Modern Money Habits: 5 Steps to Build the Life You Want | by Justin Bridges on Skillshare | Course Review

Modern Money Habits: 5 Steps to Build the Life You Want

By Justin Bridges

Video Review

Why would you take this course?

No matter what you do in life, this kind of course will help you get more money without having to work for it.  Listen, according to a 2018 study, a 400$ emergency would send 40% of Americans into debt.

Generally people are poor and stay poor mainly because they don’t know shit about managing money. 

So why am I reviewing a money management course? Because I want to make sure you guys don’t make the same mistakes everyone else makes!

Look, no matter what you do professionally, now. Not tomorrow. Now is the time to learn how to manage your money.

Just imagine what life would be like for you if you develop the habits of managing your money exactly like the elite does, the 1%!

How does this course works

See, this course is specifically designed to help you develop the basic money management habits that you must acquire to become wealthy and to stay wealthy

During this course, you’ll develop your own structure to manage your money and you’ll build your own plan so you can get to where you want to go financially as fast as possible.

“Those who fail to plan, plan to fail” 

The 5 habits that will make anyone wealthy

So, what are those habits?

The financial snapshot

The first habit is knowing what’s going on financially in your life.

The method suggested in this course is to take a snapshot of your finances! It’s simply a document, in which you keep track of your monthly earnings, spending, debts and assets.

So, what do you spend on? Do you have any subscriptions? Insurances? Groceries, rent debt.  How much does everything you spend on costs individually? And what about all together? How much do you earn before and after taxes?

You could be planning to buy a new car or a house!  You could also be planning on doing something lucrative with your money, like saving as much taxes as possible using your 401k .

When you are planning anything that is related to money, you need to be able to answer every one of those questions.

That kind of document, when well done, becomes a precious tool

But I know what it is.  If you’re just a little bit like me, it kind of sucks a little to do that kind of things cause you’re a bit lazy and it takes more effort than you’d like. Right?

And the harder it is to create your snapshot, the less you’d be inclined to do it properly, and to make sure it’s gonna be up to date for when you’ll need it.

So we want have as little friction as possible. Right? The more complicated the more friction. And the more friction, the more likely you are to give up on it.

So what’s the solution? Should you try to do it with as little friction as possible?

Like, you could maybe just take 5 minutes, and write the first piece of paper you can put your hand on your approximate spending and earnings and all that stuff without really making sure of anything. That’d be easy, right?

But the thing is, it would suck. It would be worthless and you wouldn’t use it for more than a week.

So listen up. The instructor came up with a brilliant solution to this.  In his course you learn how to build this perfect tool, without spending to much effort doing it in a matter a of minutes

The solution?

The instructor gives his templet. You open the document with excel or google spreadsheet and you just write your own numbers and listen his advices.

And that’s all you have to do to get it done and set up. You can’t get less friction than that.

Keep money aside for emergencies.

Now, there is a very popular idea in personal finance that says you should keep aside money you don’t invest.  You just keep it available so if something terrible happens you don’t have to sell your stocks, your bonds or any of long term investment.

Makes sense right? 

But how much money do you need to put aside?

The short answer is It all depends on your financial snapshot.

But, you can be sure of one thing. It’s going to be an overwhelming amount of money.

Hack to make keeping money aside EASY

So, before you start watching this course or searching for answers I’ll tell you a secret that make keeping aside that kind money way easier.

Let’s say you put aside 20 000 dollars for an emergency, and let’s say that with that kind of money you could be out of work for 6 months and it wouldn’t impact your future too much.

But remember! You cannot invest it.

But to make it even more painful, there is inflation! That means your money is going to lose value over time!

So, 20 000 set aside is a lot of money, right?

But picture this… Let’s imagine that a friend of yours knows a lot about cars!

Like, he works with cars, he had one of those car beds when he was a kid, he’s got a car tattooed on his chest, his wedding cake was a corvette despite his wife’s desires for a regular wedding cake. I mean, he knows everything about cars.

One day, he calls you and tells you about that sport car on sale for half what it’s worth. He inspected it and it’s in perfect condition. It’s a perfect opportunity to make money.  

All he has to do is to buy it and sell it… But he doesn’t have the money.

But hey, guess would does. You do.

So you take one third of your emergency money, which lets say is like 2 month worth of spending out of 6, and you buy it.

Boom! just like that in 1 month, without working, you sold it back and made 10 000$ and almost doubled your money. You gave 1000$ to your friend and everyone’s happy.

That’s a calculated risk.  Those kinds of investment opportunities can show up any moment, and you’ll most likely see them only if you have the money to seize the opportunity.

When everyone lose, you are winning

Then, here’s something else that may help you consider keeping money aside.

Money deflation. It’s when your money gains value

Something that just happened recently in 2020 when the stock market dropped by 35 % in a month.

Same example. By buying a low cost index fund with ⅓ of your emergency fund you could have made 1500$ if you had a really bad timing, and if you seized the opportunity with a good timing you’re looking at at least 3000$ for a safe and calculated investment. 

So just to make it clear. You won’t learn how to do that in this course. Okay?

You’ll learn how to build the habit of keeping an emergency fund aside so you get ready to weather any storm. And that is the priority. Not making money with that emergency fund

Get free. How to deal with debt.

And here we aren’t talking about good debt like real estate debts. We are talking about student loans, credit card debt, primary resident and stuff like that.

I personally have never really been in to much debt. I almost always had a lot more than what I owed.  Not because I’m rich, but rather because I have never been a big spender. So, I was always able to pay back immediately or a least very quickly.

Thus, I won’t be able to talk about my personal experiences that much, but clearly if you feel overwhelmed by debt, this section will help you understand what can be done to get back on your feet.

Like for most of what you’ll learn in this course, it is tied with a structure that you will develop, and it uses visuals to keep track of everything and to get the perfect plan.

So, you learn how to keep a visual over your debts and how to build your plan to get rid of them.

Got it? 

Build your paradise

The habit of consistently saving for retirement. 

If you’re like me you don’t want to wait until you’re an old fart to be free.  Cause that’s what retirement is about! Being free. It’s about making sure you’re not your boss’s bitch for the rest of your life.

But careful here. It’s not about not working. Its about not having to.

So, this section is all about calculating how much you should save to get there at the time you want to get there and then about getting the habit of consistently saving up money, according to your plan.

No fancy stuff here. You won’t learn to trade or anything. It’s really basic. But I mean, you have to start somewhere. And this somewhere is essential.

Final thoughts

Overall, in this course, other than getting crucial habits you will get a structure, a way of thinking and keeping a visual over all the aspects of your finances. 

It’s not a course on investing, budgeting or entrepreneurship.  It’s about learning to manage your money like someone who plans on becoming wealthy.

It’s simple, but even me who has a finance security adviser license I kind of got some things out of it too.

So, if you want to start building your net worth or if you just want to take control over your life and start stacking money you should take this course.

Wanna take this to the next level?

If you want to take your finance to the next level there’s a book that I HIGHLY recommend you read. Even if your not into books and all, this book isn’t like most others.

“Money. Master the game.”  By Tony Robbins.

Ohh boy.. Where shall I begin. 

Tony Robbins is, like many would say, a force of the nature. He usually teaches self help. Basically, he teaches people how to get their shit together and how to drastically change their life.  And he’s more than successful at that. 

But he is not a finance expert. 

So to write this book,  he interviewed some of the most successful, influential, and POWERFUL people in the world of finance. 

  • “The most feared man on Wall Street” | Carl Icahn | Net worth: 14 billion.
  • “Chief investment officer at Yale University” | David Swensen | Net worth: 30 billion. 
  • “Creator of the index fund | John C. Bogle | Net worth: Estimated at 80 billion.
  • Warren Buffett,
  • Ray Dalio,
  • Paul Tudor Jones, 
  • I mean… Do I have to keep going?  Did you get the point?

This book has been designed to take anyone (lots of knowledge and experience or none. That doesn’t matter.) and tell them every single thing that they must know to get to there financial goals.  

Anyone who carefully study this book will become more successful with their investments than 99.99% of people. That, without having to do complex financial analysis, without having to interpret financial statements , or without having to do anything that is time consuming and complex. 

I repeat. This book is built for people like me and you.  For your dad and your neighbor.  It means it’s simple.  And it means it doesn’t take you much time at all. 

But what makes it outstanding to me, is the fact that, even though it is simple and even though it does not require prior knowledge, it contains all the knowledge you require to make your portfolio perform better then 99.9% of people.

That’s really how you get free!

I promise, if you read this book, you’ll know more about money than all of my ex colleagues. Who were supposedly, experts.

In finance, what you don’t know will hurt you.

And this book is everything that you need to know.

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