But didn't even scratch the surface of personal finance.
It baffles me how terrible (even smart people) are with money.
Let's talk about getting your personal finance "Dialed In"
What follows are my top 5 tips for getting your personal finances dialed in.
Let's talk about student loan debt.
The easiest way to avoid student loan debt is to skip college all together.
The average student in the Class of 2016 owes more than $35,000.
You need to understand what schools and what majors have a strong ROI.
With the interest rates on credit cards, never, ever get into credit card debt.
For a small minority of you, there are times when it makes sense to use someone else’s money to purchase an asset that has the ability to earn 💰.
If you avoid debt, you are able to take more risks in other aspects of your life – like your career.
If you’re trying to lose weight, you would probably track what you eat, right?
So, if you’re trying to save money, why wouldn’t you track what you spend?
It amazes me how few people do this.
I recommend taking advantage of one of the available online tools or apps.
You Need a Budget is consistently ranked the best.
You’re avoiding debt like the plague and you’re tracking your spending.
Taking on student loan debt or credit card debt in your early 20’s is harmful.
You’ve seen the charts that show the difference in total returns when you start investing early.
Compound interest might be the most valuable concept in the world.
Assuming an eight percent average annual investment return.
Start at age…
25:You’ll accumulate $878,570 by age 65
35:You’ll accumulate $375,073 by age 65
45:You’ll accumulate $148,236 by age 65
Investing can be complicated, but very, very few traders beat the market.
Active investing (i.e. picking stocks) is incredibly hard.
• Contribute up to a least your employer match on your 401K
• Contribute as much as you can to a Roth IRA
• Explore a low cost index fund
Roth IRAs use after tax dollars so your contributions & earnings are tax-free when you withdraw.
People often get obsessed about cutting small costs.
You don't need to spend $25/week on a coffee, but there’s no need to deprive yourself of things that add satisfaction to your life.
There’s only so much money you can save, but you can always earn more.
• Additional savings
• A safety net for unexpected expenses
• Guilt-free spending money
• Additional income to invest back into my own learning
Earning more money prevents against things that happen outside of your control.
Your AC might go out or your car might break down
Not ideal, but you can still sleep at night and/or make it to work
If you can afford to have someone clean your house, mow your yard, etc., you can spend the time you save with your family or earning even more money.
Books, coaches, courses, or a combination of all three.
It doesn’t matter your preferred method, what matters is that you keep leveling up.
Investing in yourself can manifest itself in a lot of ways.
“But I can learn everything online for free.”
First of all, you can’t learn everything.
LeBron has a coach. Serena Williams a coach. Many of the top musicians have vocal coaches.
It can mean investing time into cultivating strong relationships.
It can mean learning about and taking care of your health via nutrition, fitness, etc. so that you’re alive to see your great grandkids one day
• Avoid debt at all costs, especially credit card debt. Be smart about student loan debt and ensure the school and chosen major have a solid return-on-investment.
• Track your spending. Knowing how much you spend and on what will be eye opening.
• Invest in yourself. One of the best ways to earn more money is to consistently and continually reinvest in yourself.
And, if you want to stay in the loop and get your career, health & wealth DIALED IN, please subscribe here: eepurl.com/cS_6z5
Thank you. Seriously. I'm grateful. 🙏