7 Money Decisions You’ll Regret in 10 Years

"Person A invests $500 a month and then at the age of 40, they don't invest another penny, but their money continues to compound and grow. Person B doesn't start investing until 40. They invest more money until the age of 65. Well, at 65, person A is going to have around $2.2 million, even though they never invested another dollar after they turn 40. While person B will have a little bit under $650,000 when they turn 65 years old, even though they invested way more dollars."

"If you're paying $750 a month just in your car payment, that means you're paying $9,000 a year for just your car... over the next 10 years, you're going to pay $90,000 in car payments... Here you have a six figure investment account that you can use to buy yourself a brand new car or to help buy your retirement."

"It's an $8,000 purchase with 25% APR and you're financing it because you don't have the $8,000 to pay it off. And now you make the minimum monthly payments or a little bit more than the minimum monthly payments. So you're paying $175 a month. Well, now what's going to happen is you're going to end up paying $17,000 in interest alone. When you add the $17,000 in interest plus the $8,000 of the credit card debt that you acquired, meaning the cost of the trip, that means it's a total cost of $25,000"

"This is why you want to have somewhere between three to 12 months worth of expenses put aside in a savings fund, an emergency fund, a rainy day fund."

"When it comes to the monthly payment, what I like to follow is my 751510 plan, which says for every dollar that I earn from here on out, 75 cents is the maximum that I can spend. 15 cents is the minimum I invest. 10 cents is the minimum that I save. My monthly payment has to be able to be paid out of this 75%."

"Person B doesn't negotiate. So, they just get the average 2% raise. Versus person A says, 'You know what? I'm going to negotiate my salary. And instead of asking for the 2% raise, they're able to negotiate an average 6% raise a year.'... 10 years later, person B after getting this 2% growth a year is going to be making $73,000 a year... But person A is now going to be making $107,000 a year."

"over those 10 years, person A also earned an additional $130,000 over those years through these raises."

"If you make $80,000 a year from your job, you need to make $80,000 a year from your investment income to be able to quit your job and live your life without changing anything you're doing."