99% of books on money and investing waste your time

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99% of books on money and investing waste your time.

They just repeat the same core lessons in a million different ways.

You don’t need to read every book available.

You just need to understand these 10 lessons.

In fact, if I were to erase everything I've learned over the last 6 years in finance, these are the first 10 lessons I'd want to know:

𝟭) 𝗬𝗼𝘂𝗿 𝗽𝗲𝗿𝘀𝗼𝗻𝗮𝗹 𝗵𝗼𝗺𝗲 𝗶𝘀𝗻'𝘁 𝗮𝗻 𝗮𝘀𝘀𝗲𝘁.

Assets move money into your pocket. Liabilities take money out of your pocket.

Your mortgage is an expense going out, not including the time and effort it takes to maintain a home.

𝟮) 𝗚𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝘄𝗲𝗮𝗹𝘁𝗵 𝗶𝘀𝗻’𝘁 𝗮𝗯𝗼𝘂𝘁 𝘁𝗵𝗲 𝗺𝗼𝗻𝗲𝘆

It’s about passing down financial literacy.

Wealth is born out of financial literacy, not the other way around.

If you're serious about creating a legacy, root it in education.

𝟯) 𝗟𝗲𝘀𝘀 𝗶𝘀 𝗺𝗼𝗿𝗲

You don’t need to invest in 100 different stocks.

You need to invest in the same stock 100 times.

Over-diversification reduces risk, but it also reduces your return.

At a certain point, you need to stop diversifying and just invest.

𝟰) 𝗜𝗻𝘃𝗲𝘀𝘁 𝘄𝗶𝘁𝗵 𝗽𝘂𝗿𝗽𝗼𝘀𝗲

If you want wealth, own index funds.

If you want cash flow, own dividend stocks and real estate.

If you want income, invest in your skill sets.

Why you invest in something is just as important as investing in it.

𝟱) 𝗕𝗲𝗶𝗻𝗴 𝗳𝗿𝘂𝗴𝗮𝗹 𝗱𝗼𝗲𝘀𝗻'𝘁 𝗴𝘂𝗮𝗿𝗮𝗻𝘁𝗲𝗲 𝘄𝗲𝗮𝗹𝘁𝗵

There's worse things than being a good saver, but penny pinching and stuffing away cash doesn't do you any good if you never invest it.

Long-term inflation is 3%. Long-term average of money markets is 1%.

Your money is losing value over time.

𝟲) 𝗜𝘁'𝘀 𝗻𝗼𝘁 𝗮𝗹𝘄𝗮𝘆𝘀 𝘄𝗶𝘀𝗲 𝘁𝗼 𝗽𝗮𝘆 𝗼𝗳𝗳 𝘆𝗼𝘂𝗿 𝗺𝗼𝗿𝘁𝗴𝗮𝗴𝗲 𝗲𝗮𝗿𝗹𝘆.

The average mortgage is around 3-5%. You can earn 8-12% long-term in the stock market.

By throwing extra money at debt, you're missing out on the opportunity for it go grow and compound if invested.

𝟳) 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝗶𝘀𝗻’𝘁 𝗮 𝘀𝗰𝗮𝗺

The real scam is spending the best years of your life working a job you hate only to retire to a fragile body and memories of work.

Take the time to learn how to invest.

It’s your chance to build life-changing wealth without lifting a finger.

𝟴) 𝗕𝘂𝘆 𝗶𝗻𝗱𝗲𝘅 𝗳𝘂𝗻𝗱𝘀

Harsh truth:

95% of professional investment managers underperform their benchmark after 20 years.

Picking stocks is fun, I do it myself.

But 90% of investors should be invested in 90%+ index funds.

𝟵) 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝘃𝘀. 𝗦𝗽𝗲𝗰𝘂𝗹𝗮𝘁𝗶𝗻𝗴

Investors wait patiently for long-term profits.

Speculators eagerly hope for short-term gains.

Hope is not an investment strategy.

But buying and holding long-term is.

𝟭𝟬) 𝗧𝗵𝗲 𝗺𝗮𝗿𝗸𝗲𝘁 𝗶𝘀 𝗰𝘆𝗰𝗹𝗶𝗰𝗮𝗹

Bull markets are always followed by corrections.

Corrections are always followed by bull markets.

This pattern is a good thing.

It lets you take advantage of low prices during bear markets to profit during bull markets.

There you have it!

10 lessons I'd want to learn if I was to erase the last 6 years of experience in finance.

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