What might happen is it could be a little bit different. So I wanna be just completely transparent because I don't wanna mislead people. I want to make sure everyone's fully understanding what's happening. You have about, what's scheduled is about fifty thousand or so people in the IRS are scheduled to retire over the next ten years. So these eighty seven thousand people are supposed to replace them and beef up the agents that are actually gonna be doing the auditing to go and collect more money. Now, even if fifty thousand people retire, that's still adding almost fifty percent more people to the IRS. Who are they going after? Well, they say the wealthy, the super rich. And there's about a thousand billionaires in the United States.

• 55:44Jaspreet Singh?

  Do you need tens of thousands of people to go after them? No. So you go a little bit deeper. Now, again, what do we look at? History. I look at history to answer the question because they keep saying that we're not going, saying, it's not in the bill, it's not written anywhere. This is what they say, that we're not gonna go after middle-income people or anything like that. Well, in twenty twenty one, fifty percent of IRS audits were on people earning less than seventy five thousand dollars a year. Come on. Fifty percent.

• 56:12Lewis Howes?

  Fifty percent.

• 56:13Jaspreet Singh?

  Fifty percent.

• 56:14Lewis Howes?

  How do they, how do they know, how do they, is that public information?

• 56:17Jaspreet Singh?

  Go search it on Google. Google has a lot of information.

• 56:19Lewis Howes?

  Fifty percent of the audits were on people that were making less than seventy five.

• 56:22Jaspreet Singh?

  Under seventy five thousand dollars a year.

• 56:24Lewis Howes?

  Wow.

• 56:24Jaspreet Singh?

  And.

• 56:25Lewis Howes?

  Why are they doing that?

• 56:26Jaspreet Singh?

  Well, probably because if you're making less money, you're not going to have the resources to hire a good accountant and hire a good attorney to represent you. So it's a little bit easier, less cost. I mean, it's just, it's just easier, right? I mean, you're maybe less financially savvy than somebody who's making half a million dollars a year or two million dollars a year, because now you probably have more resources to defend yourself. So that's a bigger fight for the IRS. And you're probably more protected because you have good advisors who've told you what to do. Because now, let's say you're making fifty.

• 56:57Lewis Howes?

  You're filing your taxes, you're doing all the right steps and maybe.

• 57:00Jaspreet Singh?

  If you make a million, you, once you start making a lot of money, like if you're making over a million dollars a year, you're not trying to play the game of trying to hide ten thousand dollars because now you're already under scrutiny.

• 57:09Lewis Howes?

  Yes.

• 57:09Jaspreet Singh?

  The IRS is trying to see you do something wrong. And so if you try to get ten thousand dollars under the table, it's a bad idea because you already know you're being watched.

• 57:17Lewis Howes?

  You're trying to, you do everything by the book.

• 57:19Jaspreet Singh?

  You try to, and you have good advisors to guide you to do everything legal so you can pay the least amount of taxes as possible legally. Now, if you're making fifty grand a year and you have a side hustle making you a thousand dollars a year, you might take that in cash because you might say, this is a grand a year. You know, it's just the reality, right? You're, you're taking pictures at people's weddings, you're, you're doing whatever, you're making some cash and you're, you're just doing it under the table. And.

• 57:42Lewis Howes?

  The IRS wants that thousand bucks.

• 57:44Jaspreet Singh?

  And this is one of those things where it's not surprising because if you look at what's been happening over the last couple of years, it's, this has almost like been a foreshadow of things to come because you remember over the last couple of years, we've seen this new rule on Venmo, right? On Venmo transactions where they want all Venmo transactions over six hundred dollars or something like that. Where now, if you're, you know, let's say you're, you're a photographer and you're taking pictures at your friend's wedding and he pays you seven hundred dollars and Venmo has to report that, they want to know that. They, they never said why, but now you're starting to see all these things start to add up. Where if you're doing these small things. You know, it's just like things starting to fall into place where, oh, no wonder they started wanting all these details for this. No wonder they started really going after cryptocurrency brokerages. No wonder they really started doing all of this stuff.

• 58:29Jaspreet Singh?

  Maybe creating a digital dollar because they want to be able to see every transaction, which means they want to be able to tax every transaction. Of course, I can't validate this, but I mean, it's just like puzzle pieces starting to come together. And so this is where the tax thing, why is it so important? Because of inflation, because of the national debt, the government needs more tax dollars to be able to go and fund their payments. And so what are they gonna do? Well, they're gonna try to find the easiest hanging fruit. Is it going after a billionaire? Probably not, because the billionaire is gonna say, come after me. I have my resources, I have my army behind me.

• 59:02Lewis Howes?

  My accountants have done everything.

• 59:04Jaspreet Singh?

  We have, we have everything there, everything is documented because we want to play by the books because we know you're already watching. Now, I'm not saying that everything always is right, right? There's of course, exceptions to this. But this is where you just have to understand, you know, they say that they're not gonna go after anyone making middle income, whatever.

• 59:23Lewis Howes?

  But after you go, after you look at the thousand or so billionaires, okay, you gotta look at everyone else.

• 59:28Jaspreet Singh?

  I mean, so this is again, right? That's what we would have to predict.

• 59:31Lewis Howes?

  Eighty thousand people working on it, it's like, alright.

• 59:33Jaspreet Singh?

  It's just looking at history, right? I mean, this, history is the best indicator for what's coming. I keep saying that, and I'm sure your audience is getting very bored, annoyed at me saying this, but I mean, it's the best indicator. Because I can't look into the future and say what's gonna happen, but I can look in the past and see what has happened. And I see that, hey, this is what happened in 2021, this is what's been happening, because this is just the situation. And so for me, I've also seen a big difference between good tax advisors and bad tax advisors, because.

• 1:00:04Lewis Howes?

  Is that why you're starting a tax?

• 1:00:05Jaspreet Singh?

  That's why, because I, you know, it's the entrepreneurial mind aware. When I get scammed, I get screwed over, I get, you know, these things happen. It makes me wanna find a new solution. That's how I started Minority Mindset. I got scammed and I started Minority Mindset. I got screwed over when I started my event planning company. I got completely screwed over in my first real estate investment deal. Pretty much every part of me had to do with something really bad happening. Yes. So I had a really bad tax advisor. He was really just an accountant who filed my taxes and was never on time. And I got this call. It's horrible. It was just a mess. Yes. I got a call from my accountant one day. I'm in the office. This is right before my morning huddle. So we have a nine thirty AM morning huddle. Calls me, I think it was like eight forty-five in the morning. I'm in the office. Says, hey, Jaspreet, how are you? I said, good. How you doing? He said, hey, listen, I need you to do me something.

• 1:00:49Jaspreet Singh?

  Uh, can you wire or send the IRS a hundred thousand dollars by the end of the day today? And can you also send about fifteen thousand dollars to the state government by the end of the day today? I was like, what? He says, sorry, we had some miscalculations. We did something wrong. We missed this and you need to send this by tonight. And I was like, Jeez. Are you serious? He's like, oh, yeah, one more thing. You're probably gonna have to pay a penalty on this as well. Oh, my gosh. And this is a completely true story, like, When was this? This is not, I mean, this is less than a year ago. Oh, my gosh. And so it's, I mean, it's, That's painful. It's very painful. And so I'm like, okay, like, I was very frustrated because I'm like, what did I do wrong? Like, what are you talking about? He said, you didn't do anything wrong.

• 1:01:30Jaspreet Singh?

  And I was like, well, if I'm the one that has to pay this and I'm the one who has to pay the penalty, something's not right here. And so I paid it and then I fired him. Pretty quickly. Right. Because, you know, that's, that's not the way I like to do business. I like, I want, I want everything to be clean, but I also want people who care about what they do. And he was a, a cheaper accountant. Yeah. I got what I paid for. And so I went on the hunt For a top accountant. To find a good, top of the line accountant. And I pay a lot more than what I used to. However, the situation scenario is extremely different because he has a very different personality, a very different persona. And the way it works now is, one, he manages all my books on time and handles schedule. So every month he meets with me and he shows me, hey, Jaspreet, here's your profit.

• 1:02:15Jaspreet Singh?

  Oh, sorry, we'll start from the top. Here's your revenue. Here's your expenses. Here's what your expenses look like. Here's how they changed. Here's your profit. Here's your tax liability. And here are the things that you can do to limit your tax liability. That's cool. Here are, you know, three recommendations or whatever that we believe based off of what's happening right now to legally limit your tax liability. And he has given me so many interesting ideas because the tax code is over 2,000 pages long. And you need, I'm an attorney. I studied a lot of tax. It takes a lot of knowledge and education to understand and read the tax code, but then things keep changing all the time. Like even this Inflation Reduction Act is changing corporate tax structure.

• 1:02:56Jaspreet Singh?

  So you need somebody who literally eats, breathes, and all they care about is tax. And this is this guy, right? And I'm like, dude, like, this is amazing. Like, I love this because I don't have the time. I don't want to spend my time thinking about taxes and all the cash flow stuff. I want to build my business. And so I got to know him, got to build, see how we worked. I really liked it. And after a number of months of working with him and seeing him in action, I was like, hey, man, like, you have nothing on social media. Like, can we work together? Like, let's, like, he's very good at what he does, but I was like, let me work with you. Like, I think we can create a lot of things here because there's a lot of small businesses that need what you have to offer because there's a lot of small businesses who have bad accountants. So all they do is file their taxes.

• 1:03:39Jaspreet Singh?

  And you need a tax advisor, especially now as we're going to see a big change. You need an advisor who's going to guide you on what to do with your money, how to document what you do, like, just to make it completely seamless. That way you don't have to stress about it. Right. And he was like, I'm down. So over the last couple of months, we've been working to build this together. It's not launched yet. We're just talking about it because it came a conversation. But that's something that I've been really working on. That's cool. You know, if you're listening to this and you want a good tax advisor, just email me. There you go. [email protected] or send me a DM on Instagram, minority mindset, and I will connect you. But these are, I mean, this is where, what am I doing? I like entrepreneurship. I like this stuff because it gets me excited. It's the way that my brain works.

• 1:04:23Jaspreet Singh?

  It's the way that gets you, it's my purpose, right? And so I do that. I like investing in real estate. I like investing in stocks. I'm passively doing it in stocks. But right now, I just see more opportunity for me to invest in things like market briefs, to invest in things like this tax firm, because like I see the opportunity. It's fun. I have a blast doing it. I get to meet really cool people. So, you know, it's just, it's a matter of now, what is that lifestyle? Now, if I didn't, if I wasn't an entrepreneur, well, what I'd be doing? Yeah, I'd be stacking up cash to find good investments, either in the stock market or the real estate market, or to buy a startup, because it's very accessible now, thanks to the internet, thanks to all the crowdfunding sites out there. And I'd be passively investing. Like, I would not change that. So, I mean, I think everybody should be doing this.

• 1:05:08Lewis Howes?

  You can put a hundred bucks a month away into stocks or into, into an automated account that is investing for you.

• 1:05:13Jaspreet Singh?

  Did you know if, if you're 21 and you start investing a hundred dollars a month and you never change that, and you just get a 10% return on your money, which is the average stock market return, and you do that until you're 65, you will retire a millionaire.

• 1:05:27Lewis Howes?

  Come on.

• 1:05:28Jaspreet Singh?

  We're talking about less than four dollars a day.

• 1:05:30Lewis Howes?

  Hundred bucks a month.

• 1:05:31Jaspreet Singh?

  Hundred bucks a month.

• 1:05:32Lewis Howes?

  Automatic.

• 1:05:32Jaspreet Singh?

  Automatic.

• 1:05:33Lewis Howes?

  Going into a, a index fund.

• 1:05:35Jaspreet Singh?

  And you just keep trying to match the market, right? Doesn't mean you're gonna get 10% returns every year.

• 1:05:39Lewis Howes?

  But over the decades, you will, yeah.

• 1:05:41Jaspreet Singh?

  That's what the historical stock market return is. Now, you can just plug this into a calculator and you'll see that the hundred dollars a month for, from 21 to 65, 66, you will be a millionaire. But if you don't start that until, let's say, in your twenties, you don't care about money, you're all partying, you're not having a good time. In your thirties, you're trying to get a good job, trying to figure things out. And now in your forties, you're like.

• 1:06:02Lewis Howes?

  I gotta put a thousand bucks, a couple thousand bucks.

• 1:06:05Jaspreet Singh?

  It's very different. If you, if you're 45 and you're putting a hundred bucks aside at the same 10% return, when you retire, you're gonna have a hundred thousand dollars. Not a million, not even half a million. We're talking about a hundred grand. It makes that big of a difference, because time is such an important factor.

• 1:06:21Lewis Howes?

  I'm such a big fan of doing this. I started doing this when my late twenties. Actually got into whole life insurance in my late twenties. And my dad was in life insurance, and so I learned about it a lot as a kid. But I started, I bought my own policy, I think when I was like late 27 and I keep buying more whole life insurance.

• 1:06:42Lewis Howes?

  But I started doing the automatic payments from my checking account right into an index fund, every month. Now, when I was in my late twenties and my like early 30s and it's, you know, in seven or eight years, it's been just compounding and growing and it really starts to grow. And as you earn more money, you can say, I'm gonna put 200 bucks a month in or 300 bucks or, and really put that extra money in automatically so you don't even see it. You don't think about it and you know you're gonna be making money for the long haul.

• 1:07:10Jaspreet Singh?

  Exactly.

• 1:07:10Lewis Howes?

  100 bucks a month.

• 1:07:11Jaspreet Singh?

  It's simp- it's so simple and there are so many apps out there that make it so easy that don't even charge you a fee. That there's really no excuse not to do this. And you just set that up and that never changes.

• 1:07:24Lewis Howes?

  Yeah. What are those top apps for people?

• 1:07:26Jaspreet Singh?

  I use M1 Finance.

• 1:07:28Lewis Howes?

  M1 Finance?

• 1:07:29Jaspreet Singh?

  M1 Finance. It's easy to use. You know, there's tons of them out there. Do your own research. They are a sponsor and affiliate for Minority Mindset. Full disclaimer, I'm not getting paid to say this here, but do your research. There's this ton of apps out there.

• 1:07:40Lewis Howes?

  What are the other, what are there a few others that you think are?

• 1:07:43Jaspreet Singh?

  For dollar cost averaging, honestly, like you can do something like FTX does that.

• 1:07:48Lewis Howes?

  It's like Acorns, I've heard.

• 1:07:49Jaspreet Singh?

  Acorns does something where you can start with a dollar. So they like round up your change.

• 1:07:53Lewis Howes?

  Yeah.

• 1:07:54Jaspreet Singh?

  Stash does it. Yeah, there's, I mean, if you go to the minority mindset.com, because my team is literally doing reviews of this.

• 1:08:00Lewis Howes?

  About all this stuff.

• 1:08:00Jaspreet Singh?

  Yeah. They, I don't know all of them off the top of my head because I use what I use, but if you want like reviews, just go to the minority mindset.com. We have dozens of articles over there on that.

• 1:08:09Lewis Howes?

  Awesome.

• 1:08:10Jaspreet Singh?

  But that never changes.

• 1:08:13Lewis Howes?

  Yeah.

• 1:08:13Jaspreet Singh?

  Passive invest forever. Okay. And then on the active side, now this is where you can understand you a little bit where maybe you want to invest in real estate. Maybe you say, I hate that idea. Maybe you want to invest in individual companies. Maybe you say, I hate that idea. But this is where now you can also start putting some extra cash aside to be invested. So this is money where you're looking for a good opportunity and you know, the percentage of how much you're gonna do is gonna really just depend on you. Some of you are gonna say, I don't even care about that. I don't, I just want to passive and never have to worry about it. Fine. Some of you are gonna say, I'll passive, but I wanna, I wanna be in the game. I wanna be more involved, right?

• 1:08:48Lewis Howes?

  What's happening?

• 1:08:48Jaspreet Singh?

  Some people like that and I like that. And so now you're putting some cash aside into, you know, maybe it's a bank account or whatever. And you have some cash sitting here waiting to be invested. Maybe it's waiting to be a down payment for a home or you're waiting for just a good buying point in the stock market, but this is where you're doing your research right now. And you're trying to find the right opportunity where now you just want to take this cash and go out and actually buy something. And again, right, this is assuming you're not an entrepreneur. And there's different opportunities for different people in different stages of their life. And this is just understanding you, where you are in your life. If you want to be in the entrepreneurial side, building your own business. If you want to be in the, I want to invest in real estate side, or I want to be in the stock market side.

• 1:09:31Jaspreet Singh?

  Like it's just, it's a matter of personal preference because at the end of the day, we try to make investing so complicated, but it's live below your means, invest the difference. And that's the ultimately the solution to becoming wealthy. No matter what market you're in, no matter what economy you're in, no matter where in the world you're in. That is the simple solution. Now you can get as nitty gritty as you want, but you, once you understand that you have the formula to become wealthy.

• 1:09:55Lewis Howes?

  If you guys are loving this, make sure to leave a comment, yes, below. If you want more with Jaspreet and myself, comment below. Make sure to follow Jaspreet on his YouTube. We'll have it all linked up, but leave a comment if you want to learn more about becoming financially free in the future with Jaspreet. Amen.

• 1:10:11Jaspreet Singh?

  Amen. Thank you for having me on, Louis.

• 1:10:13Lewis Howes?

  Thank you so much for listening. I hope you enjoyed today's episode and it inspired you on your journey towards greatness. Make sure to check out the show notes in the description for a full rundown of today's show with all the important links. And also make sure to share this with a friend and subscribe over on Apple Podcasts as well. I really love hearing feedback from you guys, so share a review over on Apple and let me know what part of this episode resonated with you the most. And if no one's told you lately, I want to remind you that you are loved, you are worthy and you matter. And now it's time to go out there and do something great.