Unsolicited financial advice for anyone in their 20s who is looking to become financially secure.
Here are 8 of the best pieces of advice I have received:
Here are 8 of the best pieces of advice I have received:
1/ Give every dollar a job
Having $1,000 in your checking account with no purpose meant you have $1,000 to spend.
Decide the % that goes into:
•Groceries
•Bills
•Investment/Retirement
•Near-term saving goals (e.g. Christmas or holiday)
•Emergency fund
Having $1,000 in your checking account with no purpose meant you have $1,000 to spend.
Decide the % that goes into:
•Groceries
•Bills
•Investment/Retirement
•Near-term saving goals (e.g. Christmas or holiday)
•Emergency fund
2/ Automate your finances
Send each dollar to the right places automatically every month:
•Investment account
•Savings account
•Paying off debt
Humans are creatures of impulse.
Don't put your willpower to the test and design your environment for success.
Send each dollar to the right places automatically every month:
•Investment account
•Savings account
•Paying off debt
Humans are creatures of impulse.
Don't put your willpower to the test and design your environment for success.
3/ Know your priorities
A 20% return:
•on 1k is $200
•on 100k is $20,000.
Starting out, prioritize finding a well-paying job or develop a side hustle for extra income.
When you have decent capital, prioritize your investment returns.
A 20% return:
•on 1k is $200
•on 100k is $20,000.
Starting out, prioritize finding a well-paying job or develop a side hustle for extra income.
When you have decent capital, prioritize your investment returns.
4/ In each job, you should either be learning or earning good money.
Ideally, you land a job that provides both.
Get the hell out when neither is present.
Ideally, you land a job that provides both.
Get the hell out when neither is present.
5/ Do not get on the hedonic treadmill
When you receive a raise, do not proportionally raise the cost of your lifestyle.
Treat yourself to a nice meal or trip, but don't let it seep into your day-to-day lifestyle.
When you receive a raise, do not proportionally raise the cost of your lifestyle.
Treat yourself to a nice meal or trip, but don't let it seep into your day-to-day lifestyle.
6/ Buy it nice or buy it twice
Never cheap out on the following:
•Mattress
•Shoes
•Tires
•Tools
•Tailored suit
Never cheap out on the following:
•Mattress
•Shoes
•Tires
•Tools
•Tailored suit
7/ Homeownership isn't for everyone
There're opportunity costs to homeownership.
Here are @ramit's 5 guidelines to help you decide if you're ready for homeownership.
iwillteachyoutoberich.com/blog/should-i-…
There're opportunity costs to homeownership.
Here are @ramit's 5 guidelines to help you decide if you're ready for homeownership.
iwillteachyoutoberich.com/blog/should-i-…
8/ Education is the best investment
The best educators are on the internet:
•@david_perell (writing)
•@BrianFeroldi (investing)
•@SahilBloom (finance & mental models)
•@fortelabs (note-taking)
•@jackbutcher (build your personal monopoly)
•@Julian (storytelling & more)
The best educators are on the internet:
•@david_perell (writing)
•@BrianFeroldi (investing)
•@SahilBloom (finance & mental models)
•@fortelabs (note-taking)
•@jackbutcher (build your personal monopoly)
•@Julian (storytelling & more)
If you've learned something from this thread, please:
•Retweet the first tweet to help others find it
•Follow me @steadycompound
I write about investment concepts, business breakdowns and growth philosophies.
•Retweet the first tweet to help others find it
•Follow me @steadycompound
I write about investment concepts, business breakdowns and growth philosophies.
If you have enjoyed this thread, you're gonna love my newsletter where I curate 3 ideas on investing and growth philosophies.
Every week.
steadycompounding.com
Every week.
steadycompounding.com
• • •
Missing some Tweet in this thread? You can try to
force a refresh
