In the sage words of the Notorious B.I.G., mo’ money means mo’ problems. Jaspreet Singh, the founder of The Minority Mindset, learned this lesson all too well.
In his pursuit of happiness and wealth, he realized that, while money can’t buy happiness, it sure does matter. “Anyone who tells you money isn’t important is either broke or delusional,” Jaspreet explains.
Money is both a tool and a fuel. You need it to buy food, a car, and a home. But money doesn’t have any value unless you spend it. According to Jaspreet, people aren’t after money at all: we’re after what money will do for us.
The problem is that most of us are confused: we’ve lost sight of how money matters in our lives. Sure, money is important, but it isn’t everything. It’s no surprise that life satisfaction plateaus once you start earning $75,000 a year.
So, if more money won’t make us happier, what will? Where does money play a role in happiness, anyway?
The Quadrafit Theory for money and happiness
Jaspreet created the Quadrafit Theory to explain how life satisfaction and money play together. In this simple model, Jaspreet says we need to be fit in four areas of our lives to be both happy and wealthy. After all, the ultimate goal in life is to be happy, not to be rich.
Building block #1: Physical fitness
Without your health, nothing else matters. You could have $10 million in the bank and it wouldn’t mean a thing if you’re unable to enjoy it.
You can’t be on your deathbed or suffering from a debilitating disease and expect to direct your focus to money.
Building block #2: Mental fitness
Even if you’re physically fit, you also need to invest in your mental fitness. If you have severe depression or anxiety, money won’t matter. Who cares if you have $1 million if you’re so depressed that you can’t get out of bed?
Surround yourself with people who love you, find a hobby that makes you happy, or chat with a therapist to be more mentally fit.
Building block #3: Spiritual fitness
Before you say anything, this isn’t about belonging to a religion. What Jaspreet means is that everybody needs to have a purpose in life. Why do you get out of bed in the morning? Why are you here?
Without spiritual fitness, you’re going to go through the motions of life like a robot, not a human. Everyone needs this building block because it gives us the drive to crush our goals and live our lives.
Building block #4: Financial fitness
Jaspreet says so many people try to earn more money in the hopes that it will fill a void in their life. But once you earn that money, you might realize you’re even more miserable. That’s because you have to maximize the other three pillars of the Quadrafit Model before financial fitness can have the biggest impact.
Only once you strengthen the other building blocks can you make the most of your finances. According to Jaspreet, the secret of living a rich life isn’t about money at all. It’s about understanding the limited role it plays in your happiness and life satisfaction.
It’s okay to focus on money, but if you’re using it as a smokescreen to overlook important things in your life, you’ll never be happy—even with $10 million in the bank.
How to fuel a good life with your money
Money amplifies who you are. If you’ve built a solid foundation using the Quadrafit Model, directing your money to the right places will help you live a more positive life.
But hey, you still need to know what to do with the money you make. You can make a ton of money and still be broke; it’s the reason why there are so many rich people who declare bankruptcy. So, to make the most of the money you earn, direct every dollar into these 10 categories to live a better life.
1 – Your mind
English is Jaspreet’s second language, so he didn’t grow up with a passion for reading. But boy, does he love audiobooks. He listened to hundreds of hours of audiobooks (back when they were still on CDs) and saw it as an investment in himself.
You don’t need to buy an Audible subscription if you don’t want to, but make sure you invest some of your money in knowledge and skills. Learn a new skill, read books, watch expert YouTube videos, take classes—feed your mind so you’re always growing.
2 – Your health
Once you lose your health, it’s nearly impossible to get it back. That’s why it’s so important to invest in your health while you still have it, whether that’s through:
- Buying new walking shoes.
- Signing up for a gym.
- Buying exercise equipment.
- Paying a little more for healthy food.
- Scheduling regular doctor’s appointments.
- Going to the dentist twice a year.
- Seeing a therapist regularly.
3 – Buy paper assets
Paper assets include assets like stocks. When you invest in something on paper, you don’t get receive something tangible in exchange, like a car or a house.
But paper assets are accessible: you can invest in big companies for $100 – $200 a pop. Ideally, when you buy a paper asset, the company you invest in will continue to grow. Over time, the small sliver of that company that you own will make you more money (market permitting, of course). The downside to only investing in paper assets is that, if your stocks disappear tomorrow, you have nothing to show for it.
P.S. If you’re struggling to understand the stock market, check out Jaspreet’s free eBook for no-nonsense investment tips on how to invest in the stock market.
4 – Buy tangible assets
Jaspreet is a big fan of real estate investing. When you invest in a tangible asset like real estate, you’re buying something you can touch. Even if a tenant wrecks your rental property, you still own that property.
But there’s a big catch here: if you want to invest in real estate, you need a lot of cash. There’s also a big learning curve for tangible investments like real estate, so keep that in mind.
If real estate isn’t your thing, look into other types of tangible assets like:
- Land.
- Cars.
- Precious metals.
5 – Insure yourself
You need some kind of cushion against the unexpected. “I don’t enjoy paying for insurance,” Jaspreet explains, “but it’s a small price to pay to save a lot of big headaches later.”
This includes having a small savings cushion in case you lose your job, but Jaspreet also recommends buying insurance for:
- Your life.
- Your home.
- Your car.
- Your business.
If you haven’t already, you also should consider writing a will. You can create one online for $200 or so, but if you have a lot of assets, hire a local estate planning attorney.
6 – Cover your needs first
Humans could avoid a lot of financial pain if we could tell the difference between wants and needs. Sure, you need a home and a car, but that doesn’t mean you should buy luxury items that you can’t afford. Go with affordable, practical needs first so you cover your basics.
7 – Buy a few wants
You’ve got to live a little, right? Jaspreet says it’s fine to buy something you want, but it’s a good idea to practice delayed gratification. Or as he says, “Make sure you can afford it first.”
For example, if you want to go on a $10,000 vacation to Hawaii and don’t have the cash on hand to pay for it, that means saving up for the vacation instead of financing it with a credit card.
Keep in mind that, every time you buy something you can’t afford, you can’t use that money to build wealth. It’s all about balance, so as long as you’re smart about it, feel free to indulge a little.
8 – Buy your time back
“We all have 24 hours a day. You never know when your last day will be, so you should use some of your money to buy your time back,” Jaspreet says.
What’s crazy is that 40% of people value money more than their time. But the people who do buy their time back tend to be 10% happier with their lives, so Jaspreet is on to something.
For example, if you work long hours to earn $75,000, it means you’re spending every moment of your life either working or doing chores. Unless you really like doing chores, you’re going to feel unhappy. If you can afford it, Jaspreet recommends buying your time back, whether that’s in the form of housekeeping, meal prep, or childcare.
9 – Do things you love to do
Everyone needs a hobby. You’ve got to route some of your money into living a fulfilling life where you do the things you like to do. Once you have the money to do it, explore a few hobbies to see what you like the most. As long as you take a balanced approach, you can find fulfillment with the right hobbies.
10 – Give back
We’ve all been in tough situations before. If you’re in a place where you can help your community, do it! That could be in the form of a monetary donation, your time, or your expertise.
Like Jaspreet says, “The more you have, the more you can give.”
Money is fuel, not happiness
Look, money alone can’t make you happy. But an absence of money—and the things it can buy—will definitely hurt your quality of life. While there is more to life than money, we can’t overlook how it keeps us alive.
Remember, the goal is to be happy, not to get rich. People are unhappy because they elevate money as the most important thing in their life. Without health, direction, and purpose, you’ll lack the fundamentals you need to be happy.
Compare your life against the Quadrafit Model to see where you’re coming up short. If you’re happy with everything as-is, funnel your money into Jaspreet’s 10 categories to make the most out of your earnings.
