The most important personal characteristics towards financial success are:
1. Mindset
Change your mindset from scarcity towards abundance. As obvious as this sounds, you cannot save your way to prosperity. Focus on creating several sources of income & even scaling them.
1. Mindset
Change your mindset from scarcity towards abundance. As obvious as this sounds, you cannot save your way to prosperity. Focus on creating several sources of income & even scaling them.
2. Spending
The key conversation you should have with yourself is deciding not to keep up with your peers, as so many fall into this trap.
Don’t enter into material spending competitions with big ticket items like houses, cars, clothes, watches, etc to make yourself look rich.
The key conversation you should have with yourself is deciding not to keep up with your peers, as so many fall into this trap.
Don’t enter into material spending competitions with big ticket items like houses, cars, clothes, watches, etc to make yourself look rich.
3. Taxes
Whatever you political view is, leave it to the side. It’s important to understand that taxes will be the largest expense during your lifetime.
Optimise it!
The tax code is written by the rich to help them stay rich. Your job is to learn the code & play by the rules.
Whatever you political view is, leave it to the side. It’s important to understand that taxes will be the largest expense during your lifetime.
Optimise it!
The tax code is written by the rich to help them stay rich. Your job is to learn the code & play by the rules.
4. Education
This is a big one, so I need two tweets.
Traditional education, including university, is a sound base but not ideal for success.
You need to build business smarts & street smarts. Experience will be gained through failures & mistakes as you take real risks!
This is a big one, so I need two tweets.
Traditional education, including university, is a sound base but not ideal for success.
You need to build business smarts & street smarts. Experience will be gained through failures & mistakes as you take real risks!
Don’t put all your savings into index funds like they tell you. Instead, take a certain percent & invest into yourself.
Purchase courses, attend seminars, find mentors, read books, etc.
Don’t forget: surround yourself with people who are more successful than you are!
Purchase courses, attend seminars, find mentors, read books, etc.
Don’t forget: surround yourself with people who are more successful than you are!
5. Invest, Don’t Speculate
Remove the influences which will lead you towards financial losses. On this platform, they are everywhere.
Every single day, everyone has an opinion on something. Stocks will rally, Tech will crash, gold miners are cheap, yields will go negative...
Remove the influences which will lead you towards financial losses. On this platform, they are everywhere.
Every single day, everyone has an opinion on something. Stocks will rally, Tech will crash, gold miners are cheap, yields will go negative...
... US dollar will rise, property is a bubble, recession is coming, go long this, go short that, etc.
This is not sound investing, that is speculating. Long term wealth is built investing into sound business opportunities, priced at attractive valuations with a margin of safety.
This is not sound investing, that is speculating. Long term wealth is built investing into sound business opportunities, priced at attractive valuations with a margin of safety.
6. Debt
This is a two part story.
Debt is the cancer for your financial health. It’s important not to buy liabilities, but what’s even more important is not to do it with debt (i.e. financing vehicle purchase with a high interest).
Using debt to consume leads to bankruptcy.
This is a two part story.
Debt is the cancer for your financial health. It’s important not to buy liabilities, but what’s even more important is not to do it with debt (i.e. financing vehicle purchase with a high interest).
Using debt to consume leads to bankruptcy.
However, debt can be used to acquire income producing assets.
When consuming, debt has very high interest rates (credit card), but when investing debt has very low rates (mortgages).
You want assets positively cash flowing, after all expenses including fixed debt repayments.
When consuming, debt has very high interest rates (credit card), but when investing debt has very low rates (mortgages).
You want assets positively cash flowing, after all expenses including fixed debt repayments.
