Name: The most powerful way to think about money | Paula Pant
Uploaded: 2022-11-01T18:25:28.000Z
Duration: 6 min 44 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

- Every choice that you make comes with a trade-off.

Money is an invitation to critical thinking.

You can afford anything, but not everything.

You just can't have an endless series of ands.

You might not be able to have that thing and something else

And that doesn't just apply to your money.

your energy, your attention - any limited resource.

And life is the ultimate limited resource.

So when you practice being better at managing your money,

you practice being better at managing your life.

I am the host of the "Afford Anything Podcast."

I want to help you reach financial independence

by making smarter decisions with your money.

The mistake that I see a lot of people make

is that oftentimes people will ask a question

First-principles thinking is stripping away everything

and really getting to the root of something.

the tactics and the products are like the leaves of a tree.

so, of course, it's what people might ask about first.

But first, let's start with the roots of that tree.

And then from those roots stem that trunk of the tree,

From there, you go out into the branches of the tree,

Now that you know your philosophy of living,

you know your goals, now you can come up with strategies

And then once you have that strategy in place,

then those leaves are the tactics and the products.

about tactic or product, you've got a leaf in your hand,

but you don't have that root system built yet.

so that you can have more money when you're 75 years old,

it's really hard to get excited about that.

But when we reframe that as financial independence

FI is the point at which your potential passive income -

money that comes to you when you're sleeping,

is because then endless options open up for you.

You have the freedom to do whatever you want -

whether that's to stay in your current profession,

make a midlife career change, become a full-time parent,

or travel the world. Whatever choice you want to make,

you're able to make that without having to sweat

about how you're gonna keep the lights on,

how you're gonna keep the fridge stocked.

but the first steps that you are going to take will differ

depending on where you are in your journey.

between what you earn and what you spend.

And there are only two ways to increase that gap:

like me when I was in my first job out of college

at that stage of life, your goal is to increase your income.

the low-hanging fruit is to curb that spending problem

and to address the root psychological issues

that are leading to that spending problem.

My personal feeling is that everyone should aim

to save and invest at least 20% of their income.

Subtitles ListPlay Video

The most powerful way to think about money | Paula Pant

depression

pandemic

strategy

practice