10 Stone Cold Truths about your finances

Accept these and your financial life will thrive.

**THREAD**
1. Pay yourself first now, or you never will at all.

When you start making some money it's tempting to:

-buy the new car
-get the mortgage
-take fancy vacations

STOP ✋

Start your investing habit early on. Even just $50/month.

Build this muscle first.
2. Each dollar needs a job 💲 👷

Just stashing money in your checking account isn't enough. Here is where extra money should go:

-investing
-paying debt
-saving for travel
-emergency funds
-saving for a down payment

You should know where to send each dollar you earn.
3. Do something about your debt

We've all made mistakes and accumulated unwanted debt.

Or we made a conscious decision to leverage debt with a student loan or mortgage.

Regardless, you need a debt payoff plan. Don't just make minimum payments and ignore it 🙉
4. You're not going to beat the market

Research shows that index investing has superior returns compared to active investing. Also:

Active funds:
-Stressful
-Expensive

Index funds:
-No stress
-Cheap

Index funds will get you to financial independence. With less stress.
5. Prepare for unexpected expenses.

They WILL happen.

Cars and houses will break down. And people will get sick.

The majority of Americans don't have $1,000 in cash.

Don't be the average American.

Getting into debt to pay for a car repair will just compound the misery.
6. Spend more now to save more later

Think VALUE. Cheaper is not always better. This applies to:

-Clothes
-Cars
-Appliances
-Advice

Do some research into long-term utility. It will save you money and you'll get more enjoyment.
7. The little things add up

It's not just the lattes.

It's the lattes AND the fancy phone AND the luxury car payment AND eating out 10 times a week.

It all adds up. And usually to a lot of money down the drain.

Work on simplifying and reducing your expenses.
8. Always think about taxes

If you earn $100K, you will not end up with $100K.

You have to pay:

-income tax
-state tax
-self-employment tax
-sales tax on purchases

A dollar earned is not a dollar in your pocket. Fight against this by investing often and not overspending.
9. Get multiple sources of income

The pandemic has shown me that I can't have just one income 🗣️

It's why I'm trying to grow my online business.

Having multiple streams gives you options.

If one stream dries up, just work on another one.
10. Spend big money on what you value

Money is meant to be spent, not hoarded.

Think about what you truly value, and spend money on that.

Fighting hunger, travel, building schools, education, or anything else.

Spend lavishly on what you hold dear. Forget the rest.
Please RT the first post if you got some value. Also:

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The book by my friend @MidnightUDog will help you get started.

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You can follow @FSFmoney.
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