True Wealth: Asset Ownership Over Mere Savings - Episode Hero Image

True Wealth: Asset Ownership Over Mere Savings

On Purpose with Jay Shetty · · Listen to Original Episode →
Original Title:

TL;DR

  • Saving alone does not build wealth; true wealth is built by owning assets, as savings can lose value due to inflation, necessitating strategic allocation rather than mere accumulation.
  • Financial success requires moving beyond the traditional "save and spend" or "save for savings" mentality to actively owning income-generating assets, shifting focus from salary to equity.
  • Blindly following societal or familial financial systems without understanding how money works leads to being broke while appearing wealthy, as consumerism prioritizes spending over asset accumulation.
  • Investing in oneself through skill development and resilience is the highest-return asset class, compounding over time and enabling individuals to build businesses or invest in diversified funds.
  • True financial freedom is achieved by living beneath one's means and cultivating abundance internally, rather than chasing external validation through material possessions or "Instagram wealth."
  • Developing a healthy, respectful relationship with money, treating it as a valued partner rather than a tool to be used and discarded, is crucial for sustained financial well-being.
  • Avoiding risk and failure, particularly in the pursuit of wealth, prevents individuals from building lasting financial security and limits their potential for significant gains.

Deep Dive

This episode synthesizes financial wisdom from various experts, arguing that true wealth stems from a disciplined, ownership-focused mindset rather than quick hacks or superficial displays of wealth. It emphasizes that building financial security requires understanding money's mechanics, prioritizing long-term asset accumulation, and cultivating a healthy relationship with it, which are skills largely absent from conventional education.

The core argument is that superficial spending and a lack of financial literacy trap individuals in a cycle of "looking rich" rather than "being rich." Scott Galloway highlights that saving is difficult without a system, advocating for automation as the most reliable path to wealth accumulation, distinct from willpower. He stresses that young people should leverage their "human capital" through skill development and consistent effort, acknowledging that financial security often requires sacrificing immediate gratification, a trade-off many young adults are hesitant to make due to economic pressures like housing costs. Jaspreet Singh further elaborates on this by identifying three habits that perpetuate poverty: merely saving or spending without a plan, blindly trusting the financial system without questioning it, and failing to understand money's dual nature as a currency and a store of value. He argues that savings alone lose value due to inflation, necessitating a shift towards owning assets, such as equity in businesses, which generate income beyond a salary. Codie Sanchez reinforces this by pointing out that many avoid risk and rejection, thereby missing opportunities for substantial wealth creation. She advises investing in oneself--skills and resilience--as the primary investment, followed by diversified index funds and eventually private investments or business ownership.

The second-order implications are significant: a cultural shift is needed to move from consumption-driven desires, amplified by social media, towards a focus on asset ownership and long-term financial health. This requires a fundamental re-education on financial principles, as traditional systems fail to equip individuals with the knowledge to build wealth. The experts suggest that wealth is not solely about earning more but about owning income-generating assets and understanding how to make money work for you. Lewis Howes adds a spiritual dimension, viewing money as a relationship requiring respect, gratitude, and intentionality, akin to any other meaningful connection. He suggests that practicing openness to possibility and recognizing value in unexpected places, like finding a rare penny, can train one to spot financial opportunities. This perspective suggests that a healthy relationship with money, characterized by generosity and a willingness to give, can paradoxically lead to greater abundance, countering the "more money, more problems" mindset. Ultimately, the episode posits that financial freedom is achieved not through luck or quick fixes, but through consistent effort, strategic planning, and a fundamental shift in how one perceives and interacts with money, moving from scarcity to abundance and from consumption to ownership.

Action Items

  • Create a forced savings system: Automate 3-5% of income into tax-advantaged accounts (e.g., 401k, IRA) to build wealth beyond salary.
  • Audit personal spending: Track expenses for 2 weeks to identify 3-5 areas of "looking rich" spending and reallocate funds to investments.
  • Develop an investment strategy: Allocate 10% of income to low-cost, diversified index funds (Stage 2 investing) to outpace inflation and build equity.
  • Build a "kitchen cabinet": Identify 3-5 trusted advisors to consult on financial decisions, leveraging diverse perspectives for better outcomes.
  • Practice mindful money interaction: Implement a daily ritual (e.g., acknowledging found coins, expressing gratitude) to foster a respectful relationship with money.

Related Episodes

Key Quotes

"Saving isn't about willpower it starts with having something to save reclaiming just eight to ten hours a week from distractions like tiktok or gaming could shift your financial future and discipline it comes most easily from automation only 17 of americans use automatic deposits or transfers to build savings yet it's the most reliable way to grow wealth without relying on willpower."

Scott Galloway argues that saving requires a foundation of income and that discipline is best achieved through automated systems rather than relying on personal willpower. Galloway highlights that automation is a more reliable method for wealth accumulation, as evidenced by the low percentage of Americans utilizing automatic savings.

"The number one health and wealth podcast Jay Shetty Jay Shetty the one the only Jay Shetty in this episode you will hear from financial experts who share lessons on saving investing and building wealth that serves your goals not your impulses."

This quote introduces the episode's focus on financial well-being, emphasizing that the advice provided by experts aims to align financial strategies with personal goals rather than impulsive desires. Jay Shetty frames the discussion as a continuation of his podcast's theme, linking health and wealth.

"The highest-return investment that you could ever have is you because you have unlimited upside and it compounds over time and so if you don't have a lot of cash right now bet on you first before you go bet on somebody in the s p."

Codie Sanchez asserts that investing in oneself is the most lucrative strategy due to its unlimited potential for growth and compounding returns. Sanchez advises individuals with limited capital to prioritize self-investment over investing in the stock market.

"The two s's save and spend and now it's interesting if you look at the financial statements for the majority of people in america or even across the world the way it looks is you make money you pay taxes you spend money and then you wonder where all your money went literally and so people the majority of people don't have any plan for their money and that's why the majority of people have little to no savings and the majority of americans have little to no investments right now."

Jaspreet Singh identifies "save and spend" as a primary habit that keeps people financially stagnant, explaining that most individuals lack a financial plan. Singh points out that this lack of planning leads to minimal savings and investments for the majority of Americans.

"The highest-performing asset class that you could ever have is you because you have unlimited upside and it compounds over time and so if you don't have a lot of cash right now bet on you first before you go bet on somebody in the s p."

Codie Sanchez emphasizes that investing in oneself yields the highest returns due to unlimited growth potential and compounding effects. Sanchez recommends prioritizing self-investment over stock market investments when financial resources are limited.

"The owner and ceo of louis vuitton is the richest person in the world whereas the majority of people who wear louis vuitton are broke the people who are wearing louis vuitton are trying to look rich and how are they doing that well you're making the owner of louis vuitton rich by doing that and so this is where you gotta understand there's nothing wrong with wearing designer stuff there's nothing wrong with having nice stuff there's nothing wrong with wanting nice things but you have to be able to afford it first."

Jaspreet Singh uses the example of Louis Vuitton to illustrate how consumerism can lead to individuals appearing wealthy while actually being financially broke. Singh explains that the desire to project an image of wealth often benefits the creators of luxury goods rather than the consumers themselves.

Resources

External Resources

Books

  • "The Algebra of Wealth" by Scott Galloway - Mentioned in relation to setting realistic saving goals and the challenge of long-term financial objectives.
  • "How to Make a Few Billion Dollars" by Brad Jacobs - Referenced for insights into identifying profitable business deals and the balance between vision and execution.

Articles & Papers

  • "Minority Mindset" channel video on saving cash (YouTube) - Referenced as Jaspreet Singh's first viral video, discussing how saving cash in the bank leads to losing value due to inflation.

People

  • Scott Galloway - Financial expert discussing saving systems, human capital, and the challenges young people face in the current economy.
  • Jaspreet Singh - Financial expert explaining habits that keep people financially stuck, the importance of owning assets, and the concept of equity.
  • Codie Sanchez - Financial expert advising on risk/reward, investing in oneself, and the illusion of "Instagram wealth."
  • Lewis Howes - Guest discussing the spiritual side of money, healing one's relationship with it, and attracting abundance.
  • Jay Shetty - Host of the podcast "On Purpose," discussing financial habits and relationships.
  • Brad Jacobs - Author of "How to Make a Few Billion Dollars," discussed for his insights on business deals and investment strategies.
  • Beyoncé - Mentioned as an example of someone who works extremely hard to achieve success.
  • Mel Robbins - Mentioned in relation to an experiment about manifesting money and abundance.
  • Rick Rubin - Mentioned as a guest on a future episode discussing creativity and loving one's work.
  • Cal Penn - Co-host of the "Ears Say" podcast.
  • Ed Helms - Co-host of the "Ears Say" podcast.

Organizations & Institutions

  • State Farm - Mentioned for its "Personal Price Plan" for bundling home and auto insurance.
  • Chase Sapphire Reserve - Referenced for travel rewards and exclusive experiences.
  • Amazon - Mentioned as a source for holiday shopping with fast delivery.
  • SBA (Small Business Administration) - Cited for data on small business closures versus openings.
  • Vanguard - Recommended for low-cost index funds and investment platforms.
  • T-Mobile - Mentioned as the network provider for Noble Mobile.
  • Walden University - Promoted for its flexible educational programs for working adults.
  • Give Directly - Organization partnering with the podcast for a poverty alleviation initiative in Rwanda.
  • JPMorgan Chase Bank, N.A. - Issuer of Chase Sapphire Reserve cards.
  • iHeart - Mentioned as a podcast network.
  • Audible - Platform for audiobooks, mentioned in relation to the "Ears Say" podcast.
  • COCHELLA - Mentioned as an example of an event where influencers may be paid to attend, and attendees may use "buy now, pay later" options.

Websites & Online Resources

  • news.jayshetty.me/subscribe - URL for subscribing to Jay Shetty's newsletter.
  • lnk.to/JayShettyPodcast - URL for Apple subscription to bonus content.
  • omnystudio.com/listener - URL for privacy information.
  • chase.com/sapphire - Website for Chase Sapphire Reserve information.
  • vanguard.com - Website for Vanguard investment services.
  • noblemobile.com/j - Website for Noble Mobile.
  • waldenu.edu - Website for Walden University.
  • give.directly.org/onpurpose - Website for donating to Give Directly through the podcast.
  • apple.com/gift-card - Website for Apple Gift Cards.
  • yahoo.com/finance - Mentioned as a resource for studying market trends.

Other Resources

  • Acorns app - Mentioned as a tool for automatic savings through rounding up purchases.
  • 401k - Retirement savings plan mentioned as a force savings mechanism.
  • IRA (Individual Retirement Account) - Retirement savings plan mentioned as a force savings mechanism.
  • Roth IRA - Retirement savings plan mentioned as a force savings mechanism.
  • Index Funds - Recommended investment vehicle for beginners.
  • Low-cost diversified index funds - Specifically recommended for investing.
  • Stocks - Discussed as an investment with future upside potential.
  • Bonds - Discussed as an investment providing income through "clipping coupons."
  • Private Equity - Mentioned as a stage three investment strategy.
  • Alternative Investments - Including direct real estate and commodities.
  • Wheat Penny - An old penny with specific markings, mentioned for its potential value.
  • Lakshmi - The Hindu goddess of wealth and fortune, discussed in relation to respecting money.
  • Poverty Mindset - A concept discussed by Jaspreet Singh.
  • Equity - Discussed as a key component of wealth building.
  • Buy Now, Pay Later - A payment option discussed in relation to consumer debt.
  • Tempo Learning - A flexible learning pace offered by Walden University.
  • Pods Fight Poverty - An initiative involving podcasts to combat poverty.
  • The Count of Monte Cristo - A movie mentioned as an example of appreciating life with limited possessions.
  • YOLO (You Only Live Once) - A mindset mentioned in relation to financial decision-making.
  • Human Capital - Discussed by Scott Galloway as an advantage for young people.
  • Executive Function - A cognitive skill discussed in relation to brain development.
  • EQ (Emotional Quotient) - Mentioned in relation to maturity.
  • Net Zero Thinking - A concept related to spending money without a plan.
  • Consumerism Culture - A societal trend discussed by Jaspreet Singh.
  • Asset Class - A category of investments.
  • Money Wounds - Psychological barriers related to money.
  • Money Mantra - A phrase used to focus on financial abundance.
  • Money Relationship - The concept of treating money as a personal connection.
  • Generational Wealth - Wealth passed down through generations.
  • Passive Income - Income generated with minimal ongoing effort.
  • The Monastery - Mentioned for a teaching about giving versus holding back.
  • Egoistical Giving - Giving in a way that seeks recognition.
  • Scarcity Mindset - A feeling of lacking resources.
  • Financial Freedom - The state of having enough income to live comfortably without needing to work.
  • Intentionality - The quality of being deliberate and purposeful.
  • Willpower - The ability to control oneself or one's actions.
  • Automation - The use of technology to perform tasks.
  • Compounding - The process of earning interest on interest.
  • Workshopping - A period of experimentation and learning.
  • Kitchen Cabinet - A group of trusted advisors.
  • Rejection - The act of being dismissed or refused.
  • Risk Reward Profile - The relationship between the potential for gain and the possibility of loss in an investment.
  • Day Trading - The practice of buying and selling financial instruments within the same trading day.
  • Options - Financial instruments that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price.
  • Warrants - Securities that give the holder the right to purchase stock at a specific price.
  • Gamification - The application of game-design elements and game principles in real-world contexts.
  • Private Investing - Investing in companies that are not publicly traded.
  • Alternative Investments - Investments outside of traditional categories like stocks and bonds.
  • Commodities - Raw materials or primary agricultural products that can be bought and sold.
  • Timber - A commodity mentioned as an example of an alternative investment.
  • Equity and Options - Financial instruments.
  • The American Dream - A traditional concept of upward mobility and homeownership.
  • The New American Dream - A revised concept of wealth building through equity.
  • The Algebra of Wealth - A book mentioned by Scott Galloway.
  • Ears Say - A podcast about audiobooks.

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