Passionately Wrong Podcast Episode E031
Establishing Good Financial Habits
Key takeaway: Pay attention to small decisions because they add up over time, and use the power of time to your advantage. Imagine your future self, and use that picture to help set goals and guide yourself now. Don’t inflate your expenses as your income grows. Some other mistakes to avoid. And a host of resources that might help you on your way.
Topics covered in this video:
- How to create more disposable income; identify excessive spending
- The importance of saving and investing the money you free up
- Discussion of FIRE (financial independence, retire early) movement
- Why it helps to ask for advice - identifying life goals and thinking about how to get there
- Family needs to be on board with your plans
- Beware lifestyle expansion that will eat up increased earnings
- But don’t let yourself get so frugal that you forget why you saved and invested
- Rather, be thoughtful in your approach to money - it should support your life goals
- The role of social media and comparisons with others
- It is helpful to distinguish between needs and wants
- Debt is counterproductive to financial health (except possibly a mortgage)
- Mistakes: buying things you don’t have the money for right now (i.e. on credit)
- Mistakes: taking too much risk in the hopes of getting rich quickly
- Mistakes: pursuing an unlikely path to wealth (lottery, NFL)
- Real estate investing, passive income,
- Imagining your future self
- Randy’s pending book, Army Rich & other resources
Resources in this video:
The Wise Investor (https://www.amazon.com/gp/product/B09Y3P465L/)
https://realwealth.com/
https://militarymoneymanual.com/
If You Can, How Millennials Can Get Rich Slowly (https://www.etf.com/docs/IfYouCan.pdf)
The Latte Factor (https://www.thelattefactor.com/)
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