Becoming a financial success is actually more about the money you keep and invest than the money you make.
Because it doesn’t matter how much money you make, if you have poor money habits, you’ll never achieve the level of wealth you desire.
So, in this week’s newsletter I’m going to share with you some of my biggest financial regrets, as well as common financial pitfalls you must avoid if you want to achieve financial success.
Why I Was Misguided When I Had My First Taste Of Success
After amassing $150K of debt by my 21st birthday, and feeling completely desperate and hopeless…
I met my first mentor Alan at a business event by a chance encounter.
After convincing him to mentor me, Alan taught me my first high income skill, which I used to open my one man marketing agency.
I began turning my first real profits and made 6 figures as a kid in my early twenties.
While it was great I was able to take care of my mom and finally dig myself out of the 150K hole I’d created…
I had this idea that when you start making a lot of money you should show it off, be flashy, and buy expensive things.
So that’s what I did.
I bought a new car every year.
I’d take people out to dinner often to impress them.
I thought the money coming in would last forever, but I was naive.
Nothing lasts forever.
There’s little point in buying things just to impress people you don’t even like.
And that’s a trap I see so many people in.
What’s worse is many people do this with money they don’t have.
They max out their credit cards, get car loans, or get huge mortgages they have trouble servicing.
So that’s my first BIG financial regret.
I spent far too much money… I didn’t put enough away… I didn’t start investing as soon as I should have… and I made decisions to spend big sums of money based on my insecurities and trying to impress others.
But as you’ll soon see, investing quickly became my second biggest financial regret.
Why Investing Can Become A Trap For Young Players
So, after learning from my first financial regret, I saved up enough money to start investing.
I invested in 10 different companies, as an angel investor.
And guess what…
All 10 lost money!
I actually felt like a “Devil investor” not an “Angel investor”.
I had the “kiss of death.”
It was almost as if every business I invested money into died because of me.
But what I realized soon after was it wasn’t the investments that were bad.
The truth was, I didn’t understand the investments, and that made me a bad investor.
Today, I only invest in things I understand. I like to be an active investor and become involved in the company so I can add value and help the entrepreneur.
This gives me more control over the performance of the investment.
Tip #2 is obviously only investing in things you understand, and is also one of billionaire investor Warren Buffett’s rules of investing.
How To Avoid Common Financial Mistakes In Your Twenties
I think you’ll agree, there are multiple financial errors you could make throughout your life.
Oten, only in hindsight do you realize you’ve either made a bunch of errors or avoided a bunch of them.
So, in order to raise your awareness on potential mistakes you could make…
I wish I had seen a video like this when I was younger, and even if you’re not in your twenties, it may be a good idea to watch the video anyway, just in case there are money mistakes you’re currently making.
How To Avoid Common Money Mistakes In Your Thirties
Wisdom typically comes with age, but for every new decade you start, there are many money mistakes you’ll want to avoid.
In your thirties you’ve likely outgrown the mistakes people in their twenties would make.
You’re more established, married perhaps, and you have more responsibilities.
How To Avoid Common Money Mistakes In Your Forties
At this stage of your life, you may have a family to support.
Although your health is always important.
In your forties, you want it to become a higher priority if it isn’t already.
Because people who don’t make their health a priority, end up spending endless money to buy their health back in later life.
Money they could have invested and grown to take care of them in retirement.
Personally, I made my health more of a priority when I turned 40, and I’m healthier now than I was in my late 30s.
How To Avoid Common Money Mistakes In Your Fifties
One of the biggest money mistakes anyone could make in their 50s is not investing.
If you haven’t started investing by 50, while it’s not an ideal situation to be in, you still have around 15 years before you retire, which is a good amount of time to grow your money and prepare for retirement.
The absolute worst thing you can do is think it’s too late to get started.
You will have to learn how to invest properly, because at this stage of life, your investments will make or break you.
Making a few bad investments will kill your chances of a comfortable retirement.
In Conclusion, money traps are everywhere, and while things like gambling, living beyond your means, or spending money on things like cigarettes and alcohol are obvious things to stay away from…
Some traps are less obvious, which is why it will pay you dividends to become aware of as many money traps as possible.
I hope you’ve found this newsletter valuable, and it’s given you ideas on what to do and what not to do with your money at your stage of life.
To your success,
P.S. – As you may know, high income skills are your best bet to increase your income or start a side hustle so you earn more, save more, and invest more.