Hey,

This newsletter is a peek inside millionaires’ brains. 🧠

Financial Advice from Millionaires

Several months ago, out of pure curiosity, I created a Google Form to ask millionaires what financial advice they’d give to their 20-something self. I sent it out to a couple people in my network, who then shared it with their people, and I got some really cool responses.

I turned it into a content series on my social media, but I wanted to share it here too to spread the knowledge. It’s a unique opportunity to get real, unfiltered advice from high net worth people (even if you aren’t in your 20s).

Advice #1

The best financial weapon you have as someone in your 20s is that your investment horizon is long and compounding returns are a snowball. It's harder to put money into your retirement and investment accounts when you're young because you're not earning as much, but that money will be worth so much more in 20+ years.

Action Step You Can Take

Max out your 401(k) if you can, especially if your employer offers a match. If not, be smart about your budget and throw extra cash into your investments.

Advice #2

If you’re looking at professions where your inputs and your outputs are highly connected, it’s gonna be very, very, hard to create wealth, and make wealth for yourself in that process.

[This respondent went on to say that roles where hours in = money out aren’t going to generate wealth, because at some point you’re capped on time. Look for work where 1 hour of working can generate big results and big money.]

Action Step You Can Take

If you work for yourself, switch from hourly pricing to flat retainers. Raise your rates. Negotiate a raise. Start a business.

Advice #3

Investing in the stock market can feel scary. Rather than investing in individual stocks, you can invest in index funds and mutual funds. Take the long-term view — put money in when you can, but don't worry about periodic market dips.

Action Step You Can Take

Consider investing in index funds and mutual funds. I use and love M1 Finance for investing.

Advice #4

You won’t get wealthy renting out your time. The most basic reason is that your inputs are very closely tied to your outputs. In almost any salaried job, even at one that’s paying a lot per hour like a lawyer, or a doctor, you’re still putting in the hours, and every hour you get paid.

So, what that means is when you’re sleeping, you’re not earning. When you’re retired, you’re not earning. When you’re on vacation, you’re not earning. And you can’t earn non-linearly.

If you look at even doctors who get rich, like really rich, it’s because they open a business. They open a private practice. And that private practice builds a brand, and that brand attracts people. Or they build some kind of a medical device, or a procedure, or a process with an intellectual property.

So, essentially you’re working for somebody else, and that person is taking on the risk, and has the accountability, and the intellectual property, and the brand. So, they’re just not gonna pay you enough. They’re gonna pay you the bare minimum that they have to, to get you to do their job. And that can be a high bare minimum, but it’s still not gonna be true wealth when you’re retired.

Action Step You Can Take

Convert the skills you have now into a business. Work in construction? Consider launching your own construction business. Graphic designer for a big company? Go freelance.

Advice #5

Do your best to max out your 401(k) if possible, or at least contribute up to your employer's match (if they offer one). Do not empty your 401(k) when you leave an employer (unless you desperately need the money) - roll it over to your new employer's 401(k) or into an IRA.

Action Step You Can Take

Roll over your 401(k) from a previous employer. Don’t pull money out of your retirement accounts unless you desperately need the money.

Featured Opportunities

3 more exciting gigs! If you have specific requests for roles you want to see, reply to this email and let us know! For more jobs like these, check out a full list here.

🧑🏽‍💻 Highlighted Opportunity: Get Paid to Participate in Focus Groups

Several companies are looking for people to test and review their products, participate in trials, and engage in focus groups. Pay varies. (I once got paid $700 to try 7 different razors and give my feedback 🤑)

🚐 Side Hustle: Rent Out Your Driveway or Backyard

If you have an extra spot in your driveway, or a section of your hard you don’t mind getting a bit torn up, rent out the space to van-lifers on Vanly. They’re always in need of safe spaces to park their vans for the night, and the average booking brings in anywhere from $20 to $75 per night.

🤳🏼 Freelance Gig: Social Media Manager/Content Creator

An early stage tech startup is looking for a social media manager to handle their TikTok. Budget is $35 to $50/hour but we recommend negotiating a flat rate per month!

Want to see a specific type of work? Just let us know.

See ya Friday,

Grace