10 Money Revelations in My 20s

Personal Finance is More Philosophy Than It Is Technical

After reading Ben Carlson's "10 Money Revelations in my 40s" I felt inspired to reflect on my financial journey. Our 20s are formative years, a period of significant change and the first taste of "real money." Allow me to share my financial revelations with you.

1. Being Cheap is Expensive. As a kid good with money, I was never a complete Scrooge, but I had the characteristics. I'd hoard and constantly opt for cheaper alternatives. However, I learned the hard way that the cheaper option isn't always the cheaper option. Constantly replacing low-quality items (like those earphones with one working earbud) taught me that quality always beats quantity.

   

2. I had to learn what money actually is. I have a post on this, but tldr: I view money as a means to an end (financial independence), emphasizing that true wealth lies in intangible assets like time, health, knowledge, and meaningful relationships. While money is essential, pursuing wealth for wealth's sake or the idea that money directly buys happiness is useless. Money is like a pile of bricks - you can have a lot of it, but if you don't know how to use it wisely or spend it purposefully, it won't form a house or make your life any more fulfilling.

3. Time IS money. Time is our most valuable asset. I always heard this saying but never understood it. Until I finally started making a little more disposable income and realized I didn’t like cleaning my car - so I’d pay someone to do it. Putting together furniture - I’d pay someone to do it. Hell, I even pay my younger sister to do chores when she visits. There's a fine line between outsourcing and laziness (or so I’d like to say), but convenience is king.

4. Taxes. As a student working part-time jobs, I never felt the brunt of taxes in my check. Sure, I always wondered where the extra $200 would go. But things changed once I got my first big boy job, and I routinely ‎saw $500 come out of each check. The "tax the rich" debate hits differently now (I jest, of course).

   

5. Owning assets is how you get wealthy. The COVID-19 pandemic happened, and I was stuck at home. While constantly checking the news like everyone else, I heard about crypto, GameStop, and AMC, and thus, my investing journey began. Long story short: I and The SP500 have been well acquainted since March 2020.

6. Furniture is expensive. $500 carpets? $1000$ couches? $500$ table sets? I think this has definitely contributed to my aspiring minimalist status today.

   

7. Rent > Buying. Like most, buying a house was a logical next-step milestone growing up. However, once I got into personal finance and ran some numbers, it didn’t make sense to me to buy, strictly financially speaking. I do surmise, though, that this is the most likely revelation that may change as I get older. Like Ben says in his article, “That’s personal preference, but personal finance is personal.”

1. Comparison is the thief of joy. This is the decade when the great separation starts - people start having kids, getting PhDs, going to jail, building businesses, etc. You really start comparing yourself with everyone and wondering if you are on the right path. I remember meeting a friend from high school in my early 20s while I was still a university student trying to figure out what I wanted to do with life. He had already graduated and had been working for two years. He travelled all the time, had a nice car, and just seemed to give off that aura of “I have it all figured out.” Combine that with seeing people my age and younger dancing on TikTok, making millions, and I was honestly dishevelled. It forced me to accept that everyone has their own path and time to succeed. And it taught me a lesson to be grateful. Now, I remember that I prayed to be where I am today.

2. Geo arbitration is THE game changer. Most of our money goes towards cost of living: housing, food, transport. It's essential to minimize these costs and increase our earnings in order to achieve financial independence more efficiently. Once I discovered the Financial Independence Retire Early (FIRE) movement, I learned about geoarbitrage. Thankfully, I have some experience with this concept due to my upbringing, having lived on three different continents (Africa, Asia, and North America). That's why I started this Substack - as an African living in Canada, the idea of moving to an area with a lower cost of living and a good quality of life is very appealing to me, especially since the specific location can vary based on individual preferences and financial circumstances.

   

   10. Entrepreneurship: The Matrix is one of my favorite movies. You should definitely watch it if you haven't and rewatch it if you have. Most of us are stuck in the matrix. There has to be a better way of making money than a 9-5 for almost the entirety of my adult life. Growing up, I was always taught that if I wanted to make money and live a good life, I'd need to go to school, get degrees, and get a high-paying job. I had plenty of evidence that this was the way and doing anything else was setting myself up for failure. Well, now, I feel like we're all stuck in a financial matrix, programmed to believe working a job for 40 years is the only way to make a living. Don't get me wrong, getting a degree is still a premiere path to above-average earnings. But it's not the only way.

The fundamental concepts of living below your means and delayed gratification were lessons I had already internalized before my 20s. I learned delayed gratification from my time in the gym and learned how to live below my means by being a university student.

These revelations have shaped my financial philosophy. Remember, personal finance is a journey of continuous learning. What money lessons have you uncovered in your 20s?

BONUS REVELATION: Hotels over Airbnb any day. Even if the Airbnb is less expensive.