I've lost at least $75,539 investing in dumb shit.
And I mean D.U.M.B. with a capital D.
Here are...
22 wealth concepts I wish I knew in my 20s ⤵️
And I mean D.U.M.B. with a capital D.
Here are...
22 wealth concepts I wish I knew in my 20s ⤵️
1/ PASSIVE INCOME... doesn't exist.
For every:
• dividend blue chip
• rental property
• IP (e.g. book/album)
There's:
• 1000s of employees
• a landlord
• distribution channels
You may own a piece of it... but someone, somewhere is working to keep it going. That's risk.
For every:
• dividend blue chip
• rental property
• IP (e.g. book/album)
There's:
• 1000s of employees
• a landlord
• distribution channels
You may own a piece of it... but someone, somewhere is working to keep it going. That's risk.
2/ You can't GET rich investing.
Sure, you can multiply and compound what you have...
But 100% returns on $10 is still... $10 in profit.
That will maybe buy you a lunch today.
Unfortunately, yes, you do need money to make money.
Here's how to start...
Sure, you can multiply and compound what you have...
But 100% returns on $10 is still... $10 in profit.
That will maybe buy you a lunch today.
Unfortunately, yes, you do need money to make money.
Here's how to start...
3/ To build SEED MONEY for investing...
You can either save money or borrow it.
Obvs, if you have no idea what you're doing... don't borrow.
And if you're stuck in a job that doesn't pay you enough to save... you need to fix that.
The best way to do that is...
You can either save money or borrow it.
Obvs, if you have no idea what you're doing... don't borrow.
And if you're stuck in a job that doesn't pay you enough to save... you need to fix that.
The best way to do that is...
4/ Build a skillset that can pay you 150-250k/year at least.
High $$$ skills you can learn w/o drowning in school debt:
• Sales
• Coding
• JV Deals
• Marketing
• Copywriting
You'll note 4/5 skills above make rich people richer. <- INSIGHT
High $$$ skills you can learn w/o drowning in school debt:
• Sales
• Coding
• JV Deals
• Marketing
• Copywriting
You'll note 4/5 skills above make rich people richer. <- INSIGHT
5/ Once you have a high income coming in, the formula is:
High Income - Low Expenses = Investing Capital
This is basically the entire FI/RE movement (Financial Independence, Retire Early).
If you make 200k, but live frugally on 30k... you're putting away 170k/yr.
High Income - Low Expenses = Investing Capital
This is basically the entire FI/RE movement (Financial Independence, Retire Early).
If you make 200k, but live frugally on 30k... you're putting away 170k/yr.
6/ What do you invest in?
BORING SHIT.
Do NOT invest in...
• your friend's biz
• penny stocks
• a fuckin' film
• small caps
• crypto
DO invest in...
• Blue Chip Dividend Stocks
• S&P 500 Index Funds
• Old People "Bonds"
BORING SHIT.
Do NOT invest in...
• your friend's biz
• penny stocks
• a fuckin' film
• small caps
• crypto
DO invest in...
• Blue Chip Dividend Stocks
• S&P 500 Index Funds
• Old People "Bonds"
7/ Until you've hit your "magic number"...
A number that will pay for all your expenses so you don't have to work...
Do BORING. Stay BORING. Keep BORING.
BORING: utilities, telecomms, banks.
A number that will pay for all your expenses so you don't have to work...
Do BORING. Stay BORING. Keep BORING.
BORING: utilities, telecomms, banks.
8/ Investing in BORING means you can ignore it...
So you can keep improving your high $$$ skillz...
So you can keep making more $$$ to invest...
At this stage, investing should NOT be exciting.
You have limited bandwidth.
So you can keep improving your high $$$ skillz...
So you can keep making more $$$ to invest...
At this stage, investing should NOT be exciting.
You have limited bandwidth.
9/ What's your "magic number"?
• Add up your annual personal expenses
• Multiply by 20
• That's your "magic number"
Your "magic number" assumes you can make 5%/year in interest/dividends to pay your living expenses.
e.g. $1M @ 5% = $50k/year
• Add up your annual personal expenses
• Multiply by 20
• That's your "magic number"
Your "magic number" assumes you can make 5%/year in interest/dividends to pay your living expenses.
e.g. $1M @ 5% = $50k/year
10/ You'll note that $1M doesn't include your home equity.
Home equity doesn't make you money.
I wouldn't go so far as Kiyosaki to say it's a "liability"...
But that "paper wealth + constant repairs/renos + crushing mortgage" sure feels like it.
Home equity doesn't make you money.
I wouldn't go so far as Kiyosaki to say it's a "liability"...
But that "paper wealth + constant repairs/renos + crushing mortgage" sure feels like it.
11/ Once you've hit your "magic number", THEN you can invest in speculative stuff.
The kind of shit where you lose money 19 out of 20 times... but that one time makes a gajillion percent returns.
Yes, the rich get richer.
Going back to High $$$ Skillz...
The kind of shit where you lose money 19 out of 20 times... but that one time makes a gajillion percent returns.
Yes, the rich get richer.
Going back to High $$$ Skillz...
12/ Self-employment (freelancing/contracting) is still EMPLOYMENT.
You are still getting paid for your time.
It doesn't matter if you're charging $250/hr or $2,500/hr... you're still on the clock.
But also...
You are still getting paid for your time.
It doesn't matter if you're charging $250/hr or $2,500/hr... you're still on the clock.
But also...
13/ Stop thinking this high $$$ skill is your "passion".
The sooner you stop thinking it will give you purpose, the better.
It's a high-paid job. That's it.
Otherwise, you'll run into a wall when your "passion" stops being one.
It always runs out.
The sooner you stop thinking it will give you purpose, the better.
It's a high-paid job. That's it.
Otherwise, you'll run into a wall when your "passion" stops being one.
It always runs out.
14/ I hate this maxim b/c it's true:
The best time to build a list was ten years ago. The second best time is today.
I wish I started building my own assets way earlier.
But I didn't. So boo hoo, I'm starting now.
The best time to build a list was ten years ago. The second best time is today.
I wish I started building my own assets way earlier.
But I didn't. So boo hoo, I'm starting now.
15/ 80% of the "how to" courses you buy will be either...
• junk
• shelved, or
• irrelevant to you
It's far better to go thru one course 10X and implement like mad, than buy another one.
• junk
• shelved, or
• irrelevant to you
It's far better to go thru one course 10X and implement like mad, than buy another one.
16/ If you must buy courses, look for ones where you get ACCESS.
Access to...
• the teacher
• a community
• a coaching group
You want access that gets you MORE access.
Access to potential clients, connections, other mentors.
The riches are in PEOPLE. (and banana stands)
Access to...
• the teacher
• a community
• a coaching group
You want access that gets you MORE access.
Access to potential clients, connections, other mentors.
The riches are in PEOPLE. (and banana stands)
17/ Solopreneuring only gets you so far.
You don't truly build until you form a team.
A team btw, isn't like-minded individuals getting together.
A team is different individuals who know their exact role on the team, and each one doing their unique, specific job well.
You don't truly build until you form a team.
A team btw, isn't like-minded individuals getting together.
A team is different individuals who know their exact role on the team, and each one doing their unique, specific job well.
18/ I have a three partners
We're four very different people
Save one, I don't think we'd be close friends outside of business
But I love each one of them and trust them with my family
In other words, friends ≠ partners
Every time I started stuff with friends, I've failed
We're four very different people
Save one, I don't think we'd be close friends outside of business
But I love each one of them and trust them with my family
In other words, friends ≠ partners
Every time I started stuff with friends, I've failed
19/ If you're 20-smth now, work on your BLACK SWANS now
Black Swans = those crazy creative bets: a novel, an album, a film.
Put in 10-15hrs a week at least. Who knows? Maybe that crazy bet pays off. Or it doesn't.
But you'll at least gotten that out of your system. Unlike me.
Black Swans = those crazy creative bets: a novel, an album, a film.
Put in 10-15hrs a week at least. Who knows? Maybe that crazy bet pays off. Or it doesn't.
But you'll at least gotten that out of your system. Unlike me.
20/ I will say this:
Thank GOD I never cared about materialistic things or luxury identifiers.
• I wear hoodies and jeans
• I drive a 2010 Prius
• I don't drink
The only splurge I have are trips to Europe/Asia with my family. That's worth every penny.
Thank GOD I never cared about materialistic things or luxury identifiers.
• I wear hoodies and jeans
• I drive a 2010 Prius
• I don't drink
The only splurge I have are trips to Europe/Asia with my family. That's worth every penny.
21/ There are certain discretionary expenses that are ALWAYS worth it:
• Outsourcing chores (e.g. cleaning)
• Experiences with loved ones
• Investing in friends/kids
All those CDs, DVDs, board games, RPGs, junk I've collected? Hit or miss.
• Outsourcing chores (e.g. cleaning)
• Experiences with loved ones
• Investing in friends/kids
All those CDs, DVDs, board games, RPGs, junk I've collected? Hit or miss.
22/ THE LONG GAME
I may have lost at least 75k+ on dumb shit, but...
Fortunately, I've made more than I lost.
Investing is a lifetime game.
It doesn't end... even after you die.
Your kids have to deal with your estate & will.
I may have lost at least 75k+ on dumb shit, but...
Fortunately, I've made more than I lost.
Investing is a lifetime game.
It doesn't end... even after you die.
Your kids have to deal with your estate & will.
I hope that was helpful to you.
I usually write threads on human behavior, marketing, and "practical spirituality".
If you want more of my stuff...
1. Follow me @colinyjchung
2. Retweet the first tweet below and help others avoid making the same expensive mistakes I did
I usually write threads on human behavior, marketing, and "practical spirituality".
If you want more of my stuff...
1. Follow me @colinyjchung
2. Retweet the first tweet below and help others avoid making the same expensive mistakes I did
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