Thread by @TihoBrkan

1/ The most important ways you will be able to improve your relationship with money in 2020:

The first one is SAVINGS.

Easier said than done, though. There are two ways to do this, one is easier requiring discipline. The other is harder, requiring hustle & hard work.

2/ The first way to save more money is to start monitoring & eventually controlling your spending.

How can you save money without first knowing what you're spending?

Build a positive habit, start by tracking every single dollar you spend for a whole week.

3/ Afterward, for a whole month followed by a whole quarter.

Once the habit sticks, year after year, you should be tracking your spending.

With this information, you should be able to finetune your budget to trim the unnecessary fat, thus increasing your savings rate.

4/ However, this will only take you so far. You cannot save your way to prosperity. Therefore, whether you like it or not, to increase your savings rate towards 40% or higher (some of you think this is impossible) you'll need to create additional sources of income — or a 2nd job!

5/ Second way to improve your relationship with money in 2020? TAXATION.

Optimize your taxation. I'm going to discuss this from the surface because I don't know which jurisdiction you live in Europe or Asia, or which state you reside in the US — and that matters, a lot.

6/ Unless you reside in places like the Bahamas or Monte Carlo, taxation is most likely going to be your largest expense for the rest of your working like.

However, optimizing taxation is one of the best ways you can reduce your cost, save more money & achieve a higher return.

7/ You can completely change your taxation picture by moving. Leaving one country & becoming a resident of another.

While the vast majority of people don't have the ability to move, internet is changing the way we live & work. Careers are becoming location independent.

8/ Taxation is such a broad topic & one that I am extremely fond of. Used correctly, optimizing taxation is extremely powerful.

However, I rarely tweet about it as I assume most on FinTwit are only interested in macro charts & predicting recessions (what a waste of time, right?)

9/ My third & final piece of advice to improve your relationship with money in 2020 is to IGNORE THE NOISE.

Firstly, it is worth saying there are 101 ways to skin a cat. You don't have to follow my way, or someone else's, towards acquiring wealth.

10/ Some people are achieving financial success quickly, others slowly. Some safely, others by taking large risks. Some do it in fast-growing, popular industries (tech), while others do it in all but forgotten industries (agriculture).

My advice is to find what works for you!

11/ My advice is also to cut out all the unnecessary noise. You don't need to subscribe to 100s of investment bank reports, guru newsletters, macro research & video interviews. You need less, not more.

You need to cut the noise out & focus on what works. Do more of what works!

12/ Some of you only started following me a week, or a month ago. But some of you have followed me for years, and I'm certain you've seen the growth I've gone through as an investor.

My approach today is very different from the things I did years ago. I've cut all the NOISE out!

13/ This is such an important point, it is worth placing emphasis on it. Over the years I've seen:

• my income grow multiple times
• my net worth go towards multi-millions
• my savings rate reach 80%
• my returns consistently stay over 15% CAGR
• reduced my risk & drawdowns

14/ All because I just focused on what's important & ignored 99% of all this other stuff they are trying to sell us and push down our throats.

Folks — it doesn't work.

You can get all nerdy about it, but it just won't move the needle. You are better off focusing on what does.

15/ So in summary:

• SPEND LESS, EARN MORE & SAVE
• OPTIMIZE TAXES
• IGNORE THE NOISE

I wish you a lot of success and prosperity in the new year, regardless of what the market does in 2020.

May you have reached your financial independence faster & quicker then I did! 🙂👍