Here is part 2 of the 30 money lessons by 30 years old series! I wanted to talk about some lessons I’ve learned since I’ve recently turned 30 :). Let me know what you guys think!
30 Money Lessons BEFORE 30! 💰 (PART 2 Things to Learn About Money)
RESOURCES MENTIONED:
✅Track your net worth (A MUST!) try Personal Capital for free here: https://personalcapital.go2cloud.org/…
Receipt apps:
✅Fetch Rewards – REF CODE: PW146 – https://www.pubtrack.co/B4JHWH6/9WZ1G9/
✅Receiptpal https://app.adjust.com/oqlq9t9?label=…
✅Coinout https://coinout.com/referrals/new?r=G…
Cashback apps:
✅Ibotta – REF CODE: lbatsxy – https://ibotta.com/register?friend=lb…
✅Rakuten – https://www.rakuten.com/r/DIGITA1174?…
Transcription
Below is a transcription of the podcast. This transcription was taken from Otter.ai so it might not be completely accurate:
(add the transcription here) Sharon Tseung 0:02
This is the digital nomad quest podcast with Sharon Tseung. teaching people how to build passive income, become financially free and design their best lives. Hey guys, Sharon from digital nomad quest, and today we’re gonna do part two of the 30 money lessons by 30 series.Now if you guys are new to the channel, welcome, I’m all about to do how to build passive income become financially free and design your best live. So if you guys are interested in that, make sure to subscribe and hit the bell button to be notified of my latest videos. So in one of my previous videos, I did money lessons video, but how to split it up into two parts. This is basically part two of the series where we’re continuing 30 Money lessons you should learn before you turn 30. Here the 15 remaining lessons, we’re going to start from number 16. So number 16, forgive yourself for past money mistakes, I talked a lot about finance, passive income and investing. And I hear people in the comments of my content wishing they had started earlier or didn’t spend on so many things back in the day, and they just have all these regrets. It’s important to quiet negative messages. Because if you keep focusing on the past, it’s really hard to focus on the present and focus on learning and growing, it’ll honestly hold you back. So you should try accepting your past and forgive yourself, it doesn’t determine your future unless you let it now number 17 is really about the 4% rule. The 4% rule is a way to kind of understand how much you’ll need to save and how much you need to withdraw when retired. So theoretically, your investments will increase 7% On average, and inflation will be 3% per year average. So this means if you subtract the two, you can theoretically pull out 4%. And the principle will not dwindle. So as an example, I interviewed this girl named Anita docky, who retired at 32. And after she saved $700,000, she decided that this was enough to retire off of based off the 4% rule. So 4% of that $700,000 is essentially $28,000. In yearly spending, she put the majority of her savings into Vanguard Total Stock market index fund, which is a pretty safe index fund that pays out dividends. So theoretically, her investment should give her the $28,000 each year that she needs without dipping into our $700,000 principle. So essentially, this 4% Rule helps you understand your retirement number and withdrawal number, it kind of lets you work backwards and let you know that okay, I need to save this much in my nest egg and then I can pull out 4%. And that will be my withdrawal number, I would say that this is kind of like a guideline to understand the 4% rule. But it’s not like this is the safest rule that you should follow for sure. And everything will be okay, you never know what’s going to happen. So it’s just kind of like that one kind of benchmark or guideline to help guide you when it comes to calculating your retirement number number 18. You should set up auto pay for credit cards if you can. So it seems like credit card debt is a pretty big issue for people. And it all really comes down to paying off your debt so that there aren’t high interest rates. Now if you set up auto pay, you can essentially reduce worries and make sure everything is paid off. But that means you need to make sure you don’t spend more than you should. And it means you need to know how much you currently have as well. So you also want to make sure that you have a stable income that’s able to pay off your expenses. So I would actually treat your credit card as cash, you know that you would pay out of your bank account right away so that you can set up auto pay without worry, whatever I spend on my credit card, I never think okay, I’m just gonna pay this back later. All this is like an IOU like I’m thinking, Okay, this is money is going to go out of my bank account. And I need to make sure I have enough funds to cover those expenses. So that’s how you should think to think that that credit card is basically cash that would be paid from your bank account right away. Number 19, you should find credit cards that have great rewards. So certain cards actually give you solid rewards. And you should make sure to look for cards that give you cash back or miles inside for ones that will pay you for your everyday purchases. So for my own example, right, I have cards that give me cashback for groceries or for gas and have higher percentages for restaurants. So I actually have multiple cards that I use one that gives higher rewards for those groceries and gas purchases. And then I have the other that I use for like dining out and other things, it can be beneficial to have different cards for different reasons, but only open multiple cards if you know you can pay off everything in your organize about it. So number 20 Time is the currency This is a big lesson that people don’t really realize time is basically the most important thing in life, because that’s your limited resource on Earth. And with most active income jobs, you’re essentially trading time for money. It’s only if you start making passive income, that money is not based off of your hours. So if your main source of income is $20 an hour, a $4,000 Chanel bag would literally cost you 200 hours of your life. That’s really something that’s important to think about. And we’ll help you more on how you spend your money and give you more motivation when it comes to building passive income. So is it worth that $4,000 Chanel bag if it’s gonna take 200 hours out of your life 200 hours is actually a lot of time, right? So you got to think in those ways, in my opinion, it will really help you improve your spending habits. And that’s basically how I’ve been doing it where I equate it to time. Luckily now I have a lot of passive income streams so it’s not really like that anymore. But when I only had like one income source, that’s how I would think about it and it would help me not spend as much money number 21 One money only buys you happiness up to $75,000. So there’s been a lot of studies that show this fact and actually had kind of a similar situation where I was digital nomad thing. And at the time, I kept chasing passive income numbers and trying to make more money and more money. As I kept doing thatI realized I wasn’t really fulfilled, there wasn’t really too much meaning behind chasing numbers, and then I realized that you have to have purpose and intention behind your actions. So after $75,000, and pretty much throughout your life, you should be thinking in terms of purpose and fulfillment, like are your actions aligned with your values and your purpose number 22. Receipt scanning apps can actually go a long way. So I’ve actually made a decent amount on federal wards, coin out and receipt pal, these are three receipt apps where you can actually scan your receipts every time you make a purchase to scan it, and you actually get rewards back. So coin out will pay you through cash fetch rewards, and receipt, power pay and gift cards. So I will link those below. Make sure to check those out. It’s been great for me number 23 cashback apps can help as well. I’m talking about Rakuten and I bought us so these are two good cashback apps I bought is kind of a receipt app as well. So basically, when you’re purchasing stuff, like online, for example, you can go and put in the Rakhee 10, Chrome extension and just load that up, and it’ll activate and it’ll give you a percent cashback depending on the store you’re purchasing from. So it’s a great thing to activate on your Chrome extension, I will link that below I bought it is cool, but you have to kind of search for the offers that they have, and see if you’re gonna buy those types of products, which to me is less cool. I think racket 10 is super awesome, because it’s automatic. But you should definitely check out both of these apps number 24. If you want to buy a house, they care about your debt to income ratio, if your credit score and two years pay, you have to have two years of job income proof so they know that you are going to be able to pay back your loan. So for conventional loans, the max that lenders prefer to see is usually like a 43% debt to income ratio or less, and a 620 credit score minimum number 25, you should not let your money sit. So essentially, inflation actually makes your cash lose value over time. So for example, in 1999, movie tickets were like $5. Now I feel like they’re like 15 to $20. Inflation is the rate at which prices and services are increasing, which makes the purchasing power of cash go down. So factors affecting inflation are demand for goods, production costs, and more. So the idea is you don’t want to let your cash say you should actually invest it in maybe stocks or real estate or invested in your business, or invested in yourself or investing in your skills and learning new things. 26 There is actually good debt versus bad debt. So good debt actually helps you increase your net worth or your income and as low interest. And examples might include mortgage your asset is appreciating, and student loans, maybe if it increases your income, but too much student loans can be bad now bad debt drags down your situation and has high interest. So examples might include large car loans and credit card debt. So you want to avoid bad debt and good debt might be okay. But like I said before, student loans could be bad if you have too much, and you are not paying it down. But for example, having mortgages, if you’re doing real estate investment, you can possibly leverage money to actually make you money. So that’s why there can be good debt that allows you to get more money, number 27, you should invest in yourself. So I talked about this briefly earlier, but you should invest 3% of your income into yourself, or your business, I believe I got this from no excuses by Brian Tracy, it essentially tells you to invest that much. Because essentially, you’re going to invest in your skills and your business. And the more you put into yourself, the more will pay you back. So a lot of people that follow this and are buying courses and buying books, and they end up increasing their income and nest egg. So they start investing more into themselves. And they get a lot of pay out from doing that 28 You have to be careful of lifestyle inflation. So people tend to spend more as their income grows. So you need to make sure you avoid this trap, right? If you are making $50,000 a year, and then you start making 100,000 and then 200,000, that does not mean your spending should just keep growing up and up and up, you should try to save as much as you can and then invest your savings. That way you can start making your money work for you, instead of just spending all your earnings and then still being broke essentially, even if your incomes high and a lot of Americans are guilty of this back. So number 29 You should remove high interest debt. And basically after you figured out your necessities and bills and have some emergency fund money saved, you need to work on removing high interest debt. And you should work on paying that off as quickly as you can. Because debt left unresolved can actually cause a lot of stress and difficulty and it can be really hard getting unstuck. And finally, number 30 You should create financial goals. So make sure to create financial goals for yourself so that you’re working on paying off that debt saving and then investing so to do this, you may want to create budget goals per month debt pay down goals per month and more. An easy way to help you do this is to track your net worth through personal capital. So actually I use Personal Capital where tracks your net worth where it tracks your cash flow coming in and coming out. It’s very convenient so that you can see that macro level view. So if you have these goals, you can constantly track it through personal capital to see if you are meeting those goals. So checkout Personal Capital I’ll link it down below as well. So I hope you guys enjoyed this episode. Please make sure to rate review and subscribe. It really helps our podcast grow. And thanks again. I’ll see you guys in the next one.
This is the digital nomad quest podcast with Sharon Tseung. teaching people how to build passive income, become financially free and design their best lives. Hey guys, Sharon from digital nomad quest, and today we’re gonna do part two of the 30 money lessons by 30 series.Now if you guys are new to the channel, welcome, I’m all about to do how to build passive income become financially free and design your best live. So if you guys are interested in that, make sure to subscribe and hit the bell button to be notified of my latest videos. So in one of my previous videos, I did money lessons video, but how to split it up into two parts. This is basically part two of the series where we’re continuing 30 Money lessons you should learn before you turn 30. Here the 15 remaining lessons, we’re going to start from number 16. So number 16, forgive yourself for past money mistakes, I talked a lot about finance, passive income and investing. And I hear people in the comments of my content wishing they had started earlier or didn’t spend on so many things back in the day, and they just have all these regrets. It’s important to quiet negative messages. Because if you keep focusing on the past, it’s really hard to focus on the present and focus on learning and growing, it’ll honestly hold you back. So you should try accepting your past and forgive yourself, it doesn’t determine your future unless you let it now number 17 is really about the 4% rule. The 4% rule is a way to kind of understand how much you’ll need to save and how much you need to withdraw when retired. So theoretically, your investments will increase 7% On average, and inflation will be 3% per year average. So this means if you subtract the two, you can theoretically pull out 4%. And the principle will not dwindle. So as an example, I interviewed this girl named Anita docky, who retired at 32. And after she saved $700,000, she decided that this was enough to retire off of based off the 4% rule. So 4% of that $700,000 is essentially $28,000. In yearly spending, she put the majority of her savings into Vanguard Total Stock market index fund, which is a pretty safe index fund that pays out dividends. So theoretically, her investment should give her the $28,000 each year that she needs without dipping into our $700,000 principle. So essentially, this 4% Rule helps you understand your retirement number and withdrawal number, it kind of lets you work backwards and let you know that okay, I need to save this much in my nest egg and then I can pull out 4%. And that will be my withdrawal number, I would say that this is kind of like a guideline to understand the 4% rule. But it’s not like this is the safest rule that you should follow for sure. And everything will be okay, you never know what’s going to happen. So it’s just kind of like that one kind of benchmark or guideline to help guide you when it comes to calculating your retirement number number 18. You should set up auto pay for credit cards if you can. So it seems like credit card debt is a pretty big issue for people. And it all really comes down to paying off your debt so that there aren’t high interest rates. Now if you set up auto pay, you can essentially reduce worries and make sure everything is paid off. But that means you need to make sure you don’t spend more than you should. And it means you need to know how much you currently have as well. So you also want to make sure that you have a stable income that’s able to pay off your expenses. So I would actually treat your credit card as cash, you know that you would pay out of your bank account right away so that you can set up auto pay without worry, whatever I spend on my credit card, I never think okay, I’m just gonna pay this back later. All this is like an IOU like I’m thinking, Okay, this is money is going to go out of my bank account. And I need to make sure I have enough funds to cover those expenses. So that’s how you should think to think that that credit card is basically cash that would be paid from your bank account right away. Number 19, you should find credit cards that have great rewards. So certain cards actually give you solid rewards. And you should make sure to look for cards that give you cash back or miles inside for ones that will pay you for your everyday purchases. So for my own example, right, I have cards that give me cashback for groceries or for gas and have higher percentages for restaurants. So I actually have multiple cards that I use one that gives higher rewards for those groceries and gas purchases. And then I have the other that I use for like dining out and other things, it can be beneficial to have different cards for different reasons, but only open multiple cards if you know you can pay off everything in your organize about it. So number 20 Time is the currency This is a big lesson that people don’t really realize time is basically the most important thing in life, because that’s your limited resource on Earth. And with most active income jobs, you’re essentially trading time for money. It’s only if you start making passive income, that money is not based off of your hours. So if your main source of income is $20 an hour, a $4,000 Chanel bag would literally cost you 200 hours of your life. That’s really something that’s important to think about. And we’ll help you more on how you spend your money and give you more motivation when it comes to building passive income. So is it worth that $4,000 Chanel bag if it’s gonna take 200 hours out of your life 200 hours is actually a lot of time, right? So you got to think in those ways, in my opinion, it will really help you improve your spending habits. And that’s basically how I’ve been doing it where I equate it to time. Luckily now I have a lot of passive income streams so it’s not really like that anymore. But when I only had like one income source, that’s how I would think about it and it would help me not spend as much money number 21 One money only buys you happiness up to $75,000. So there’s been a lot of studies that show this fact and actually had kind of a similar situation where I was digital nomad thing. And at the time, I kept chasing passive income numbers and trying to make more money and more money. As I kept doing thatI realized I wasn’t really fulfilled, there wasn’t really too much meaning behind chasing numbers, and then I realized that you have to have purpose and intention behind your actions. So after $75,000, and pretty much throughout your life, you should be thinking in terms of purpose and fulfillment, like are your actions aligned with your values and your purpose number 22. Receipt scanning apps can actually go a long way. So I’ve actually made a decent amount on federal wards, coin out and receipt pal, these are three receipt apps where you can actually scan your receipts every time you make a purchase to scan it, and you actually get rewards back. So coin out will pay you through cash fetch rewards, and receipt, power pay and gift cards. So I will link those below. Make sure to check those out. It’s been great for me number 23 cashback apps can help as well. I’m talking about Rakuten and I bought us so these are two good cashback apps I bought is kind of a receipt app as well. So basically, when you’re purchasing stuff, like online, for example, you can go and put in the Rakhee 10, Chrome extension and just load that up, and it’ll activate and it’ll give you a percent cashback depending on the store you’re purchasing from. So it’s a great thing to activate on your Chrome extension, I will link that below I bought it is cool, but you have to kind of search for the offers that they have, and see if you’re gonna buy those types of products, which to me is less cool. I think racket 10 is super awesome, because it’s automatic. But you should definitely check out both of these apps number 24. If you want to buy a house, they care about your debt to income ratio, if your credit score and two years pay, you have to have two years of job income proof so they know that you are going to be able to pay back your loan. So for conventional loans, the max that lenders prefer to see is usually like a 43% debt to income ratio or less, and a 620 credit score minimum number 25, you should not let your money sit. So essentially, inflation actually makes your cash lose value over time. So for example, in 1999, movie tickets were like $5. Now I feel like they’re like 15 to $20. Inflation is the rate at which prices and services are increasing, which makes the purchasing power of cash go down. So factors affecting inflation are demand for goods, production costs, and more. So the idea is you don’t want to let your cash say you should actually invest it in maybe stocks or real estate or invested in your business, or invested in yourself or investing in your skills and learning new things. 26 There is actually good debt versus bad debt. So good debt actually helps you increase your net worth or your income and as low interest. And examples might include mortgage your asset is appreciating, and student loans, maybe if it increases your income, but too much student loans can be bad now bad debt drags down your situation and has high interest. So examples might include large car loans and credit card debt. So you want to avoid bad debt and good debt might be okay. But like I said before, student loans could be bad if you have too much, and you are not paying it down. But for example, having mortgages, if you’re doing real estate investment, you can possibly leverage money to actually make you money. So that’s why there can be good debt that allows you to get more money, number 27, you should invest in yourself. So I talked about this briefly earlier, but you should invest 3% of your income into yourself, or your business, I believe I got this from no excuses by Brian Tracy, it essentially tells you to invest that much. Because essentially, you’re going to invest in your skills and your business. And the more you put into yourself, the more will pay you back. So a lot of people that follow this and are buying courses and buying books, and they end up increasing their income and nest egg. So they start investing more into themselves. And they get a lot of pay out from doing that 28 You have to be careful of lifestyle inflation. So people tend to spend more as their income grows. So you need to make sure you avoid this trap, right? If you are making $50,000 a year, and then you start making 100,000 and then 200,000, that does not mean your spending should just keep growing up and up and up, you should try to save as much as you can and then invest your savings. That way you can start making your money work for you, instead of just spending all your earnings and then still being broke essentially, even if your incomes high and a lot of Americans are guilty of this back. So number 29 You should remove high interest debt. And basically after you figured out your necessities and bills and have some emergency fund money saved, you need to work on removing high interest debt. And you should work on paying that off as quickly as you can. Because debt left unresolved can actually cause a lot of stress and difficulty and it can be really hard getting unstuck. And finally, number 30 You should create financial goals. So make sure to create financial goals for yourself so that you’re working on paying off that debt saving and then investing so to do this, you may want to create budget goals per month debt pay down goals per month and more. An easy way to help you do this is to track your net worth through personal capital. So actually I use Personal Capital where tracks your net worth where it tracks your cash flow coming in and coming out. It’s very convenient so that you can see that macro level view. So if you have these goals, you can constantly track it through personal capital to see if you are meeting those goals. So checkout Personal Capital I’ll link it down below as well. So I hope you guys enjoyed this episode. Please make sure to rate review and subscribe. It really helps our podcast grow. And thanks again. I’ll see you guys in the next one.
