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  • The 20s are probably the best years of your life.

  • This is when you are introduced to the real world after being a terrible teenager for

  • years.

  • In the next few years, you are going to figure out what you are going to do with the rest

  • of your life.

  • Most people end up ruining their 20s by making horrible financial decisions that will bear

  • on their shoulders for many decades to come, such as student debt, although most people

  • take it when they are still teenagers.

  • Looking back at my life, I knew very little about money because I grew up in a family

  • where my parents didn't care about financial literacy, so I grew knowing very little about

  • money.

  • All they cared about were my grades at school.

  • Guess what happened?

  • I made every financial mistake you can think about?

  • I was naive, and I thought that I am know everything there is to know about money.

  • You can't blame me because no one taught me anything about money, I had to figure everything

  • on my own.

  • There wasn't even such a channel like proactive thinker that would teach me everything I need

  • to know about money.

  • I was on my own, but if I would go back in time, there are a few things I wish I knew.

  • If I knew these things, I would take different financial decisions, and I guess I would have

  • become financially free much sooner.

  • So if you are in your 20s or even a teenager, I think what I am about to share with you

  • is going to be extremely helpful because it's not like when you hit a certain age, you suddenly

  • get better at managing money

  • Aren't there 40 or 50-year-olds who are still doing terrible financially?

  • that's why pay attention because what you are about to learn might be the most important

  • thing you will ever learn.

  • so give this video a thumbs up, and let's get right into it

  • Don't try to do everything on your own 

  • Back then, I use to think that I can do everything on my own.

  • Why do I need a partner when I can outwork everyone?

  • But the reality is, having a partner in any project is going to save a lot of time and

  • mistakes because you always need a co-funder to balance you out.

  • It doesn't matter whether it is a startup, a small business, a YouTube channel.

  • If you can get a partner who is equally interested in that project, work together

  • Yes, of course, you will have to share the profits or the business, but it's better to

  • share a huge pie rather than having a small little pie by yourself

  • No matter how smart or talented you are, you are not perfect, especially in your 20s.

  • You are guaranteed to make a lot of mistakes, so you always need someone besides you to

  • tell you that you are wrong, and vice versa, of course.

  • Every project that I have started with a co-founder has always grown much faster than any project

  • that I did on my own.

  • So don't be selfish and learn how to work with teams.

  • Remember, you are still a kid, and your knowledge is very limited, so always be open to take

  • a look at the opposite side.

  • Of course, you could be right, but you also could be wrong, and being open-minded is going

  • to save you a lot of money and time.

  • 
 2.

  • DON'T BE NAIVE

  • If there is one thing I would tell my younger self is - don't be naive.

  • When you are a 20-year-old college kid, you think that you have figured everything out.

  • You make all these plans only to grow a little up and realize how naive you were and that

  • the world works in a completely different way.

  • Or just because you work hard, you think you deserve more, but when you grow up, you realize

  • that no one cares about how hard you work.

  • What matters at the end of the day is the final outcome

  • No one really cares about your grades.

  • Once you are out there in the workplace, what matters how much you can help the company

  • grow, your grades are the least important thing.

  • I remember how my friends use to take loans just to buy a cool car because that will get

  • them the girls

  • I am not sure how naive you have to be to think like that

  • Maybe there is a small number of girls who would hang out with you just because you a

  • cool car, even if you shouldn't hang out with such girls because all they want at the end

  • of the day is to drain the last dollar out of you

  • All these naive perceptions push you to take horrible financial decisions and unnecessary

  • financial responsibilities, which brings me to point number 3.

  • 
 3.

  • Don't take a financial responsibility you can't afford

  • I have many friends who fell in love in their 20s, got married, and already have kids that

  • go to school.

  • Whenever I talk to them, I really feel old because I don't have kids, neither am I married.

  •  But the problem was that they were not ready for that financially, so right now, they can't

  • save money even though they are no longer in their 20s, but because they have kids and

  • a family to support, every penny they earn goes directly To their day-to-day expenses,

  • and they can't suddenly get rid of their kids and wives

  • And because they have so many responsibilities,

  • the idea of losing that job freaks them out because they might be able to cut some of

  • their expenses, but they can't sacrifice their families for that, so they stick to that job

  • with their lives and are ready to do everything to keep it.

  • They literally pushed themselves into a corner, and now they will probably never leave it

  • for the rest of their lives.

  • They are forever trapped in that paycheck to paycheck lifestyle.

  • When you have a job, your career moves slowly.

  • You don't get promoted every day.

  • You don't even get promoted every year, so whenever you get that little promotion, you

  • slightly improve the quality of your life, which means you start spending more.

  • And if god forbid you overuse that credit card, you will spend your entire life just

  • trying to pay your bills.

  • So think twice before you commit to any serious financial responsibility.

  • 
 


  • 
 4.

  • stay away from money wastersOne of the worst things you can ever do is

  • develop a bad and expensive habit, especially when you are a 20-year-old kid who isn't making

  • a lot of money.

  • First of all, all the extra money you suppose to save and invest, you are going to waste

  • on another pack of cigars, alcohol or gambling, or whatever is your bad expensive habit is.

  • Number two, the opportunity cost of that habit is far bigger than you can possibly imagine

  • An opportunity cost simply means how much that money would worth if you have invested

  • it otherwise.

  • A pack of cigarettes costs around 7 bucks and lets you are a regular smoker, and you

  • smoke a pack a day.

  • That's 210 dollars a month.

  • Let's say you start smoking when you turn 18,

  • If you instead invest that money in the sp500, for example, assuming you will make a 10 percent

  • rate of return, your portfolio will turn into 1.2 million dollars by the time you hit 58.

  • The question is, what's better?

  • Damaged lungs that you have to spend a fortune to recover when you are in your late 50s.

  • In fact, you will never probably entirely recover them no matter how much you spend

  • or 1.2 million dollars of assets?

  • I think the latter is a far better option!

  • Of course, if you are a billionaire, you shouldn't care, but you also shouldn't even watch this

  • video.

  • 
 5.

  • You do not need a lot of money to have fun.

  • We always think that we need to spend money

  • to have fun.

  • While there is some truth to it, but that's not the entire story.

  • Renting a yacht with friends, throwing a huge party or traveling the world while staying

  • in expensive hotels is fun, but there are also plenty of ways to have fun without wasting

  • a fortune, like going for a drink with friends, traveling the world, and staying in cheap

  • Airbnb flats, or playing basketball or soccer with friends.

  • It could be whatever.

  • Some of the best ways I have ever had fun were the times I spent the least amount of

  • money

  • In fact it's not about the money, but rather about the experience you get, how you feel

  • when doing what you are doing.

  • Especially if you have really good friends, then you can have all the fun in the world

  • and barely waste any money.

  • Remember the opportunity cost we have talked about?

  • Even if you can afford to spend a lot of money to have fun, don't!

  • You should rather Invest that money!

  • Remember that as you get older, your expenses will rise!

  • So having more money later in your life is a wiser option!

  • I don't mean that you shouldn't spend anything, there is no point in just keeping money in

  • your bank account, but you also have to be responsible for what you have.

  • 
 


  • There are more points I wanted to include in this video, but I will limit them to 5

  • points.

  • If Guys find this video interesting and helpful, I will definitely make part 2.

  • Anyways, If you have enjoyed this video, you

  • will most definitely enjoy this custom playlist that I have created specifically for you that

  • has our most popular videos on business, investing, and the stock market that can potentially

  • change your life.

  • And now give this video the thumbs up that it deserves, and make sure to subscribe if

  • you haven't done that yet.

  • Thanks for watching and until next. 


The 20s are probably the best years of your life.

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A2 financial naive spend fun financially invest

5 Rules of Money I Wish I Knew at 20

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    Summer posted on 2021/05/01
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