Banks make money from the lower class through fees and interest,
Borrow money from the middle class for free,
And then lend it to the upper class, so that they can become even more wealthy.
Society is built on getting you into debt.
- $50,000 weddings
- $500,000 mortgages
- $500 monthly car payments
- $50,000 in student loans
are all seen as normal.
In reality, they're all just ways to get you to work forever while not being able to buy assets for the future.
I've read several personal finance books.
Here are the lessons I've learned:
- Spend less than you earn and invest the difference
- Avoid credit card interest
- Build an emergency fund
- Passive income will make you financially independent
Most problems we have are rooted in making the wrong decisions in the past:
- Credit card debt
- No savings/investments
- Health problems
- Being at a job too long
You can't change the past, but your decisions today can improve your future.
Most people don't understand the true value of money and that they're constantly being advertised to.
This is a terrible combination for their finances.
When you're constantly being advertised to, and you don't have any control over your money, you're going to spend everything you earn on things you don't even need.
A lot of my clients have had this issue in the past.
Think about how many apps there are to buy food on your phone.
If those apps didn't exist, you'd probably buy groceries and cook at home.
And now there's an app for everything.
You can buy whatever you want and have it delivered to your house.
This is why financial literacy is more and more important as time goes on and technology improves.
One of the reasons why older generations were able to save more easily was that they spent less on garbage.
They couldn't just pull out their cell phone and buy $300 worth of some random piece of trash on impulse.
Today, impulse decisions cost Americans, on average, just under $20,000 per year 🤯
I'm not surprised so many people have a problem with debt.
The average person is willing to spend 20+ hours a week watching TV, but isn't willing to spend 10 minutes learning how money works.
Financial illiteracy combined with watching ads all day is a dangerous combination.
I've watched a few podcasts on the topic; I don't know this for a fact!
To all my Muslim friends who are not able to invest because interest is haram (usury):
BITCOIN IS CONSIDERED HALAL.
Bitcoin is an asset that maintains or grows its purchasing power over time because of scarcity, not because of theft.
Learn how money works, and how to make your money multiply, or you will work your entire life for it.
If you don't believe something is possible, you won't take the steps required to make it happen.
That's why,
"Whether you think you can or you can't, you're right." - Henry Ford
Boring decisions to make:
- Invest in index funds
- Cut expenses
- Increase income
- Don't overspend on shelter
- Buy a cheap car
- Learn about money and Bitcoin
These decisions are hard to make in the moment, but you won't regret the difference they'll make over a few years.
Take care of your body now so you won't have to worry about your health when you're older.
Invest now so you have a chance to retire when you're older.
Be frugal now so you won't have to save every penny to make ends meet when you're older.
Unpopular opinion:
Buying a rental is a lot more work than people say it is, and it involves a lot more risk than most other investments.
Apple has more cash on its balance sheet than the market value of all the bitcoin on exchanges right now 🤯
Being right is a terrible teacher:
It enforces your views and makes you think you know more than you do.
Being wrong is a great teacher:
It makes you question your beliefs and gives you a reason to change your mindset.
Experiences get better as you get older
Material things fade away
Spend your money wisely on what you think you will value over the next few decades