The Best Financial Advice You'll Ever Hear

Hi Reader,

Welcome to The Money Series! If you are new here, thank you for signing up. Personal Finance can feel ambiguous and overwhelming, but I am here to help simplify the journey.

Happy New Month! How did October treat you?👀

Recently, I tuned in to a podcast with Mel Robbins and Morgan Housel, the author of The Psychology of Money. It felt less like a talk and more like a financial therapy session featuring simple truths, deep reflections, and practical wisdom. I pulled together some key insights that stood out, along with my thoughts.

1. Your ability to feel rich, wealthy, or to be financially independent is within your control

‘99% of what people need to know to do well with money is within your control”

Your background, job title, or income don’t determine how good you are with money. Your behaviour does, and behaviour is absolutely within your control. Morgan believes that your education, experience, or connection does not directly determine how well you do with money. If you’re patient, can think long-term, can keep your expectations in check, then you’ll do well financially. Morgan gave three money behaviours that anyone can adopt to attain financial peace:

• Focus on your own goals

• Live below your means and save consistently

• Invest and be patient

2. Treat Savings as an Expense

“Every $ you save is a piece of your future that you own”

Think of saving as a non-negotiable expense, just like rent or electricity. Savings isn’t idle money, it’s the confidence today of being able to afford your lifestyle in the future. Income can fluctuate, but savings give you freedom and security today, knowing that your future self is covered.

3. Happiness = Reality - Expectations

“The gap between what you have and what you want is a function of your expectations.”

The wider the gap between where you are and where you expect to be, the more miserable you would feel. If you feel behind financially, start with the basics - define your gaols, save, and invest.

4. One thing that keeps people broke is the desire to keep up with other people

‘Everybody is jealous of what you’ve got. Nobody is jealous of how you got it’ - Jimmy Carr

Use money as a tool to live a better life and not as a yardstick to measure yourself against others by. Social media has made “keeping up” the new national sport, but it’s also a fast track to financial burnout.Comparison makes you think you’d be happier if you get that bag, that car, that house, that trip…. that never-ending threadmill. The truth? there’s always going to be a better car, a bigger house, etc than yours.

We view successful people based on the outcomes and material outcomes of their efforts but most times, we do not see the hardwork that it took to get there and the lifestyle behind-the-scene.

5. In investing, you don’t need extraordinary returns, you need extraordinary patience

‘it is not necessarily about what your returns are, it’s about how long can you keep it going’.

Average investor + Above-average patience = Exceptional Results

Compound interest favors the patient. Invest consistently and be patient. Don’t invest in complex assets. Automate your investments. Keep them simple. Let time do the heavy lifting. This is where index funds comes in - simple, effortless, and straightforward.

6. To change bad spending habits, fix the emotion behind the spending

“Every $ of debt you owe is a piece of your future that someone else owns”

If you have bad spending habits, ask yourself ‘What hole am I trying to fill? What am I trying to achieve? Why am I striving for these things’ The binge spending won’t solve your emotional problems but getting to the root of the problem will.

‘Nothing is easier than bad financial habits that you want to have’.

7. With every $ you spend, You should ask yourself: Will buying this thing make me happier or am I buying this thing to impress other people?

‘Nobody is thinking about you as much as you think you are’

The earlier you realise that most people are not paying attention to you, the more contented you will feel. People may pay attention to your stuff - your car, your house but they are too busy thinking about themselves, solving their own issues to pay attention to you. Spend to build the life you want, not to prove you have one.

Finally…

Morgan’s money goal is independence and in his words ‘there are a lot of people for whom money is a financial asset but a psychological liabilty that completely controls their identity’.

Reply this email with the nuggest that resonates with you the most and I’ll share the link to the podcast with you.

Reflect on This:

• If no one could see what you own, how would you define your wealth?

Till next week, I am rooting for you, money-ly!

Dee

P.S: Forwarded this email? Sign up here! Know someone who could benefit from this newsletter? Forward it!

Disclaimer: This does not constitute financial advice. Please conduct your research or consult your financial advisor for important financial advice.