Young people have the benefit of time but the weakness of a lack of experience. Learning from others who have been successful can give a young person the edge on making better decisions with exponential returns over time. Here are ten of the biggest mistakes that most young people do and what to do instead.
The Biggest Mistakes Young People Make
“The biggest mistake young people make is to do what they love instead of investing in what they love.” – Robert Kiyosaki. Leverage your love through good focused investments.
Most young people focus on being an employee in a job and not an investor, business owner, trader, or at least self-employed. Don’t let one boss or one company control your financial destiny.
Pursuing your passion is selfish and greedy if you are not also fulfilling your purpose by creating value for others. Money will flow to you when you create value for your customers, investors, and employees in exchange for money.
Most young people don’t consider the taxes they pay. Taxes are your biggest cost in every area of your life and they are endless from paycheck to grave and most transactions in between. The first thing you need to do is understand and optimize for paying less taxes, this is what the rich do.
Young people get trapped in payments, bad jobs, unhappy marriages, long commutes, and in the place where they were born. Optimize your life for happiness and freedom not owning things, trying to impress others, or following other people’s plans for your life.
At what age do most successful people become successful?
Most successful people tend to reap the rewards of their success at approximately the age range of 30 to 35 years old. The repeating pattern I have seen with the successful people I have studied and in my own personal experience is that breakthroughs tend to happen after about 10 years of focused and right effort in one area of business, sports, career, or life in general. Many times the young successes that we see at younger ages have already put in the time and effort at younger ages to win at 20 most start at 10 in sports and academics. This confirms the research findings of the 10,000 hour rule.
What are some mistakes everyone makes?
Many people don’t date or marry people by using the right decision making filter and cause themselves a lot of unhappiness and misery in a bad relationship. They compound it by not knowing when to leave it.
Most people go too deep into debt at a young age with student loans, car payments, and credit cards and are unable to every build an investment portfolio due to debt payments.
Most people rent instead of own a home so they are exposed to inflation and increased rent cost with no equity acquired.
Many people stay living where they are born and don’t look for other places to move with less taxes, better weather, good schools, and jobs.
The majority of people get 30-year loans instead of 15-year loans and spend an extra 15 years with mortgage payments.