Transcription
So if you watch this YouTube channel, it's probably fair to assume that you have an interest in personal finance. Maybe you're just trying to learn more, maybe you're trying to improve your own situation. But it's probably also fair to assume that this is not the only YouTube channel you watch that is about personal finance and about money.
But if, like me, you've consumed a lot of financial content, whether that's in the form of videos, in the form of blogs, or anything else, you may have come to realize that by and large, a lot of the information that's out there, a lot of the advice that's being given, is redundant. It's repetitive. Most people are saying the same thing: "Always save a certain percentage of your income, no matter what." "In order to save $10 grand a year, you just have to save or earn $22.74 a day." "All you have to do to get to $8 million is invest $300 per month for the next 65 years." My goodness, what an idea! Why didn't I think of that?
But in actuality, I think that there's a number of things that are really important but that are not being talked about when it comes to the internet and personal finance as a whole. So in this video, we're going to talk about some of the most important financial advice that you aren't likely to find online.
And with that, the very first thing we have to talk about is the fact that no book is going to make you rich. I myself have read many personal finance books. Some of them I found to be a little bit helpful, some of them I found to be not very helpful at all, and most of them, like I said before, I found to just be redundant and repetitive, basically saying the same thing over and over again. The thing about personal finance is that it's actually pretty simple, especially when it comes to the basics. Things like earning more money, learning how to save, learning how to invest. None of this stuff is particularly complicated. But everybody wants to be able to write a book and then sell it to you under the pretense that it's going to teach you something you've never heard of before, and very rarely is that actually the case.
The tale of Scotty McBoogerballs. It was a warm summer morning when Scotty McBoogerballs awoke to find his... ew. He then grabbed his dog's... Oh, there definitely are a few gems out there, a couple books that might offer a bit of a fresh perspective and might help you to change your mindset on certain things. But for the most part, the majority of finance books are going to go over the same core principles, which is to increase your income as much as possible, live on less than you make, and invest the difference so that you can build wealth in the long run. And that's good advice. There is nothing wrong with it. That is personal finance 101.
But the idea that there is just one book out there, whatever book it may be, that has all of this information in it that you've never heard before, that's going to completely change your life and unlock a world of potential for you and help you become rich, is simply not true. So, am I saying that you shouldn't bother reading personal finance books? No, not at all. On the contrary, people who take an interest in personal finance as a hobby, people who actually like to learn about these things, even if there's a redundant nature to that learning, those are generally the people who are going to actually do better financially overall because they're taking an initiative and they're making it a priority in their life. And so if that's something that you find enjoyment in or something that you find educational or helpful for you, you should totally do it. But just don't be deceived in thinking that there's one, one book out there that if you just read it, it's going to change everything. The only thing that can actually monumentally change your financial situation are your own habits.
Now, the next piece of financial advice that the internet doesn't seem to want you to know is that investing is actually supposed to be boring. There seems to be a lot of people who are really intimidated to start investing, like they feel like they don't know anything about it and they're under the illusion that it's really complicated and really scary. And the truth is that that's not the truth at all. We can put that check in a money market mutual fund, then we'll reinvest the earnings into foreign currency accounts with compounding interest, and it's gone. Real investing for long-term wealth is very much a set it and forget it situation. Not only is it really not complicated, but it's also really not very much fun. It's actually quite boring.
A lot of people get really discouraged, especially early on, when let's say they invest $100 and after a month, that $100 is only worth $102, and it feels pointless. Or worse, that $100 is now only worth $97, and they panic. But that is the name of the game. Real investing is not about quick wins. It's not about doubling your money overnight. It's about building healthy habits where you're investing $100 a month, or $1,000 a month, or whatever it is you can manage to invest. But over the span of 5 years, or 10 years, or 30 years, compound interest will kick in and do its job, and you'll be so glad that you did.
One of the most common questions I get in the comments is, "Where should I invest my money?" or "What should I invest my money in?" And unfortunately, I'm not qualified to give out specific financial or investing advice. But what I can tell you is how I invest my money, which is using an app called Mumu, who's also sponsoring this video. Mumu is an online brokerage. They're CIPF protected and trusted by over 21 million people worldwide, including me. Mumu offers real-time level two stock quotes for both Canadian and US stocks, along with over 100 other pro-level investment tools. And if you're brand new to investing, you can even start by paper trading virtual money risk-free, and then seamlessly transition over to real money once you're ready. So for all of my fellow Canadians who are looking to contribute to their TFSAs this year and take advantage of those sweet tax-free gains, Mumu offers stocks, ETFs, and option trading with significantly lower fees than you'd get from your bank or other brokerages. We're talking just 1 cent per share for US stocks and 1.4 cents per share for Canadian stocks. And best of all is that if you're new to Mumu, you can get a welcome bonus of up to $2,400 when you sign up and fund an account. So just click the link below to get started.
Now, staying on the topic of investing, something else that I think is not often addressed online is the fact that the market, the market does not have to influence every decision you make. A lot of people delay getting started in investing or doing the things that they want to do because they're waiting to try to time the market. They're waiting till the stock they've been looking at goes down a few dollars. They're waiting to buy a house until the crash comes, whatever crash that may be, that may not ever actually happen.
But personally, I think this is a flawed way to look at life in general. Housing itself doesn't have to be an investment. Housing can be a house. And the right time to do something is when it makes the most sense for you. If you're looking to buy a house and you are currently in the position where you can afford to do so, and the house that you want is available, and all the numbers make sense, worrying about whether or not that house is going to go down a little bit in value shouldn't really be a factor in that decision, if you're planning to stay there in the long term, if you're looking at your house as a home rather than an investment itself.
And especially when it comes to the stock market, studies have shown over and over again that time in the market will always beat timing the market. Which means that you are much better off just investing consistently, starting now, starting yesterday if you could, and just investing over the long term, rather than trying to find the sweet spots where you think that things are going up or going down or whatever it may be. Just put your money in, set it, forget it, keep doing it, leave it alone. And over the long term, you will generally have made much more money by doing that than by trying to time things, which nobody's really actually capable of predicting. Something like 99% of professional investors are unable to beat the market, which means that their efforts to try to time things or finesse things this way or that way are completely futile.
Ultimately, nobody ever wants to feel like they overpaid for something. It's not a good feeling to feel like you got ripped off or like you got overcharged for something. But people often fail to consider the opportunity cost that comes with waiting. When it comes to housing, we might start to see interest rates go down over the next year or two, but when interest rates go down, house prices typically go up. Ultimately, if the decision you're making is intended to be a short-term decision, then I suppose the market does play a role. But if you can look at things with more of a long-term horizon, buy a house you plan to actually live in for a long time, buy a car you actually plan to drive for a long time, the conditions of the market are going to be a lot less impactful, and it really should come down more to whether or not you're ready and the decision makes sense for you.
You should start a business. I feel like this doesn't get talked about enough. I am not suggesting that everybody should just rage quit their 9 to 5, despite how good that might feel. I said, "Screw you and your eyebrows." But I am suggesting that if you really want to take control of your finances and really want to increase your income in a meaningful way, starting your own business is one of the only ways to actually do that, in my opinion. That could be a full-time thing, or it could just be a side hustle.
But when you work for someone else, that corporation or that person is in complete control of your finances. They're in control of how much you get paid, when you get paid, how you get paid. They even control if you even have a job to begin with. When you work for yourself, be it as a full-time job or just as something extra you do on the weekends for a little bit of money, you are the one that controls how much money you make. You are the one that determines how much your time was worth. You are the one that determines your schedule. And ultimately, you are the one that controls your own life and your own finances.
When I first started working for myself, I was able to essentially double my income and cut my working hours in half overnight, all because now I was the one calling the shots rather than just being an employee of a company who was keeping the majority of the revenue that I was generating. I became the one that got to keep all the revenue I was generating. I became the one that got to enjoy the fruits of my labor. And I know for a fact that if I had kept working where I was working and doing what I was doing, even all these years later, I'd barely be making any more money than I was making back then, and I certainly wouldn't have the financial stability that I have today, nor the control over my life in general.
If you currently have a job that you depend on, if they give you a consistent paycheck every week, if they offer you medical benefits and all of these other perks, don't leave your job. But when you're not working, see if there's something else you can do on your own that can generate you a lot more money per hour than whatever your current job does. There are thousands of side hustles out there that you can be doing that can earn you $50 or even $100 an hour for your time, possibly even doing something that you enjoy doing. A couple years ago, I made a video going over 25 different side hustle ideas that can earn you that kind of money, so I'll link to it if you haven't checked it out yet, feel free to do so.
But ultimately, just know that if you're putting your entire financial situation into the hands of somebody else, especially somebody who's going to put their own best interest ahead of yours, which realistically is most companies and most corporations, you're putting yourself into a very risky situation and you're leaving a lot of money on the table.
Something else that's often left out of the conversation is the fact that you have to prioritize your health. And I think that the reason that this is often not talked about is because it runs completely contrary to this hustle bro mentality that is so pervasive on the internet. The idea that you should be working 18 hours a day and you can sleep when you're dead. And it's like, no, I want to sleep now. If I can't sleep now, I'd rather be dead.
A lot of people tend to neglect their health in various ways, often without even realizing it, all to try to save money or optimize their finances. And that can mean anything from like, not going to the doctor when you probably should, to not eating healthy, or not taking vitamins if you need to be taking vitamins. Maybe it means you're not prioritizing your sleep, or you're not allowing yourself to have enough downtime. And the thing about your health is that it is always going to catch up to you, and most likely, it's going to be at the worst time possible.
Healthy food will always be cheaper than hospital bills and prescriptions. And taking some time off, allowing your body to relax, is actually likely to make you more productive in the long term. Whereas if you burn out, then you're not going to be able to accomplish anything, and it's actually going to cost you even more. So yes, whether or not we like it, work is important, money is important. But taking care of your health is probably the best way to actually increase your income and give yourself a better life. And besides, what's the point of working your ass off your entire life if you're not even going to be able to enjoy the fruits of your labor later on?
And last, but absolutely not least, is that you have to prioritize fun as well. I think this kind of ties into the last point about your health, but I think that this is probably the thing that is left out of the conversation the most frequently, is that having fun is important, and it's actually good for your financial life. I've been in situations in the past where for periods of months or even years at a time, I have worked and worked and worked and done little else. I avoided spending money on things that weren't absolute necessities. I turned down social invitations and I canceled plans in order to go work extra shifts and make more money. And that's just not a way to live.
Not only is that a fast track to burnout, but it's also a fast track, at least in my experience, to absolutely resenting and hating absolutely everything about your job because you feel like you're working and working and working, and for what reason? Like, what is the point of working all the time if you don't actually get to enjoy the money that you're making?
In more recent years, I've made it a priority to actually invest some money into things that I really like, even if I don't actually need them. Things that make me happy, things that give me quality time outside of my job and give me reason to look forward to not working. The most recent purchases I've made in that kind of realm that I can remember off the top of my head at least are the record player that I have over there, as well as my espresso machine, which I picked up back in the fall. Both of these are things that allow me to kind of dive into a new hobby and allow me to learn new things and be able to just enjoy my time when I'm at home a little bit more.
This coming summer, one of my goals is to spend more time outside. I feel like here in Canada, we get such cold winters and it's so miserable, we wind up spending so much time indoors, and it makes you feel kind of reclusive. I feel like I haven't seen the sun in months, probably because I haven't. I was recently sent this Pho T1 Pro ebike. They're not a sponsor, but they have given me a discount code that I can share with you guys, so I'll leave the link in the description box if you're interested in checking it out. This thing is fast, this thing is fun, and I'm really looking forward to riding it this summer. Not just for recreation, but also maybe to run some errands, do some grocery shopping. Not only will it save me a few bucks on gas here and there, but I think it's also just a good way to inject some fun into your otherwise mundane things like going to the store.
I was recently scrolling on Reddit and I came across a post from a guy who said that he was 30 years old and making over $200,000 a year. He said he was debt-free, that he had good retirement savings, he had an emergency fund. Financially, it sounded like he was in a great spot, and he was thinking about buying what he called his "dream car," which was $25,000. And he was looking for the opinions of everybody online as to whether or not this was a feasible purchase for somebody like him to make based on his situation. Even as somebody who doesn't care at all about cars, and even while acknowledging that $25,000 is a good amount of money, all I could think was like, "Yeah, buddy, do it. Go for it."
The comments were filled with all sorts of stories of people getting into car accidents or getting diagnosed with cancer or having other terrible things happened to them while they were young that prevented them from being able to actually enjoy their life. And so for somebody who's in a good situation, if you want to make a purchase and you can afford it, and it's not going to negatively affect you in any notable way, and it's going to make you happy, then why not? And I think that that's just not talked about because it doesn't fit the narrative of "work as hard as you can, save as much as you can, live in a cardboard box, rinse and repeat."
My hope is that this video has allowed you to realize that not everything has to be so cut and dry, that not everything is either black or white, but that there are gray areas in everything in life, and finances are no exception. I think that when you first start learning about personal finance, it can feel like you're jumping down a bottomless rabbit hole, trying to learn as much as you can, and finding information that contradicts every other piece of information, and everybody having their two cents and their opinions. And I suppose that I am one of those people too.
But I think that it's important to just realize that real life and the internet are not always the same thing, and that the advice that somebody gives, which might be 100% by the text, but perfect, perfect advice, may not actually be what makes the most sense for you. It may not actually be reflective of how you want to live your life.
I'm very curious to know if you've ever been given a piece of financial advice, or really just life advice in general, that you feel really changed your perspective or your mindset on things. If so, drop me a comment and let me know what it is. If you enjoyed this video, please go ahead and hit that like button. Feel free to subscribe. You can follow me on Instagram. I'm trying to get more active over there. Other than that, thank you guys so much as always for watching. Take care. I'll see you next time.
Walking out of his house, he spotted of bloody and pus-covered.