The most powerful way to think about money | Paula Pant

One of the best and accurate approach to money was defined!

"Financial independence", or living off investments, essentially means that other people work to make money, and you live off their work. Instead of asking "How can I afford to live a good life?" we should ask "How can we - as many of us as possible - afford to live good lives?". What type of society makes that possible? In other words, adding a political perspective makes it so that many more people will be able to realise their dreams.

The idea of investing a significant sum of money may be both thrilling and intimidating. There is potential for considerable wealth increase with the correct strategy. How can one take advantage of compound interest and potentially grow your retirement savings/net-worth to about $3M over time?

Things are a bit strange right now. Inflation is making the US dollar weaker for buying things, but it's getting stronger against other stuff. So, stuff like stocks, houses, crypto, and precious metals aren't doing so great because folks are putting their money into dollars for safety. I'm worried about my $320,000 savings losing value fast. Where should I put my money to keep it safe?

cia

"Money is an invitation for critical thinking" Well said!

I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made.

The truth no one tells you about money is, money can't buy you happiness (this is a fact) but it doesn't mean money doesn't create an avenue for you to have the time to experience happiness. Every retired person actually enjoying their money experiences life in a way you can't understand. They wake up when they feel like, they spend more time with their families, they are more actively involved in their children or grandchildren's lives. I'm going to achieve this level of comfort and peace of mind and it can only come from financial security. i'm currently working on a perfect retirement plan with my FA Olivia rene reyes and in 10 years i'd retire and make up for all the times i lost when my kids were young. wish me luck!

The idea of investing a significant sum of money may be both thrilling and intimidating. There is potential for considerable wealth increase with the correct strategy. How can one take advantage of compound interest and potentially grow your retirement savings/net-worth to about $3M over time?

She looks like Mona Lisa

Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg

This video also talks about investment. Not money.

"if you don't find a way to make money while you sleep you will have to work hard until you old".

luar biasa

The thing is that it does not apply to wealthy. Yes, workers need to carefully manage scarce resources, because we're barely provided with enough to survive, but how do you compensate in this system for disadvantages you have? Wealthy don't have such issues, they already have workers working for them, so they don't care, if state provides any support, because if needed, they can afford anything they need. Capitalism shifts blame to workers, but there's enough resources to provide anyone with comfortable life. Wealthy just decide not to, because they want power and how do you control society that is not forced to work to survive? Would anyone accept being exploited, if they did not have to worry about survival? Think about it, because capitalism teaches us a lot of myths and lies. We're taught that there's no alternative, because our memory and lives are short, but capitalism and neoliberalism are not the only way to live. It's just that it won and dominated our planet and we don't really know what to do about it, because without collective awareness and action, we can't escape it.

Just live within your fucking means and learn to use credit responsibly i.e. on things with some sort of ROI aka assets. Doesn't need to be physical ones, can be knowledge ones, health, self growth etc, as long as it makes you get ahead in some way whether right away or down the line

You can have everything. But you can't have everything all at once.

This information was rather unuseful and dull, yet yall framed it as some expert creation. One would expect a big channel such as this to deliver a message of a certain weight, and the speaker to open a great load of doors and at least suggest there being a great load of information that one could learn to become more assured in his interactions with money and careers. Yet this speaker said close to nothing to turn the watchers better oriented; even merely naming 2 or 3 books (for the reason that you admit to not be the best teacher and your best chance to not leave watchers empty-handed is to point to the experience of listening to those books instead) would have counted as something. In this manner, people will be left with the impression that neither is there quite anything substantial that can ever be known as to better manage themselves, and then you wonder why people are directionless.

The way she describe is very simple and easy to remember. Thanks

The income must chase the inflation rates. Whichmeans, your income have to higher than inflation rates or when inflation rates has increased you have to increase your income same as inflation rates or even higher than inflation rates. It sounds easy but difficult to do it.

If you want to save money, just don't spend it :)

Thank you ❤❤❤

The bigest asset anyone may have is health. If you're not healthy you've got nothing.

Well said!!!!

Thanks for those tips! However i would add something else to what you've metioned about INCREASING the GAP.. for instance IF your salary is not enough to save 20%..15% 10 or even ..5% instead of freeezing your money by saving the 1% rate of you salary, where for sure the banks will be paying ANNUALLY just PENNIES.. try so invest in YOUR MIND! and when i say this i really mean it.. look for tools + tranings that can give you the power to be OUTSTANDING and shine by your self when looking for new opportunties( Inside or outside the company that you are working with) and for sure this will lead you to jump up to new opportunities and increase your income and therefore ( if you keep your expenses in control) suddlely you will see how the gap is INCREASING.. and then but just at this point in your life.. you can start to save at those high rates that she has mentioned and you will have enough money also to experiment your FI!!!! Wish you all the best!!

Investing in cypto now should be in every individual, in some months time you'll be ecstatic with the decision that you have made today......

Boring

I appreciate what she is saying about working towards increasing your opportunity through FI. However, I disagree with aspects of her definition . Being able to cover your costs does not equate to being able to travel the world or be a parent.

Simply put, you need to add your particular "opportunities" into the "costs" you are trying to cover it you want a realistic FI goal.

I would argue that FI is just just the point many of us need to reach to have enough clarity for understanding what it is we really want to pursue in our lives. To feel what it's like to not work for money.

A rare big think video with absolutely nothing of value to say. It's like a teenager wrote that!!

Not sure I heard the First Principles of money. Just Paula’s shtick she always says.

If you're planning to be a worker for the rest of your life, follow this advice.

FI and financial education should start at school!

Hmmm thank youuu

The #1 mistake with money is not realizing big money forces you to play by their rules... So deal with that ..

so.... earn money first. like good paycheck before you can even think of doing this.

"Money is an invitation to critical thinking." Beautifully stated.

Basically a better video than Dave ramsey

Thanks alote ...,🤗

Why mention food, travel, a house, and not mention books? Does this reflect the spending habits of our society today?

How to be wealthy: work hard, spend nothing, have rich parents

Really appreciated the point on first-principles thinking, using the tree analogy is pure genius. By focusing on our core values (the roots), it drives our philosophy (the trunk), which determines our goals and strategies (the branches). Only then should we consider the tactics and products (the leaves). This is such a profound and organic approach to money. Always love a good mental model practically applied to life.

Really wonderful

BEVKUFIYAAN...🥳🥳🥳

10 Take a home message:

1. Introduction to the concept of trade-offs and limited resources:
- Every choice involves trade-offs; money is a limited resource, and the same applies to time, focus, energy, and attention.

2. Importance of managing money effectively:
- Managing money well is equivalent to managing life effectively.

3. First-principles thinking for money management:
- When asking about money management, focus on first-principles thinking, starting with values, philosophy, goals, strategies, and then tactics/products.

4. Reframing personal finance as financial independence (FI):
- Reframe personal finance as financial independence (FI) for a more appealing perspective.
- FI is achieved when potential passive income covers basic expenses, providing freedom and choices.

5. Three steps to achieve FI:
- Grow the gap (increase the difference between income and expenses).
- Invest the gap.
- Repeat the process over a lifetime.

6. Strategies to grow the gap:
- To grow the gap, increase income or reduce spending.
- Address psychological issues related to spending.

7. Saving and investing for FI:
- Aim to save and invest at least 20% of income, including debt payments, retirement savings, investments, and an emergency fund.
- Gradually increase the savings rate to reach the target percentage.

8. FI for everyone and individual circumstances:
- Pursuing FI is for everyone, and the initial steps vary based on individual circumstances.

9. Embracing the volatility of the world and using fear as motivation:
- Embrace the volatility of the world and use fear as motivation to make wise decisions about money, time, and effort.

10. Building an intentional life for joy and fulfillment:
- Building an intentional life brings joy and fulfillment.

What is the rush to shine?

The best way to save money is to spend your time on staying so busy you have no time to spend. Extend your time not spending and you save more.

Sure, make more, but if you don’t extend your time not spending, even more money will be spent more.

Trade your time spending money with not spending money.

Trade your time spending money with being bored.

Trade your time spending money with making more money.

The more time you invest away from spending the more time and money you have.

It’s also matters how much you spend, not just how much you make. Invest in Guns, not butter! Guns are Assets and butter are liabilities! Guns not butter baby!

In today’s financial environment, a person can barely keep their head above water.