I went from a broke student to making a 6 fig salary overnight.
I needed to learn about money FAST.
After reading hundreds of articles and books on finance over the past decade,
here are 15 of the most powerful financial moves I learned:
I needed to learn about money FAST.
After reading hundreds of articles and books on finance over the past decade,
here are 15 of the most powerful financial moves I learned:
1. Automate your investments
This is #1 because it's the most important one for me.
Money that sits in your checking account WILL get spent.
Setting up automatic withdrawals from checking to investment accounts is the best way to get rich.
This is #1 because it's the most important one for me.
Money that sits in your checking account WILL get spent.
Setting up automatic withdrawals from checking to investment accounts is the best way to get rich.
2. Learn about taxes
I was SHOCKED at how much was being taken out of my paycheck before it hit my checking account.
I didn't understand withholding, payroll taxes, or retirement contributions.
Keep up to date on the tax code so you keep more of your money.
I was SHOCKED at how much was being taken out of my paycheck before it hit my checking account.
I didn't understand withholding, payroll taxes, or retirement contributions.
Keep up to date on the tax code so you keep more of your money.
3. Do your taxes
I learned about taxes by doing my own taxes. BY HAND.
Figuring out how all the lines of the tax code interact is the best way to master the tax code.
Once you know this you can feel confident in outsourcing to a pro if necessary.
I learned about taxes by doing my own taxes. BY HAND.
Figuring out how all the lines of the tax code interact is the best way to master the tax code.
Once you know this you can feel confident in outsourcing to a pro if necessary.
4. Make a budget
I used to hate this piece of advice. But it can't be avoided.
A budget allows you to see how much you have coming in and going out.
Knowing this lets you decide how you will deploy your money.
It will also show where you're overspending.
I used to hate this piece of advice. But it can't be avoided.
A budget allows you to see how much you have coming in and going out.
Knowing this lets you decide how you will deploy your money.
It will also show where you're overspending.
5. Use credit cards
Keep scrolling Ramsey fans.
I've saved tens of thousands of dollars in reward points and cash back.
That's tax free savings right back into my pocket.
Pay off the cards on time and in full or you can't participate in this game.
Keep scrolling Ramsey fans.
I've saved tens of thousands of dollars in reward points and cash back.
That's tax free savings right back into my pocket.
Pay off the cards on time and in full or you can't participate in this game.
6. Insure for disaster
The insurance industry seems complicated. That's by design.
The simple purpose of any kind of insurance of to prevent financial catastrophe. That's it.
Get enough insurance to do this and drop it once you can self insure.
The insurance industry seems complicated. That's by design.
The simple purpose of any kind of insurance of to prevent financial catastrophe. That's it.
Get enough insurance to do this and drop it once you can self insure.
7. Invest only in stocks
Stocks have an excellent track record of performance over the long term.
So it makes sense that early in your career you should focus on stocks ONLY.
There simply is no need to have bonds or fixed income until a few years before retirement.
Stocks have an excellent track record of performance over the long term.
So it makes sense that early in your career you should focus on stocks ONLY.
There simply is no need to have bonds or fixed income until a few years before retirement.
8. Fill up tax advantaged accounts
People try to find fancy loopholes to avoid taxes.
But they're missing the most profitable low hanging fruit of them all:
tax advantaged accounts.
Max out your 401k, IRA, and HSA for a few decades and you will be golden.
People try to find fancy loopholes to avoid taxes.
But they're missing the most profitable low hanging fruit of them all:
tax advantaged accounts.
Max out your 401k, IRA, and HSA for a few decades and you will be golden.
9. Build up your emergency fund
Emergency funds need to be liquid and don't need to earn much interest.
That's not the point of it.
Having a healthy emergency fund allows you to be more aggressive with making money and investing.
Emergency funds need to be liquid and don't need to earn much interest.
That's not the point of it.
Having a healthy emergency fund allows you to be more aggressive with making money and investing.
10. Save up for inevitable expenses
People will get married, homes will be renovated and birthdays will keep happening.
These are all predictable expenses that you should save up for.
Going into debt for gifts is a big financial no-no.
People will get married, homes will be renovated and birthdays will keep happening.
These are all predictable expenses that you should save up for.
Going into debt for gifts is a big financial no-no.
11. Buy sensible cars and hang on to them
I don't tell people to get $500 beater cars. I can't imagine having a car I can't rely on.
Get a solid and safe car and take great care of it.
Remember, the more expensive the car the more expensive the maintenance
I don't tell people to get $500 beater cars. I can't imagine having a car I can't rely on.
Get a solid and safe car and take great care of it.
Remember, the more expensive the car the more expensive the maintenance
12. Look for a new job every 3 years
Companies are looking after their bottom line. And so should you.
The quickest way to boost your income is by getting offers from competitors.
Do your due diligence of course, but always keep your eyes open for other opportunities.
Companies are looking after their bottom line. And so should you.
The quickest way to boost your income is by getting offers from competitors.
Do your due diligence of course, but always keep your eyes open for other opportunities.
13. Keep on learning
There is always something new to learn in the world of personal finance.
New levels of income mean new considerations for investing and tax savings.
A great investing book to start with is The Simple Path to Wealth.
There is always something new to learn in the world of personal finance.
New levels of income mean new considerations for investing and tax savings.
A great investing book to start with is The Simple Path to Wealth.
14. Forget the Joneses
Our consumer society thrives on FOMO.
Seeing what other people are driving or where they're traveling can make you do dumb things.
Most people are broke, in debt, and have no chance of reaching financial freedom.
Focus on your journey.
Our consumer society thrives on FOMO.
Seeing what other people are driving or where they're traveling can make you do dumb things.
Most people are broke, in debt, and have no chance of reaching financial freedom.
Focus on your journey.
15. Stay away from debt
Unless you're buying an asset, there is no need to get into debt.
There are so many ways to get into debt nowadays. The temptation is strong.
But your financial future depends on you staying debt free.
Unless you're buying an asset, there is no need to get into debt.
There are so many ways to get into debt nowadays. The temptation is strong.
But your financial future depends on you staying debt free.
Access the Money Mastermind to get expert advice by 30 of the best writers on Money Twitter.
Over 100 topics.
Yes this includes crypto nodes:
gumroad.com
Over 100 topics.
Yes this includes crypto nodes:
gumroad.com
Loading suggestions...