Howdy Raskle,
Our Sunday Best Bits email is here to help you make sense of the financial world, one week at a time.
Yesterday, I — Owen — turned 33. I know. Old, right?
Here’s three things I wish I knew about life and business at 23:
1. The importance of mental health
Getting a life coach and psychologist on my side (after 30) is something I wish I knew I could do at 23. It changed my financial life for the better, 10 times over. But also my everyday. And the way I run my business. A psych is free with a mental health plan from your GP.
If you ever wondered why you can’t set long-term financial goals, constantly overwork yourself but have nothing to show for it, or strive for material success like BMWs or big houses — I highly suggest speaking with a professional.
2. Averaging up is far better than going cheap
Like most 20-somethings, I used to buy “cheap” stocks, Kmart vacuums and put up with negative people.
Now I buy the highest-quality companies and ETFs for the long term, own Dyson V8 Origin (try Catch) and I “prune” people from my life, quickly.
It’s just like compounding your wealth over time. It’s a process of ‘averaging up’ into a better way of living (or investing). Don’t buy “cheap” stuff.
3. Things can be bad, and getting better
Some weeks are hard. Some years are worse than others. Loved ones dying. Investments going wrong. Businesses failing.
But I’m thoroughly convinced that the longer term your horizon, and the more you invest in yourself, the better life becomes. But perspective matters.
Zooming out, the world is getting better. In 1980, 40% of world lived in extreme poverty. Today, that number is just 10%. In 1990, 58% of people lived in low-income countries. Today, that figure is just 9%. Test yourself to find out why some things are probably much better than you think.
For investors, this simply means: pessimism can work, from time to time. But over the long run — better on a brighter future is much, much, much better bet.
