Wonder why a 5 year old is gonna make 1 million dollars opening toys this year while you work a 40 hour week just to meet rent? In this video, I discuss how to change our mindset towards money and try to grow our wealth. I split this video into 3 parts discussing how to not lose money, how to have some money, and then how to have loads of money.
I am not discussing super advanced topics in this video as it’s unlikely to be very applicable to many of us. Hopefully, this video helps you in some way.
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CHAPTERS ⬇
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0:00 intro
0:40 life of a fresh earner
1:20 cost of living crisis is real
2:10 index and scope of this video
2:40 how to prevent decay of money
3:16 what is inflation and why should you care?
5:10 how is inflation calculated
6:35 A word on Gambling/Lottery
8:08 High interest saving account
8:40 On Pensions
9:24 Blue light card
10:26 Driving
10:59 why even want more money
11:38 set yourself up for growth- ISA
13:10 Cash ISA
13:18 LISA
15:02 Stocks and shares ISA
16:50 Build your credit score
18:04 Open a bank account early
19:10 BNPL companies
19:52 Check your own credit scores
20:10 Car
20:56 How to get richer and richer- Most important place to invest money
21:50 Read more
22:30 Audiobooks
22:40 Buy a house
23:25 Show your work
24:59 your time is worth more
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I made 5,000 pounds alone in the last year through passive income. Most of it is because I took a chance with my investments and it paid out well. That said, a decision to not invest is also an investment; although not the worst one, but still far from the best. Hello friends,
I’m a junior doctor in the UK and I recently moved to this country to work in the NHS, and in this video I’m going to share a few actionable pieces of advice that I follow, which have helped me increase my salary or income by 5,000 pounds in the last year. That’s almost
Two extra months of working in the NHS than I have actually worked. And that too without taking on any extra work. So as you already know, I’ve just started working and earning in the UK and if you’re like myself then what I’m about to tell will sound familiar to you. So you’ve started
Your new job and your first salary comes into your account. You buy all the things that you’ve been wanting to buy for a really long time and then the next month’s salary comes around and then now
After paying all your necessary bills, you’re left with this extra income that you don’t know what to do with. Oftentimes I hear that my friends just leave this extra income in their bank account and
Let it pile up, or they start a savings account and put the money in there and accrue a small amount of interest on that income. But that’s not enough to survive in the current times; the house prices are rising, everything is getting more expensive, healthcare is now going private—it is,
And a lot more things that you really want to buy are just exceedingly increasing in value. However, your salary is not keeping up and that’s why the junior doctors are striking, for example. So you gotta take smart decisions with your money to get truly rich. But then again,
As a legal notice, my aim with this video is not to make this get rich quick scheme, or this is not even a “follow my exact footsteps to the letter” guide. By the end of this video,
I aim to show you my mindset and the wisdom that I have learned to help me manage this new thing that has just landed in my hand, called money. And hopefully as we go over these ideas, mindsets,
Resources, you can take back at least some of the concepts that we discuss here and implement them in your own life. Now I’m breaking the video down into sections with chapters, so feel free to skip around based on your knowledge. But what I’m essentially trying to achieve is to take someone
Who has absolutely no knowledge about finances and walk them step by step through a money mindset. And so by the end of the video, they should have a good concept of how to really manage their money,
And yeah, you can skip around with the chapters if you want, otherwise follow along. Now in the first part I’m going to talk about how to prevent losing your money. That can happen even as it lies peacefully in your bank account—or in fancy terms, we call it money erosion. So effectively I’ll try
To teach you how to reach zero sum, which means neither loss nor gain and your money still retains the value that it had when you first got it. So if you’ve earned some cash and done what most of
Us have done, which is a smart thing to do, is to put some money aside into the savings account and let it grow some interest. This way, at least your money is increasing. That’s not too bad on its own
Because all of the money is increasing; it’s still increasing less than the inflation. You’re still losing money a bit slowly. So what is inflation? Let’s figure out this concept of inflation first. So inflation is something that most new earners do not think about. They are single,
They have nobody else depending on them. They earn the money, spend it on whatever they like and just leave the rest in a bank account because the elders told them to do so, and they have no interest in the economics of it. But that’s the thing, you might not be interested in inflation,
But the inflation is definitely interested in you because if you leave your hard earned money in a savings account, this number that represents the work that you have put in, it will gradually decline in value. Effectively, the work you did in the past will become less valuable as the
Time goes on. Eventually in many years it’ll tend toward insignificance and that’s a bad thing because your savings account tends to grow slower than the inflation most times and you still effectively lose money. However, the work you put in to earn the money, the value that your work
Provided, did not lose any value at all. Now let’s see inflation in action. So let’s say you have £1 in your bank account and it earns 1% interest rate over a year and a bottle of Pepsi at the same time
Costs £1. Now by the end of the year when you go back and have a look at your bank account, your £1 will have become £1.01. That is, it earned 1% interest. However, when you go to buy Pepsi,
Now the Pepsi will cost 1.10 pound, so that’s 10p increase from the initial price. So the Pepsi increase by 10p, but your income only increased by 1p, which means the value of money that you
Earned initially has now declined in value. So the £1 that you earned in the start has now lost its value as it could buy a bottle of Pepsi earlier, but at the end of the year it’s not able to do
Even that. This is called inflation. So in the UK and in almost every country around the world, inflation is something that’s calculated on a regular basis. How they do it, the government, they go out to the supermarkets and they look at price of essential items which the people in the
World or in the country tend to buy more of. So for example, the UK government tends to look at the things which UK population tends to buy more. They go frequently to the supermarket, calculate the price of these things together and they do some math and they come up with this number
Called Consumer Price Index. Now they take this index and they compare it to the previous index that they calculated a while ago, let’s say a month ago, a year ago, and they come to the final difference and they say that is the inflation or the consumer price inflation of the products. In
Short they just call it inflation. The gotcha with this is, in case they say the inflation has come down—earlier last month, the inflation of 5%, but this month the inflation of 3%; so the inflation has come down and they make it sound like yeah, it’s a good deal, the government is doing great,
We are cutting down on inflation. The catch still is that earlier, everything was increasing at 5% rate. Even though now it has come down to 3%, everything is still increasing at a 3% rate. So nothing is getting any cheaper. It’s just getting costlier, slower. So that was inflation
In action. Now the other tip that I follow is strictly no gambling, no lottery. The whole theme of gambling and lottery is so prevalent in the UK. Literally every shop front has a section dedicated to lottery tickets that you can buy from the shop. It’s literally next to the chewing gums,
Et cetera, at the till. The problem with lottery is the government does not tax it. Gambling money, any lottery, the income that you make is not taxed at all. And in fact it’s so common here that even the shop that we have in our hospital have gambling tickets—not gambling tickets:
Lottery tickets, pretty much the same. So that’s one thing that I aim to strictly avoid because the chances of winning a lottery or gambling are so slim and the whole system is designed to be against you to such an extent that you are more likely to have a bigger, like you know,
Success with starting a YouTube channel for example. And you cannot run away from the Pareto’s 80–20 principle, even here. If you’re not going to put any work into buying a lottery ticket, literally anybody else can also be competing with you and also buying a lottery ticket. However,
If you’re going to put in some work somewhere, the number of people who are actually going to put the same amount of work will be less. So the less work you put, the less likely you are
To win. The more work you put, the more likely you are to win. So starting a YouTube channel, for example, is a far more sure-shot growth than you can actually get from buying a lottery ticket. So strictly no gambling. Next bit of advice to follow, and this is pretty easy one,
Is to have a savings account. And not just any savings account, don’t necessarily have to stick with the savings account of the first bank that you have signed up with. You actually look online, find the bank that is giving you the best savings account interest rate and sign up for an account
With them. So even though you might get salary into one account, you can transfer your savings into this other high interest savings account. At least in that way you are surely to grow your money to some extent and catch up to inflation. Next bit of money making advice I always give is
To not stop investing in your pension. So as NHS employees, we are all given an NHS pension that we can put in money into regularly. And so when we put money into that regularly, first of all,
That money is tax-free so we don’t have to pay any tax on it. Second, our employer also contribute some amount of money based on whatever money you put in. They also contribute a percentage of that into your account as well, and eventually down the line it’ll all come back to you because
It’s a pension that you are contributing into. I go into much more detail about this whole income and pension in another video that I have made about how much money I made in the past year,
And link will be in the description for that. Next quick tip is to get a Blue Light Card. Now what is a blue light card? Blue light is basically any emergency services that have blue lights on top
That spin as they zoom pass through the traffic to reach somebody in emergency or provide medical aid or put out fires or even police. So all of this, they have a blue light, right? So hence the name
Blue light card. Blue light card is basically an incentive scheme where you get a membership for £5. The card lasts for two years and then they have countless discounts on various products. So for example, the Samsung tablet that I bought, I got it at an employee rate just because I had
Membership of the blue light card and that £5 have more than enough paid for itself by just a single purchase, not to mention there is also the NHS discount that you can avail, although I’ve not
Seen much success with it. Just walk up to any shop or restaurant and ask if they can give you some discount based on the fact that you’re an NHS employee. Now the next bit of advice is slightly
Different but absolutely essential. Learn driving as fast as you can when you come to UK because moving from place to place is one of the biggest hurdles that you’re going to face when you come to this country. Although there is excellent bit of public transportation in this country,
Being able to drive unlocks endless opportunities, not to mention getting into GP training itself kind of requires you to have a driving license because you’ll be doing home visits and seeing patients at their home. So you wouldn’t want to be leaving this up till the last moment. Now with
This next tip, I want to refresh a new sense of purpose in you for making more money, and that is: What would you like to do with money later on? You might like to buy a new house, a better house,
A bigger one. Go to a website like rightmove.co.uk and check out your dream house. Look at how much it costs. Now scroll to the bottom of the page and see how much money you can put up upfront
And how much money you will need to take out of a loan. Now see how much you will need to pay in every month to pay off the mortgage or the home loan. Now see how much work life ahead of you.
If that doesn’t get you driven to earn more, then I don’t know what will. We’ll come back to this. Now in the second part is where things get interesting. I want you to learn about ISA or Individual Savings Account. Individual savings account or ISAs are a government scheme where
The government allows you to invest £20,000 of money over the course of one financial year into a couple of things which they say will not cost you any tax if you make any profit on them. So ISAs have four different categories into which you can put money. So you’ve got the cash ISA,
Where you directly deposit some cash; you’ve got stocks and shares ISA, where you deal with stocks and shares in the stock market; then you’ve got LISA, which is Lifetime ISA; and you’ve got another type, innovative finance ISA. We are not going to talk about innovative finance ISA, and I
Will go into more detail about the other three. In total, let’s say… Before we delve into each one, I just want to point out that if you put in £1,000 into cash ISA, you are only left with £19,000 to
Invest across any other scheme. So if you put in £1,000 here, £2,000 here, £2,000 here, so now left with £2,000 plus £2,000 plus £1,000—£5,000 gone, you’re only left with £15,000 that you still need to distribute among the others. So across all the ISAs you have, you cannot exceed 20,000.
Now let’s delve into individual one. We first are going to speak about cash ISA. It’s literally just a savings account. No matter how much interest you earn on the savings account, as long as it’s
Called a cash ISA, it’ll not be taxed. If you earn a certain amount of interest on any other savings account, that money is still taxable but not any money that is invested in an ISA. So that’s first.
Second we speak about LISA, which is lifetime ISA. In this you are allowed a maximum of £4,000. So if you do manage to put in all £4,000, you’ll still be left with £16,000 to invest elsewhere. With this £4,000 pounds, how much ever money you decide to put in—let’s say even though they
Say you can put in a maximum £4,000, you only go ahead and put in £1000, what they do is, how much ever money you put in, they will add 25% of that into your account immediately—no, it takes
About a month or two. If you put in £4,000, they will put in £1,000. If you put £1,000, they put in £250. You get the gist. Now here’s the catch: Because this is zero risk and full-on-reward, the government has restricted you to only do certain things with the LISA. Either you can
Use this money to buy your first house—first house only; or you can use this money to retire—at the age of 60, you can get it. Or if in case you are having a terminal condition, then you can claim
Your money. Apart from this, if you want your money out of LISA for any reason whatsoever, the government will charge you 25% of the new money as fine. So let’s say you put in £1,000, the government added £250. Now the total amount in your LISA is £1,250. You decide I’m not going to
Bother with a house, I’m retiring too much in the future and I just want my money—you decide to take it all out, the government will charge you 25% off £1,250 which comes up to £312. So effectively you
Will get back less money than what you put in. So you need to be really careful with what you decide to make use of with a LISA money. Now we come to the most interesting: The stocks and share
ISA. In this category, this is where I have made most of my income. In the previous financial year, I invested in a stock which doubled, so I got a thousand pounds from there. Then this year I have invested quite a bit of my salary into stocks and shares and they have also gained
Significant amount of value, which is where I have made most of my income. So stocks and shares is just like you using a broker to trade in stocks and shares and if the broker has an ISA option,
That is where your money should go initially. You need to learn a little bit about the stock market to make good decisions. But long story short, if you are able to do your research adequately and
Put in money in the right place, you are going to earn so much more than what you would have gotten from any other means. So anytime you are going to take a risk of earning so much more—it
Doesn’t sound like a risk, the con is that it might also go down that much more. So because we are taking a bigger risk, the reward tends to be bigger. A savings account is a fail-safe. You put in money, you can always get that money back. And so, low risk, low reward—they’ll only
Reward you with 1% or 2%. But stocks and shares, you’re taking a bigger risk because your money can reduce—the reward, because the stock market can go up quite significantly. Like in my case, last year went up a hundred percent for my one stock and I literally doubled my money. The reward
Can be far greater. Of course the 2008 financial crisis et cetera are example of when things can go horribly wrong. So we need to balance out how much money you are ready to lose in the short term and how much money you absolutely need to keep going. Put some in the savings account,
Savings ISA and put others in the stocks and shares ISA and balance it all. Another tip is to build your credit score. Now what is credit score? Credit score is effectively a number that checks
How good you are with loans that are given to you. So how good are you are at paying it back. So over time there are companies that build a portfolio of your handling of credit. So things like getting a
Credit card, paying off your bills on time, having something called a direct debit where the money gets automatically deducted from your bank account for different bills. These things, if they always happen on time and they never bounce or they never get canceled, they give you a boost in your credit
Score. It means that you are quite a reliable person to be loaned money to. So the first thing you need to do is—after coming to UK—is to get a credit card as early as possible. In doing so,
You open up a book for keeping a credit score record for yourself, and with time as you improve your credit score, eventually when it comes time to buy a house, the people who will be lending you
The loan amount will look at how good your credit number is, and accordingly they can increase or decrease the amount of money they’re ready to loan to you and they are also going to change how much interest rate they’re going to charge on the money they have loaned to you. Another
Way to increase your credit score is to open a bank account of early if possible. So Monzo is a good bank to start with in the UK because it’s an online bank that also reports your credit score.
TransferWise or nowadays also known as Wise does not do that. So when you open a Monzo account, which is totally online—there’s no physical store—you can start using it as a normal bank account in the country with the added advantage that your credit score has finally started. And
One of the criteria for credit score is they look at how long you have had your longest bank account. So the longer you’ve had a bank account, the better. So try not to close your Monzo account
Even down the line. Eventually your goal should be to open up a high street bank account. You know, the one with brick and mortars. The advantage of having a high street bank account like Barclays or HSBC or NatWest, and the list goes on—or even Halifax; there are many more. The advantage with
These is you can use the account statement as an address proof, and that again adds to your credibility. Yet another advice for increasing your credit score is to avoid Buy Now, Pay Later companies like Klarna, Clearpay. The disadvantage with them is the more money you borrow from them,
The more you have a risk of defaulting on the payments. They like to split up your payments for let’s say a shoe that you don’t want or a mobile phone that you just got tempted to buying into,
And they split it up into a couple of installments that you need to pay over the next three or four months. Now with time it can go out of hand and you might be paying £1,000 a month just to keep
Going. And so that, if you default on it, will really hurt your credit score, and you know, with poor credit score comes poor chance of buying a house. You can also track your credit score by going online and searching for companies that keep your credit score. Things like TransUnion
Or Experian, these are companies that record your credit score. And other companies who have lent money to you, if you don’t pay them, they will report that to those credit keeping companies. So you can go to the websites directly and check how the credit score is doing. Now, coming out of the
World of credit scores, the next step is to buy a car. So earlier we discovered why it is important to learn driving as soon as possible. Now coming to why you need to buy a car as soon as possible:
Because buying a car is truly going to set you free. You are having the freedom to move about, you’ll be able to move homes easily, you will not have to rely on time—and time is money;
And not to mention if you are going to travel around in UK, having a car is a much cheaper way to access remote areas with public transportation. Buses and trains and Uber, although quite regular and frequent, still exert some influence over your time. Now coming to the third part, I’m going to
Discuss my philosophy on how to continue to get richer and richer in life. So the most important place that you can invest money: Take a guess—what do you think it is? Is it a house?
Is it some stocks? Is it a car? Is it family? I would say the most important place to invest money in is yourself. I’m not just talking about frivolous spending on having great leisure time, it is more about learning knowledge and skills because you can always one-up your life. Invest
In soft skills, invest in knowledge, develop some charisma, get a gym membership, spend some of the free time from working and studying as a doctor to learn other things, because after all, you’re not your profession. Look up courses on YouTube or Udemy for things like photography or any other
Hobby that you might want to enjoy but never got time to do. Pick up cycling, pick up calligraphy. These things might not look connected on the face of it, but in the words of Steve Jobs, “you can’t connect the dots looking forward,” but you can connect them looking backwards. Next bit of advice
Is to invest in reading. In fact, I bought the Samsung tablet last year just to help me read more books. And I have read more books in the past year thanks to this tablet than I have in pretty much
The entire three, four years before that. Reading exposes you to ideas which you didn’t know were remotely possible. It’ll introduce new words into your vocabulary that will alone open up so much potential for money making that you didn’t even know existed. Look up Baader-Meinhof phenomenon
Or also known as the frequency illusion, as a bonus to speed up your reading. I would say listen to the audiobook on your runs or your walks to work. And after you’ve heard the audiobook once, then you can come back to the book and it’ll really speed up your comprehension of what
You’re reading even more. And so you can churn through your books faster. Now the next bit of advice is to buy a house. In the UK, unlike in other places, the cost of a house that you
Pay every month for your home loan is roughly the same as the rent—so neither of which are higher or lower. I have known people who have always been like, I’m never going to buy a house, I’m just
Going to pay rent every month and whenever I want to move I’ll happily move. And that does not work quite well in an economy like the UK. And this is where your LISA will come for the most use:
To put money into buying a first house. There are of course countless other advantages of buying a house, like having a peace of mind—and those things are outside of the scope of this video, but buying a house is an essential goal every young person should have. Next bit of advice that
Has helped me really, really succeed is showing my work. So you might be wondering, what exactly does showing your work mean? It means whatever you are learning—and I know you’re always learning—you have to try to teach the person who is just one or two steps behind you. And so when you make a
Video, for example, to teach somebody who is just one or two steps behind you, like I’m making this video for you, you will be able to put your own content out, and in that way you will also be
Showing your work and effectively succeeding in your own way. People will reach out to you, they will comment on your videos, they will know you. And it goes on for Instagram reels, posts, Twitter posts, whatever. Getting onto social media is one big way of showing your work. This
Concept alone has given me multiple psychological boosts and has helped me propel my previous video to 280,000 views in the span of few months. For example, I saw an Ali Abdaal video in 2018 when he had somewhere like 800,000 subscribers. Still a big number, but that’s the subscriber count he
Had. Then I didn’t see a single video of his for many, many years until much later I saw that he was sitting at 1.2 million subscribers. Then I didn’t see him again and the next thing you
Know he’s now sitting at 5 million subscribers. And so there are going to be quite a few people who saw my previous video and who will never see me again for many years down the line. But eventually I will come back on their feed once again, if I keep showing my work. Finally,
The final, final bit of advice that I would like to give you that has helped me build a really good philosophy with handling money is to never trade my time for money. So what does this mean? I know
I am earning a salary, but that is coming at a cost of investing time. If I do any extra work, that will be me earning extra money because I did extra time. That’s not the way that I would like
My life to go forward. And in the present world, I think if you are watching my video and you are stuck this far, neither should you be doing the same. As you can see, the concept of salary is already failing. Nearly everywhere you look, there are doctors striking, there are railway
Workers striking, there are bus drivers striking, taxi drivers are striking. Literally every single department is having a strike somewhere or the other, all because they want a salary raise. Another thing that’s the problem with salary is, what if one day you don’t like your job and you
Would like to leave it and start something else? You will unfortunately be stuck with all the bills you have to pay and the downgrade that you will have in the initial months after quitting a job.
Or if your partner falls ill and then you have to catch up on their side of the income as well, then you might have to take up extra shifts at the age of 50, still be stuck in traffic on your
Way to work, work long hours at nights. These are some of the real stories that I’ve seen that my consultants live through. They’re senior medical doctors and they’re still going through the life of coming in at midnight, going home at 4:00 in the morning or staying over throughout the night,
Just because they are unable to take more off time because they have the added responsibility of looking after the spouse and this job that they’re doing is the only force of income they have. And with that, we come to the end of this video. Congratulations for making it this far in your
Willingness to learn more about how to get rich. In this video we discussed about initially how to build up basic understanding of money, then we moved on to the tools that the government provides us to help us grow our money. The first £20,000 is tax-free. And afterwards we discussed about how to
Really change our mindset to somebody who’s really out to earn a lot more than they are being offered by the society—they’re going to go out there and get it. If you want to use my referral link for
The Trading 212 platform, the one that I use to do my stocks and shares, I will have linked it in the description, and if you click on that link, you and I both will get some amount of shares worth
Between £1 and £100 that will get us started. So here’s another video if you want to check out, or feel free to browse around on my channel. Take care and I’ll see you in the next video.
6 Comments
Sir what is your position and salary as a doctor in UK? Plz reply. Thanks a lot.
Let me know if you think you found something valuable in this video. Took a month to make. Since then, I have made another 5k, so in total, I have made 10k GBP. What are your thoughts?
You can now follow me on instagram.com/drabhinavkr or twitter.com/drabhinavkr_
This video is so dense with value, YouTube servers must've crashed.
So good .the principles apply to everyone be it UK or outside UK 🎉 such good content-rich videos are worth time spent on YouTube
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Sir, can you make a video about news related to PLAb being replaced by UKMLA in 2024? And what should the plab aspirants who are currently in final year do about this?