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Here is a "Get Rich Quick Scheme" for Millenials 
• Don't Pay Rent
• Understand "Location Premium"
• Optimize your Credit Cards
• Live-like-a-Student-mindset
• Savings Rate >>>
• Play with some "high-risk investments"
• Don't Pay Rent
• Understand "Location Premium"
• Optimize your Credit Cards
• Live-like-a-Student-mindset
• Savings Rate >>>
• Play with some "high-risk investments"
I know from personal experience that talking about personal finance is even more dangerous than talking politics at a Christmas dinner w/ the extended family 
And of course, this is not for everyone. But c'mon, so many people are just terrible at personal finance...
is even more dangerous than talking politics at a Christmas dinner w/ the extended family And of course, this is not for everyone. But c'mon, so many people are just terrible at personal finance...
1
Don't Pay Rent: When living in London, I spent up to 60% of my monthly income on rent. What did I do? I moved back to my parents. One of the best decisions of my life (not only for financial reasons)—although it meant giving up the perks of living in a big city. Trade-offs!
Don't Pay Rent: When living in London, I spent up to 60% of my monthly income on rent. What did I do? I moved back to my parents. One of the best decisions of my life (not only for financial reasons)—although it meant giving up the perks of living in a big city. Trade-offs!
2
Understand "Location Premium": The cost of living varies significantly all around the globe. I earn in EUR, GBP, and USD; but spend in countries where the purchasing power of this money is 3x that in
or 
. Accept jobs that allow you to leverage the powers of that!
Understand "Location Premium": The cost of living varies significantly all around the globe. I earn in EUR, GBP, and USD; but spend in countries where the purchasing power of this money is 3x that in
or . Accept jobs that allow you to leverage the powers of that!
3
Optimize your Credit Cards: This is an area where most of my friends just suck. They are still tied to the bank they first opened an account with. Instead, find a bank account w/o banking fees. Then find credit cards that maximize the benefits for your particular lifestyle.
Optimize your Credit Cards: This is an area where most of my friends just suck. They are still tied to the bank they first opened an account with. Instead, find a bank account w/o banking fees. Then find credit cards that maximize the benefits for your particular lifestyle.
In my case, my credit card mix aims at optimizing travels and cashback for amazon (where I spend most of my money). For example, my credit cards allow me to have lounge access at most airports and help me to collect points for my frequent flyer program (-> free flights).
4
Live-like-a-Student-mindset: The Diderot Effect & The Hedonic Treadmill (i.e. lifestyle adaptations) are your worst enemies. I still book the cheapest hostel in town, meal prep all the time, and avoid conspicuous consumption.
BTW, stop drinking alcohol is a big money saver!
Live-like-a-Student-mindset: The Diderot Effect & The Hedonic Treadmill (i.e. lifestyle adaptations) are your worst enemies. I still book the cheapest hostel in town, meal prep all the time, and avoid conspicuous consumption.
BTW, stop drinking alcohol is a big money saver!
This doesn't mean that you shouldn't "treat yourself" or that you have to be frugal all the time. Quite the opposite, you all know my snobbism.
It is about the "student mindset." Keep those healthy financial habits—such as going to museums on "Museum's Day" for free!
It is about the "student mindset." Keep those healthy financial habits—such as going to museums on "Museum's Day" for free!
5
Savings Rate >>>: What you ultimately want to maximize is your monthly savings rate. Because the magic about financial independence is that it is all about time and consistency. My dad introduced me to the idea of *compound interest* when I was 14.
Savings Rate >>>: What you ultimately want to maximize is your monthly savings rate. Because the magic about financial independence is that it is all about time and consistency. My dad introduced me to the idea of *compound interest* when I was 14.
It still blows my mind how few of my well-educated friends understand the power of compound interest! They always argue that they don't have any money to invest.
Just calculate how much you would have made by merely putting 100EUR/month in an index fund: http://www.moneychimp.com/calculator/compound_interest_calculator.htm
Just calculate how much you would have made by merely putting 100EUR/month in an index fund: http://www.moneychimp.com/calculator/compound_interest_calculator.htm
6
Play w/ some "high-risk investments": I studied finance at a top business school. What did I learn? That you can't learn about investing from theorizing about it. You need to have "skin in the game." Have some "play money" (money you wouldn't mind losing) and get "out there."
Play w/ some "high-risk investments": I studied finance at a top business school. What did I learn? That you can't learn about investing from theorizing about it. You need to have "skin in the game." Have some "play money" (money you wouldn't mind losing) and get "out there."
Don't waste time reading all the market analytics. Just pick 5-10 initial stocks/investments based on some basic assessments. Most likely you'll lose some money. But you will also see how quickly you will become familiar with investing, the jargon, the industry, the company, etc.
That's the power of "Skin in the Game." And besides the knowledge that you will gain, there is always the potential that some of those "investment bets" will eventually pay off. Just think of early investments in BTC, Tesla, Google, Amazon, Shopify etc.
Of course, there is much more to say. I learned a lot from @ramit's excellent "I Will Teach You to Be Rich" https://www.amazon.de/Will-Teach-You-Be-Rich/dp/1523505745/. So you might wanna check that out!
And that should also debunk the objection that only white privileged boys can talk about financial freedom
And that should also debunk the objection that only white privileged boys can talk about financial freedom
Btw, I am always searching for good spots to maximize the location premium benefits. Main metrics: fast internet speed, good flight options, affordable food and housing, interesting stuff to do, good coffee.
My currents favs in Europe:
• Istanbul
• Budapest
• Minsk
My currents favs in Europe:
• Istanbul
• Budapest
• Minsk
