Education
Self-improvement
Finance
Personal Development
Self Improvement
Personal Finance
Wealth Management
I studied personal finance for 11,923 hours so you don’t have to.
These are the 11 biggest mistakes you need to avoid:
These are the 11 biggest mistakes you need to avoid:
1. Comparing yourself to others
Stop looking at how rich someone else is - you don't know their background.
Instead, focus on your own path to wealth:
- Set goals
- Track progress
- Review your results
Comparison is the thief of joy.
Stop looking at how rich someone else is - you don't know their background.
Instead, focus on your own path to wealth:
- Set goals
- Track progress
- Review your results
Comparison is the thief of joy.
2. Being penny wise and pound foolish
Don't save pennies by buying cheap food, cheap education, and cheap financial advisors.
Sometimes it's better to spend a little more money today because you'll save $1,000's in the future.
Everything has an opportunity cost.
Don't save pennies by buying cheap food, cheap education, and cheap financial advisors.
Sometimes it's better to spend a little more money today because you'll save $1,000's in the future.
Everything has an opportunity cost.
3. Buying too much living space
New home prices increased by 106% over the last 2 decades.
Living space is 2x larger per person.
Yet, people spend most of their time in:
- The kitchen
- The bedroom
- The family room
Don't waste money on space you don't need.
New home prices increased by 106% over the last 2 decades.
Living space is 2x larger per person.
Yet, people spend most of their time in:
- The kitchen
- The bedroom
- The family room
Don't waste money on space you don't need.
4. Not negotiating salary
70% of managers expect you to negotiate your salary.
They will wait for you to make the first move.
How to negotiate your salary:
- Have a plan
- Know your value
- Demonstrate your wins
Never accept your starting offer, always aim for more.
70% of managers expect you to negotiate your salary.
They will wait for you to make the first move.
How to negotiate your salary:
- Have a plan
- Know your value
- Demonstrate your wins
Never accept your starting offer, always aim for more.
5. Timing the market
If you think you can beat the market - you're wrong.
A $10,000 investment would be worth ~ $22,000 if left invested from 2000 to 2014.
If you missed the 10 best days, it would be worth ~ $11,000.
The best strategy?
Buy and hold.
If you think you can beat the market - you're wrong.
A $10,000 investment would be worth ~ $22,000 if left invested from 2000 to 2014.
If you missed the 10 best days, it would be worth ~ $11,000.
The best strategy?
Buy and hold.
6. Looking for a get-rich-quick scheme
There is no such thing as a "get-rich-quick" scheme.
Build wealth by:
- Using index funds
- Consistently investing
- Investing for the long-term
Reminder: You won't achieve overnight results.
There is no such thing as a "get-rich-quick" scheme.
Build wealth by:
- Using index funds
- Consistently investing
- Investing for the long-term
Reminder: You won't achieve overnight results.
7. Not starting a business
66% of millionaires own their own business.
There's a reason why so many millionaires choose entrepreneurship over employment:
They are their own boss.
Live your life without limits and build a lasting empire today.
66% of millionaires own their own business.
There's a reason why so many millionaires choose entrepreneurship over employment:
They are their own boss.
Live your life without limits and build a lasting empire today.
8. Loaning money to friends
Over 50% of friendships end because of money.
Here's why you should never loan money to friends:
- You may need the money
- You probably won't get paid back
- Asking for repayments is awkward
Like water and vinegar, friends and money don't mix.
Over 50% of friendships end because of money.
Here's why you should never loan money to friends:
- You may need the money
- You probably won't get paid back
- Asking for repayments is awkward
Like water and vinegar, friends and money don't mix.
9. Decreasing spending and not increasing income
Decreasing spending is limited.
Increasing income is unlimited.
How to increase income:
- Switch jobs
- Start a side hustle
- Take a second job
Focus on growing your income.
Decreasing spending is limited.
Increasing income is unlimited.
How to increase income:
- Switch jobs
- Start a side hustle
- Take a second job
Focus on growing your income.
10. Buying new cars
Most new cars lose up to 60% of their value 5 years after you first purchase them.
Millionaires buy used cars because:
- They are cheaper
- They've already depreciated
- They can invest the "saved" money
Don't invest in negative returns.
Most new cars lose up to 60% of their value 5 years after you first purchase them.
Millionaires buy used cars because:
- They are cheaper
- They've already depreciated
- They can invest the "saved" money
Don't invest in negative returns.
11. Buying on emotion
Decisions are often driven by emotion, not by logic.
How emotions drive your purchases:
- Wants fun
- Needs validation
- Wants to feel good
Have a plan prepared before you buy something.
Decisions are often driven by emotion, not by logic.
How emotions drive your purchases:
- Wants fun
- Needs validation
- Wants to feel good
Have a plan prepared before you buy something.
Thanks for reading!
This account exists to help you build a better financial future.
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This account exists to help you build a better financial future.
Want more actionable advice?
Get exclusive content that I only share with my email subscribers 👇
themillennialmoneywoman.com
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