As teens, we are told to study hard so we can get a good job.
As 20-somethings, we begin navigating financial independence for the first time.
And leading up to our 30s, many of us hope to have finally “figured it out.”
But, as you know, money is more complicated than simply earning a paycheck…
And there are countless lessons about personal finance most of us don’t learn until we are forced to with painful and costly experiences.
This is your headstart.
And it’s okay if you are over 30– most people NEVER learn these lessons, so better late than never, right?
1. Buying an item on a credit card and only making the minimum payment essentially doubles the cost of the item.
So if the vacation you put on the CC costs $3k, if you just pay minimums on your card, that vacation can end up costing you nearly $6k. So one of the best rules to adopt is that If you can’t pay off your monthly bill IN FULL, just don’t use it.
2. “Compound interest is the eighth wonder of the world. He who understands it earns it … he who doesn’t … pays it.”
This came from Einstein. Once you understand the power of compound interest on your finances, you will never see things the same again.
3. Where your financial attention goes, energy flows.
Be conscious of what/who you give your financial focus to.
4. You cannot out-give God.
God’s Kingdom math doesn’t make sense and is the opposite of the secular approach to money. As one of my heroes in the faith said, “I shovel it out, but God shovels it back. But his shovel is bigger.”
5. Upgrading your skills is one of the best ways to increase income.
Always be seeking to improve and hone your craft. Never think you’re too good for more education/training.
6. The key to increasing wealth for most is to spend less on things that depreciate so you can invest in things that appreciate.
Most of us have to spend most of our money on depreciating assets to survive (buying food, cars, clothes, etc). The key is to begin carving out more money each month to put towards things that increase in value.
7. Money management can (and should be) an act of Worship.
Like anything else, we can either do it for our glory or for His glory.
8. Learning to cook at home is one of the easiest ways to change your financial life quickly.
Eating out and meal delivery end up costing way more than eating at home and are generally less healthy. If you make eating out more of a “special occasion,” you’ll save a ton and enjoy the experience considerably more.
9. What your grandma said is true. Money will NEVER buy happiness.
We all instinctively know this. But we all want to find out for ourselves… just to make sure. Over the last 15 years I have talked to thousands of people about money (rich, poor, and everything in between) I can assure you there isn’t any correlation between money and joy (or misery).
10. That said, life is harder when you are broke.
I wrote more about this in an article called What growing up broke taught me about money, but suffice it to say, when you are broke, the deck is stacked against you in lots of ways.
11. Never let your current financial condition define you.
Being broke can be a temporary condition, or it can be a belief or mindset that you carry all your life. Never let the current circumstances affect your beliefs or mindset – because that makes it really hard to climb out. The same applies to being wealthy.
12. Everyone is afraid to talk about money. But the Bible talks about it all the time.
Openly discussing money de-stigmatizes it so it no longer holds psychological power over your life and choices. Don’t avoid talking about it.
13. There is debt that can earn you far more than it costs you, and there is debt that finances a lifestyle beyond your means.
Know the difference, but have a plan to pay off both.
14. Maintain professional relationships even when you don’t need them right now.
Two famous quotes come to mind with this. “Your network is your net worth” and the “best time to fix a hole in your roof is when the sun is shining”.
15. Talk less about wanting financial freedom and take more action towards it.
3{e6a1e97ec1a15155ca0ed8c3e87721e561c99ed6e52274045963a20278fc2089} of people achieve their goals just by saying them. Don’t be a talker. Be a doer.
16. What you DO with your next dollar matters more than what you do with your next 10,000.
Master the small disciplines, and the big ones follow. “Every action you take is a vote for the type of person you want to become.” Read Atomic Habits for more.
17. Time is by far the most powerful factor for your investing success.
Invest as early and as often as you can, no matter how little it is, because time + compound interest = more financial impact than you can imagine. (And if you need help, I have a 7-day step-by-step guide to make your first investment in our 10x Investing course.)
18. “Luck” always favors those who try. You’ll be amazed at what opens up once you get started.
Momentum feeds itself if you work for it. Whatever your next financial goal is, let me be your cheerleader, encouraging you to go for it. Start taking the first step towards it today.
19. Wealth is best built through owning assets rather than relying solely on trading your time for money.
Income-producing assets > income.
20. The value of money lies in what you DO with it, not how much you have.
It’s LESS about how much you earn and MORE about what you do with it.
21. Financially successful people NEVER depend on willpower. They automate all of the most important financial decisions.
Giving, savings contributions, investments, bill payments, etc. Automation is the one decision that makes a thousand good decisions for you.
22. Most people budget wrong, which is why everyone hates it.
But when you do it right, by using it as a ‘lifestyle design mechanism,’ it enables you to actually spend more on what you love. (For more on how we do this, check out our Real Money Method)
23. Always overestimate expenses and underestimate income in your planning.
Most people do the opposite and are always in a constant state of financial chaos.
24. Examine your relationship to money and wealth to uncover previously unconscious beliefs driving your habits.
Our lives follow our beliefs. Change your beliefs, and you’ll notice your life will begin to change as well.
25. When you are 100{e6a1e97ec1a15155ca0ed8c3e87721e561c99ed6e52274045963a20278fc2089} debt-free (and plan to stay that way), you no longer have to bow to the manmade credit scoring system.
Strive to get to the point where your credit score means less than your 2nd-grade report card. In the meantime, build your score now so you can get lower rates and better future opportunities.
26. Money’s only value is what it enables you to do, not the amount you have.
Use yours intentionally to improve lives.
27. When paying off debt, the way to gain freedom is often by temporarily giving up all freedom.
Every good thing in life comes at a cost. And achieving any significant financial goal requires sacrificing something today for the benefit of tomorrow. When it comes to debt, the more freedom you temporarily give up now, the quicker you’ll get the financial freedom you want.
28. Always buy depreciating assets used.
Not everything makes sense to buy used. But buying things that go down in value quickly (think cars, electronics) is one of the easiest ways to save tons of money.
29. Doing work that lines up with your God-given talents is your unfair advantage.
Far too many people fail to earn money from their God-given gifts and are therefore missing out on the opportunity to make a greater impact and earn a much higher income.
30. Having multiple streams of income reduces risk.
Use less of your free time watching Netflix and more creating another stream of income.
31. Even long-term thinking on earth is short-term thinking in eternity.
So be thinking beyond your next 40 years and what eternal financial success looks like.
32. You will undoubtedly have a time when your income takes a major hit.
When that happens, if you have an emergency fund with at least one month of living expenses, you will be really glad that you did.
33. Read great money books to continually expand your knowledge.
For $15 you can pick the brains and steal the best ideas of people who are way better with money than you. It’s one of the greatest bargains in life. (BTW, you can even get mine for free if you can help cover shipping)
I overshot 30 by a few, and there are way more than this that I could share, but this is a good start for today.
What would you add?
Your friend and coach,
