I asked 15 millionaires "What’s your best money advice?"
Here are 15 tips for building wealth & becoming better with money:
1) Get your credit score in order. Having a good credit score makes life easier & will save you thousands in interest (when you borrow money)
🧵2-15:
Here are 15 tips for building wealth & becoming better with money:
1) Get your credit score in order. Having a good credit score makes life easier & will save you thousands in interest (when you borrow money)
🧵2-15:
1) The higher your credit score, the more likely you'll be approved for a loan.
Your score helps lenders assess how much of a risk you are, in terms of paying back your line of credit.
If you are high-risk, you will have a hard time finding a lender to let you borrow money.
Your score helps lenders assess how much of a risk you are, in terms of paying back your line of credit.
If you are high-risk, you will have a hard time finding a lender to let you borrow money.
2) Always consider opportunity cost. If you make $20/ hour:
• that night out isn't $300, it's 15 hours of your time, or 2 days of work
• that car isn't $50,000, it's 2,500 hours of your time, or 357 days of work
Time is your most valuable asset so don't waste it
• that night out isn't $300, it's 15 hours of your time, or 2 days of work
• that car isn't $50,000, it's 2,500 hours of your time, or 357 days of work
Time is your most valuable asset so don't waste it
3) Who you choose to marry is one of the most significant financial decisions of your life.
A mistake can cost you a lot of money.
Making the wrong decision can cost you time, peace and legal fees.
A mistake can cost you a lot of money.
Making the wrong decision can cost you time, peace and legal fees.
4) Surround yourself with mindsets that help you grow, not hold you back.
Create a network of friends who discuss opportunities to make money, not just spend it.
Create a network of friends who discuss opportunities to make money, not just spend it.
5) Real estate is a great investment vehicle. Renting only provides shelter, but owning provides numerous benefits such as:
• Build equity
• Provide tax incentives
• Create cash flow that will increase your income
• Appreciate in value which will increase your net worth
• Build equity
• Provide tax incentives
• Create cash flow that will increase your income
• Appreciate in value which will increase your net worth
6) Don't buy "too much" house!
If you take on too high of a mortgage payment and fall behind, you risk foreclosure.
If you take on too high of a rent payment, and can't keep up, you risk eviction.
You could end up homeless from overspending on housing.
If you take on too high of a mortgage payment and fall behind, you risk foreclosure.
If you take on too high of a rent payment, and can't keep up, you risk eviction.
You could end up homeless from overspending on housing.
7) A car is a depreciating asset.
If your car payment is higher than your credit score, you don't need it.
Don't overspend on an expensive car, just to drive it to a job you hate.
If your car payment is higher than your credit score, you don't need it.
Don't overspend on an expensive car, just to drive it to a job you hate.
8) You can't “save” yourself to wealth, you must invest
Every day your money sits in a bank, you are losing money
With inflation over 8%, you lose half the value of your cash in 10 years
The richest 10% of Americans own 90% of all stocks, & the bottom 90% own 10% of all stocks
Every day your money sits in a bank, you are losing money
With inflation over 8%, you lose half the value of your cash in 10 years
The richest 10% of Americans own 90% of all stocks, & the bottom 90% own 10% of all stocks
9) If you don't know where to start investing, buy an Index Fund that tracks the S&P 500
You can have over $1.3 million when you are 60 if you invest $100 a week ($400 a month) into an S&P 500 index fund at 25, which historically earns about 11% ear year, on average
You can have over $1.3 million when you are 60 if you invest $100 a week ($400 a month) into an S&P 500 index fund at 25, which historically earns about 11% ear year, on average
10) Health is wealth.
Many costly problems are caused by poor sleep, lack of exercise or bad nutrition.
Medical bills are expensive and can add up.
Many costly problems are caused by poor sleep, lack of exercise or bad nutrition.
Medical bills are expensive and can add up.
11) Establish an emergency fund to cover 3-6 months of living expenses for unexpected events
Everyone needs an emergency fund so they have access to money in a pinch.
The best option for an emergency fund is a High Yield Savings Account, you earn interest while the money sits
Everyone needs an emergency fund so they have access to money in a pinch.
The best option for an emergency fund is a High Yield Savings Account, you earn interest while the money sits
12) Budget to know where your money goes, and make a plan to reduce expenses
Creating a budget will help you better track your money
Not having a budget can make it difficult to know where you are spending your money, or difficult to have control over your spending in general
Creating a budget will help you better track your money
Not having a budget can make it difficult to know where you are spending your money, or difficult to have control over your spending in general
13) Pay off & eliminate high-interest debt.
Consumer debt delays wealth creation & hurts your ability to invest in your future.
Consumer debt robs you of your future, because you are using the money you earn today to pay, off things from your past.
Consumer debt delays wealth creation & hurts your ability to invest in your future.
Consumer debt robs you of your future, because you are using the money you earn today to pay, off things from your past.
14) Avoid lifestyle creep.
Because you start making more money, doesn’t mean you should spend more money.
Making more money doesn't fix poor spending habits.
Increasing your lifestyle expenses without increasing your income will causes expenses to build up in the long run.
Because you start making more money, doesn’t mean you should spend more money.
Making more money doesn't fix poor spending habits.
Increasing your lifestyle expenses without increasing your income will causes expenses to build up in the long run.
15) Invest for your retirement. Retirement isn't an age, it’s a number in an investment account.
Investing for 20 years may be hard, but being old & broke will be a lot harder.
Investing for 20 years may be hard, but being old & broke will be a lot harder.
15) A Roth IRA is a very powerful way to save for retirement and allows your money to grow tax-free.
With a Roth IRA, you are not taxed on capital gains or dividends while your investments grow in the account, and are not taxed when you make a withdrawal at retirement.
With a Roth IRA, you are not taxed on capital gains or dividends while your investments grow in the account, and are not taxed when you make a withdrawal at retirement.
15) For example, if you invested $10,000 in an S&P index fund and contributed $10,000 a year for 20 years, you would have invested a total of $210,000 cash, but this amount would have grown to $793,275 based on the S&P 500’s historical records of an 11% rate of return compounded
The secret to building wealth is not about how much you make, it’s about how much you save & invest:
• Find ways to increase income (with investments, side hustles/ side business)
• Find ways to spend less than you earn (by being frugal/ budgeting)
• Invest the difference
• Find ways to increase income (with investments, side hustles/ side business)
• Find ways to spend less than you earn (by being frugal/ budgeting)
• Invest the difference
THIS ACCOUNT WAS CREATED TO HELP YOU BECOME A MILLIONAIRE!!!
If you found this thread🧵helpful:
• Follow me @FluentInFinance to learn more
• 🔁RT the FIRST tweet for the algorithm
• Sign-up for my FREE newsletter to learn what schools didn't teach: FluentInFinance.Substack.com!
If you found this thread🧵helpful:
• Follow me @FluentInFinance to learn more
• 🔁RT the FIRST tweet for the algorithm
• Sign-up for my FREE newsletter to learn what schools didn't teach: FluentInFinance.Substack.com!
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