7 Money lessons we wish we had known in our 20's, for one, to noticeably improve our financial
situation by simply having more clarity on what we need to do and having a set of rules
that would always let us know we were on the right track.
Because we believe that this is the main reason why people don't achieve their financial goals:
they just don't know what to do or they know so much that they have so much information
that they don't know where to start.
Then they follow the wrong rules and information and wonder why they don't move forward.
But that's exactly what we're going to stop today, we're going to show you the exact 7
money lessons that will have the most impact on your financial life and really get you
ahead, so make sure you stay tuned and don't miss any of these money lessons otherwise
in 3 years you'll still be where you are today.
But before we get to the main topic of the video, first of all welcome back and if you
are new on our channel...
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Put your money to work The first money lesson is to make your money
work for you.
What's the best way to do that?
By investing your money in, for example, stocks, companies, a side hustle or in real estate.
Why you should do this is simple: you will not become wealthy or improve your financial
situation by simply saving.
Simply saving will actually cost you money, because inflation is on the rise and even
though interest rates are currently being raised, I don't expect inflation to go down.
Therefore, it would be best to invest your money where it is not only protected from
inflation, but also works for you.
So maybe the question is, what is the best place to invest your money at this time?
Currently, due to the increase in interest rates, it is not really advantageous to invest
in, for example, a stock index, because usually these lose value as soon as interest rates
rise.
(Examples include NASDAQ, SP500, DAX, DOW JONES) However, I would not completely exclude
this possibility because on the other hand, now is the time to buy cheaply, because currently
the companies that are included in the stock indexes are still making profits, which is
why the loss in value is not justified in itself.
Therefore, I would not completely exclude stock indexes, but invest a smaller amount.
What else offers itself?
In fact, real estate is currently a very good investment.
Why?
Well, for the simple reason that interest rates are rising, which means that loans will
become more expensive and people will no longer be able to afford them easily, which is why
the demand for real estate will also decline, which will lead to a reduction in real estate
prices.
We have decades of rising real estate prices due to the low interest rate policy of central
banks, now is the turning point, which is why it can now become a lucrative investment.
Of course, so-called REITS are also suitable for this purpose.
REITS are companies that buy real estate for profit and you can invest in these REITS as
in any other company by buying the shares of these companies.
Because these companies have the purchasing power to buy real estate and the financial
strength to bear the slightly higher interest rates, their enterprise value will usually
increase in the future.
Now you have a rough overview of what makes sense at this time, but the most profitable
asset to invest in, I will tell you later.
Now comes money lesson number 2.
The amount of money retained matters The 2nd money theory is that the amount of
money saved matters more than the amount of money earned.
Remember our Wealth Winning Method?
It says that you need to save more than the average, earn more than the average and invest
more than the average to improve your financial situation.
However, you can improve your financial situation just by saving more and investing more than
the average.
A friend of mine graduated from high school at 18, got an education, and then started
working in chemistry.
He was making $2000-3000 a month, his earnings varied based on shift work.
The only thing he did was live below his means and always reinvested the money he saved.
What did he invest his money in?
In real estate.
By now he has 6 residential units, which are worth a total of 7 figures.
This means that if he sells them after paying off the loans, he will have a 7 figure fortune
without earning big money or being a big entrepreneur.
He became a millionaire by having a normal 9-5 job, but making the right financial decisions.
This also means that there are no excuses for you to change your financial situation.
So what can you do?
He revealed to me how he managed to save enough money and make the right financial decisions:
He strictly split his monthly income, simply following the 50-30-20 budget.
50% went to his necessities, such as rent, food, drink, etc.
He used 30% for saving and investing, and the other 20% for desires such as going out
to restaurants, vacations, etc.
This division + the first money lesson should already solve 90% of your financial problems.
Acquire Assets, not liabilities Ok you now know that you should buy assets,
but you should never build liabilities!
This is the difference between the rich and the poor.
The rich buy assets and the poor create liabilities.
The decision on which side you want to be will fundamentally determine your future.
But now let's briefly define the term liabilities, so what does it mean?
Liabilities are not, for example, loans that you take out to buy real estate, i.e. assets.
Liabilities are rather debts you incur to buy consumer goods like a car, a TV, a sofa
and so on.
So really anything that doesn't give you cash flow or appreciation.
Remember this distinction and you will make better financial decisions!
You are not born to work for others for a lifetime
Yes the 4th money doctrine is put very directly and I will say up front that it does not apply
across the board to everyone.
Because there are also people who love their job, it is their passion and they still work
for someone else.
Yet you know what the difference is between those who love their job and those who don't?
Passion.
You are not here just to work, pay the bill and then die.
You are here to create something you love and for many it is not the work they do for
someone else.
So what can you do instead?
The best way is to build a side hustle that incorporates your passion.
This also means that you don't necessarily have to quit your job, but rather create a
balance.
So how do you find the best side hustle and how can you make money with it?
I'll tell you an example: First, you need to answer the question "What
do you enjoy doing?".
This can be really anything like gaming and you're particularly good at one game, then
you could combine that with streaming for example.
Second, you look at the people who are very good and have a similar passion to you.
So for example for gaming, you look at well known streamers like Ninja, TFue etc. and
analyze what and how they do it, so why they are such successful streamers.
Take notes of everything because from that you'll create your plan later.
The third thing you should do is invest in yourself and your skills.
So in the example of a streamer its a reasonable streaming setup, a good PC, a reasonable microphone
or maybe you organize 1 to 1 coaching sessions with already bigger streamers, where he gives
you tips and tricks.
And as fourth you can monetize your longevity.
In the streaming example, you could upload the streams to Youtube in parallel and earn
money in addition to the Twitch revenue with the Youtube advertising revenue or you can
make brand deals for which you also advertise.
Gain financial Knowledge Can you remember where I said that later I'll
tell you the most profitable asset to invest in?
The most profitable asset is yourself.
Invest money in yourself and your skills and you will never have money problems again,
because you will always be able to add a lot of value and whoever adds a lot of value usually
earns a lot of money if it is monetized properly.
To give you an example, I also still invest in myself.
Some of you may know that I am an asset manager and even though I trade profitably in stocks,
currencies, precious metals and stock indexes, I just recently invested a large amount in
myself again to improve my trading because I have a goal of having at least $10 million
under management and for that I also need to take my skills to the next level.
Winning means not be afraid to loose Do you know why most lead average lives?
Because they don't take risks.
Do you know why they don't take risks?
Because they are afraid of losing.
Being afraid to lose is almost by far the biggest plague in our society today.
Most people don't dare to do anything anymore and prefer to stay in their comfort zone,
because it could go wrong.
Do you know what will happen if you continue to think like that?
NOTHING!
Nothing will change and if something changes, then only for the worse.
A wise man once said to me: "No risk, no champagne in the glass".
Dream Big and Be Ready To work hard Ok now you already know quite a lot and you
also now know exactly what you have to do to change your financial situation.
And maybe you're already dreaming big, imagining what it will be like in the future when you've
achieved your goals, for example when you've paid off your debts, have a 6 figure portfolio
and so on.
However, one ingredient is still missing: constant smart work.
Yes, I changed Hard Work to Constant Work on purpose, because hard work alone is useless
if it leads you in the wrong direction.
Likewise, working hard once a month does nothing.
The time and energy you invest should be constant and invested in the right things if you want
to change something.
And to be constant, you have to be smart, because you have to be careful with your time
and energy.
Always ask yourself: "What and which activities have the greatest outcome?
What really moves the needle?"
If you ask yourself this question, you will be much better at allocating your time and
energy to the right activities!
And if you now want to know which 5 important financial goals you should achieve in your
20’s, watch the video on the right!
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