The Financial System Is Rigged—But You Can Still Win
1. Financial Uneducation: A Profitable Design
The financial system isn’t broken—it’s working exactly as intended. Banks, corporations, and even governments thrive when the average person remains financially uneducated. Think about it: banks profit from interest on credit cards, overdrafts, and auto loans. Corporations push high-margin products with easy financing. And the government? It collects more taxes from workers than from investors or business owners, and holds over a trillion dollars in student loan debt as a national asset.
The less you know, the more they profit.
2. Assets vs. Liabilities: What They Don’t Teach in School
We’re told to buy a house, drive a nice car, and spend on lifestyle. But those are liabilities—things that take money out of your pocket. True assets, on the other hand, generate income. Stocks, real estate, and businesses are examples of income-producing assets.
Even your home isn’t an asset unless it generates income. Property taxes, repairs, upgrades, and a mortgage make it a liability unless you sell it for a profit or rent it out.
3. Wealth-Building in 5 Steps
Here’s the blueprint for getting ahead:
- Step 1: Earn legally. Your job, side hustle, or business is your financial starting line.
- Step 2: Spend less than you make. High earners still go broke if they spend everything.
- Step 3: Buy assets, not liabilities. Invest in things that pay you.
- Step 4: Reinvest your cash flow. Use income from investments to buy more assets.
- Step 5: Grow your income. There’s no ceiling to earnings—look for promotions, certifications, or entrepreneurial ventures.
Saving matters, but earning more can make a much bigger difference.
4. The Power of Delayed Gratification
Building wealth is about discipline. Skip the instant gratification—those designer sneakers or new car—and invest in your future instead. Think of it as a “decade of sacrifice.” Spend less, earn more, and reinvest aggressively.
Even modest investments grow significantly over time. For example, 10% annual returns on $10,000 = $1,000. But on $100,000? That’s $10,000. Wealth compounds—especially when you reinvest.
5. The 75-15-10 Rule
Control your cash with this simple formula:
- 75% for spending
- 15% for investing
- 10% for saving
This approach keeps your lifestyle in check while allowing room to build wealth. And when your income grows, your spending can grow—so long as your investing and saving do too.
Make yourself rich before you make brands like BMW, Apple, or Louis Vuitton richer.
6. Learn the Rules—and Then Use Them
Most people are playing financial football with no gear and no playbook. Meanwhile, the wealthy know the rules: how to use debt to build wealth, how to access tax breaks for business owners, and how to earn more from investing than working.
Want to win? Learn the rules.
Use debt for cash-flowing assets, not consumption. Open a high-interest savings account. Max out your Roth IRA. And most of all, keep learning.
Because once you understand the system, you can start using it—not being used by it.
Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.
