10 Key Concepts About Money, Wealth and Financial Freedom

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Brian Feroldi — financial advisor, YouTuber and author — posted on Twitter the key lessons he learned from the10 people that permanently changed the way he thought about money, wealth and financial independence:

  1. Financial independence is achievable if you hyper-focus on your savings rate.
    “Your time to reach financial independence depends only on one factor:  your savings rate as a percentage of your take-home pay.” ~ Pete Adeney
  2. Income and wealth are not the same things.
    “People who look rich may not actually be wealthy. Income does not equal wealth.” ~ Dr. Thomas Stanley, The Millionaire Next Door
  3. Putting what goods and services really cost in proper perspective.
    “The true price of anything is the amount of life you sold to buy it.” ~ Vicki Robbins
  4. Saving more money is more powerful and beneficial than making more income.
    “One dollar save is two dollars earned.” ~ David Chilton
  5. Your mind and mindset can be your greatest asset or your greatest liability.
    “Thoughts are powerful. Your mind is the one thing that can stop you in your tracks, or propel you to financial success.” ~ Napoleon Hill
  6. Money’s true highest purpose and benefit…financial independence and freedom.
    “Money’s greatest intrinsic value — and this cannot be overstated — is the ability to give you control over your time.” ~ Morgan Housel
  7. All spending is not created equally. Spend with purpose and according to your values. 
    “Spend extravagantly on the things you love, and cut costs mercilessly on the thing you don’t.” – Ramit Sethi
  8. Every financial decision you make involves a tradeoff and has an opportunity cost.
    “You can afford anything, but not everything. Every financial choice you make is a trade off against something else.” ~ Paula Pant
  9. There’s an optimal time to have positive life experiences. Don’t over-save and under spend on positive life experiences.
    “With each year that passes, our ability to convert dollars into positive life experiences decline over time.” ~ Bill Perkins
  10. Think like an entrepreneur, not a consumer. Buy assets with your personal capital that produce income and appreciate in value; and avoid personal liabilities and consumer debt.
    “Instead of taking a class, offer a class. Instead of borrowing money, lend it. Instead of taking a job, hire for jobs. Instead of taking a mortgage, hold a mortgage. Break free from consumption, switch sides, and reorient to the world as producer.” ~ MJ Demarco

Source: Twitter

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