My Worst Financial Mistake (The #1 Wealth Killer)
Published: 2024-04-24
Status:
Available
|
Analyzed
Published: 2024-04-24
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
The speaker has identified six key financial pitfalls based on extensive research into 'doom spending' articles.
"I've literally read through every single article that I could find on these topics and I've broken them down into six categories that'll absolutely destroy your money if you aren't careful"
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A significant percentage of Millennials and Gen Z have abandoned saving due to a perceived futility in achieving major financial goals like homeownership or debt repayment.
"43% of Millennials and 35% of gen Z has basically given up on the idea of saving any money because the concept of buying a house or a car or paying off any debts seems completely pointless"
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A substantial majority of Millennials are reportedly living paycheck to paycheck, contributing to a 'doom spending' mentality.
"it's now reported that at 73% Millennials are the most likely generation to live paycheck to paycheck"
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The ability to achieve the initial $10,000 in savings is presented as a foundational indicator for eventually reaching $1 million.
"if you have what it takes to make the first $10,000 then you also have what it takes to make your first million doll"
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Achieving the first $100,000 requires extreme discipline and sacrifice, implying significant effort is needed to accumulate this initial sum.
"the first $100,000 is a but you got to do it I don't care what you have to do if it means walking everywhere and not eating anything that wasn't purchased with a coupon find a way to get your hands on $100,000"
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A realistic timeframe for saving $10,000 is suggested to be one year.
"when it comes to saving something like $10,000 give yourself a year to do it"
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Utilizing money tracking websites is recommended for identifying unnecessary expenses by providing real-time visibility into financial outflows.
"sign up for any one of those money tracking websites that Aggregates all of your information together links your bank accounts and credit cards and then it shows you in real time how much money is going into and out of your bank account"
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Investing $10,000 annually with an assumed 7% market return can lead to accumulating $100,000 in approximately 7.84 years.
"if you're able to save an extra $10,000 a year and you invest that into the markets which historically has generated a 7% return in 7.84 years you'll have your $100,000"
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Continuing to save $10,000 annually and invest it with historical market returns demonstrates an accelerating timeline for accumulating subsequent $100,000 increments, with the final $100,000 to reach $1 million taking only 2.5 years.
"from there if you just keep doing the exact same thing and you keep saving just $10,000 a year you'll be able to reach that next $100,000 in just 5.1 years then again if you just stay the course you'll make another $100,000 in only 3.78 years and another $100,000 in 3 years after that and another $100,000 in 2 and2 years after that"
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Saving approximately $28 per day is projected to result in accumulating $100,000.
"if you could just save an extra $28 a day and do that on a regular basis you'll have your first $100,000"
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Regular exercise is associated with a roughly 9% increase in employee earnings.
"employees who exercise regularly earn approximately 9% more than those who do not"
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Exercise positively impacts energy, focus, mood, and motivation, providing a competitive advantage for career advancement.
"regular exercise was found to improve energy Focus mood and motivation so if you want a life advantage to getting ahead this is it"
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Building a strong credit score is essential for financial success and leveraging the financial system to one's advantage.
"if you want to win the game of money you got to play the game of money this means building your credit score as soon as possible and then use it to your advantage"
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A good credit score secures lower interest rates on loans (mortgages, car loans) and improves rental application success.
"the people with good credit scores get the lowest interest rates when they want to apply for a mortgage or get a car or even get accepted on a rental"
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A good credit score can also lead to savings on utility deposits.
"it might even help them save money putting down on deposits with utility companies"
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A strategy for building credit involves using a no-annual-fee credit card for regular, small expenses and paying the balance in full monthly.
"open up a no annual fee credit card like the Discover It secured put a few minor expenses on the card every single month that you'd be spending anyway and then pay off the card in full"
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Consistently using credit cards responsibly and paying them off for approximately two years can establish a solid credit score with multiple positive trade lines.
"within about 2 years of doing that and paying it off on time in full always no matter what you'll have a whole bunch of positive trade lines on your report and by doing so you'll probably have a pretty decent credit score"
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The responsible use of credit is about securing better rates on necessary purchases, not about accumulating debt for non-essential items.
"it's not about borrowing money to buy stupid stuff you don't need and wasting it it's simply about taking advantage of the credit system to be able to get the lowest rates possible"
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Failing to build credit at a younger age (18) resulted in missing out on significant wealth accumulation, estimated at potentially another million dollars, by not leveraging investment opportunities in real estate when prices were much lower.
"without exaggeration hadn't not been stubborn and actually done this when I was 18 years old I could have easily had made another million dollar because I would have leveraged my money during a time where real estate was trading at 1 the value it is today"
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The speaker realized they lacked self-directed time management skills due to a lifetime of structured environments.
"it took me about a week to realize like wait a second I don't know how to manage my own time without someone else telling me what to do"
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Achieving personal goals requires self-initiative and decision-making, as external support for taking risks and pursuing dreams is limited.
"if there's something I want to go after it's up to me to be able to make that happen it's on me to make those decisions for myself"
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A fundamental mindset shift occurs when the discomfort of making changes becomes less daunting than the regret of not achieving desired life outcomes, making the necessary sacrifices feel more palatable.
"once the pain of changing becomes less unbearable than the pain of ever achieving what you actually want out of life the price you pay seems cheap"
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When considering new ventures, the speaker assesses the worst-case scenario and its likelihood, often concluding that the risk is minimal and acceptable.
"anytime I'm thinking about a new Venture I think to myself what's the worst case scenario How likely is that to happen and probably it's never going to happen anyway so it doesn't matter"
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It is possible to pursue opportunities and take calculated risks while simultaneously implementing strategies to limit potential negative outcomes.
"there are ways for you to pursue what you want and try different things while limiting the downside"
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Overcoming initial reluctance to engage in new experiences or opportunities often leads to positive retrospective feelings of satisfaction.
"every single time you push yourself to do something you didn't want to do you look back at it and you're always glad you did"
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Early in a career, actively engaging with new people and opportunities is crucial as it can lead to unforeseen advancements, connections, and offers.
"especially when you're starting out in a career you never know where the next big opportunities will come up who you'll be able to meet or what you'll get offered"
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