7 Financial Tips Everyone Should Know

 

1. Live below your means. Eat cheap to invest the saved money in business. You must deprive yourself of money early, so you can invest your way to wealth.
2. Build a machine. An average millionaire has 7-income streams. You can’t become wealthy by your job or business alone. You need to create systems of passive income where you put invest $10k in ads and get $100k back.
3. Good debt vs Bad debt. Bad debt is that loses you money like credit card or high-interest loans. Good debt is that makes you more money than the interest you pay. Example: If you buy a property on debt and have the rental income higher than your loan payments.
4. Save 10% every month. People who don’t have money saved, are one disaster away from a debt spiral. They can lose their job or get an accidental medical bill and resort to high-interest debt. Don’t be those people’.
5. Invest money in you. People think they are smart to not buy a (valid) course but it’s the dumbest decision. The only place where you must spend freely is self-improvement. Because without it, your income won't increase.
6. Planned purchases. You can buy yourself nice things but the real enemy is impulse purchases. You order it only to find out you don’t need it that much. That’s why when you want something, the more planned the better.
7. Friends with savings. Don’t throw your money away with people who spend at expensive restaurants or on useless wants. You need to have friends who have the same economic-values as you do. Remember, when poor people make fun of your money choices, you are on your way to wealth.

10 Financial Advice You Should Give Yourself In The Past 10 Years

1. Save and invest as quickly as possible. Don’t try to impress people who you don't even like. Spend how the rich really spend and not how you think they do.
2. Watch out for fees
3. Don’t try to market time
4. Give up, or dramatically reduce, alcohol. Watch out for lifestyle more generally, including exercise. It directly and indirectly helps with spending and lifestyle choices
5. Rebalance a portfolio only when it is rationally to do so, when there are clear winner and losers, in other words one component is performing much better than the other
6. Read the academic literature on investing inside out. Yes even the boring work.
7. Do not believe a lot of the non-academic forces out there, such as CNBC and Bloomberg, with their sensational headlines - A crash is coming!
8. Have a globally diversified portfolio of equities and bonds.
9. Even though the main focus should be on spending habits and not income, have multiple income streams
10. Be long-term focused

Most people know some off these 10, and a few people know all of these 10, but implementing plans and keeping to them is most difficult.