Thread by @thepaulalex_

My biggest financial regrets in my 20s…

(as a first generation millionaire)

#1: Spending too much money on my ex-girlfriend

I was young and foolish, I thought I needed to “impress” her by spending most of my paychecks on designer bags and expensive restaurants, only to realize that the Gucci bags and $100 dinners didn’t help our relationship to last.

#2: Not living below my means

I enjoyed my 20s but I wasted a lot of money that I could have invested for my future.

There’s a great quote by Morgan Housel: “Spending money to show people how much money you have is the fastest way to have less money”

I don’t support extremely frugal living but it’s important to have a balance between enjoying life and investing your money.

#3: Buying a primary home

I thought I lived the "American Dream," but looking back, it was a financial trap rather than a blessing. I still had to go to work and trade my time for money to pay the mortgage. It felt like wearing golden handcuffs.

I could have achieved financial independence much earlier had I delayed homeownership and invested the downpayment into a cash-flowing side hustle.

#4: Not building multiple income streams sooner

I was making good money at my jobs but I definitely should have built a 2nd income stream sooner so I wouldn’t have to rely on my bosses, even a 6-figure salary does not give you financial security or comfort.

Warren Buffet said it best: “If your salary if your only source of income, you are one step away from poverty”

Knowing what I know now…

If I were working a job again, here’s exactly what I’d do to achieve financial independence as quickly as possible:

#1: Get my money right

Cut unnecessary expenses, Track my expenses, Live on 70-80% of my net income, Save 20-30% until I have $20k saved

#2: Start a cash flowing side hustle

I’d spend 1-2 hours a day building a “boring” side hustle that can generate monthly cash flow.

With $20k I could buy around 16 credit card terminals, place them at local businesses, and make around $250/month per location.

That’s around $4,000/month in extra income.

Then I’d reinvest that to buy 13 more machines and so on until I make $10k/month in extra income.

#3: Build an emergency fund

Save up at least 12 months’ worth of living expenses in a High Yield Savings Account for rainy days.

This is the money that will support me in case I lose my job or my business isn’t doing well.

#4: Reinvest and diversify

Once I build my emergency fund, I’d start buying different asset classes to diversify my investments (eg. Rental properties, ETFs, Stocks, crypto, or more businesses)

If you want to learn how to build a $5k/month income stream with credit card machines, comment “ME” and I’ll send you a breakdown.