14 Money Mistakes to AVOID in Your 20's

there are 14 massive money mistakes that people make in their 20s that you do not want to repeat and this is one of those don't buy an iPhone buy an Android [ __ ] like if you make these mistakes early you will have to pay for them for years the good thing is is that you can avoid them very easily number one underspending on education and overspending on status when you're in your 20s you probably aren't balling and the amount of people on Instagram I see with their check mark that they bought in front of

a Lambo that they would ever like we all get it they're full of [ __ ] we understand the people who matter are not impressed if I were a $200,000 watch all the buddies that I have don't give a [ __ ] the guys who are ahead of you they want to see you eating [ __ ] living poor learning and hustling you driving around in your new rolls or bends or whatever and you're maxing out all of your expenditures so you can Flex to other 20-year-olds is stupid now you should take that same money

and plow all of that into your own ability to earn more money and that's what somebody who's ahead of you is going to look back and give you that status and respect for like you can get status in your 20s from people who are ahead of you if you're doing the right stuff if you show that you're on the wrong path they automat think they're like he doesn't get it or she doesn't get it they'll never associate with you until you understand the lesson number two taking jobs to earn rather than to learn and this

is one of the biggest ones we had a thousand people who applied for a YouTube editor so for editing videos like this so we offered somebody very good pay and the guy said I want an extra $3,000 a year missing the [ __ ] plot what he didn't understand was that he was in a season of learning not a season of earning he might be able to to go somewhere else and get 30% not even 3,000 30% higher the people who are going to pay that premium are paying the premium for everything you know and

have nothing to add to you if you're taking your jobs right now in order to earn it's not the right season you're trying to cash in early the earning potential of you getting extra $10,000 a year or $25,000 a year in your 20s is so inconsequential on the long time Horizon of the skills that you should be learning right now three is that you save money that is a mistake hear me out you want to save money in your 20 but not actually save it you want to not spend it or blow it on [

__ ] and you want to put it into a separate account but that money you want to invest not dollar cost averaging S&P or whatever it is you can do that by all means it's a great way to like have some money later but if you want to become Filthy Rich which is hopefully you know what MOS nation is here to do you want to invest that money into you and your earning capacity right now you make so little that the money doesn't matter so like if you save $500 a month ,000 a month you

can put that into the calculator and look what it's going to be in 70 years and like cool one it doesn't factor in inflation so when people see that they're going to be worth $4 million $4 million in 60 years is also worth like a million doll today think about how much more you'll get back if you spend $10,000 this year and then you double your earning capacity or you triple your earning capacity instead of saving money to invest in assets invest in the number one asset which is you and increasing your earning potential number

four decide how much you're going to invest first before you spend money prioritization comes from taking that's literally prior it comes first right is that you take the money off the top and you say this money has been prioritized for my learning my education and then whatever you have left that you can spend all that money that account you can let it stockpile up and then you see something that you want to learn and then deploy the capital not what do I have left at the end of the month can I afford it you've got

this big pile of gold over here that every month you plan on to and then when you when you see the opportunity you make the decision you pull the trigger number five automate the investing and you want to manualized the spending you want to lubricate how easy it is for you to invest in yourself and you want to make it harder to spend on [ __ ] that never comes back to you Dave Ramsey talks about people having cash rather than credit cards you actually feel pain when you buy things in cash compared to using

credit cards the harder it is to buy something the less you buy like the only one that even hits your account is the money that you're allowed to spend the other money you've already allocated out to the other things like you have your rent account maybe and then you've got your personal investing account me you've got your food and your car money whatever number six don't go shopping let's be real you don't need another set of sneakers the idea that someone says I'm going to go shopping like they have no agenda it just means like

I'm going to waste money today stick with the lists that you already have pre-approved in terms of your budget this is my list these are my groceries this is whatever and if it's not on the list you don't buy it it's a very simple habit but that will pay dividends for the rest of your life number seven get takeout don't cook your food very contrarian I know as soon as you make more than $15 an hour it makes more sense for you to work that day get the takeout food and get the time back it

makes more sense financially most people can like if you're not being a weirdo you can eat out for 10 bucks is a meal and you eat out twice a day is 20 bucks a day $600 a month maybe if you went to the grocery store it be what 100 bucks a week versus $150 a week is the net $50 a week can you not make that up for the meal prep going to the grocery store cutting cooking cleaning you're saving the pennies rather than investing in the Mega Millions which is you number eight people live

with the wrong people they have terrible roommates who break things who go out drinking who are late on rent like these are all things that'll distract you from the thing you're trying to do that's like level one worst type of roomate above that you've got people who are responsible Etc but they don't have the same goals as you they will speak over you their limiting beliefs and they will often times not actually root for you and they will kind of undercut you when you're on this path which is probably different than them and the thing

is in the beginning what becomes success looks like failure you're learning you're not earning they're already pulling their earning trigger they're bragging on the fact they make 70 grand a year whatever because you have a different goal and so never listen to people who have smaller goals for your life than you do making sure that you're living with the type of people who are trying to do the same thing as you are in your life will encourage one another and you guys are kind of like in the game together that's what will shape the way

you see the world I do think it's worth living with multiple people in your 20s cuz one your 20s can be lonely but two it's also just a lot cheaper I lived in a house with seven people in California and I was able to only pay 400 bucks a month in like a nice area which leads to number nine your micr community matters a lot I would overpay for convenience in terms of being close to stuff close to the highway so I can get on and off and right to places I need to close to

a gym and close to cheap places to eat if I can do those things and ideally if I can walk to them I save time and gas I get outside if you live in the middle of nowhere and it takes you 25 minutes to get to the gym and 25 minutes to go back there's all this time that gets eaten up I'm willing to pay a premium to save all of the ancillary cost it would go with living somewhere less convenient less safe I would live with more people in a better area than fewer people

in a shitty area number 10 say you model the wrong season of life sometimes younger guys will look at what I'm doing they're like oh I'm going to do what Alex is doing the thing is just like you don't have the track record and reputation is built on two things it's built on what you've done and what you say you're going to do and having both of them come true the thing that builds the reputation is not modeling what I'm doing now but modeling what I did before you want to make sure that you model

the right aspect of someone's life at the right time flying private doesn't make you rich it means you spend a lot of money sequence matters number 11 measure money in how long it took you to earn it let's say you make 20 bucks an hour if you want to go buy a shirt for 100 bucks you have to think to yourself okay I make $20 an hour 20% payroll tax I'm actually going to have to work 6 hours to buy that $100 shirt with tax whatever so if someone said I want you to work all

day and I'll give you this shirt would I do it probably not I worked at Smoothie King way I was 15 15 years old $725 an hour a 6-hour shift right so I was making 43 bucks people would go next door I remember noticing this and they would spend 15 bucks on lunch I was like so you have $36 after taxes for coming to work today and 15 of that is you going to lunch next door so you're working 6 hours for 20 bucks number 12 get competitive with money around what you're saving not what

you're making so I told you this is a season of learning not season of earning to know what you're going to learn you have to budget towards your investment rather than thinking I'm making $5,000 a month and spending $5,000 a month meaning I'm profiting personally zero say I am saving $2,500 this month to invest in me I've had people who I know have been making hundred, even millions of dollars a year and have nothing they blew everything and so make your PR your personal records around what you're able to put into that bank account every

month number 13 check your account every single morning until I started doing it I stayed poor I didn't want to look at my bank account cuz it would hurt my feelings seriously I just I would look at it and I would just feel poor but that's okay you have to confront reality in order to change it man money's pouring out of this thing left and right once I got a pulse on it I knew Tuesdays when I pay for this Thursdays is when I pay for this it's a habit that once you learn it it's

hard to forget and I promise you just like losing weight if you get someone to measure the weight every day get someone to measure the bank account every day it'll improve number 14 when is it okay to spend money if there's one thing that I probably could have done better is I could have spent money on onetime experiences and what I mean by that is not going to the club and popping bottles going to Europe and doing a you know sleeping in hosts for 3 months that's a cool experience that you're not going to be

able to do when you're 40 you're just not going to do it so there are times of Our Lives that are optimal for certain types of experiences and those windows close and so if there are experiences that you can only do in your 20s I wholeheartedly support them but you want them to be things that when you're you're proud of giving yourself permission to spend on an experience in a limited fashion you don't want to drain your entire investment account right you want to go see the Grand Canyon for 3 days go to the Grand

Canyon if there's some things that like are a little unique to you I think these are the times that you can do that and it's worth spending the time and the money to do it even if it's not financially make sense because at the end of the day like you're going to die it's not going to matter anyways