Hi it's Mark.
Your 20's are a really exciting part of your life.
You might have a bit more money in the old pocket and certainly a lot more
freedom.
Most people in their twenties think they're invincible.
I know I certainly did.
I think I was a bit,
to be honest,
but actually the truth is in your twenties,
you're more vulnerable to Neva.
If someone makes a financial mistake at this point in their life,
it will send shockwaves through their entire future.
Each of these mistakes is very different.
So it's really,
really important that you watch this video until the end.
Otherwise you could fall victim to one of them.
So smash that light button,
all done that that's jumped straight in.
Number one,
it's not taken advantage of your free time.
Now in your early twenties,
you are incredibly rich.
In one way,
you've got bundles and bundles of time.
You can do so many things to turn your spare time into cash.
And if all you're doing is wasting your time,
then all that potential income is just slipping for your fingers.
This is also the ideal time to invest in yourself and build your
skills.
I used to use my spare time in my twenties sketchy model planes.
And this has led me to having the manufactured and selling them all around the
world.
In fact,
one of my biggest designs is the biggest selling RCA aircraft in the UK.
The original design for this was sketched in a classroom while I was being
bought by the geography teacher.
I remember.
Well,
mr.
Woollahra so developing those skills from an early age has served me very,
very well.
Number two,
trying to keep up with your friends.
Everyone has that one friend always seems to have the nicer car,
the nicer house,
and sometimes the harder partner.
Let me tell you a secret.
All right,
the majority of people are faking it.
Anyway.
As of 2020,
the average American household had a credit card debt of over
$5,700.
This is astonishing as it means the friend you're actually trying to keep up
with a,
probably more in debt than you are having access to so much easy credit allows
people to rewrite reality at the end of the day,
friends,
that need impression of not true friends,
real friends that are people that love you no matter what they stick by you
through your troubles.
And now there for you when you need them,
they are the people who couldn't care less.
What you spend your money on.
Number three,
over drinking and partying.
When you're at drinking,
it's easy to get caught up in the moment and spend a lot more money than you
usually would.
Now this is most people's kryptonite.
It's one of the things that keeps many people broke.
And of course,
unable then to invest.
I'm not saying that going out and enjoying yourself is wrong.
As you have to do what makes you happy?
The key takeaway from this is everything is great by moderation.
You may think that saving a few dollars here and there won't make a difference,
but your dollar is worth so much more when you're younger by investing in
it,
instead of spending it on something you really didn't want anyway,
it's going to be worth dramatically more in 20 years,
time,
number four is putting off retirement investing when you're in your twenties,
retirement seems like a lifetime away.
Many people put off investing in their retirement until they're about 45 or 50
years of age because of many,
many excuses.
They've got a mortgage to pay.
They've got a college fund to save for.
And of course there's holidays.
These last years can cost you very,
very dear.
So let me explain.
If you invested a hundred dollars a month for 30 years,
at 7% annual return,
you would have $116,945 set
aside in your retirement fund.
And this contenting you to grow until the point you decide to retire.
But if you put off investing in your retirement,
let's say 10 years,
and you start investing the same amount for a 20 year period.
Wait for it.
You're only going to have $50,000 in your retirement fund.
Yes,
it can grow,
but you're starting from such a low base,
just 50 K $50,000 is a huge amount of money just to lose.
And the reality is that $50,000 would have only cost you
$12,000.
So lots of free money.
I was very lucky.
My mentor advised me to save and invest in a pension from the age of 18.
I've always been told that you should put at least,
so at least not a minimum of at least 10% of everything you earn.
And he's given me the ability to use that money in lots of different investment
opportunities,
such as business,
real estate,
and also stocks and shares.
Even Einstein said compound interest is the eighth wonder of the world.
Number five is not having a backup fund.
Now over 60% of millennials,
wouldn't be able to cover a thousand dollar emergency.
60% wouldn't have enough money for a minor emergency.
Now I know I bang on about this and I do bang on about a lot of the time about
having a backup fund,
but that's because it's super important.
I learned it the hard way.
When I was 19,
I purchased a car that I needed a loan to buy the engine in.
It lasted me about a month before it blew up.
And it left me with a huge debt after put a new engine in the car because our
purchase a call really I couldn't afford this led me into a cycle of debt that
was hard to break free off.
I made the decision to get clear of debt and I worked my ass off for a year.
We've many,
many different side hustles.
I never wanted to be in that situation ever again.
Number six is moving out of home too soon.
By slightly abusing your parents' generosity.
This is going to be the smartest move that you're ever going to make.
It's also the best value accommodation you're ever going to get an dunk,
take it for granted.
And when I asked you in my twenties,
my number one goal was to move out of home,
into my own place.
I just wanted to have the freedom without my parents being around.
I fell in love with this beautiful apartment while to,
is it wasn't exactly beautiful,
but it was perfect for me.
As I walked in,
it hit me that this could be mine.
I started to imagine my big red couch in the front room,
my desk,
house parties,
and ultimately how impressed my friends were going to be before I knew it.
My emotions got the better of me.
I'd signed up for a mortgage and I've moved out.
You know what?
I wasn't ready.
I didn't have enough savings.
And my Palm and ended up losing a lot of money over the next couple of months.
It all worked out in the end of course,
but it certainly wasn't the best move for me at the time everyone focuses on the
mortgage payments.
They are big.
Of course they're big,
but you've got to look all the other living expenses.
Now at 20,
just my food bill was huge.
I am six foot four.
So I did a bit ground rent,
maintenance,
car bills,
travel expenses.
The list goes on and on.
So do the math and stay at home for as long as you can and invest
your money.
Number seven is going into debt to buy a sweet ride.
When you're earning a so tempting to upgrade your car and impress all your
friends or your family with your success.
We're constantly being bombarded with YouTube videos about 19 year olds buying
Teslas Audi's Lamborghinis.
And trust me,
this isn't smart.
Nowadays,
when you go and buy a new car,
then I'll ask you what car you're interested in.
They asked you how much you can afford to spend per month.
Then I interested in the car you want,
they're selling finance.
They want to sell you as much finance as possible,
over as long,
a period as possible to make them the most amount of money as possible.
Most cars have a very sharp depreciation curve,
meaning they lose their value extremely quickly.
And before,
you know,
your car is worth half what you paid for,
even if you bought it in full,
be honest with yourself,
stand back and take a look at the car balance.
The cost.
It will actually cost you with the interest from the finance taken into account.
Then take a look at what the car is selling for on the forecourt a year old,
it's shocking,
just how much you're gonna lose.
The only thing you can gain by buying a new car is you can go look at me with my
new car.
Look at me with my cute debt is what you should be saying.
The key is to buy a secondhand car pre-owned car at the bottom of its
depreciation.
With a little research,
you'll be able to pick up a call secondhand car and drive it around for a couple
of years and probably sell it for the same as what you paid for it.
Or maybe slightly less effectively making the car almost free with the only
running cost being fuel and a bit of insurance.
You're able to get all the upsides of owning a nice car without the huge loss of
money.
Number eight is expensive relationships and dating relationships in your
twenties get very serious.
Believe me.
It's very tempting to want to splash the cash,
expensive diets and restaurants to get the person you want to love.
You know,
it's really lovely to treat someone you love to something special every now and
again.
But if you start that relationship,
why even that old money around is often going to attract the wrong people.
You want someone to like you for who you are,
your passions,
your interests are not the size of your wallet.
Many people in their twenties want to get married,
but again,
the truth is you can't afford to get married in your twenties.
It took me around about 16 years from when I first met my true love to
actually physically get him married.
And the reason was,
is because we had a set idea of what we wanted the day to be.
And obviously if we're to cut corners on that day,
that memory would never have been what it is.
And I can still remember that day.
And people still comment on what a great day they had.
So it's worth doing it later because you've got more money to use to make that
day great.
The big takeout from this is live within your means and invest in your
future.
So I'm going to leave some videos there,
but don't click on them just yet.
If you want to learn more about growing your wealth while you're young,
then make sure to subscribe to the channel,
ring that old belt keep up to date.
So thanks again for watching.
I'll see you in the next video.