7 Money Tips I Wish I Knew In My 20s
Summary
TLDRNisha 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
💼 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.
🤝 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.
Mindmap
Keywords
💡Savings
💡Reinvesting
💡Knowledge Sharing
💡Upskilling
💡Passive Income
💡Investment Account
💡Index Funds
💡Scarcity Mindset
💡First Mover Advantage
💡Compounding
💡Personal Finance
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
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