Thread by @TihoBrkan

Some things I’ve learnt on my way to financial independence.

1. Start as young as possible, compounding is on your side. Compound interest has 4 elements & the most important is “time”.

2. The wise guys told me you’re the 5 people you hang around. Create a mastermind...

...of people smarter & more successful then you (always be the poorest & dumbest at the table).

3. Have the basics in secondary skills such as taxes, accounting, business law, structuring, asset protection, etc.

4. In business one of the most important, but least discussed...

...skills is negotiations. Practice negotiating because it can be the difference between success & failure.

5. In real estate everything is negotiable including your entry price, your exit price, your cost of finance, your cost of rehab, your broker costs, your asking rent, etc.

6. Don’t spend all your time learning, reading & writing like these people recommend — knowing isn’t doing, theory isn’t practice & execution.

7. Be bold, take risks, be creative, be daring, trying new things and don’t be afraid of going against the herd.

8. Napoleon Hill discusses many attributes successful people have but the one that stands out is persistence — never give up!

9. Another skill that’s underrated in today’s world of internet is networking, connections & business relationships.

10. Failure is part of the...

...game. Accept that everyone, regardless of their skill & experience, goes through failure so do not let it stop you from persisting to your goal.

11. Don’t sell yourself short or sell out your integrity just to make a quick penny — keep your morals.

12. Don’t be afraid of...

...debt as you’re climbing towards riches because using other people’s money & other people’s skills is levering you’re position.

13. In real estate the bank will your best partner. Don’t be offended when they don’t want to lend to you. They have 100s of risk managers working...

...behind the scenes “underwriting” deals & opportunities all day long. They know better than most of the deal is too risky for them & for you, so when they say “no” you should say “thank you so much” because they just saved your a$$!

14. Master the 3 money skills...

...which are “disciplined spending” (yes, spending is a skill); “forced saving” (yes, force yourself to save & pay yourself first); and finally wise investing.

15. Spending & saving is a personal finance mindset and positive habit development. You have to build the habits.

16. Don’t ever let anyone tell you what the Wall Street taught the majority — that it’s not possible to earn large rates of return consistently.

17. If you want mediocre returns like the majority, stock to stocks & bonds. If you want to compound at double digits, look elsewhere.

18. At the beginning, when your young, saving is more important than investing.

19. To save a lot of money you need to be in a growth & abundance mindset — not a penny pinching, scarcity mindset (which will damage your health & lifestyle in the long run).

20. To save money you just got to do two things right: first, do not keep up with your social circles & be climbing the invisible social ladder of coolness & materialism; second, learn how to optimise your tax situation & how the tax law works & move jurisdictions/states.

21. If you’re interested in wealth, you don’t need super high education in most cases. University is a scam, and student debt will hold you back.

22. If you’re planning to be financially free at 65, utilising 401k & IRAs (similar programs in other countries) is very wise. Do it!

23. If you’re planning to become financial free in your 30s and have an amazing life — forget the 401k and all that non sense.

24. Consumer debt linked to consumption of useless material things, is the cardinal sin of accumulating wealth.

25. Don’t buy crap, to impress the...

...people in your social circles with your savings. Definitely never buy it with credit.

26. The golden rule to follow is that assets produce income, liabilities cost you income. Majority of your portfolio should be in assets.

27. Your house is not an asset, gold or bitcoin...

...is not an asset, venture capital is not an asset, restaurant you own with your wife that’s losing money is not an asset. However, all of those might or might not make you money.

28. If you aren’t already doing so — track your net worth. Those who focus on their...

...net worth forced their mind to find ways to grow it. Over time, you’ll notice it growing, and that’s a abundance mindset thing.

29. Have a budget, track your spending & plan your year out. You either stay on top of it & control your finances, or the it will control you.

30. When you’re young, broke but you’re serious about wealth accumulation the worst thing to do is open up a IRA with a few thousand. The best thing is to spend it on business education.

31. Mentorship, books, special groups, seminars, journals, etc. Pay for the proper eduction!

32. In life you got to play the game of “leveling up” very well. You start of at a certain level & by investing money into properly educating yourself, you rise to another level & your income & net worth follows. If you’re making 6 figures you got to level up to 7 figures.

The guys I’ve met making 7 figure income are trying to figure out how to level up to 8 figure income. Every time you reach a level & cannot go further, you need new connections, new partnerships, new education & new mentors. Growth & abundance mindset.

That was a big one, like 3 or 4 points in one.

Anyways, I just wrote all this from the top of the dome. No preparations, just free flow. I probably have another 30 plus to add, but time to go do some work.

Enjoy your weekend!