10 Money Tips That Changed My Life
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- čas přidán 20. 07. 2024
- In this video, you'll learn the 10 money tips that changed my life (and how they relate to retirement planning today).
Learn the tips & strategies to create your secure retirement.
⏰ TIMESTAMPS
00:00 - Introduction
1:31 - Compounding
4:32 - Momentum is underrated!
7:15 - Money is a tool
9:55 - If you're still worried, you aren't wealthy
11:00 - Money is personal
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Why I Started Root Financial Partners // • Why I Started the Read...
How Would You Feel If You Knew You Could Retire Today? // • Why I Started the Read...
What Makes Our Approach Different? // • Why I Started the Read...
The best two tips I have are from a costumer at the restaurant that I was working as a cashier when I came to this country #1. To never use a credit card until I learn how it works. #2. To save 20 percent of my salary no matter how difficult is my situation. He said in 10 years you will remember me. Because of my savings I was able to go to college, got a wonderful job and I’m financially independent. After 30 years I still remember his advice. 🙏
That’s great. Thank you for sharing.
您好, 我也有类似的经历．祝您生活愉快🍻🎊
What most people don't realize is that forced scarcity has a double effect: every dollar you force yourself not to spend is not only the dollar you save, but also the dollar that you don't get used to spending and therefore won't need to be happy in retirement. It's tremendously powerful.
My life changed when I realized that making large purchases on credit rather than saving to pay cash is a fools errand. The discipline to save for that large purchase is so much more rewarding!
Agreed. Good tip.
Or you can charge large purchases on the credit card to get the rewards and then pay it off that month before interest accrues. I have done that for decades, you can use credit cards to your benefit.
What changed my financial life is when I started thinking of investing for financial freedom rather than investing for retirement. Retirement seemed so far away but the idea of achieving financial freedom was very motivating to me.
Great perspective shift
My very favorite lesson about money came from when I was a kid. I was itching to spend my allowance on some nonsense or other, and one of my parents said "You know, if you don't spend all your money on things you don't want, the money will be there when you see something you do want." 30-odd years later, that principle is still serving me well.
Great principle
Pay yourself first!
Automate your savings.
My 10
1. Save early and often
2. Don't time the stock market, I use index funds
3. Minimize taxes
4 save as much as I can
5. Diversify
6. Have a plan
7. Watch the fees I pay for my investments
8. Live below my means
9. keep my portfolio simple.
10. Stay the course
Good list, John.
@@RootFP it's not 100% mine. I'm a member of the Bogleheads forum and it's investment group this is what we follow
The biggest thing that has shaped my journey is forced scarcity. Pay your future self first and learn to live with the left overs. We are happy and have a solid plan for the future
Great tip. Thanks for sharing.
Great tips! I would add #11 Never co-sign and #12 Keep your finances simple - only invest in what you truly understand.
Good tips. Thank you.
My grandmother's banker uncle co-signed some bad loans and killed himself in 1923. She drilled your #11 into our heads.
Be generous to others with what you have...maybe supporting a chaarity, or simply sharing garden produce. Those rewards compound as well!
Love your channel, James! Two of the biggest things that affect your wealth are your education and your choice of a spouse. You can furnish your home less expensively by buying quality used furnishings and going with classic styles.
1. When you buy a car, it is time to start saving for your next car.
2. Pay cash for the car and buy a 1 to 3 year old car.
3. Pay off the maximum payment against the principal on your mortgage every year with smaller weekly payments. Run the numbers vs a higher weekly payment . You will be amazed.
4. Money = Freedom
I once believed the addage: "you'll never get rich working for someone else".
You can get rich as an employee if you spend less than you earn and invest the rest. I wish I'd learned this at a younger age, but it wasn't too late for me!
I like this one. Good tip.
Agreed, almost anybody can be financially independent, they key is to spend less than you make and invest the difference. There are many people that are making over 100k per year but are living paycheck to paycheck and will continue to do this until they die, but there are many people that might only earn 40-50k per year and are perfectly secure and will retire early because they don’t overspend.
This is a perfect format to get people to educate themselves about money! Thank you!
Excellent video. Thank you, James.
My two biggest financial tips are using Quicken to track my finances (for over 15 years) and to separately track my projected annual stock dividends. The latter has been a big help in ignoring the stock market fluctuations and to focus more on increasing annual stock dividends. When the stock market declined, I kept buying to increase my projected dividends.
Great tips
Thank you -- good information and you are pleasant and easy to follow. I forwarded this onto my kids.
1. Always let friends and family borrow money from you. They will never let you down and will always pay it back. 2. Always buy expensive things as soon as you are paid. Do not automatically invest !0-15% first. 3. Always spend more than you make so you can be broke . 4. Always borrow money to buy things that depreciate in value. 5. Always steal money from others. 6. Always get a HELOC (home equity line of credit) to jeopardize the loss of your home when you lose your job. 7. Always get a margin account from the broker when opening a stock account so that when you borrow money from the broker and the value of your stock goes down....you receive a margin call and they sell your investment at a loss. 8. Always be ignorant of the IRS laws. Hide that money, play the fool. The IRS won't know. 9. Get a gambling habit. The odds are always with you. 10. Always stay in debt. It's fun to be a debt slave. 11. Always impress people with your money. Ostentatious signs of wealth are cool. 12. Just avoid these previous 11 money lifestyles, and you will be well off financially.
Tip #12 FTW 🙌🏼
You must know all my friends and family!
These are some awesome tips. Thanks for sharing!
You’re welcome!
I think this could be the best video you have done. So speaks to me. Thank you for sharing. For me, also add "There is no point having excess of money later on in life (especially if you want to travel) if you then won't have the health/drive to spend it". Made me realise I can afford to retire 2 years earlier than I had originally planned.
Glad to hear that, Rob!
My #1 is: Leverage puts compounding to shame. You shouldn’t depend on compounding and being able to do that “last double,” at the same time that you should be reducing risk because you’re approaching retirement. Leverage gives you gain on your investment, plus gain from the use of other people’s money on your investment.
Live within your means.
Great tip. Thank you.
Thanks James
You’re welcome
Interesting idea to apply the concept of compounding to the personal/social aspect of our lives. I’m going to borrow that!
Number 10 is kinda tricky - true in a very narrow context. I’m thinking about several of my contemporaries who felt “wealthy” and never “worried” about money as much as I did. But it turns out that the prestige cars deprecated away a lot of money and the aspirational houses ate up more in higher expenses than they returned in price appreciation. Some of these acquaintances never “worried” about money until there was a hiccup in cash flow. In other words I worried about money during good times but not near as much as they had to worry in bad times.
I do get what you meant by #10. I brought up this other aspect of “worry” to suggest finding another choice of words to make the point of #10 more blatantly,
Good feedback!
The best time to buy was yesterday. The second best time to buy is today.
Good one.
Money can't buy happiness, but lack of money can buy stress & misery.
Sometimes, like you said, investing something that hurts you in the short term will bring you much satisfaction / enjoyment / true happiness from outside of a purely financial impact. Due to the war in Ukraine (yes WAR, not "Special Military Operation"), I help my friends by chatting with them and purchasing food for them due to their limited means, especially since they are not working / can't find work while rockets and bombs are exploding around them. Yes, it is another financial burden for me especially with inflation but the immeasurable joy and happiness that I get for supporting someone who is impacted by forces beyond their control is well worth the dollars that I "invest" in another human being.
Great way of looking at it
Great video!! Now I have more knowledge about finance. I spent 20 years in the military and unfortunately did not save in a TSP. I am fortunate enough to be retired at age 42 with a profit from my investments and pension. I wouldn't have been able to live my current lifestyle without couple of investment. After taxes I am left with about 25,000 bucks a month, I am debt free and just now starting to invest in real estate. I don't plan on working for someone else ever again. I just live a modest life and now invest heavily in the market with the help of an IA. I do get a 2-3% raise every year for inflation and this income is for the rest of my life. I am blessed and now I live a great stress free life while investing while I am retired.
Thanks Peter. And thank you for your service 🙏🏼
Congratulations on your early retirement. Right now, I could really use some investment advice or tips on investing. Last year I hesitated until the year ended without making any move. This year I decided to try something because I'm very open to ideas on how I can invest. When I see your comment I believe that you have an experience in it that could be of great help to me. Hope you don't mind sharing?
Congrats on your early retirement!! What kind of investments did you do. I have a little sum right now doing next to nothing in a savings account. but it's hard for me to take part in the market right now due to the fulltime nature of my job. it will be way too stressful to combine so i don't even think about it.
But what if I want to watch CNBC all the time? ;) Great advice. Keep up the great content!
Thank you!
Nice job.
Thanks Joe
CZcams unlimited -best $12 ever spent with all you can learn and research 24/7!
Never but money over doing Good.
Invest in dividend stocks.
Listen to financial successful people's advice.
Don't try and keep up with the Jones'.
Learn to balance saving for retirement and living/enjoying every day life.
My tip would be put all extra income into a brokerage account VOO.
Thanks Lewis!
Most people don't max out their retirement accounts. I put my extra income into my retirement accounts for the tax breaks (and then use an index fund inside the tax advantage account)
I am working to Live by the motto that money is like manure, it’s not good unless it’s spread around.
That’s a good one
I grew up on a farm and I shoveled a lot of manure in my days. LOL.
Automate your savings
Yes
I learned the hard way that when you invest it should be for the LONG TERM results. In September of 1977, I invested $40,000 into a mutual fund. One month later, on October 19, 1987, my $40,000 turned into $22,000 overnight. It was the largest single-day loss since 1929. I VERY foolishly pulled my money out and used it as a down payment on a house. What makes me SICK today is if I would have left that $22,000 alone and never invested another penny, it would be over $850,000 today. The secret of compound growth over time is huge. Today, with the volatility in the stock market, the absolute worst thing you could do is pull your money out. Let it ride.
I bought a small amount of Martin Marietta the day after that crash, and now its annual dividends are as large as my investment. But I also bought (and held to the bitter end) some more GM stock...Diversify!
Online calculator for the S&P 500's CAGR (Compound Annual Growth Rate). This is an invaluable tool, that I use almost monthly. Unfortunately, CZcams won't let me include a link to the calculator. Date ranges can be entered, back to 1871.
I often use this calculator but more for occasional research than an invaluable tool. I'm curious, why it's so invaluable to you?
Now things like income tax calculators and compound growth calculators are invaluable to me for planning and reevaluating my decisions on my retirement income.
Be careful whom you marry. My late narcissist step-monster abused her own sister (red flag!) to us for running up HUGE credit card debt behind her husband's back while she was doing the same damned thing to my father--despite her $5k/month allowance that Dad financed by borrowing against stock, which was then lost in the 2008 crash. Without his Navy pension, Dad would have gone completely bust, but that was also why she married him.
For men: 1) watch out for hot women ! 2) one night in Bangkok doesn’t mean you need to marry her.
2^30 x 0.01 == 2 to the 30th power, multiplied by 0.01
* 2 because doubling
* 30 because it will double 30 times
* multiply 0.01 because you start with a penny
As a software guy for many years, I know that 2^32 is over 4 billion. divide it by 2 (over 2 billion) is 2^31, divide it by 2 again (over 1 billion) is 2^30, divide it by 100 (the same as multiplying by 0.01, the same as moving the decimal two places left) leaves over 10 million.
Or simply remember the fable of the wheat and the chessboard (google it).
Compounding, the 8th wonder of the world (Einstein?)