Why 97% of the money advice you hear sucks

97% of the money advice you hear sucks.

It's either extremely one-sided and doesn't apply to most people, or lacks nuance altogether.

So if you want to be good with money, you must unlearn these 10 myths about it:

1. Debt is bad

Not all debt is bad, only dumb debt is.

Dumb debt pays for things you can’t afford.

Things like:

• Designer clothes

• New model vehicles

• $10,000 annual vacations

Smart debt pays for assets that will make/save you more money.

Things like:

• Education

• Real Estate

• Travel Hacking

2. Investing is risky

Investing IS risky, but not investing is riskier.

When you don’t invest, you:

• Must work most of your life

• Have no assets to pass down

• Struggle when you lose your job

But you’ll solve each of those problems if you invest.

3. Avoid credit cards

When used correctly credit cards let you:

• Earn cash back

• Insure your purchases

• Travel the world for free

• Take advantage of discounts

Credit cards aren’t the problem.

Poor spending habits are.

If you can control yourself around credit it’s a great tool to add to your personal finance arsenal.

4. Money changes you

Money doesn’t change you.

It just emphasizes who you are.

If money “made” you a bad person…

You were always a bad person.

The only difference was you were broke.

5. You need a high income

Ronald Read was a janitor and gas station attendant but retired with over $8,000,000.

It has never been about how much money you make.

It’s always been about how much money you keep (and invest).

If he can do it, anyone can.

6. You can start saving later

How much you need to invest to be a millionaire:

10 years: $5,250/month

15 years: $2,750/month

20 years: $1,500/month

25 years: $850/month

30 years: $505/month

Truth is…

The longer you wait, the more expensive it gets.

So instead of waiting for 2023 to get serious about your money…

Start now.

7. You must own your home

Homeownership is way more expensive than you think.

• Down payment

• Property taxes

• Maintenance

• Insurance

• Mortgage

Renting isn’t throwing your money away.

It’s making opportunity cost less expensive.

8. Investing is for rich people

False.

Investing is how you get rich.

And it’s never been easier to do it.

You can invest in the best companies in the world for free right from your phone.

And it only takes 5 minutes to set it up.

9. Money is meant to be spent

True.

But how it’s spent is what’s important.

You can spend your money on things you don’t need.

Or you can spend your money on assets that pay for your lifestyle.

Your choice.

10. You can save your way to wealth.

If you save $500/month it will take you 160 years to get to $1,000,000.

But if you invest $500/month it will only take 30 years.

That’s the power of investing and compound interest.

And that’s why you can’t save your money forever.

You must invest.

That’s all for this week's newsletter!

- Wolf