7 Money Tips I Wish I Knew In My 20s

Summary

Nisha shares seven key financial tips for those in their 20s and 30s, emphasizing the importance of reinvesting in oneself, sharing knowledge to foster growth, and upskilling uniquely. She advises transforming active income into passive income, spotting business trends early for a first-mover advantage, and investing in index funds for long-term growth. The video encourages an abundance mindset and early financial literacy to build wealth.

Takeaways

• 💼 Don't save too much early on; it's important to reinvest in yourself to increase your earning potential.
• 🤝 Avoid gatekeeping knowledge; sharing information fosters growth and collaboration, which benefits everyone involved.
• 🛠️ Upskill in unique ways to build a strong personal brand and make yourself invaluable, especially in the face of AI advancements.
• 💡 Turn active income into passive income by leveraging your existing skills and knowledge to create scalable income streams.
• 🔮 Look for 'rising tides' in business and finance to spot trends early and gain a first-mover advantage.
• 🏦 Open an investment account early to familiarize yourself with the process of investing and overcome the mental barriers associated with it.
• 📈 Invest in index funds to diversify your portfolio and benefit from long-term compounding without taking on too much risk.
• 🌟 Personal finance and wealth building are crucial at any age, but starting early sets a strong foundation for financial success.
• 📚 Learning from books, banking experience, and accounting studies are valuable, but trial and error also play a significant role in financial education.
• 🔑 The true meaning of wealth lies in the ability to rebuild after losing everything, which is achievable through a robust skill set and knowledge.
• 🌐 Embrace digital platforms to expand your reach, like healthcare professionals using social media to educate a broader audience.
• 🚀 Timing is critical in business; capitalize on foresight by identifying and entering markets during their golden window of opportunity.

Q & A

What is the main theme of Nisha's video?

The main theme of Nisha's video is to share seven key pieces of money advice for individuals in their 20s and 30s, based on her personal experiences and lessons learned.

Why does Nisha advise against saving too much money early on in one's career?

Nisha advises against saving too much early on because it's crucial to reinvest money back into oneself during the early stages of one's career to shape the financial trajectory and increase future earning potential.

What does Nisha mean by 'gatekeeping' and why is it not recommended?

Gatekeeping refers to being secretive with knowledge or information, not wanting to share it with others due to a competitive mindset. Nisha does not recommend this because it hinders learning from each other's mistakes and growth, which is essential for personal development.

What is the importance of upskilling oneself in unique ways according to the video?

Upskilling in unique ways is important because it helps individuals build a skill set that is difficult to replicate, making them invaluable and resilient in the face of potential setbacks, such as losing a job or business.

How does blending existing skills with new ones in different fields contribute to one's value?

Blending existing skills with new ones in different fields creates a unique skill set that is complex and adds value or solves problems, making the individual more valuable and less likely to be replaced by AI or automation.

What is the significance of turning active income into passive income as suggested by Nisha?

Turning active income into passive income is significant because it allows individuals to leverage their existing skills and knowledge into sources of income that do not require constant active work, leading to financial freedom and scalability.

Can you explain the concept of 'rising tides' in the context of business and money mentioned by Nisha?

The concept of 'rising tides' refers to spotting trends or patterns in the business world before they become mainstream. Capitalizing on these trends early can give individuals a first-mover advantage, leading to greater success and growth.

Why is opening an investment account early recommended by Nisha?

Opening an investment account early is recommended to familiarize oneself with the process of investing in stocks and shares, overcoming the mental block that often prevents people from investing due to misconceptions about risk and accessibility.

What are index funds and why are they suggested as a good investment choice by Nisha?

Index funds are a type of mutual fund that allows investors to buy a small piece of a large number of companies at once, such as those in the S&P 500 or FTSE 100. They are suggested as a good investment choice because they offer diversification and reduced risk, making them suitable for long-term investment without the need for extensive stock picking.

What is the role of personality in making one's skills irreplaceable, as mentioned in the video?

Incorporating one's personality into their skills adds a unique perspective and emotional intelligence that AI cannot replicate. This makes the individual irreplaceable, as it brings a personal touch that is valuable in a world where many tasks may be automated.

How does Nisha define wealth in the context of the video?

Nisha defines wealth not just by the amount of money one has or saves, but by one's ability to rebuild and stand on their own if everything were taken away, which is achieved through the skill set and knowledge one possesses.

Outlines

00:00

💼 Investing in Yourself Early On

The speaker, Nisha, emphasizes the importance of not saving too much money in your 20s and 30s, but instead reinvesting in oneself. She suggests that this is the time to shape one's financial trajectory by acquiring knowledge and skills, which can lead to higher earnings in the future. The speaker encourages viewers to invest in personal development rather than just accumulating cash.

05:03

🤝 Overcoming the Scarcity Mindset

Nisha discusses the negative impact of gatekeeping knowledge and information, which she sees as a scarcity mindset. She uses Mr. Beast's example to illustrate the benefits of sharing knowledge and learning collectively from each other's mistakes. The speaker advocates for an abundance mindset, which can lead to greater growth and learning opportunities for everyone involved.

🛠 Upskilling Uniquely for Long-Term Wealth

The speaker explains that true wealth is about resilience and the ability to rebuild after a loss. She advises young adults to upskill in unique ways by blending existing skills with new ones from different fields. Nisha highlights the importance of developing complex skills that are difficult to replicate and infusing them with one's personality, which will become increasingly valuable in an AI-driven future.

💼 Transitioning from Active to Passive Income

Nisha introduces the concept of turning active income into passive income, using the example of a developer who created an eBook from his professional knowledge, earning significant passive income. She encourages viewers to leverage their existing skills and knowledge to create scalable passive income sources, which can provide financial freedom and security.

🌊 Capitalizing on Rising Tides in Business

The speaker advises viewers to identify and capitalize on emerging trends in the business world to gain a first-mover advantage. She uses Tesla and early adopters of cryptocurrency as examples of companies and individuals who spotted trends early and capitalized on them. Nisha suggests that recognizing and acting on these 'rising tides' can lead to significant opportunities.

🌳 Planting the Seeds of Investment Early

Nisha stresses the importance of opening an investment account as early as possible, such as an ISA in the UK or a Roth IRA in the US. She explains that the purpose is not to make a quick profit but to familiarize oneself with the process of investing. The speaker believes that starting small and developing good investment habits early can lead to long-term financial benefits.

📈 Investing in Index Funds for Diversification

The speaker recommends investing in index funds as a simple and effective way to diversify one's portfolio and grow wealth over time. By investing in an index fund, one can own a small part of many top-performing companies at once, reducing risk compared to picking individual stocks. Nisha emphasizes the long-term benefits of compounding and the importance of starting early.

Keywords

💡Savings

Savings refer to the money that is set aside for future use rather than being spent on immediate consumption. In the video, the speaker advises against saving too much in one's 20s and 30s, emphasizing the importance of reinvesting money into oneself to increase earning potential. This concept is crucial as it encourages viewers to think about the long-term benefits of investing in personal growth over immediate financial security.

💡Reinvesting

Reinvesting is the process of putting money back into a business or personal development to generate further income or growth. The video highlights the importance of reinvesting in oneself by acquiring new skills and knowledge, which can lead to higher earnings and a more secure financial future. This is exemplified by the speaker's suggestion to use early career earnings to enhance one's value in the job market.

💡Knowledge Sharing

Knowledge sharing involves the dissemination of information and insights among individuals or groups. The video criticizes the gatekeeping of knowledge, advocating for an abundance mindset where sharing information can lead to collective growth. The example given is of a group learning from each other's mistakes, thereby advancing more rapidly than an individual working in isolation.

💡Upskilling

Upskilling is the process of acquiring new skills or improving existing ones to increase one's employability or business potential. The speaker emphasizes the importance of upskilling in unique ways, such as blending existing skills with new ones from different fields. This makes an individual more invaluable in the job market, as illustrated by the example of healthcare professionals leveraging digital platforms to expand their reach.

💡Passive Income

Passive income is income earned with little to no effort by the recipient, often resulting from investments or automated systems. The video encourages viewers to transform their active income, such as a regular job, into passive income sources. An example provided is a developer creating an ebook from his professional knowledge, which then generates income without further active work.

💡Investment Account

An investment account is a financial account used to hold and manage investments, such as stocks, bonds, or mutual funds. The video suggests opening an investment account early in life, such as an ISA in the UK or a Roth IRA in the US, to understand the process of investing and to overcome the mental barriers associated with it. This is crucial for building wealth over time.

💡Index Funds

Index funds are a type of mutual fund or exchange-traded fund designed to track the performance of a specific index, such as the S&P 500 or the FTSE 100. The video recommends investing in index funds as a simple and effective way to diversify one's investment portfolio and grow wealth over time. This strategy is appealing for those who want to invest without taking on too much risk.

💡Scarcity Mindset

A scarcity mindset is a psychological state where individuals perceive resources as limited and feel the need to compete for them. In the video, the speaker contrasts this with an abundance mindset, where sharing knowledge and resources is seen as beneficial for all. The scarcity mindset is criticized for holding individuals back from collective growth and success.

💡First Mover Advantage

First mover advantage refers to the competitive edge gained by being the first to enter a new market or exploit a new trend. The video uses examples like Tesla and ChatGBT to illustrate how early entry into a market can lead to significant success. This concept encourages viewers to spot and capitalize on emerging trends before they become mainstream.

💡Compounding

Compounding is the process in which earnings from an investment are reinvested to generate additional earnings. The video mentions the benefits of starting to invest early to take advantage of compounding, which can significantly increase wealth over time. This is particularly relevant in the context of investing in index funds, where the power of compounding can amplify returns.

💡Personal Finance

Personal finance refers to the management of one's own financial resources, including budgeting, saving, investing, and planning for retirement. The video's theme revolves around personal finance strategies, specifically focusing on wealth building and financial planning for individuals in their 20s and 30s. The speaker, Nisha, shares advice on how to manage finances effectively to achieve financial independence.

Highlights

Don't save too much in your 20s and 30s; instead, reinvest money back into yourself to shape your financial trajectory.

Avoid gatekeeping knowledge; sharing information can lead to collective growth and learning from each other's mistakes.

Upskill yourself in unique ways to build wealth, focusing on skills that are complex and difficult to replicate.

Blend your existing skills with new ones in different fields to become invaluable in the market.

Turn your active income into passive income by leveraging your existing skills and knowledge.

Example of turning active income into passive income: a developer turned his knowledge into an ebook, earning $2.3 million.

Look for rising tides in business and money; timing is crucial for spotting trends and gaining first mover advantage.

Spotting trends early, like Tesla in the car industry, can provide significant opportunities.

Open an investment account as early as possible to understand the process of investing and overcome mental blocks.

Invest in index funds as a simple and effective way to diversify your portfolio and increase earnings over time.

Investing in index funds allows you to buy a small piece of many companies, reducing risk compared to picking individual stocks.

Start investing early to benefit from compounding, even with small amounts.

Investing in yourself and increasing your earning potential is more important than investing in index funds initially.

Helping others and sharing knowledge fosters an abundance mindset, which is crucial for personal and financial growth.

Embrace an abundance mindset to avoid being held back by scarcity thinking.

The importance of emotional intelligence and unique perspectives in a future where AI may dominate certain tasks.

The value of infusing your personality into your work to remain irreplaceable in a world of AI.

Transcripts

over the past 13 years I've learned a lot about  money I've picked up lessons from reading books  

working in the banking sector studying accounting  and a lot of general trial and error so in this  

video I wanted to share with you seven key pieces  of money advice for someone in their 20s and 30s  

these tips are based on things that I did well and  things that I would do differently if given the  

chance to go back in time if you're new here I'm  Nisha and my channel is all about personal finance  

and Building Wealth so let's get into it number  one don't save too much this is one that I see so  

many people do and I just think if you're in your  20s or 30s you want to avoid it you want to avoid  

a situation where you're just sitting on cash and  not doing anything with it at this stage you're  

kind of at the beginning of what we can call your  income trajectory and you have years ahead of you  

to save money so although it's very tempting to  start saving as much as possible straight away  

as soon as you start earning it's also a really  crucial time to consider reinvesting that money  

back into you as this is an essential time to  shape the trajectory of your financial Natural  

Life by investing in yourself your knowledge your  skills you can make your path to higher earnings  

steeper as you become more valuable whether  it's through your job or through a skill set  

that you've acquired for your business venture by  putting that money towards yourself and then you  

can save a percentage of an even higher income at  that point point two there's no need to gatekeep  

I come across people who are very secretive with  their knowledge or with the information they have  

and they just don't want to share it with anyone  because everything seems like a competition to  

them and to be honest this winds me up a little  bit I was watching a podcast with Mr Beast and I  

like the way he gave this example he said if  there's a world where it's just you working  

solo and you work 12 hours every day and you're  grinding and then you make a mistake and then  

you learn from it and then you make another  mistake and then you learn from it that's one  

World Imagine another world where you have four  friends who are deeply grinding in the same thing  

that you are friend number one makes a mistake on  Thursday and then teaches everyone else on Friday  

friend number two makes another mistake that week  and then teaches everyone else the week after and  

you're constantly learning and building each each  other in as you're going you're learning from each  

other's mistakes so after a year you're two years  ahead of the guy who is solo helping someone else  

is not going to take anything away from you being  afraid to help people or being afraid to give  

information away that's a scarcity mindset rather  than an abundance mindset and that in itself will  

hold you back point three upskill yourself in  unique ways being wealthy isn't necessarily about  

how much money you have or about how much money  you're saving the true meaning of wealth is if  

everything was stripped away from you you lost  your business you lost your job you lost your  

assets can you then build yourself back up the  only way you can do that is through your skill  

set and your knowledge and so obscaling yourself  ideally in unique ways is one of the best things  

you can do as a young adult buy uniquely I  don't mean just getting more qualifications  

or credentials in your current failure I also mean  creatively blending your existing skills with new  

ones that are in completely different fields and  the more unique the pairing the more invaluable  

you are take the healthcare sector for example  doctors dentists they used to be limited by the  

number of patients who physically walked into  their Clinic that's all they really had access  

to but now I see so many that are leveraging  digital platforms like social media YouTube to  

spread their knowledge and by doing this they're  massively increasing the number of people they can  

reach you want to find skills that are complex so  they're difficult for others to replicate quickly  

and also that adds value or solves a problem and  then once you've got those two you want to infuse  

your personality into it and the reason why I say  a blend of all three is because we're moving into  

a future where AI is likely going to take over  a lot of things from content creation to data  

analysis so bringing in your personality becomes  more valuable than it's ever been AI can gather  

information they can present information but it  cannot fully replicate emotional intelligence or  

specific unique perspectives so in other words the  you in what you do is still Irreplaceable point  

four turn your active income into passive income  this is one that I adapted quite late but it is  

life-changing most of us start our careers working  a nine-to-five job that often don't offer a huge  

amount of scalability and there's this notion that  you need to exchange your time to make money and  

I'm assuming about 90 of people watching this  fall into this category one of the things that  

I would highly recommend is to rethink that money  equation the ultimate goal is to leverage your  

existing skills your existing Knowledge from  your day job into sources of passive income  

so an example that I used in another video Steve  shoga he's a developer by day and what he did he  

packaged everything he knew and learned through  his day job into an ebook and from that he made  

2.3 million dollars he realized that if a typical  developer could get better at the design element  

of development it would massively enhance their  career it's pretty specific it's not a huge Niche  

but it's one that he has a lot of skills and  expertise in and he used what he does for a  

living and made that into something that's passive  and something that's scalable and I do think there  

are so many careers where you can lean into  this even if it doesn't seem glaringly obvious  

at first like accounting who would have thought  that accounting is something that can be scaled  

but that's kind of what I've done here through  this YouTube channel it's all the knowledge that  

I've gained through my accountancy qualification  through my experience in the banking sector and  

then I've presented it in a way that appeals to  the mass there is a market for most things so if  

you can think about what you're already doing and  how can you scale that and make it passive one way  

to think about this is through the next point  which is to look for Rising tides in the world  

of business and money timing is everything there's  often a golden window a specific time frame where  

diving into a particular Market can give you  first mover Advantage it's all about spotting  

Trends or patterns before they become mainstream  and then capitalizing on that foresight take Tesla  

for example they had the vision to see a trend  emerging in the car industry cars were gradually  

becoming energy efficient and so whilst other  companies were warming up to the idea Tesla  

recognized this Gap and just jumped in and filled  it they saw where the industry was going and they  

put themselves at the Forefront now many other  car companies have caught up and so consequently  

Tesla is being forced to reduce its car our prices  but they took the chance at the time and made the  

most of it same another example is chat gbt when  it first came about there were people who got to  

grips with it really quickly and were able to spot  the trend and make a lot of money from it from  

teaching other people how to use that and teaching  other people how to make the most out of it same  

goes for social media as a whole lot it seems like  social media is everywhere I do believe we're in  

this still huge growth phase where not everyone  is utilizing it fast forward five years ten years  

down the line and it'll be a given that if you're  self-employed or you have a business you will need  

some sort of social media presence but spotting  these Rising Tides early gives you first mover  

Advantage number six open an investment account  there is this famous saying that as someone is  

sitting in the shade today because someone planted  a tree a long time ago if you're in the UK open up  

an Isa if you're in the US Open up a Roth IRA as  soon as possible after turning 18. these are taxed  

Advantage investment accounts where the money you  make is tax free the reason for doing this as soon  

as you can isn't to make loads of money straight  away because chances are as a young adult you  

don't have a huge amount of money to put straight  into the stock market instead is to understand  

the process of investing your money in stocks  and shares so that you can overcome the mental  

block that often stops people from investing many  people in their late 20s and 30s they make good  

money but they've never thought about investing  because they just think that it's reserved for  

the ultra wealthy and that doing it is risky and  it's too difficult so starting small and picking  

up the habits even if it's just with five or ten  dollars that can remove the mental and emotional  

barrier so it's better to start investing when  you're young than waiting till you make loads  

of money and then making mistakes at that point  once you open up your investment account you'll  

want to start investing and that leaves me 2.7  which is invest in index funds really simple yet  

really effective way to diversify your portfolio  and increasing your earnings over time is through  

index funds by purchasing an index fund you're  essentially buying a small piece of a large number  

of companies all at once so for example if you're  investing in the S P 500 Index Fund then you're  

investing in the top performing 500 companies in  the U if you're investing in the ftse 100 it's  

the top 100 companies in the UK you're investing  in these all at once in one go for most people  

this is far better than picking individual stocks  because you diversify your money by splitting it  

through these 500 companies or so overall index  funds are a good choice for anyone who wants to  

invest in the stock market without taking on too  much risk and starting early means you can benefit  

from compounding but I do always like to highlight  that this is a long game and so don't expect to  

become an overnight millionaire from investing in  index funds which is why I've put this seventh on  

my list I do believe in investing in yourself  and increasing your earnings potential before  

going down the index fund route before I leave you  one quick thing 77 of people who watch my videos  

aren't subscribed if you gained value from this  or you gained anything at all from watching this  

video don't forget to subscribe and if you enjoyed  this video you may also enjoy this video here that  

I have on six habits that made me six figures  by 24. thank you for watching and see you there