10 Worst Money Mistakes of My 20s (so far…)
Summary
TLDRThe speaker candidly shares their top 10 financial mistakes made during their 20s, offering valuable lessons for viewers. From neglecting salary negotiations and underutilizing 401k benefits to abandoning old retirement accounts and cash hoarding, the script serves as a cautionary tale. It emphasizes the importance of investing early, avoiding impulse purchases, and the power of compound interest, advocating for financial automation as a key to consistent wealth growth.
Takeaways
- 📚 Learning from mistakes is crucial, and we can also learn from the mistakes of others, such as the story of the dog left in the dark.
- 🎓 The 20s are a pivotal time for financial independence and making decisions that can significantly impact one's financial future.
- 💼 The importance of negotiating salaries from the start of one's career, as it sets the tone for future earnings and promotions.
- 🚫 The mistake of not understanding or utilizing a 401k early on, missing out on employer matches and the benefits of pre-tax contributions.
- 💡 The risk of 'abandoning' old 401k accounts when changing jobs, which can leave significant amounts of money unattended.
- 💰 The downside of stockpiling cash without investing it, especially considering the impact of inflation on cash reserves.
- 🏦 The realization of the power of compound interest and the importance of starting to invest early, regardless of the amount.
- 🛍️ The pitfalls of impulse shopping and treating shopping as a form of entertainment, which can lead to unnecessary spending.
- 🧐 The need to avoid obsessing over small expenses, especially during vacations, and instead focus on creating memorable experiences.
- 📈 The poor decision of making uneducated investments, such as stock picking and investing in crypto without a diversified portfolio.
- 🔒 The lack of diversification in investments, particularly holding too much company stock, which can be risky if the company performs poorly.
- 🤖 The benefits of automating finances, including consistent savings and investments, and the avoidance of late fees and interest.
- 🔄 The ongoing journey of financial health, which involves continuous learning and adapting to make better financial decisions.
Q & A
What is the main message of the video about financial mistakes?
-The main message of the video is to share the speaker's personal financial mistakes made in their 20s and to provide lessons learned from those experiences, emphasizing the importance of learning from both personal and others' mistakes.
Why is the 401k mentioned as a significant financial tool in the video?
-The 401k is highlighted as a significant financial tool because it is a retirement account sponsored by employers, allowing contributions pre-tax, which can lower tax payments for the year, and often includes employer matching contributions, essentially free money for employees.
What is the problem with abandoning old 401k accounts?
-Abandoning old 401k accounts is problematic because it results in lost opportunities for investment growth and compound interest. It's like leaving money behind, which can add up to a significant amount over time.
How does the video address the issue of cash stockpiling?
-The video addresses the issue of cash stockpiling by explaining that holding large amounts of cash in checking or savings accounts can lead to a loss of value due to inflation, and instead, investing that money can help hedge against inflation and grow wealth over time.
What is the importance of compound interest in the context of the video?
-Compound interest is important in the video as it illustrates the power of investing early and consistently. The earlier and more regularly one invests, the more time there is for the investment to grow and compound, leading to significant wealth accumulation over time.
Why does the speaker mention 'memory dividends' in relation to spending money on experiences?
-The speaker mentions 'memory dividends' to convey the idea that spending money on experiences can provide long-term enjoyment and fulfillment, creating memories that continue to bring joy and contribute to one's quality of life.
What is the video's stance on impulse shopping and shopping as entertainment?
-The video advises against impulse shopping and using shopping as entertainment due to its potential to lead to financial waste and the accumulation of unnecessary items. It encourages a shift towards utility-focused spending and conscious consumption.
What mistake did the speaker make regarding their company's stock?
-The speaker's mistake was not diversifying their investments and holding too much of their company's stock, which increased their financial risk since both their income and a significant portion of their investments were tied to a single company's performance.
How does the video discuss the importance of financial automation?
-The video discusses the importance of financial automation by explaining how it can help avoid late fees, ensure consistent savings and investments, and build long-term financial systems that require less hands-on management, allowing for a more passive yet effective approach to money management.
What is the video's perspective on the common financial mistakes made by people in their 20s?
-The video's perspective is that while financial mistakes are common in one's 20s, they are also a pivotal learning opportunity. It encourages viewers to learn from these mistakes and to apply those lessons to improve their financial decisions in the future.
What advice does the video give on salary negotiations?
-The video advises viewers to always negotiate their salaries, especially when an offer is below expectations or the market rate. It emphasizes that not negotiating can set a lower baseline for future raises and promotions, costing thousands in lost income over time.
Outlines
📚 Learning from Mistakes: Financial Lessons in Your 20s
The speaker introduces the concept that mistakes, including financial ones, are valuable lessons. They share a personal anecdote involving a friend's dog to illustrate the point and transition into discussing their own financial mistakes made during their 20s. The 20s are highlighted as a pivotal time for financial independence and learning, with the speaker emphasizing the importance of learning from these experiences, regardless of age.
💼 The Importance of Salary Negotiation and 401k Awareness
The speaker admits to not negotiating salaries early in their career, which led to financial losses over time. They also confess to being unaware of the benefits of 401k retirement accounts for several years. The speaker stresses the importance of salary negotiation and taking advantage of employer-sponsored retirement plans, including the potential for employer matching contributions, to secure a better financial future.
💡 The Power of Compound Interest and Avoiding 401k Abandonment
The speaker discusses the importance of investing, particularly in 401k accounts, to leverage compound interest for long-term wealth building. They share their regret of not investing early and the realization of missed opportunities due to inaction. The speaker also warns against the common mistake of abandoning old 401k accounts when changing jobs, highlighting the significant amount of money left behind by many people.
🛑 The Pitfalls of Cash Hoarding and the Need for Investment
The speaker describes their past mistake of stockpiling cash instead of investing it, which led to a loss of value due to inflation. They emphasize the need to invest beyond just saving, especially after establishing an emergency fund, to protect and grow wealth over time. The speaker also plans to share more about their personal investment journey in an upcoming video.
🎒 Balancing Financial Prudence with the Value of Experiences
The speaker reflects on their tendency to overly scrutinize small expenses, especially during vacations, and the importance of finding a balance. They introduce the concept of 'memory dividends' from the book 'Die with Zero,' which refers to the lasting value of experiences and the compounding joy they bring over time. The speaker encourages using money to create memorable experiences, not just as a tool for financial freedom.
🛍️ Overcoming Impulse Shopping and the Shift to Mindful Consumption
The speaker shares their personal struggle with impulse shopping and using shopping as a form of entertainment, particularly during stressful periods in their early 20s. They discuss the impact of watching 'Marie Kondo's Show' and 'The True Cost' documentary, which led to a significant mindset shift towards conscious consumption and thrift shopping, ultimately saving them a considerable amount of money.
📉 The Risks of Inexperienced Stock Picking and Crypto Investments
The speaker recounts their early investing missteps, including attempting to pick stocks and invest in crypto without a solid strategy, leading to financial losses. They emphasize the importance of building a diversified portfolio with low-cost index funds, as recommended by financial experts like Warren Buffett, instead of trying to predict market trends or engage in risky investments.
🏢 The Lack of Diversification with Company Stock
The speaker discusses the risks associated with holding too much company stock, as their income and investments are tied to the performance of a single company. They explain how not selling and diversifying the company stock they received as RSUs has potentially limited their financial growth and exposed them to higher risk, advocating for a more diversified investment approach.
🤖 Embracing Automation for Better Financial Management
The speaker identifies not automating their finances as one of their financial mistakes, explaining how automation can streamline financial management by ensuring consistent savings, investments, and bill payments. They reference 'Atomic Habits' by James Clear to highlight the importance of systems over goals for making consistent progress, and express their ongoing efforts to implement more financial automation.
Mindmap
Keywords
💡Mistakes
💡Negotiating Salaries
💡401k
💡Compound Interest
💡Emergency Fund
💡Inflation
💡Investing
💡Diversification
💡Impulse Shopping
💡Automating Finances
💡Memory Dividends
Highlights
The importance of learning from mistakes, including those of others, to improve financial literacy.
Personal anecdote about a friend's dog as a metaphor for learning from mistakes.
The pivotal nature of one's 20s for financial decisions and independence.
The impact of not negotiating salaries early in one's career and the long-term financial consequences.
The lack of awareness about 401k retirement accounts and the benefits of employer matching.
The common mistake of abandoning old 401k accounts when changing jobs.
The pitfalls of stockpiling cash without investing and the effects of inflation on cash reserves.
The power of compound interest and its role in wealth building over time.
The struggle with worrying about small expenses, especially during vacations, and finding a balance.
The concept of 'memory dividends' and the value of experiences over material possessions.
The confession of impulse shopping and treating shopping as entertainment in the early 20s.
The shift towards conscious consumption and the influence of documentaries on personal finance.
The initial attraction to stock picking and the eventual realization of the benefits of low-cost index funds.
The risks of not diversifying investments and the教训s learned from concentrating on company stock.
The advantages of automating finances for consistency and the avoidance of late fees.
The journey of financial health as an ongoing process rather than a destination.
A call to action for viewers to share their thoughts and experiences with the discussed money mistakes.
Transcripts
you've probably heard some version of
the quote there are no mistakes or
failures only lessons the greatest
teacher failure
is and cheesy as it might be it is true
we really do learn from our mistakes but
we can also learn from other people's
mistakes like one of my friends
accidentally left her dog home alone
without the lights on so she didn't turn
any lights on when she got back it was
dark and the dog because he was pissed
off he pooped in her bed and to make
matters worse she only discovered that
he had pooped in her bed when she went
to bed and she laid in it but hey I
learned something because now I know if
I'm ever going to leave my dog and it's
going to get dark make sure that a light
is on or I'm going to get a poopy
mattress because personally I'm not a
fan of sleeping and poop I know that's a
crazy take I just I'm just so quirky for
thinking that but okay poopy mattresses
aside I'm hoping to extend my metaphor
to share with you guys my version of The
Angry Dog mistakes in hopes that you
guys can learn from them more
specifically I want to share with you
guys my top 10 worst Financial mistakes
in my 20s so far saying so far because
as of this month in July I have now
turned 28 years old so still in the 20s
but you know creeping up there and your
20s are such a pivotal time in your life
for so many reasons there's usually a
lot of change whether it's graduating
college first job first move first big
relationships but the biggest thing I've
noticed in my 20s is just that feeling
of oh shoot it's on me now I'm lucky
enough that I do have parents I can call
when I don't know how to get a car
inspection or whatever other adult task
needs doing but there's still a weight
of independence that I've never had
before financially this is huge for
people your 20s might be the first time
you have actual control over your own
money unfortunately or fortunately it's
also the time in adulthood that can have
the biggest positive impact on your
financial future if you do it right I
say unfortunately because it does kind
of suck that the time in your life where
you probably know the least is also the
time where it's going to make the most
impact to do the right steps but say
lovey by the way even if your 20s are
behind you I still think that these tips
are really useful to hear I've seen a
lot of folks on financial forums say
they're sad because I'm starting too
late but that is a load of crap most of
the time for one these people usually
aren't even old and even if you are
older say you're 75 years old these
money mistakes are still incredibly
relevant if we want to throw another
cheesy quote in the mix how about this
one the best time to plant a tree was 20
years ago the second best time is now so
let's start now cheers to better money
moves for all of us and with that here
are my top 10 money mistakes that I have
made in my 20s if you like videos on
money and media by the way be sure to
subscribe I really like making this kind
of stuff and hopefully you guys like
watching it okay so I'm trying to
organize these money mistakes in The
Logical order of when I first
experienced them and the first one that
I would say I experienced or money St M
I made was not negotiating my salaries
now my first job out of college was at
Disney World making $10 an hour I was
part of the Disney college program if
anyone watching was also part of it let
me know your horror stories below and
there was Zero room for negotiating pay
I'll be honest it was a very informative
time for me as a new grad to learn about
how restrictive service jobs can be I
know that sounds wildly out of touch but
in many ways I was and in many ways I
still am but in this job I was paid $10
an hour with no benefits I went weeks
without a day off sometimes and if I
ever wanted to call out sick I needed a
note from the doctors except if I want
to go to the doctor's office and I was
scheduled to work I'd have to call out
no winning there anyways after that job
I eventually started my career in my
current industry and I was hired at a
startup of about 50 people I did not
negotiate any salary for that one in
part because I just didn't know how to
do that but also because I was so
desperate for a job and then the same
thing happened at my current company
when I got hired yes I got a pay bump
but I didn't negotiate at all because
the recruiter told me we don't do
negotiations here and I believed it
which was dumb I eventually found out
through talking to other co-workers that
they had negotiated their salaries at
the company meaning we do allow for
negotiations I just fell for the line
that they didn't the problem with this
is that negotiations help set the tone
for how you'll be paid in your job and
more broadly your career me not even
asking about say a 10 $10,000 higher
base salary means that I miss out on
$10,000 extra dollar a year and every
time I get a promotion or a raise I'm
starting at a lower level I think that
if an offer comes in below what you're
expecting or what you know is
appropriate for the market it's worth a
conversation to see if the company can
meet your amount I'm curious what folks
think in the comments Below on whether
you should always negotiate a salary
even if the offer is great or if there
are times where you should just accept
whatever offer you first get personally
I kick myself for not even trying to
negotiate because if anything building
up those skills of negotiation are just
really important for my career so that
is the first big money mistake of my 20s
but the next one is rough and that is
that I did not touch my 401k or even
know about it for years embarrassingly I
didn't even know what a 401k was for
years I had this vague notion that okay
it's for retirement I think old people
talk about it and call me old because
you know
I'm talking about it now for those who
don't know a 401k is a type of
retirement account that is sponsored by
your employer meaning that if you are
employed in a traditional 9-to-5 job
your employer likely allows you to
contribute a portion of your paycheck to
a 401k account and sometimes your
employer will even match some of your
contributions that right there is
amazing if you have it offered to you
through your company because it's
essentially free money so I highly
highly recommend taking advantage of it
if you can and 401ks have other great
benefits like the fact that they let you
contribute pre-tax money which can help
you pay lower taxes that year and they
give you high contribution limits but me
I did not take advantage of that amazing
account for years that first startup job
I had had a small contribution
percentage set up that was running in
the background but I barely knew about
it until I left the company and even
then it was a very small amount by the
time I left the total was around $33,000
I know that's not awful certainly better
than nothing but if I'd known more about
the importance of investing for
retirement when you're younger I would
have contributed a whole lot more the
problem is that I wasn't thinking about
retirement and honestly it's easy when
you're young whether you're in your 20s
30s 40s 50s to think oh retirement is so
far away I don't need to be thinking
about that yet but that mindset sets our
future self up for failure I'm not
saying that I throw everything into
retirement these days but I certainly do
it a lot more consistently and
significant contributions because I Want
My Future Self to be able to enjoy
retirement when the time comes I'll talk
more about the compound interest element
of that later but it's also just about
acknowledging that a 401k exists in the
first place something I was not doing
and another part is making sure that I
don't lose track and accidentally
abandon my old 401ks which you guessed
it is money mistake number three this is
something that is not just a me thing
unfortunately it is very much an us
thing if you have ever worked for more
than one company in your career there is
a very good chance you are currently
making the same money mistake of
accidentally abandoning your old 401K
for example at my first startup job I
had my 41k account I barely knew about
that had $3,000 when I left then at my
current job I was given a new 41k
account with my company and started
investing in it regularly but what I
didn't do is bring over that old for 1K
money it was like moving homes but for
getting a briefcase full of cash in the
old safe now that money doesn't
disappear but if you forget about it
which I almost did and many others do
all the time you're throwing out
perfectly good money that you earned as
the New York Times writes in their
article your old 401K out of sight out
of mind and out of money quote as of
June 2023 job Changers had left behind
nearly 30 million 401ks or similar
retirement accounts worth an estimated
$1.65
trillion according to capitalize a
technology company that offers an online
platform to help transfer 41k accounts
as CNBC writes in their headline quote
one in five Americans have inactive
401ks worth thousands of dollars I don't
think I need to spell out why this is
such a disaster of a money move and yet
it is a mistake that is so easy to make
for someone like me who barely even knew
what a 401k was let alone was tracking
all my old accounts I had no idea that I
was supposed to be rolling over these
old 401ks to make sure they were all in
one place luckily there are really easy
ways to do this including the company
that the New York Times article
mentioned capitalize which also happens
to be today's sponsor capitalize offers
the easiest way to roll over your old
401ks and it is completely free they
help manage the entire process from
finding your old 401K to picking a new
Ira to dealing with your 41k provider
for you and if you're like wait a second
why don't I have to pay these guys first
off love that you're asking that always
ask questions like that and two
capitalize is able to keep their
rollover service free because they're
paid when you open an IRA with one of
their preferred Partners if you think or
know that you have an old 401k account
floating out there and you need to roll
them over capitalize is honestly such a
fantastic service to use rolling an old
401k into an IRA provides really great
visibility into your Investments and
fees but it can be very tedious it can
mean calling old employers faxing
documents trying to collect checks and
hope that they don't get lost in the
mail but capitalize does this all for
you so that you can save time ensure
that everything is done properly and you
can have peace of mind that your
retirement money is found and growing I
cannot stress how important it is to not
become part of that group of 401k
abandoners so if you want to avoid my
previous money mistake go to High
capitalized. Cara to roll over your 401k
for free today and a huge thank you to
capitalize for sponsoring today's video
all right so my next money mistake is a
point of embarrassment for me especially
as I've learned more about personal
finance but I'm guessing that a lot of
other people watching this video are in
the same boat and are doing the same
exact thing and that is that I
stockpiled cash for so long and never
invested it the problem here is that
cash is not always King at least when it
comes to long-term wealth building yes I
want to have an emergency fund of 3 to 6
months of expenses yes if I'm saving up
for a big upcoming expense like a down
payment or a sabatical I'll probably
want to have that in a high yield
savings account but everything after
that I should not have been Hoarding in
a checking account because at
inflation's historical average of 3.3% a
year money that's sitting as cash is
losing value every year in other words a
dollar today is worth more than a dollar
in a year so what I should have been
doing is investing that money because
that is how I could hedge against
inflation now I already told you guys
that was bad at investing in my 41k for
years but it was not just my 401k I was
just bad at investing in general as in I
didn't do it I knew I should on this
High concept level but I didn't really
know what it meant to invest actually my
next video will be all about investing
I'm going to talk about what I mean when
I say to invest and then how and where I
personally invest and I want to do that
because I remember being so confused by
the whole thing to the point where I
just avoided any part of investing in
the first place place I instead just let
my cash Reserve stack higher and higher
in my bank account I was like a chipmunk
stashing away all my
acorns it sounds crazy but I managed to
save
$100,000 before I finally finally
started looking into how to invest and
then started investing and once I did I
was pretty bummed to not have started
sooner because just like with the 401K
situation I realized that I'd missed
years of amazing compound interest and
it's that underestimating of compound
interest that lands me my next major
money mistake you see the younger you
can invest the more years you have to
take advantage of that sweet sweet
market growth money guy has an awesome
article on the idea of a wealth
multiplier that shows you how powerful
your age can be when it comes to how
hard your money Works in their chart you
can see how at 20 years old you only
have to invest $95 a month to become a
millionaire by 65 but by 30 it jumps to
$340 a month month by 50 you're looking
at needing to invest over $3,000 a month
to be a millionaire by 65 I joke a lot
on this channel that I love the compound
interest calculator but Jokes Aside The
Love is Real simply playing around with
the calculator and understanding how my
investments today will snowball into
millions later in my life has been such
a motivator for me like I said earlier
in this video it doesn't mean scraping
by and living off just ramen so that I
can increase my savings rate but instead
it's a reframing of what that money is
going to instead of some nebulous
concept of compound interest or
retirement I can think in real numbers
what my money is becoming and how that
equals buying back my time and freedom
that being said admittedly it's been a
struggle for me to get comfortable not
going fool squirrel mode and tucking
away every dollar I earn and that brings
me to my sixth money mistake which is
worrying way too much about tiny
expenses especially while I'm on
vacation now there's a balance to strike
here no doubt I don't want to be someone
who doesn't think at all about where her
money is going and I want to spend
intentionally but I've definitely had
times in my 20s where the pendulum has
swung way too hard the other direction
and I've been a Scrooge McDuck to myself
obsessing over whether I should spend an
extra $20 on this or that and feeling
stressed out if I spend money on
something fun that I wasn't originally
planning for I've noticed this happens
especially when I'm on vacation and I
think it's because I already know that
the trip is costing me more than my
daily expenses because I'm staying in
hotels I'm eating out more Etc whether
this is a surprise to anyone or not I
have been and still often am
uncomfortable with spending money but
what I've learned in my 20s is that
money is and should be used as a tool
yes it can be a tool for Financial
Freedom one day but it can also be a
tool right now to help me create
fantastic memories for myself there's a
concept in the book die with zero called
memory dividends which is the enjoyment
and fulfillment you get from an
experience even after the experience
itself as author Bill Perkins explains
quote buying an experience doesn't just
buy you the experience itself it also
buys you the sum of all the dividends
that experience will bring you for the
rest of your life Perkins also frames it
within the concept of compounding
interest saying quote due to compounding
your financial savings don't just add up
they begin to snowball and the same
thing can happen with your memory
dividends they also can and will
compound this happens whenever you share
the memory of the experience with other
people this is something that I've been
working to internalize myself and I
think I have gotten better about it over
the years cuz I don't want to feel a
Scrooge McDuck and tantrum inside of me
if I decide that getting fancy dilato
while I'm in Italy sounds like a great
idea I want to feel Joy that I'm using
my money for an experience not overboard
to the point where I'm straining my
budget but also not holding my purse
strings with a death grip though I say
that there are definitely times where I
probably should have held on to the
purse strings a little bit tighter and
that brings me to my seventh money
mistake which is impulse shopping and
shopping as entertainment maybe this
comes as a surprise to folks who have
seen my other videos and that I'm always
preaching about conscious consumption
but hey I had to start somewhere and so
much of what I talk about in my videos
when it comes to our relationships with
money and spending comes from my own
personal experience feelings I've had
before and sometimes still do and while
I still certainly shop and sometimes buy
something impulsively I was a whole lot
worse in my early 20s especially right
after college and during the pandemic
right after college when I was working
at Disney and feeling stressed a lot me
and my roommate would go to Target or TJ
Max for fun that was our form of
entertainment and you know what I loved
it I loved impulsively buying random
stuff that I did not need or truly want
things that looked cool and felt cheap
so I'd buy them and clothing wise I
definitely prioritized quantity over
quality back then my closet was massive
but then I remember watching Marie
condo's Show on Netflix along with the
fast fashion documentary the true cost
and something clicked in my brain it was
such a 180 for me because I went from
going shopping for clothes every week or
two to shopping for clothes every 4 to 6
months and when I shop now it's almost
always thrifted and you know what that
one change saved me so much money over
the years plus it reduced my carbon
footprint honestly the mindset shift
that I had from watching those shows was
so significant and it's a big part of
what inspires me to make the videos that
I make now because I like to think that
maybe there's someone out there like me
who reframes their relationship with
impulse shopping or shopping as
entertainment so that it becomes one of
utility instead which in turn can save
you money for experiences in your
financial future speaking of financial
future let's return to the topic of
investing for my eighth money mistake
which is all of the dumb dumb
Investments I made at the start of my
investing Journey if you've watched my
videos before you know that I love me a
lowcost Index Fund these are Diversified
stock portfolios with low costs and it's
what Warren Buffett is always
recommending for investors but lowcost
index funds were not always my go-to I
fell into the Trap that so many
investors especially firsttime investors
get sucked into and that was thinking
that I needed to be some Wall Street
Guru or stock picker AKA picking
specific companies to buy stock from
trying to play the game of buying and
selling on a regular basis to get
returns and even getting into crypto
because I read it was a good idea on
Reddit and Twitter I know I was an
absolute stereotype and just like the
Wall Street bet stereotype I was mostly
losing money on these Investments but I
get why I was doing this and why so many
others do it when we think of investing
we have some woof of Wall Street image
in our mind we think of people yelling
over each other picking stocks or some
Mastermind who analyzes the market and
sees Trends before anyone else and then
we think oh that's what I'm supposed to
do uh no no no no even people who spend
every hour in their career studying this
stuff don't get it right so unless we're
Martha steing it up in here with some
insider trading why would we do any
better I'll talk more about investing in
my upcoming video but you should know
that stock picking in crypto does not
make a good divers ified portfolio it's
risky it's volatile the stats are not in
our favor when we do it this way which
is why nowadays I aim for 5% or less of
my portfolio to be dedicated to these
risky or fun Investments everything else
lowcost index funds baby and guess what
they have so outperformed my stock
picking days big mistake but lesson
learned now my ninth money mistake is
ajacent to stock picking and it is that
I am not Diversified enough with my
company's stock but what's that mean so
for my 9 to-5 I'm paid with a base
salary a bonus but I'm also given
Company stock every single quarter so
every 3 months I'm given more stock and
I've worked here for a little over three
and a half years so I've accumulated a
good amount of stock but I have never
sold a single share and now if I worked
for a company like apple or Nvidia that
has done really well over the years this
wouldn't be a big issue it still
wouldn't be Diversified and that would
be risky but my company has performed
really poorly in the years I won't name
what company but it has just made it so
that I have all my eggs in one basket if
I had instead sold that company stock
when I first received it as an RSU and
put it into something like the S&P 500 I
would have been a whole lot richer and
the issue with this isn't just the fact
that my stock portfolio becomes a lot
less Diversified if I have a lot of one
stock but it's also because my income is
coming from that same company so say the
company goes out of business tomorrow
not only do I lose my income with my 9
to5 but all of my stock is now worthless
that's also why it's important to have
multiple income streams Beyond just your
9 to5 and I'm not saying everyone has to
have a side hustle like a YouTube
channel but even just having Investments
where you're getting dividends and
growth every year that can be another
way that you're Building Wealth Beyond
your 9 to5 and last but not least my
10th money mistake of my 20s so far drum
roll please is not being besties with
automating my finances sooner not going
to lie that statement right there made
me sound like some old Corporation
trying to sound cool and hip guys in the
chat for automated finances for real for
no CAP auto savings and Investments have
serious give toil okay backing out of
the brain rot for a second automating
your finances covers a really wide set
of things from automatic bill payments
to reoccurring Investments to automated
savings and some of these I got a handle
on earlier than others like setting up
my credit cards autop payment was the
very first thing I did after getting a
credit card but in my 20s I have not
been as good about setting up automated
Investments and savings and that can be
bad because it means that I'm not
putting aside money very consistently
the reason automating your finances can
be so great and not doing it can be such
a money mistake is that automation can
help you be more hands-off with your
finances auto payments can help you
avoid late fees and predatory interest
and automated savings and Investments
keep you consistent in growing your
wealth over time in the book Atomic
habits author James Clear writes quote
goals are good for setting a Direction
but systems are best for making progress
automating is essentially building your
systems it's what helps you manage your
money longterm so you don't have to
constantly think about it instead money
can become more of a tool than a
constant question and you can get back
to focusing on other parts of your life
this is something that I'm still working
on implementing in my life and I'm sure
it's something that I'll revisit over
the years because Financial Health isn't
just a destination that you hit and then
you're done it's a journey just like
taking care of your physical and mental
health while these are the worst money
mistakes of my 20s I am sure I am not
done making money mistakes but hopefully
I'm also not done making money lessons
and money wins hopefully I've got a lot
more money wins to come but I'm curious
what you guys think do any of these
money mistakes resonate with you are
there any that you've made that I didn't
mention let me know what your thoughts
are in the comments below and what
topics you would like to see me cover
next like I mentioned earlier my next
video coming up is all about how and
where I'm investing so if you want to
check that out make sure to stay tuned
And subscribe thank you so much to my
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guys all just for watching and getting
this far I appreciate you all so so much
and I will see you next time bye
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