So today I thought it would be kind of
fun to share my worst financial mistakes as millionaire.
Because I have certainly made a few and hopefully you can learn
the lessons that I've
learned along the way.
And if you do like this kind of video,
make sure to hit that light
button and let us know.
And then I could do more similar videos
in the future. So as we go along,
I'm going to be giving you an estimate
as to how much these financial mistakes
have cost me. And then we're going
to add them all up at the end.
I'm probably going to have a heart
attack so you can look forward to the big
reveal. Can you get the deferral?
I already shopping moms.
So let's start at the
beginning. During school,
I was never taught about money and
how things worked in the real world.
I've always thought that it
was a big failing of schools,
whatever we choose to become after school,
we will need to know about money
and how it can work for us,
and also how it can work against us. This
leads me into my first financial trap,
and that was not understanding how credit
work I was always under the opinion
that if you never ever borrowed,
then you'd have an amazing credit school
because you've never taken out a loan
and you never been late
or making payments. Well,
that couldn't be further from
the truth later down the road.
When I was looking to
buy my first apartment,
this mistake probably cost me
around $28,000 because I was
able to get a mortgage a time when I
did manage to get one a year later,
the prices of apartments,
guess what they had skyrocketed taken
out a credit card. When you're younger,
can't be the perfect tool to
build up your credit score.
You can do this by using your credit
card to pay for things that you would
normally use your cash for,
and then paying the card off in
full every month without fail.
A credit score is a bit like an Uber
rating for money banks look at it,
and then they decide whether or not
they're going to give you a loan.
And if they do what interest, right,
they're going to charge you for it.
Lots of people are against the idea of
credit cards because they're taught from
a young age. That debt is bad.
I noticed because this is
exactly what I was taught.
My dad would always say
never a lender or a borrower.
A and this was a sign from the rich
people years and years ago to keep the
workers down because I knew by borrowing,
the working class could
create wealth for themselves.
The rich wanted to keep getting richer
and keep the poor in their place.
In my teens, I care too much
about what other people thought.
And it was a shortcut
to my second mistake,
which was trying to impress others
in particular. My dad, when I was 16,
I bought a motorbike. I always
wanted this particular bug.
It was actually a scooter and
someone was sending it for $150.
I always try and get
the best for my money.
And I managed to negotiate this
down to just 80 bucks. Now, $80.
I knew I had an absolute bargain and
I could've sold it straight away for a
profit.
But what was really interesting was a
reliable motorbike to get me to work every
day, caught, proudly,
wrote this thing home and showed
it to my family and my dad.
He just laughed at me. He said a
bite mind would never impress anyone.
And it would just make me look silly.
So he made me return the
bike and get my money back.
And instead he found me a proper looking
motorbike because in his opinion,
that's what boys should have.
I partied with $190 of my hardware
in case and within a week,
guess what the engine had blown up
and the fault was where if nothing,
I ended up selling it
for $25 to the junk yard.
This cost me $155 plus another bike, $120.
So $285 down. I know
it's not a lot of money,
but at the time I was owning just $2
an hour. So for me, it was massive.
So it just goes to show you,
you should go with your instincts
and not just to impress others.
If something might you happy,
then it really doesn't matter
what anyone else think. Well, no,
I did have a lot of spare money.
I was always looking to make
more in the easiest way possible.
This was the beginning of guess what
my next mistake investing without
understanding I heard the stock market
was a really great way to make money.
All you have to do is buy shares,
wait for them to go up in value and
then sell them and tight the profit.
What could be more simple than that?
So I started buying lots and
lots of different shares.
Every single little share someone told
me about I wasn't doing any of my own
research and just trust in what people
said around me. Looking back now,
it's quite a miracle that
I managed to do very,
very well for around three to four
months, one day after hearing a tip,
I decided to go big and put all my
profits into one particular share it.
Wasn't a very expensive share. In fact,
it would be class nowadays, penny stock,
and that share look to be the one
that was going to make me my fortune.
By the next morning,
I've lost nearly everything that I've
made over the last three to four months.
I couldn't believe it. I
was absolutely heartbroken.
It costs me around
$35,000 fasted correctly.
This could have grown
to so much, much more.
I thought I was a big stock broker and I
knew everything there was to know about
the stock market. I hadn't read
any of the books on the subject.
The most research I've done was watching
a few different TV program at the time.
I didn't realize what I was actually doing
was just gambling my money away. Now,
anyone that knows anything about the
stock market will tell you that you should
never put all your money into one area
and to spread out the risk with a lot of
different investments. But I certainly
didn't understand this at the time.
It really taught me that you shouldn't
put your money into something you don't
fully understand.
Stockbroker spent years and years
learning all the facts and all the figures
about the market. And yet they still
make regular mistake. I don't know. Oh,
I thought watching a few TV shows was
going to make me the Wolf of wall street,
but certainly thought I was at the
time, after a few years of working,
I was getting really frustrated with
the jobs that my manager was giving me.
I decided I wanted to quit.
So I created an escape plan.
This opened the door to another mistake,
sharing my plans with a friend little
did know that he was looking to build
another shop with higher profit margins.
I virtually gave him the blueprints.
Basically my entire business plan to say
I was destroyed for a few months would
be an understatement. It goes to show
whoever your friends and contacts are.
You never know what they're thinking,
and you certainly don't know what
their next move is going to be.
This costs me around about $50,000
profit plus of course a loss of all
that time. And time is something you can't
buy back. If you've watched my story,
then you will know for many different
reasons why my friend shop was not
successful. He lost interest and he
offered to sell it to me. Fortunately,
I was now in the position to buy it as
I'd saved enough money to put down a down
payment and also work my credit rating
up so that I could borrow it enough to
invest the rest. The whole city
situation could have been avoided.
If I just learned much
earlier to track my ex fences,
build up my emergency and save more money.
Once I finally got my
business up and running,
the biggest mistake was
working hard, but not smart.
I know I always say my videos.
So you've got to hustle hard because
if you want to get ahead and our money,
then you need to knuckle
down and do the, you can,
however you can overdo
this. And if you do,
then you run the risk of losing
your entire social network.
This has probably cost me more
than a hundred thousand dollars,
but let's just cap it there
because otherwise it would
just get too frightening.
I think I used to use my work
as an excuse, not to go out,
socialize in between
the ages of 21 and 31.
I definitely put my head
down and I worked too hard.
When I woke up to the situation.
My entire network of friends was pretty
much gone. I'd often find myself saying,
you know, I'm a bit busy, I've
got a customer to help. You know,
there's a job that needs finished him
for someone to go out and reconnect with
everyone. I'll tell you what,
wasn't an easy thing to do.
I'm naturally quite a shy person and
taking the lead in making friends and
pushing forward and meeting new people.
Doesn't come entirely natural for me.
I decided to start racing, go
carts with some of my old friends.
I thought they were pleased that I was
coming out again and doing something that
I really enjoyed.
And I wanted to do taking some time
off to have fun and build my network of
friends actually ended up Mike.
You mean money in the long term,
as those friends were able to introduce
me to multiple business connections and
in turn even more context, very
much like a snowball effect.
It's definitely a hard balance. Uh,
one that I wish I'd found
a little earlier in life.
My experience of day trading individual
stocks really put me off invested.
This caused me to make my next
mistake waiting far too long to make
longterm investments. I wish
I'd known sooner about simple,
low cost index funds,
like the S and P 500.
This is a collection of the top
500 companies in the USA. Nowadays.
I use Vanguard to invest in low cost
index funds because to be honest,
it's just something easy.
I probably lost the best part of
$54,000 by invest in long term.
I really, really wished that
I'd learned that earlier.
The thing to take away from this is
that you can never invest too much too
early. No one gets to
my age and says, boy,
I wish I hadn't invested so much or
learning about compound interest and
longterm investing much sooner.
It would have meant that I would not
have traded individual stocks to such a
great extent. As long as
you can invest consistently,
then you're going to have huge stockpile
of money and you can use this for the
rest of your life. You can even
retire early. So now for the moment,
you've all been waiting for
the total amount of money.
I could have sight if I'd have known
all the information when I was younger,
$267,275.
So you could say this video is where
if over a quarter of a million dollars.
So I'm going to leave this next
video right up here for you.
Don't click on it just yet. Don't
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If you want to grow your wealth or
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mile Tilbury for daily money, tips and
motivation. So you on the other side,
