{"id":3067,"date":"2017-01-09T01:29:17","date_gmt":"2017-01-09T01:29:17","guid":{"rendered":"https:\/\/raizinvest.com.au\/investors\/if-i-could-talk-to-my-21-year-old-self-about\/"},"modified":"2020-10-28T02:04:03","modified_gmt":"2020-10-28T02:04:03","slug":"if-i-could-talk-to-my-21-year-old-self-about","status":"publish","type":"post","link":"https:\/\/raizinvest.com.au\/investors\/blog\/if-i-could-talk-to-my-21-year-old-self-about\/","title":{"rendered":"If I could talk to my 21 year old self about money…."},"content":{"rendered":"
\"image\"<\/figure>\n

By Clayton Daniel of Fund Your Ideal Lifestyle<\/a><\/i><\/p>\n

As
\none from the older end of the Millennial generation (1982 \u2013 2000), I can say
\nwithout a doubt the world is changing rapidly.<\/p>\n

It\u2019s
\ncrazy to think my first games console was the\u00a0Atari 2600<\/a>. Then Nintendo and Sega came along, which
\nwere ultimately supplanted by Xbox and Playstation. VR it seems will likely
\ntake both their scalps.<\/p>\n

I
\nuse video games as an illustration of progression. Sometimes I forget I\u2019ve
\nactually aged thirty three years, but then seeing is believing.<\/p>\n

But
\nthis article isn\u2019t about lamenting how my metabolism has slowed down, or how
\nyoung everyone looks in bars these days \u2013 it\u2019s about what I would say to my 21
\nyear old self about money.<\/p>\n

At
\n21 I didn\u2019t know anything. I could punch out a nasally punk rock lyric to a
\nroom full of rowdy teenagers, but not much more than that. To say I didn\u2019t know
\nanything about money was an understatement.<\/p>\n

Then
\nat a pivotal time in my life I met an entrepreneur who was travelling around
\nthe world having a grand old time. He bought me the book \u2018rich dad poor dad\u2019
\nand it set my on a path I now find myself over a decade later. That book taught
\nme my first lessons in personal finance, and I became obsessed.<\/p>\n

Absolutely
\nobsessed. I realized by understanding the language of money, the rest of life\u2019s
\nproblems can get in line. Money is simply transportable power. The more you
\ncontrol, the more control you have over your own world.<\/p>\n

And
\nmy thought process was this \u2013 \u2018more money equals better, therefore more time
\nspent learning about money equals better\u2019. Fast forward another twelve years
\nand I have a degree in accounting, worked as an accountant, then financial
\nadviser, and ultimately grew and sold a financial planning business.<\/p>\n

And
\neven though I \u2018get it\u2019 now, I\u2019ve dedicated my life to understanding it. Again,
\nI\u2019m obsessed with it so I\u2019m lucky. But what about the 99.99% of people who
\ndon\u2019t dedicate their lives to understanding personal finance? What about
\neveryone else who knows a little, but not enough? What about my 21 year old
\nself?<\/p>\n

Well,
\nthis is what I would tell my 21 year old self about money before I ever
\ndedicated my life to understanding it. \u2018Get 80% of the results with 20% of the
\neffort\u2019.<\/p>\n

While
\nwe all have heard of the\u00a0Pareto Principle<\/a>, have you ever considered using this
\nprinciple with money? Everyone thinks they need a PHD in personal finance to do
\nwell \u2013 but you don\u2019t. Everyone thinks they must think about their money a lot
\nin order to get the most out of it \u2013 but you don\u2019t. So I\u2019m talking to those
\npeople who want to do better with their money, but can\u2019t be bothered to do so.
\nAnd I know, there are a lot of you out there.<\/p>\n

So
\nlet\u2019s get to it. How do you 80\/20 your personal finance? Easy, use technology.
\nOutsource your self-discipline to automation. I promise you, money more so than
\nanything else in life, if you use an automatic system to perform a task rather
\nthan rely on yourself to do it personally, your chances of success go from 10%
\nto 100%.<\/p>\n

So
\nget your own outcome, and outsource to automation.<\/p>\n

Tip
\n1<\/b>\u00a0\u2013 Your salary account should not be your spending account. For
\nexample, if you had two accounts, you get paid into account (a) and
\nAUTOMATICALLY transfer across to yourself an amount you\u2019re happy to spend guilt
\nfree each week into account (b). Account (b) has a bank card attached, account
\n(a) does not.<\/p>\n

Social
\npsychologist\u00a0Roy Baumeister<\/a>\u00a0showed unfulfilled desire causes
\nus\u00a0decision fatigue<\/a>. Reduce your desire to spend money in
\nyour account by putting one level of separation between you and your
\nsavings\/salary. Less distractions, better outcomes.<\/p>\n

Tip
\n2<\/b>\u00a0\u2013 If you want to invest, do it automatically, don\u2019t rely on being
\ninterested enough each week to follow up. Raiz can AUTOMATICALLY receive
\nregular contributions from your account. How hard is that to set up? Five
\nminutes? Five minutes \u2018work\u2019 upfront equals long term investing with zero
\nongoing effort.<\/p>\n

Sure
\nyou can get more fancy than that, but start simple. By doing these two things
\nyou are taking care of your money today (cash-flow) and tomorrow (capital
\nassets). And if you have an automated investment system to think about your
\ntomorrow, your only focus is guilt-free spending today .<\/p>\n

By Clayton Daniel of Fund Your Ideal Lifestyle<\/a><\/i><\/p>\n

 <\/p>\n

\n

 <\/p>\n

Don\u2019t have the Raiz App?<\/h3>\n

Download it for free in the App store or the Webapp below:<\/p>\n

\n
\"download-raiz-app\"<\/a>
Click to download the Raiz app<\/a><\/figcaption><\/figure>\n

 <\/figure>\n

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The information on this website is general advice only. This means it does not take into account any person\u2019s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.<\/em><\/p>\n

A Product Disclosure Statement for Raiz Invest and\/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.<\/em><\/p>\n

The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.<\/em><\/p>\n

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.<\/em><\/p>\n

Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

By Clayton Daniel of Fund Your Ideal Lifestyle As one from the older end of the Millennial generation (1982 \u2013 2000), I can say without a doubt the world is changing rapidly. It\u2019s crazy to think my first games console was the\u00a0Atari 2600. Then Nintendo and Sega came along, which were ultimately supplanted by Xbox […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[1],"tags":[],"yst_prominent_words":[158,1299,1497,1501,1488,3329,1489,98,1502,1498,3331,153,3324,1411,97,82,117,125,239,3328]}