10 personal finance lessons that changed my life

Summary

In this video, the speaker shares 10 life-changing personal finance lessons that helped them transition from a broke college graduate to a financially free adult. Key points include the importance of saving a consistent percentage of income, diversifying income streams through side hustles, investing in personal growth, and tracking financial progress. The speaker also emphasizes the value of living frugally, such as moving in with family to cut expenses, and avoiding unnecessary spending. Practical tips like reading a personal finance book each year and curating a supportive social media feed help maintain motivation. Celebrating small milestones ensures progress and keeps financial goals achievable and stress-free.

Takeaways

• 😀 Income isn't everything. It’s not how much you make, but how much you save and manage that truly matters.
• 😀 Diversify your income streams. Freelancing or side hustles can provide significant additional income and remove the ceiling on your earnings.
• 😀 Invest in yourself. Upskill and acquire new tools or knowledge to increase your value and open up new earning opportunities.
• 😀 Say yes to every opportunity early in your career. Even small or seemingly insignificant jobs can help you build experience and fund your goals.
• 😀 Move in with your parents or find roommates to cut down on your rent, which is often your biggest monthly expense.
• 😀 Stop buying things you don’t need. Focus on saving or paying off debt instead of spending on temporary pleasures.
• 😀 Track your spending. Use tools like apps or spreadsheets to monitor your finances and stay on track with your goals.
• 😀 Read one personal finance book each year. Staying educated on personal finance will keep you motivated and informed.
• 😀 Cull your social feed. Unfollow accounts that encourage bad spending habits and instead follow those that promote growth and smart money management.
• 😀 Celebrate your progress. Acknowledge milestones, big or small, to stay motivated and recognize how far you've come.

Q & A

What is the primary goal of the 'Master YouTube' course?

The primary goal of the 'Master YouTube' course is to teach students how to make great videos, from coming up with original ideas to scripting, filming, editing, and even creating compelling titles and thumbnails. It aims to help users grow their YouTube channels and reach their first 1,000 true fans.

What is 'lifestyle creep' and how does it affect personal finances?

'Lifestyle creep' refers to the increase in discretionary spending as your income grows. Instead of using additional income to save or pay off debt, people often end up spending more on non-essential items like a new TV or vacation, which can prevent them from improving their financial situation.

How can people manage lifestyle inflation?

To manage lifestyle inflation, it's important to set aside a percentage of your income, such as 20%, for savings or debt repayment. By pretending you never got a raise and using the extra money for these goals, you can prevent lifestyle creep from affecting your financial health.

Why is diversifying income important?

Diversifying income is crucial because it allows you to increase your earnings without relying solely on your primary job. Freelancing or starting a side hustle can help boost income, and there's no limit to how much you can earn in these areas.

What role does personal and professional development play in financial success?

Investing in personal and professional development helps increase your value in the job market or as a freelancer. By acquiring new skills through courses, books, and tools, you can expand your opportunities and earn more money, which ultimately aids financial growth.

How can saying yes to every opportunity early in your career be beneficial?

Saying yes to every opportunity when starting out helps build experience and relationships. Even if the work seems unglamorous or low-paying, it provides a foundation for more lucrative and selective opportunities in the future.

What are the benefits of moving in with your parents or finding roommates?

Living with your parents or finding roommates can drastically reduce your largest monthly expense—rent. This can allow you to pay off debt more quickly or save more money, putting you in a better financial position.

Why should people stop buying unnecessary things?

Buying unnecessary things drains your finances and distracts from long-term goals like paying off debt or saving. By prioritizing needs over wants, you can focus on financial stability and progress toward achieving your financial goals.

How does tracking your finances help with personal finance goals?

Tracking your finances, whether through spreadsheets or apps, helps you stay on top of your debt and savings goals. It provides visibility into where your money is going and motivates you to stay committed to your financial plans.

How can reading personal finance books contribute to financial success?

Reading personal finance books helps reinforce financial discipline and offers valuable strategies. By learning from others' experiences, you can stay motivated and gain new perspectives on managing money, which is essential for staying focused on your financial goals.