Have you ever looked around at people who appeared to be miles ahead of you
financially and thought what do they know that i don't well there could be a
host of different reasons why your respective financial situations differ
chances are if they are lapping you financially they know certain things
about money that you're still unaware of which is why in this video i want to
share with you five money tips you've never heard before and if you're new to
the channel then hit the subscribe button below for more life-changing
content money tip number one avoid iceberg costs when you think about the
movie titanic what comes to mind chances are you think about two things how much
you cry during the movie and how much it must suck to hit an iceberg
unfortunately many people are allowing themselves to be just like the titanic
and are regularly crashing into icebergs that are literally destroying their
financial lives q iceberg costs yes you heard that right there are actually such
thing as iceberg costs so my titanic analogy was more relevant than you
probably thought so what are iceberg costs iceberg costs are hidden costs
associated with initial action or financial outlay let me share with you a
couple examples now one example of iceberg costs are hobbies let's say that
one night you accompany your friend to the driving range to hit a bucket of
balls you have fun at the range and you think to yourself that maybe playing a
full round of golf would be fun no harm in that right however then one round
turns into a full season membership and a new set of golf clubs and all of a
sudden that 10 bucket of balls at the range has turned into thousands of
dollars in expenses hence the iceberg you see the initial cost however other
costs exist below the surface now maybe you don't golf so that example doesn't
really hit home for you no problem let me share with you another example that
will pertain to most people take your car whether you bought it new or used
before buying it you will be made aware of the purchase price of the car
therefore when you buy that twenty thousand dollar car it appears to cost
you twenty thousand dollars but that's just the start of the economic outlays
you then have the cost of gas repairs insurance and even a body kit that was
prompted from you watching the new fast and furious movie if you want to get
ahead financially you need to control your costs fortunately if you can see
past initial outlays and the greater expense that will ensue when you spend
your money then i promise that you'll be saving more money and this is something
we can all afford to be doing more of money tip number two accelerate your
mortgage payments would you like to be better if you no longer had to make
monthly mortgage payments i bet it would be and as such we need to talk about an
important money tip pertaining to your current mortgage repayment strategy if
you're like most people then you would probably slap down one large mortgage
payment each and every month however this is absolutely the wrong approach to
take if you want to become mortgage-free sooner rather than later in fact making
monthly payments is the slowest way of paying off your mortgage an approach
that i use and that you should consider is using accelerated weekly mortgage
payments you see using accelerated weekly payments is like putting naws in
your car you're pushing harder and as a result we'll get to the finish line
sooner so before you click off and go watch the fast and the furious movie let
me explain how accelerated weekly payments work an accelerated weekly
payment is calculated by taking your normal monthly payment and dividing it
by four since you paid 52 weekly payments by the end of the year you'd
have paid an equivalent of one extra monthly payment this additional amount
accelerates your loan payoff by going directly against your mortgage's
principal the effect can save you thousands of interest and take years off
of your mortgage now it's time for an example to show you just how powerful
this mortgage repayment approach can truly be let's say you have a mortgage
of 500 000 at 3 percent for 25 years using the standard monthly repayment
approach it would take you the full 25 years to become mortgage-free and you
would end up paying 710 000 in total payments now let's compare this
repayment path to one where you are instead using accelerated weekly
payments again let's say you have a mortgage of 500 000 at three percent for
25 years but are making weekly payments instead in that case you would end up
paying off your mortgage in just 23 years and paying 680 000 in payments
instead of the 710 000 which would be the case under
traditional means therefore as you can see this approach can shave years off of
your mortgage timeline and save you tens of thousands of dollars money tip number
three prioritize health over wealth in the world of finance when it comes to
getting ahead all you ever hear about is how to optimize your savings efforts or
find slightly more lucrative investments while these tips are great they rarely
move the needle but one way you can significantly improve your wealth is to
actually focus on your health if you ask me health is one of the main factors in
achieving financial prosperity and let me explain why first let's talk about
physical health there's a crazy misconception that in order to become
financially successful you need to be working 24 hours a day and as such many
people excuse their lack of attention to their physical wellness because they are
too busy however taking care of your body by exercising sleeping and eating
well is a money making hack if you ask me from my own experience exercising and
eating well gives me more energy to put in extra hours of concentrated work
moreover getting proper sleep allows me to think clearer so i can get my work
done in half the usual time when it comes to mental health this is equally
important i'll be the first to admit that it can be easy to get down on
yourself life is no easy game from navigating family issues to trying to
keep up financially it seems like there's always something to be worrying
about this is why if you want to be the best version of yourself you need to
manage your emotions because as you know when your emotions are out of whack it
can lead to bad investing decisions employing poor spending habits and can
even lower your performance at work therefore while i want you to sleep
don't sleep on the importance of health when it comes to building financial and
overall wealth in your life money tip number four set money dates take a
moment and think back to the last few dates you've been on if i were to guess
they had two things in common the first was that you were there unless that is
you didn't show up which in that case shame on you second going on that day
probably cost you money maybe even a lot of money well what if i told you that
you could be going on a lot more dates and could be making money on those dates
as well no i'm not suggesting you become an escort instead i recommend you employ
another rarely used money tip which is to set up regular dates with your money
you see i live by the quote what isn't measured isn't managed and a few years
ago i implemented money dates into my life and i've never looked back now
admittedly i kind of just wanted to be able to tell my family and friends that
i've been dating but implementing regular reviews of my money has been
invaluable to my overall financial progressions so what all takes place on
a money date let me give you the spicy details now the main goal of a money
date is to analyze the state of your finances and i believe that your
analysis should consist of four pillars debt investments income and savings what
do you want to do is set up a baseline for each of these pillars this means you
need to first gain an understanding of how much debt you have your portfolio
value how much you're actually earning and how much you have stashed in savings
then set an incremental target that you want to achieve by your next money date
for instance if you're focused on becoming debt free then your goal may be
to pay down 500 worth of credit card debt before you reconvene with your
money alternatively if raising your income is your top priority then you may
aim to earn an extra hundred dollars in the upcoming month instead in fact doing
a regular income review is what prompted me to start my own freelance journey a
couple of years ago and i'll use this income stream to make a few extra
thousand dollars a month which i teach others how to do in my course side
hustle success now one final piece of advice is that it is generally best to
focus on one pillar between each date but whatever approach leads you to the
best financial results is the one that you should take money tip number five
the more boring the better when you think about the profession of accounting
what word comes to mind if i had to venture a guess i would say that the
word boring comes to mind as a cpa myself i know that my profession is
often seen as boring and while definitely doesn't intrigue the ladies
being boring is one of the greatest traits you can possess if you want to
achieve true financial success it's no surprise that today there are a plethora
of exciting new investment opportunities out there from cryptocurrencies to nfts
and of course popular stock memes the opportunities to invest in popular
assets exist all around us unfortunately however while these assets present
opportunities for profits for most people they need to be handled with
caution one great financial saying i love is when you hear it on cnbc it's
already too late and this saying pertains to the ever-increasing
instances of people trying to hop on the profit bandwagon by buying the stock of
the day we saw with game stock stock and amc stock and this phenomenon continues
to take place day after day but is just dressed in different clothing now i'm
not saying that identifying a rising stock can't be done but for 99 of people
this approach is simply not sustainable the truth is most people do not pay
enough time or attention to stocks to have even a fighting chance of
predicting the short and long-term outcomes of said stock for instance with
gamestop it probably would have taken committing full-time working hours to be
able to get a gauge of where the stock was headed however if you were jumping
in once you hear about it on the news then chances are you got in when it was
over 300 a share and as of the time of making this video you would be sorely
regretting that decision with all that being said this is where pay is to be
boring being boring gets you boring returns but that doesn't mean that those
returns aren't still incredibly profitable sure you can double your
money if you find a winning stock but you can also get a 10 to 15 return on
the s p 500 with literally no research and no effort by investing in a low-cost
index fund in fact this is why i've been looking at investing these days i don't
just look at the total return but i look at the cost as well now by cost i don't
mean the literal transaction cost i mean the cost of my time if you're doing it
right you should be spending numerous hours researching a company before you
even put a penny into its coffers therefore if you spend 20 hours
researching a company and you value your time at 20 an hour then all of a sudden
that a thousand dollar profit is really only six hundred dollars alternatively
you can just invest in a more hands-off way and free up your time which lowers
your investment cost while still seeing boring but lucrative returns therefore
while you don't want to be labeled as boring by your friends and family it
definitely doesn't hurt to clean the boring label when it comes to your
investing efforts hey it looks like youtube thinks this next video is the
one that will change your financial life forever give it a watch and let's see if
they're right