Rent. Invest $100 or Less Monthly. Ignore Money Advice. Smooth Life.
This is how I am building my money empire.
If you are in your 20s, you don’t need to save yet.
For most of them, the income is still too low and the need to upgrade after their studies or internship is too great.
Not to mention that they are in the stage of discovering and building a business or monetizable skill for a living.
When young, you often first want to buy something, experiment, gain experience, and make mistakes. And that’s important too. Young people should not let themselves get so stressed out. The situation is also not as dramatic as the media writes.
Rent. Invest for 30 years, not for 3 weeks
Financial markets are a superior vehicle for building wealth, and owning a house is a lousy investment compared to money markets.
Therefore, you should rent and put the remaining money in the money markets. It is true that experience shows that the stock market has a higher return than real estate.
It’s an old argument about which is better.
Things don’t look good based on what we have. House prices are barely moving or even falling in some big cities, while at the same time, we have inflation.
That means: in real terms, real estate prices are already falling.
At the same time, construction interest rates have multiplied in recent years. And even if I personally don’t think much of the forecasts, I expect them to keep rising in the medium term.
This is why real estate was considered the sure way to wealth. But this is not true.
In general, a lifestyle where you don’t have to worry about money helps you to have a quiet life. So you put your money in ETFs and stocks. You may be looking for a part-time job to earn more. And now you can be an investor.
Ignore people online who mock the middle class
Even successful people sometimes act like babies with money. You don’t take any responsibility. Think of Boris Becker, who went bankrupt. Former basketball star Larry Bird sums it up.
Bird describes when players who later went broke mocked him for saving rather than wasting his money:
“Even when I was at the peak of my career, we didn’t drive Mercedes-Benz or live in multi-million dollar houses. When I started playing, we bought a nice little house in the French Lick/West Baden area. It cost $125,000. We didn’t run away and spend all our money knowing that there would come a time when it would all end. I wanted options on what we could do with our future. I never thought about retiring. I just thought I would always work. “
“Some of the guys who earned a lot less than I did bought $700,000 houses, ROLEX watches, and big luxury cars. I used to tell them, ‘You’re crazy, you should save your money.’ They just laughed and joked that I was saving my money”.
I could see what they were doing. They threw away their future. Many of them lived for now and didn’t even think for a minute about thinking about life ten years from now when their gambling careers are over and the money stops flowing.
“By the time they realized that what I was saying was true, it was too late. I can’t tell you how many former teammates have asked me for money. It is painful to say no, but I am doing this because I told them so. I told them to save up.”
Rent. Invest for 30 years, not 3 weeks. Make coffee at home. Make pizza at home. Quiet life.
Don’t accept anyone telling you what you have to do with your money. Which by the way was once hard to earn.
Ignore money advice. It will only get in your way.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.