Financial Advice To My Younger Self

Ever wish you could go back in time and sit down with your younger self and give him or her advice on the many things you have learned in life. If I could, this is some of the advice I would share.

Lesson #1 - Seek Financial Independence
Many people think finance is boring, but it is in every facet of our lives. It governs a lot of what we do and how we live. When I was young, my parents taught me go to school, work hard, get a good job. I was taught to follow the crowd. Many of us also learned this in school as well. We are taught to think inside the box and not outside. Most of the highly successful people in business and investing think outside the box and do not follow the crowd.

Do not get boxed in and rely on a job for your financial security! Most people that do this end up living paycheck to paycheck and truly miss out on life and doing the things they enjoy most. I’ve seen firsthand people that have worked nearly their entire lives for a company only to be let go and having to start over.

Part of obtaining financial independence is to create several revenue streams. Start by taking something that you are passionate about, look at how you can profit from it, and start a business. Many online businesses can be started easily with very little upfront costs.

Many of the following lessons go hand in hand with obtaining financial freedom, which is true freedom.

Lesson #2 - Do Not Go Into Debt! Debt is Slavery Period.
It is a difficult thing to do today because we live in a society where everyone wants everything now. We are taught to take on debt by going to college because you will get a great job when you graduate and not have any problems paying off your student loans. Young people today are being saddled with debt right out of college and many are finding it terribly difficult to get a decent job.

We are always told it is a great time to buy a house while taking on a 30-year mortgage that you will be paying on for the rest of your life. Buying a house and paying it off years ago is something I wish I had done. However, the real estate market has been propped up once again and is extremely overvalued because of cheap easy credit. With interest rates rising, many homeowners will go under once the real estate bubble pops again.

There are instances where going into debt for business or investments could be beneficial, but personal debt is a big hell no! The reality is that we are in the biggest debt bubble in the history of mankind. Over one trillion dollars just in student loan debt alone. The country is twenty trillion dollars in debt, hundreds of trillions if you count unfunded liabilities. The financial recovery has been one big lie meant to deceive people into continuing to spend and borrow. Don’t fall for the trap!

Lesson #3 - Invest in Yourself
Instead of buying the latest iPhone, take that money and invest in yourself. Invest in knowledge because knowledge truly is power. One of the most undervalued skills to learn is becoming proficient in another language. It does give you an advantage over others. Learning another language can help you in your job, help you get a job, or improve your business prospects. It does not take a lot of financial investment to learn another language, but the financial rewards can be great.

Another step towards investing in yourself is to pay yourself first! Take a percentage of your income and pay yourself first by setting it aside and saving it. When I look back over the years at the amount of money I squandered on silly crap is truly mind boggling. By paying yourself first, when an opportunity presents itself, you will have liquid cash to take advantage of it. On the other hand, If an unexpected expense arises, you will be able to pay it without having to go into debt or sell an asset.

Networking is an often overlooked tool for success. Networking with the right people can often lead to greater opportunities than relying on educations, skills, and abilities alone.

Lesson #4 - Consistently Invest in Financial Markets
One of the greatest wealth building strategies is investing in the financial markets. However, to be successful you must learn as much as you can, manage your own investments, and stay on the top of trends and current affairs. At a very young age, I became interested in the financial markets and investing. I read whatever I could about the topic. I began investing as soon as I turned of age. Unfortunately, I did not stay focused and had lost the commitment needed to be a successful long term investor. It is easy to get overconfident and risk too much in one investment.

You must stay passionate about investing and stay consistent and never overextend yourself. The key is to maintain your liquidity so when the right opportunity comes up, you can take advantage of it. In today’s markets, the buy and hold strategy does not work. You must be an involved investor and actively manage your portfolio. Stock options are the best tool in my book. They give you tremendous leverage and control of more shares than you could buy outright. In fact, trading options are all I do today when it comes to investing in the markets. Professional traders make money when the markets go up and when the markets go down. If you learn how to properly use stock options, you can make unbelievable profits that can be invested into other assets.

Invest carefully right now, the market is heavily overvalued today in my opinion. That is not to say that it cannot continue going up, but I would be very cautious at this moment.

Lesson #5 - Invest in Hard Assets
A good strategy is to take some paper profits when you sell stocks or options and buy hard assets for long term holdings. Precious metals are the best hard assets to own. Gold and silver have been money for thousands of years. It is the only form of money with that type of history and track record. Unfortunately, governments and banks have demonetized gold and silver over the years because they can’t create it out of thin air like they do with fiat currency like the dollar. For every dollar created, a dollar’s worth of debt plus interest is created as well. If you look at the top of the dollar it states “Federal Reserve Note”. A note is a debt instrument.

The dollar has lost tremendous purchasing power over the years through a hidden tax known as inflation. Gold and silver maintain their purchasing power even with the markets being heavily manipulated today. In the sixties, you could have bought a gallon of gas for a quarter. Today if you took that same 1960 quarter, which was 90% silver, you can still buy a gallon of gas. Obviously, you would have to sell it and convert it to dollars first, but the value is still there.

Lesson #6 - Don’t Sell Yourself Short
Go after what you want in life and don’t be afraid to do anything! Never underestimate your abilities and skills. Most importantly believe in yourself and don’t get complacent. Always strive to better yourself and the lives of your family.

This is my first post on Steemit. I thank you all for reading. I hope you get something out of it. I intend to write about financial topics among other things if the interest is there. I’m not an expert by the traditional sense of the word, but I do feel that I have learned a tremendous amount over the years, which I intend to pass along in hopes that it will improve the lives of others.

Be good to the ones you love because you never know when or if you will see them again!