I Started Investing 3 Years Ago, Best Decision I Ever Made

I Started Investing 3 Years Ago, Best Decision I Ever Made

THIS POST MAY CONTAIN AFFILIATE LINKS. PLEASE READ OUR DISCLOSURE BELOW FOR MORE INFO.

In the beginning of 2015 I paid off my credit card debt for the first time and started to learn about investing.

It was terrifying, but so totally worth it!

How I Perceived Investing As A Kid

Up until 3 years ago (I was 28), I knew NOTHING about investing. To me, investing was some insane, chaotic spree that made rich people rich and the middle class poor. I didn’t know how it worked, but I knew tons of people who lost money during the recession.

If you’ve ever watched any movie that talks about Wall Street or Investing, it’ll have your brain swimming in confusion trying to understand it. Were they just trying to make it look hard and impressive? (Yes).

I was terrified of investing, I just shut down anytime someone talked about investing and assumed they were a financial genius if they owned stock. Someone who had enough money to pay their bills, live their life and put something extra away investing for retirement was a financial god to me.

I Started to Learn About Money On My Own

Like I said before, at the beginning of 2015 (3 years ago) I paid off my credit card debt after paying countless $70 monthly payments. So once I paid it off, I wanted to use that $70 for something else, something reasonable.

I will admit my company did have a financial planner come into our office and talk about our 401(k) plan. While the company plan was pretty awful, the financial planner did a great job at terrifying me to death.

I will always remember their words “Running out of money in retirement is worse than death”

Well f*&k, that was more terrifying than Halloween. So I started to learn more about money and how it worked.

I started reading finance books like “Total Money Make Over” by Dave Ramsey. I consumed it in a day.

I started listening to finance podcasts. Not the hardcore stock analysis ones, but the more Investing for Dummies type of podcasts like “Listen, Money, Matters”. I LOVED that podcasts and in my mind, being surrounded by those announcers talking about money and finance as a regular thing, I began thinking of money in a different way.

After reading books and listening podcasts. I started to view money not as static thing to sit in my bank account, but more as income streams.

Understanding how much money I had in my bank account mattered less than how much I had coming in each month. That’s why investing became a fascination because it’s one of the most common income streams for people.

I Tried Investing $100 To See What Happens

On the podcast “Listen, Money, Matters” they raved about the investing app “Betterment” (Adam uses Betterment and did a review). They brought the Betterment team on the podcast and explained it and how it’s meant for people who know nothing about investing but want to start. That was me!

I remember how nervous I was signing up. I had to put in my info and social security number. I was convinced that I would immediately lose all my money straight away and because they knew my social security number, the IRS would start to hunt me down.

This was a legit fear I had.

Since I had so much anxiety, I only invested $100 to see what happened. I invested in a “moderate risk” portfolio which they automatically invested for me. All I did was put in $100 and waited to see what happens.

They say not to check it daily, but I did. Oh my goodness, for the first week I checked it hourly. I wanted to see EXACTLY how the stock market worked. After a week I limited myself to daily. So for 5 months, I checked my Betterment account every day, scruitinizing everything that happened.

However, I found that my money fluctuated. One day it went down to $99 then up to $102 and slowly kept rising. This helped me understand how the market moved (at least during those 5 months), how it worked and it slowly became less mysterious.

In fact, I started to notice little things like every once in a while, I would receive extra lumps of change in my account. Just a few pennies, but they were dividends. I received money just from owning certain stocks. I couldn’t tell which stocks with Betterment because it doesn’t show that amount of micro detail, but it was a great feeling.

Then I started to invest more and look at other stockbrokers (companies which you need to invest) like the Robinhood App (I still use Robinhood, here’s my full review on how it works). With Robinhood I could start to pick my individual stocks and it was amazing! I chose stocks that were on the safe side such as Apple, Realty Income and Johnson & Johnson that were well known and established. I knew if these companies tanked, there was something seriously wrong with our economy, so I felt comfortable.

I Wasn’t Addicted, But I Was Obsessed

After I learned how the stock market worked, I felt comfortable but wanted to see more gains than the couple of cents I had been earning. So I could have gone in two different directions. I could have started to invest in risky stocks for bigger gains (don’t recommend) or find new ways to earn money so I could buy more stocks. I did the latter.

Now I write articles online for money, use interest checking accounts, sell stock photos, sell things on Craigslist, use a cashback credit card and more to earn extra money each month and invest it!

Today, It Absolutely Was Worth It.

I’m not advocating for a certain investing approach, but I do want you to see money as income streams rather than a lump sum. It absolutely changed my life.

Before I was happy with $2,500 in my bank account. It was more than any of my friends had. I now keep $4,000 in both my checking and savings account as an Emergency Fund and invest the extra money each month in my investment portfolio.

Knowing I have the extra money and extra streams of income each month gives me SO MUCH more confidence to know I’ll be OK if an emergency comes up or I want to go on a vacation. That piece of mind is one of the greatest feelings ever.

How to Learn From 2017 to Perfect Your 2018 Goals

How to Learn From 2017 to Perfect Your 2018 Goals

Happy New Years to everyone!

We hope you had an amazing 2017 and that you are ready to tackle 2018!

As I mentioned last week, let’s talk about what goals we failed in 2017 to make 2018 more successful.

I am no goal expert but I thought I would share my method to succeeding at goals. Either you will learn something new or you can give me some more advice in the comment section below.

Setting Goals

If you do not already, you should be setting goals for yourself. These goals should be your big year-long goals. Then there should many smaller goals to accomplish those.

This time of year I focus on the year-long goals. Those other little detail goals are future Adam’s problem.

To help me organize them I use a mind map. Mind maps help me organize the goals better. You can use whatever method you want to though.

My favorite app to use is the Mindly app. It has a very clean and easy to use interface.

Here I figure out two or three year-long goals that are nestled under my life goals. This ensures that I take a step closer to those massive goals each year.

Example of Mindly

Looking Back

To be honest with you, I do not accomplish each and every goal every year.

I can say that I have become more and more successful each year. When I first started this goal-setting method two years ago, I only accomplished around 25% of my by year-long goals. This year I am at an 80% success rate!

How did I keep improving?

Well, at the end of each year I take a look back to figure out how successful I was. When I did this for the first time it made me really depressed as I felt like I wasted a whole year. This motivated me to focus better for the upcoming year.

The next thing I do is take an honest look at why I failed last year’s goals. For me, it is mostly because I did not focus enough throughout the year. I lost track of my goals during the year and forgot about them.

Looking Forward

You should now figure out a way to fix and implement that fix for the upcoming year.

For me, this coming year I look to fix my focus issue so I do not forget my goals.

To implement this fix, I will look at my year-long goals every week to see what I can do next week to get me closer to those goals. This technique will be the same thing I do with the year-long goals but on a smaller and shorter timeframe.

If you wanted, you could do this on a day-to-day basis as well. I might switch to this later in the year but will start with a week-to-week time frame while setting daily to-do’s.

I am hoping this technique helps keep me focused throughout the year to check-off all of my year-long goals!

What do you plan to implement this year?

Time to Tackle Those 2018 Goals!

Now it is time to go make 2018 the most successful year of your life!

I dare you to write your goals in the comments below and come back to this post in 365 days to see how successful you were.

To keep things fair, here are some of my 2018 goals.

  • Personal – Read one book per month.
  • Blogging – Get Wallet Squirrel’s viewership up to 50,000 per month.
  • Finances – Cut my student loan debt in half.

Again, Happy New Year! Andrew and I are truly thankful for all of you for making 2017 a special year! We are so excited to see what 2018 has to bring to Wallet Squirrel.

 

Cheers!

Adam

 

Serious Question: What Makes You Happy At Work?

Serious Question: What Makes You Happy At Work?

I get the simple reason why we work, we want to make money to do the things we want to do. We trade time and energy for money. Then spend money on things to make us we need/want. This I totally get.

However, most of us are trading time and energy for money and still unhappy.

In fact, over 52.3% of Americans are unhappy at work.

This is crazy! In most cases if something makes you unhappy. You quit doing it! Yet most of us go to work every day at places we don’t want to be.

Are we idiots?

Are You Unhappy With Your Job?

I was recently asked if I was unhappy with my job? I was a little surprised a co-worker asked me this. Their reasoning was that I USED to be extremely happy and excited about everything, now I was more monotone or lacked the excitement I used to have.

Honestly, I was a little pissed. No one wants to be told that they lack anything. Yet in reality, I was madder at myself that I let it show that I was unhappy. I’m part Irish, I’m used to bottling up my feelings and not tell anyone that anything is wrong.

It made me ask myself if I was unhappy with my job? It was pretty scary.

What Does Unhappiness at Work Look Like?

If you ask yourself “Are You Unhappy At Work?” it’s not an easy answer. So I started to create a list of signs that would force me to see the truth.

  1. Do I hate waking up in the mornings and coming in for work?
  2. Do I feel I have no future at the company I’m at?
  3. Does the day fly by or drag on?
  4. Do I get excited about new projects or is it dread?
  5. Am I doing the same thing over and over or is it new and exciting?
  6. How do I describe my job to new people?
  7. Does Jenny in Accounting ask if you’re unhappy at work? WTF

Dang, I totally answered yes for quite a few of these. So do I quit my job now or start looking for a new one? I freaked out just writing this list.

Does it even matter though if I hate my job? Whether I hate it or love it, I still NEED it. I have bills to pay and the money I make can buy things that make me happy. Should something I do 40 hours a week need to make me happy?

Well, yes….. Your job should totally make you happy. It absolutely should. However, before you quit you should answer the same question I’m now asking.

What Would Make You Happy At Your Current Job?

The other day I pulled a senior co-worker aside and asked them “What do you think I should do in 2018 to improve the company, goals, vision, etc?” I was expecting some generic answer like things to help the bottom line. However, he surprised me entirely.

One of the best questions I’ve ever been asked was “What do you want to do that makes you happy?”.

Holy Cow! It’s a simple question, but one I’ve never been asked before. I couldn’t actually answer right there and there though. I told them I had to think about it and I’m still thinking about it.

What would make you happy at your current job?

Most people say better pay, but that’s a reward, not necessarily something that affects your everyday duties. What would you change in your day-to-day duties that would make you happier?

That’s currently what I’m thinking about. What would you say?

5 Ways to Prepare Tonight for a Productive Tomorrow

We have all at some point in our lives thought to ourselves, “I am going to wake up early tomorrow to work out!”

Then tomorrow comes. Your alarm clock goes off at 4:30 AM. Then 4:35. Then 4:40. This snooze action happens all the way until 5 AM comes. At this point, time is beginning to slip away quicker and quicker where you are losing the time to workout. You might as well just go back to sleep for 30 minutes before starting to get ready for work.

Your mind is racing, fighting between what you need to do, work out, and what you want to do, sleep. Eventually, you make the decision just to sleep more because you fought with yourself until it was too late to workout.

It feels so good to roll back over into bed to grab a few more minutes of rest but later regret sinks in. As you hop into the shower, you start getting angry with yourself. You yell at yourself throughout the morning finally coming to the conclusion that you will try again tomorrow.

Then tomorrow comes only as a repeat. It is like you are stuck in the movie Groundhogs Day and Bill Murray is not there to lend a shoulder to cry on. What a nightmare!

Well do not worry, you are not alone! We all go through this struggle. And let’s face it, it really is a struggle to get that motivation to get out of bed at 5 AM!

Luckily, I have actually figured out a way to get over this mountain. The secret is all in the preparation you do tonight that will help you be more productive tomorrow whether it is working out, finishing a big project, or just wanting to get more tasks checked off the to-do list.

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1. Prepare Breakfast, Lunch, and your Outfit for Tomorrow

To start your tomorrow off right, you need to get some physical items checked off first.

I always think about what am I going to eat for breakfast. If it needs some preparation I get that done tonight so I can just pop it in the microwave and go. This does not take that long. The breakfast prep usually only takes about 15min out of my evening.

My wife and I always make enough food for dinner to take leftovers for lunch the next day. This really makes our lunch prep super easy. As I am plating our dinner I also throw some of it in some tupperware. Within a couple minutes, I can throw some yogurt, fruit, veggies, along with the leftovers into my lunch bag.

Boom! In 20 minutes or less, I have all of my food ready for tomorrow!

Now it’s time to spend another 2 minutes pulling out what I will wear tomorrow. For me, this does not take that long as I am not the most stylish person, unlike Andrew. You can see the difference on our About Page.

There are other things you can get ready as well. I like to line up my workout clothes and shoes in the morning along with any supplements. Other people might consider getting the coffee maker or their work bag ready.

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2. Look at What You Did Today

It is always good to look at the past to see how you did. Answer the following questions…

What did I get done today? Is there anything I did not get done? What can I learn from today to make tomorrow better?

These questions should help you learn from your mistakes as well as help motivate you for tomorrow.

The key here is, to be honest with yourself. Do not just quickly answer each one of these questions, actually look at your day and your performance. If you take a deeper look at what you actually did, you have a higher chance of finding ways to improve yourself for tomorrow.

3. Map Out What You Need to do Tomorrow

After looking into the past, it is time to see what you have ahead of you. What do you need to accomplish tomorrow?

Mapping out your day is extremely beneficial because it creates a solid plan as to what you need to do and when you are going to do it.

I tend to lose productivity in my day because I do not know what to tackle first. This creates a scattered brain moment for me, paralyzing all of my production until I can lay out what needs to be done.

I like to use the Tick Tick application to help map out my day. Using the calendar mode allows me to see what my day will be and easily adjust to unforeseen speed bumps that will happen.

Overall, I find that mapping out my day allows me to stay more focused on the tasks that need to get done for the day. Staying more focused throughout the day allows me to check off so many more to-dos on my list.

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4. Get a Good Night of Rest

Sleep tonight is key for a productive day tomorrow. There is so much you can do to help you sleep better at night

Work out: Working out helps wake you up for when you want to be awake but it also tires you out for a good night of sleep. Try to get at least 60 minutes of physical activity every day.

I spend 30 minutes before going to work on the stationary bike. Over my lunch break, I go for a 30-minute walk. Then finally I try to do 30 minutes of yoga after work.

Turn off the phone: Looking at a screen an hour before going to sleep can stimulate your brain again. Obviously, you do not want to do this right before going to sleep.

Instead of reading on your phone try to read a book or pick up an Amazon Kindle Paperwhite. This will help your mind calm down for a good night of rest.

Eat and drink right: Avoid eating or drinking any sugary drinks close to bedtime. Also, avoid caffeine or alcohol within four or five hours of going to bed.

When you wake up, drink a glass of water. This will get you rehydrated from the night and get your body going the right way.

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5. Do Everything Within 5 Seconds

Watch this speech from Mel Robbins below until about the 16:00 mark. Go ahead. I will wait for you.

This will be the best 6 minutes you spend watching any video today. Maybe even the week. For me, it was the entire year.

If you are going to take anything from today’s post, it should be this advice, DO NOT HESITATE!

When you are laying in bed, trying to talk yourself out of getting out of bed, start counting down from five. Make it a goal to get out before you reach zero. If you cannot, it is less and less unlikely you will actually pursue your goal.

These moments happens ALL day long. There are times throughout the day when you know what needs to be done but you hesitate. If you do not move into action within five seconds your brain starts to talk you out of what you need to do.

Do not let this happen. Do not let your dreams stay in your head.

If you would like to learn more, Mel wrote a book about her Five Second Rule. I recommend you check it out!

Now Go Seize the Day!

Now it is your turn! What are your goals? Let’s go tackle them!

Do. Not. Hesitate.

Happy Thanksgiving! Here Are Some Facts To Be Thankful For

Happy Thanksgiving (American readers)! However, if you’re an international reader, Thanksgiving in America is just a day where people are reminded to be thankful for everything we have and celebrate with eating lots of turkey and pie. Usually surrounded by friends and family.

However in this Thanksgiving post, I wanted to be reminded of how far I’ve come, and our readers, in understanding finance. Because it wasn’t long ago (only in 2015 I paid off $6,000 of credit card debt) that I knew NOTHING about finance and started learning. So I found some interesting finance facts to remind myself of how far I’ve come.

10 Fun Finance Facts

  1. Student Loans are in the trillions of dollars and two of five student loan accounts become delinquent within the first five years of making an attempt to pay student loan payments (source). I have auto-deduct on my student loans, it helps A LOT!
  2. Nearly 30% of Americans don’t have at least 3 months of money to get them by if something happens (source). Personally, my Emergency Fund has 3 months of cash I can tap before I start pulling from my investment accounts to get me by.
  3. In the days of the pilgrims (see thanksgiving themed fact) a US Dollar was called a “buck” because the pelt of a male deer was worth a dollar (source). I didn’t know this before!
  4. Did you know Walt Disney every year for the holidays gave his housekeeper stocks of Disney? By the time his housekeeper, Thelma Howard died, she amassed a $9.5 million dollar fortune (source). Be nice to housekeepers and thankful for everyone doing these thankless jobs!
  5. Don’t take investment advice from celebrities. I’m thankful I never have. The Rapper 50 Cent in 2011 started tweeting about H&H Imports (stock ticker HNHI), an investment he owns and told people to invest. Although his tweets are now taken down, he made $8.7 million from his comments on the penny stock (source). Can’t imagine his followers did as well.
  6. If you’re having a bad day, just remember Ronald Wayne. Ronald was a third co-founder of Apple along with Steve Jobs and Steve Wozniak. Ronald sold his 10% stake in Apple in 1976 for $800. That 10% stake is now worth more than $35 billion (source). I’m thankful not to have that guilt on my conscious. Remember buy/hold!
  7. I hate coins, but I’m thankful they add up! In 2015, the TSA (the people at airport security lines) collected $765,759.15 in loose change. This is the money people just left behind in those long lines and x-ray machine bins. They get to keep it all too (source)!
  8. Buy and hold stocks are a thing. As of January 2013, there were 16 people left in the world who were born in the 1800’s. If they invested (and held) in the stock market, US stocks had increased 28,000% during their lifetimes (source). I’m thankful to start buying and holding so young. I could totally live to be a hundred.
  9. 46.1% of Americans will die with less than $10,000 in assets (source). This factoid haunts my dreams. I’m thankful I  have more than this currently.
  10. In 2011, US charitable giving was $298 billion. That’s more than the GDP of all the countries in the world, except 33 of them (source). That’s pretty awesome and something to be thankful for!

Have a great day everyone!

Oh My Goodness I Hate Tipping, It Ruins My Budget and Anxiety

Let me preface that I used to be a waiter so I understand the value of tipping, but as a customer, tipping is the worst! It’s psychological warfare at the end of every meal that results in either anxiety that you haven’t paid enough or havoc on your wallet for paying too much.

Then exactly how much too much and too little for a tip? Common restaurant adequate says a tip should be 15%-20% pretax, but then why does every restaurant leave the anxiety for the customer to decide how much to tip?

Let’s face it, an extra 20% of a $60 check is still a lot on your budget. That’s $12 the menu doesn’t mention.

This history of tipping is murky

From what I found in the Business Insider and Washington Post (and it’s a murky origin story) tipping originated around 17t century England where the word T.I.P. meant “To Insure Promptitude”. The upper class provided extra “allowance” to servers (lower class) to be given faster service.

This practice made its way to America after the Civil War when wealthy Americans started traveling back and forth to Europe. So we can blame them, and I do.

Tipping Today just allows Restaurants to pay it’s servers poorly

Because waiters (I’m referring to both men and women) receive tips, the federal tipped minimum wage for tipped workers is as little as $2.13 an hour because they receive tips to supplement the difference (source).

That’s kind of ridiculous, right! Restaurants are allowed to only pay their servers $2.13 an hour and expect servers to get the rest of their income from tips. So when you pay your bill, your essentially paying for the food/environment with your bill and your tip pays the waiter’s salary.

If you’re a waiter, the customer is actually your boss since they’re the ones that pay you. So every day, every hour, you have a different boss. Yikes.

How much do you pay your server then?

According to Google, yes I googled “How Much Should I Tip”, you should be paying your server 15%-20% of your pre-tax bill.

This is where the Anxiety starts

What the frack is it? Do I tip 15% or 20%?

What if the server was bad?

If my bill is $100, does the server get an extra $20 just because they played telephone with my order from the table to kitchen and walked the food back? What if they were awful? We’ve all had bad servers who ignored us. They chatted in the back or brought us the wrong items with a rude attitude. Is that when you tip them 15% instead of 20% or even less?

What about if the food was awesome but the service was terrible? ugh

Should I feel both angry at my server for bad service but feel guilty since they’re paid so poorly? How should I feel?

I recall a study conducted found that bad servers still received 15%-20% regardless of how good the service was because people felt it was the socially acceptable thing to do. No one wants to be a bad tipper, but should I tip poorly to save a bit of money and prove a point to the server?

What if the server was awesome?

You plan to spend a certain amount of money eating out and even account for a 20% tip. Do you exceed your budget further if your server was fantastic? Should your server’s awesomeness impact your planned budget? Should they be worthy of more than a 20% tip of that you’re still paying off student loans?

Damn it Janet, you were so great that now my tip for you exceeds my alotted food budget.

Are you a bad person if you don’t acknowledge their above and beyond service or will they quit trying harder if people don’t tip more for the great service?

What about tipping during group meals?

Now imagine eating out with a group of friends, each pays their own bills and it always ends with laying your bills on the table in sight of everyone. If you only tipped 10% or 15%, does that make you a jerk if everyone else tipped 20% – 25%?

On the other hand, are you a jerk for tipping more than everyone? Are you just flaunting money because you can spend more than everyone else or does it make you more generous or charitable?

This is why I hate Tipping!

Why does a nice meal out with friends have to end with awkward silences while everyone calculates percentages in their heads while they secretly judge the performance of the server? Ending in silent comparison of who tipped more, being more generous and charitable than the rest of the group.

I now tip 20% regardless of service

Tipping makes me so anxious that I’m just starting to tip 20% regardless of service (paying with my credit card). The server can refill my drink at the perfect time, every time or completely forget I exist. Tipping a regular 20% fits the socially acceptable tip amount to overcome the unnecessary anxiety at the cost of a few extra dollars on my budget. Sorry budget.

Except Subway “Sandwich Artists”, screw them. They literally walk 10 feet putting the ingredients I say onto bread. Why do they have a tip jar at the cash register? You’re a fast food restaurant.

If you also tip 20% regularly, here is a chart to help you decide what 20% would be when you’re looking over a menu because they don’t list the extra tipping cost on the menu.

20% Tip per Cost of your meal 

Check 20% Tip
$20 $4
$40 $8
$50 $10
$60 $12
$70 $14
$80 $16
$90 $18
$100 $20

If this seems like a lot, you can always stay in and eat a Peanut Butter and Jelly sandwich.

What do you tip your servers? There is obviously no right answer otherwise they wouldn’t leave the tip field on every check blank. I REALLY want to know. Do you judge your waiter everytime or give them a flat fee regardless like me?

9 Bad Spending Habits That are Killing Your Budget

9 Bad Spending Habits That are Killing Your Budget

THIS POST MAY CONTAIN AFFILIATE LINKS. PLEASE READ OUR DISCLOSURE BELOW FOR MORE INFO.

Alright, it is time to get our budgets back on track and get rid of bad spending habits.

Getting rid of these horrible spending habits could possibly save you thousands of dollars a year. It has for my wife and I.

We all have been guilty of bad spending habits at one point or another in our life. In fact, a lot of us might still be guilty of these bad spending habits, I know I am.

Let’s take a look at these 9 bad spending habits that are killing your budget and save you some money!

1. Not Paying Attention

We all need to pay attention to our bad spending habits. This is something that really turned around my wife’s and my finances. We now track our spending on an almost daily basis by using the Mint application.

Tracking your spending allows you to see how quickly frivolous spending can really add up. Until then you really do not realize how those horrible spending habits are really killing your budget. My eyes were blown wide open after the first week of tracking.

Here is what we did. We downloaded the Mint application and set up our budget within the application. Checking the application almost daily I am able to monitor our transactions and see how we are doing in each budget category. I am also always trying to see new ways as to where we can save money.

I love Mint. It is clean. Simple to use. But very powerful. If you do not know Mint you should check out our Mint App Review. Here Andrew walks you through as to what the application is and what it can do for you.

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2. Making Excuses

It is so easy to make excuses to enable bad spending habits. It is so easy to skew the purchase from a ‘Want’ to a ‘Need’.

But do you really ‘Need’ it? My guess is probably no!

Instead of focusing on materialistic items, focus on your final goal. Remember that you want to pay off your car by next year. Or that you want your student loan payments to disappear three years from now.

It might be tough in the beginning to let that item go but guess what. Something better will be out once you pay off your debt. Treat yourself then!

3. Eating Out

I talked about this a few weeks ago but eating out is the toughest on this list for me. I love food and I live in a foodie city, Denver. Surrounded by so much good food and having a 1-year old that wears you out on a nightly basis makes it very tempting to eat out a lot!

One solution would be the PBJ Theory that Andrew came up with a few weeks back. If you have not read it, I suggest you do. It is very cleverly written.

While I think think the PBJ Theory is a good emergency fall back, I do not think you should always rely on it (Andrew agrees with this). Instead, plan that you will be too tired to cook an intense meal (an hour or more cooking time) a few times a week.

There are plenty of healthy recipes out there that can be put together within 20 minutes. Just the other night I made us these very yummy black bean quesadillas for dinner. The meal took about 15 minutes to cook and we were very satisfied for under $8.00.

The best part of this meal is that all of the ingredients could be frozen if you do not get to the meal right away.

Comic Courtesy of: http://www.thecomicstrips.com/store/add.php?iid=162132

4. Not Eating What You Have

We have all been here. We find some awesome food that we plan on eating in the coming days. Then those days pass, then weeks pass, and then a couple months. One night you are hungry for a snack and remember that awesome food you found a while back. So you run to the fridge to only find it growing a tree out of it (mold).

Do not be this guy. This is literally just throwing money into the garbage.

My wife and I keep a pretty tight weekly menu throughout the week. I make our meals to feed four people so we will have leftovers for lunch the next day. Then that is it. Those leftovers are done. If there are more, like from a crock-pot meal, I will freeze for a meal later on down the road.

We also do not buy that many perishable snacks for home. Most of the snacks we have are healthy non-perishables. We do not buy any more until those initial snacks are gone.

For more information on how we save money on groceries check out my 7 Ways on How to Save Money Groceries article.

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5. Worrying About What Others Have

As humans, we tend to compare ourselves to others. This comparison could include lifestyle, looks, or what the other has that you do not. Do not fall into this trap as it can lead into a dark spiral that creates bad spending habits.

You might feel the urge to go buy that sweet new phone because your buddy has it. Or you might want to upgrade your car because it looks like a junker and not like the sweet new SUV your neighbor just got.

Sure, it would be awesome to have that new shiny toy but is it really worth it? Not long after the joy it brings will wear off resulting in your wanting a new shiny toy to bring that joy back. See how this turns into a nasty spiraling circle of bad spending habits?

Instead, I propose you do not buy that new shiny toy. It is a temporary band-aid. A distraction to what you really want. Financial freedom.

You should work on paying off that debt you have. My wife and I were very aggressive over the summer to get our car paid off (see how we paid off $7,000 in 3 months). Even though it has been a couple months, I am still finding joy because I now know I never will have that payment again. That liberation never goes away.

6. Monthly Subscriptions

Man, it can be so easy to spend money on these monthly subscriptions that we have available to us now. They are set up by the companies so brilliantly as well. We purchase them, set up the monthly charge, and forget about them.

We spend $198.19 a month on subscriptions.

  • Spotify – $9.99
  • Netflix – $9.99
  • Amazon Prime – $8.25
  • Dollar Shave Club – $3
  • Cell Phone – $116.20
  • Internet – $50.76

Surprisingly, we were able to cut these back by a significant amount. Our cell phone bill was just under $170 a month. The internet bill was just over $100 a month before we cut out the cable and switched to an antenna for the local channels.

Also, since I can barely grow any facial hair, the Dollar Shave Club subscription was cut back to only come every other month.

Keep an eye on these subscriptions as they can easily be forgotten about and turn into bad spending habits. Overall, we have saved about $1,300 a year with our most recent changes.

7. That Fancy Coffee

I do not drink coffee so this one really is not applicable to me. But I do know enough people who spend WAY too much money by stopping by their favorite coffee shop to grab a $10 latte on the way into work every morning.

Even if a person grabs their latte three times a week, that is costing them over $1,500 a year. Just in coffee!

Now my wife loves her coffee and loves that $10 latte but she has made a rule that she cannot get one unless she has a gift certificate. She will ask for a gift certificate to Starbucks for Christmas and her birthday to crave her want. In between those times, she will just brew her own at home every morning.

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8. Shopping Convenience

My wife and I have a rule that if we did not buy it on our weekly grocery trip, then we do not get it until next week. There is one exception to this rule, if the item is an essential ingredient to a recipe then we can go grab that ingredient.

When we do need to run to the store during the week we make sure that we do not shop at a convenience store. We will take the extra few minutes that it takes to drive to a grocery store to grab the item.

Convenience stores up-charge their merchandise because of the convenience it is to shop at them. Shopping here instead of going the extra two minutes out of your way is pure laziness and just throwing money away.

Just stay away from these stores. There is no real reason to shop at them.

9. Buying Unnecessary Items

Don’t get me wrong. I am guilty of this all the time and just recently started to learn how to control the urge to spend because I want that new shiny toy like everyone else has.

We recently just paid off our RAV4 14 months early. Our other car, an Accord, is really beaten up, I mean really beat up. I’m now the guy that no one wants to park next too. Because of this, I had the urge to trade in the Accord for a new 4Runner, which I love.

When those thoughts started running through my head I needed to stop everything and refocus that my wife’s and my next goal is student loans. We could not do that by adding on a $600 monthly car payment.

Plus, even though it looks horrible, the Accord is mechanically sound. There is no reason to get a new car right now.

The next time you want to get that new shiny toy, I suggest you stop everything you are doing and refocus on what your real goals are. Those are what will bring you true happiness in the long run.

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Now Go Break Those Bad Spending Habits

Just like me, I am sure you are a work in progress. It takes a lot of time and effort to break bad habits. I do not expect you to go out and change all of your bad spending habits within 24 hours.

That would just be crazy.

Pick one bad habit and start changing that one first. Then add on another one to change. Keep this positive cycle going until you feel like you have everything under control.

Changing your bad spending habits will get you on the right path to financial freedom.

8 Personal Finance Moves I Wish I Knew Before Turning 30

8 Personal Finance Moves I Wish I Knew Before Turning 30

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I am now 32 and I am sadly just starting to mature with my personal finance moves. I guess better late than never but I still get a knot in my stomach every time I think about the time I wasted.

Today I want to talk about 8 personal finance moves I think every twenty-something should do right now. I am going to talk about what I wish I knew when I got out of college. That being said, this article will be extremely personal as I will share examples of the mistakes I made along with a couple right moves.

If you feel like you are following my twenty-year-old self, it is time to make some changes in your life.

My goal is that anyone, young or old, learns something about personal finance that they might be missing. It is your turn not to do what I did in the past!

1. Plan for your future major expenses

Boy did I fail hard on this! I was too caught up with living in the moment. I think a lot of us can be like this when we are in our twenties and it is something we should keep an eye out.

Where did this hurt me? Purchasing a home. I should have been more aggressive in saving up for that downpayment when my wife and I moved out to Colorado. Instead, I focused on materialistic items and experiences during our first four years out here.

Why did this hurt me? Prices shot up like none other in Denver. We could have bought our dream home three or four years ago. Now don’t get me wrong, we live in a very nice home in a pretty decent area but it is not the area we would LOVE to be in. If I focused harder on getting that down payment when we first moved out here, then we would be in that dream home.

Plus, we probably would have made about $100k off of that dream home by now. Our current home has gone up $30k in value since last year.

Yep, the Denver market is just that crazy.

As lame as it sounds, I would create a roadmap for yourself and those major expenses you have coming up. Those purchases could be anything you know is coming for you such as home, car, masters degree, trips overseas, and so on.

With the roadmap, you should lay out how many years out you want to make the purchase and how much you need for each purchase. These measures will allow you to make a priority list as well as how much you need to put away each month for these.

2. Have an emergency fund

The emergency fund is there for when life throws you a curveball. This curveball could include something horrible going wrong with your health, major car expense, something going wrong with your house, or even losing your job.

Many experts believe that you should calculate three to six months worth of essential expenses in your emergency fund in case you lose your job.

These expenses include (according to Vanguard):

  • Housing (Rent or mortgage)
  • Food
  • Healthcare (Medication, insurance, and so on)
  • Utilities
  • Transportation
  • Personal Expenses
  • Debt payments

But Suze Orman (another financial expert) argues against the three to six-month number. She thinks you should save past the normal recommended number. In her interview with CNBC, she stats, “You need to know that you are going to be secure.” This is why she recommends having eight to twelve months worth of expenses saved up.

I agree with Suze. Just out of college during the Great Recession, I struggled to find work. It took me nearly eight months to find a job that would somewhat support myself. Luckily, I was able to lean on my parents during this time. I couldn’t imagine going through that without an emergency fund or without anyone to help me.

Sadly, I did not learn from this experience. I continued on in my twenties without an emergency fund.

Luckily, during my twenties, I did not have any curveballs thrown my way because I did not have an emergency fund. This was a very silly mistake by me because I had a high-deductible health plan that had a $5,000 deductible. If I had been in a skiing, car accident or needed my appendix taken out, I would have been in some financial trouble.

If one of these expenses comes up and starts to drain your emergency fund, it is time to start filling it back up to that comfortable stage. Below is how Andrew pictures this to go. Almost like a waterfall effect.

 

You also might enjoy reading about Andrew’s thoughts on emergency funds, My Emergency Find, Why I Keep $2,000 for Emergencies.

3. Budget

Your personal finance cannot be successful without a strong budget. Budgeting has become so easy with amazing apps such as Mint (see Andrew’s review here) or Personal Capital. There really is no excuse for you not to be keeping a budget.

Setting up a proper budget will require way more time than what we have but we can take a 30,000-foot overview of it today. Basically, the goal is not to spend more money than what you make each month. You will want to lay out your net income along with your monthly expenses, and savings goals. Those savings goals along with any concrete monthly expenses that you cannot skip out on such as mortgage or utilities are the highest priority. From there you need to adjust those other expenses so your total does not go above your net income.

The difficult part, at least for me, is to stick to that budget (we will talk about this next). I am a foodie that lives in a foodie city so it is very easy to lose focus and go over budget on the ‘Eating Out’ budget line. I need to follow Andrew’s Peanut Butter & Jelly Theory when I am feeling the need to eat out.

4. Live within your means

It is so easy to spend on frivolous things nowadays. Man, there are some awesome materialistic things to purchase out there! You should see my shoe collection from when I worked in retail after deciding to leave landscape architecture. What a waste of money those purchases were!

This is where the budget comes handy. You know how much you will make, save, and spend each month. Live within this budget, stay focused on this budget, and you will live within your means.

If you are feeling the urge to spend on frivolous things ask yourself this question. “Do I want or need this item?” Most of the time the answer will come back that you want the item, not need it.

5. Start your retirement fund now!

In the first couple of years outside of college, I was the victim of the immature thinking, “I’m young! Retirement is so far out! I do not need to save for that yet!”

Please do not be that person! Start saving now if you have not already!

Fidelity says that by the time you turn 30 you should have saved up what half of your annual salary is (Investopedia). So if you are making $50,000 a year, you should have $25,000 saved up for retirement.

My wife and I did get back on track once we moved to Colorado when I got my first ‘big boy’ job and my wife got her teaching position.

Image Credit: http://time.com/money/4258451/retirement-savings-survey/

6. Start paying off those student loans

I put off paying my student loans as long as I could. Almost 10 years later I still have that original debt plus interest. How silly was that? I keep seeing friends on Facebook posting about how they just paid off the last bit of their student loans. Boy, do I envy them.

Get those student loans paid off as soon as possible to free up all of that interest money you are sinking into them. That interest money you save could go towards your retirement, your financial freedom.

7. Build up that credit score

Now, this is an area that I excelled at. I was able to start building up credit back in college with student loans as well as an emergency credit card. Then when my wife and I moved out to Colorado, I was able to continue to build on top of this foundation. Over the last 12 years since starting my credit building I have only missed a handful of payments and now carry no credit card debt or car debt. All of this has led me to have an exceptional score!

There are some people who argue that a credit score is pointless if you shoot to be debt free. This is a statement I can agree with if you either plan to never own a home or you have enough cash to buy a home outright. For most of us though, our credit score will be very important for us to buy that home.

Image Credit: https://www.creditsesame.com/blog/credit/credit-score-range-for-experian-transunion-equifax/

8. Keep learning everyday

You should never stop trying to learn about personal finance. There is always something new to learn. This is why you should try to read a couple books each year about personal finance or just finance in general.

Either way, life is boring when you are not learning new things every day. Might as well make those new things something that will get you to financial freedom sooner.

Don’t like to read? I hate it as well!

Want to know my secret? I bought myself an Amazon Kindle. I read every night now because of that bad boy. You can even connect it with your local library (if they provide the service) to check out free ebooks.

Time to Make Your Personal Finance Moves!

All of my friends call me the old man, mainly because I am the oldest of us all. Well, it is your turn to learn from this old man and the financial mistakes he has made.

If you feel like you are making any of these mistakes, like I did, it is time for you to make a change with your personal finances. Do not waste away the time like I did as you will not get that time back. Time will just keep moving forward, leaving you behind.

If you are looking to earn some extra money and need some ideas on how to do that, then check out our Ways to Make Money page. Here Andrew and I provide 70, yes 70, ways you can make money outside of your 9 to 5 job. We even test these out for you so you can easily figure out what side hustle is best for you.

The PBJ Theory, Please Quit Complaining About Food Budgets

Peanut Butter and Jelly Theory

I’m about to save you thousands of dollars.

All the money you spend in your life, or even an average month. Chances are one of your largest expenses is food. It happens, literally to everyone.

Eating Out Is The Worst For Your Wallet

So when people start to track their budgets, they always come to the same conclusion. “I need to quit eating out more”. Get this, the average person eats out 4.5 times per week costing them $12.14 per meal on a national average according to a 2016 survey conducted by Zagat.

“the average person eats out 4.5 times per week costing them $12.14 per meal on a national average”

That means the average person spends $54.63 eating out a week or $218.52 a month on just eating out. Unless you earn lots of money, is the obvious answer to eat in?

What About Eating In?

Most people think they can quit going out to start having nice and relaxing meals in. Here’s the thing with eating in, the movies get it wrong.

It’s not always a romantic and soothing experience.

Often times it’s a “Crap, I need to eat. What should I cook?” experience that you pray to the food gods you have the right ingredients in your fridge and dishes are clean.

Let’s face it, we are busy in our lives and don’t have the time to visit the store every day buying new ingredients for a new recipe we found on the internet.

In fact, according to the Harvard Business Review, researcher Eddie Yoon over two decades collected data as consultants for consumer packaged goods companies. He found that:

  • 15% of people say they LOVE to cook
  • 50% of people say they HATE to cook
  • 35% of people say they are ambivalent about cooking (mixed feelings)

If you’re one of the people that hate cooking, you should create a meal plan to make it as easy as possible. Plan a week in advance what you’re going to eat for each meal and know how to cook it. This way you’ll have the ingredients and can plan accordingly for time.

However, not all plans work out.

Introduce The Peanut Butter and Jelly Theory

When meal plans fail, let me introduce Peanut Butter and Jelly sandwiches, otherwise known as a PBJ.

Let me first admit that I have an addiction to commenting on Finance forums, Facebook Groups, and Blogs. The mechanics of building wealth are simple and I’m always happy to remind people that things are often more simple than they appear. Like how I responded this comment and created “The Peanut Butter and Jelly Theory”.

I get it, you want to start saving money on food and you’re looking for suggestions from the personal finance community to help.

Answers ranged from getting a crockpot to make meals simple, cooking large meals on Sunday and eating leftovers throughout the week, to buying frozen meals that may not be great for you, but easy to prepare.

All of the responses skirted around the idea that a solid weekly meal plan is the best option to help you save money on food. However, sometimes these meals don’t work out for a number of reasons and one fall off the wagon can end up at the local McDonalds.

So I introduced the Peanut Butter and Jelly Theory. The cost-effective, quickest meal ever to keep your budget on track.

This is easily the most actionable thing you can do to start immediately saving on your food budget. In many cases when people eat out, it’s due to convenience because they don’t have anything at home that sounds appealing. That’s when the Peanut Butter and Jelly Theory comes in handy.

Stash emergency PB&J supplies in your kitchen. When hungry but have nothing else, eat a PB&J. If you’re not hungry for a PB&J, wait 2 hours until you’re hungry enough to eat a PB&J.

Sometimes a PBJ isn’t exactly what you’re craving and your favorite restaurant sounds better, or your “husband would not be happy about that” (see comment). Well suck it up, you’ll soon be out of debt and you can buy your husband a jet ski. Everyone loves a jet ski.

Try the Peanut Butter and Jelly Theory

If you want to save THOUSANDS on food budgets, you should try the Peanut Butter and Jelly Theory! Meals cost less than $1 to make, you’ll save time and money. Most importantly, you’ll have a secret stash of PBJs to make when you get those cravings to go out and spend money.

You’re welcome.

Disclaimer: Wallet Squirrel did not invent the Peanut Butter and Jelly sandwich, just an advocate of saving money. Wallet Squirrel was not sponsored by big PBJ corporations to promote their superior and delicious product.

Top 22 Warren Buffett Quotes the Internet Can’t Get Enough Of

Warren Buffett, CEO of Berkshire Hathaway, has a net worth of over $78.2 billion and is known as one of the greatest investors of all time. So when he speaks, people take notes. Here are some of the top 22 Warren Buffett Quotes the internet can’t get enough of.

Warren Buffett Quotes Infographic

Top 22 Warren Buffett Quotes the Internet Can’t Get Enough Of

Here are some of the top Warren Buffet quotes found on every list of Warren Buffet quotes around the internet. These quotes range in wisdom on investing to regular life. I try to live by these quotes on my own investment portfolio.

Warren Buffett Quotes

1. Rule #1: Never lose money. Rule #2: Never forget rule #1

One of my favorite Warren Buffet Quotes. The fastest way to grow your money is to never lose it in the first place. This applies from saving on your groceries to focusing on less risky stocks of well established companies.

2. It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently

Think about the Wells Fargo or Equifax scandals. It takes years to build enough trust for someone to have brand loyalty. Warren Buffet quotes it takes 20 years, but it takes 5 minutes or less to destroy all that goodwill you’ve built. People are quick to revolt if you’ve done anything to betray their trust.

It is infinitely harder to build trust than destroy it.

3. Diversification is a protection against ignorance. It makes very little sense for those who know what they’re doing.

Multiple studies show that diversification in the stock market will help protect you against market falls. Or it could be summarized in the old proverb “Don’t put all your eggs in one basket”. Unless you have insider information that a stock is going do really well, maintain a diversified portfolio to protect you. No one knows what they’re doing all the time.

4. If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value.

Unless you’re a day trader (I will never be), you should only be investing in the stock market with the intention to hold those stocks for a long time. You can do really well as a beginner if you’re buying stocks and not planning on selling till you retire. Those are where you get the best returns. Warren Buffett is infamously known for rarely selling stocks.

5. It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

When you buy a stock, you should think of it as owning a piece of that company. You should be looking at wonderful companies that have a competitive advantage in the industry. Those are the companies that will do well over the long run. You may find a wonderful price on a mediocre company, but really what are you getting? A mediocre company that will likely be edged out of the market by a better company.

Many of the famous Warren Buffett quotes are about investing in strong companies with a competitive advantage and strong brand loyalty rather than cheap companies where you think you can make a quick buck. Warren Buffett is never into buying a company for a quick buck.

6. Be fearful when others are greedy. Be greedy when others are fearful.

During the 2008 financial crisis when investors were all exiting the market, Warren Buffett invested in a few large companies even though their stock prices were falling. Those deals made Warren Buffett over $10 billion dollars when the market stabilized and it’s continuing to show dividends. When the market goes upside down during world events, politics, market forecasts, those are the times when everyone else is fearful, that Warren Buffet sees an advantage when the markets crash.

Think about it this way, the New York Stock Exchange has been around since 1817, it has always recovered. Chances are, minus a world apocalypse, that the market will always bounce back. Those who capitalize on those downturns are usually rewarded.

7. The difference between successful people and really successful people is that really successful people say no to almost everything.

One of my favorite Warren Buffett quotes because it has so many applications. You will see many opportunities in your life and you may want to jump on everyone, but it’s ok to be selective and say no. You’ll burn yourself out if you say “yes” to everything. This also applies to going out on a Saturday night with friends drinking. It’s ok to say “no” to save a few dollars or have a night to yourself to finish your article on Warren Buffett quotes. =)

This also applies to going out on a Saturday night with friends drinking. It’s ok to say “no” to save a few dollars or have a night to yourself to finish your article on Warren Buffett quotes. =)

8. Develop and build the habits you admire in others.

Remember all those times that your parents wanted you to hang out with those “good kids”. The habits of the people you surround yourself with rub off you on, consciously or unconsciously. When you find people like Warren Buffett, the Oracle of Omaha, who is one of the greatest investors of all time. You should find out what makes him so successful and learn those traits to improve yourself.

9. Passive investing will make you more money than active trading

Oh my goodness, fees are the WORST! Active trading requires more work and more fees, so more of your money will be paid to your broker. Yet studies have shown over and over that passive investing where you set your money and forget it are far more successful for growing wealth. I don’t plan to ever touch my stocks currently making dividends.

10. There seems to be some perverse human characteristic that likes to make easy things difficult.

Great quote, people always imagine things are more difficult than they really are. When I first considered starting investing, I thought there were so many hurdles and financial experts I would have to pay. Yet, when I finally decided I wanted to start investing in the stock market, I just downloaded the Robinhood App and started investing. It took 10 minutes to sign up and buy my first stock when I worried about investing in the stock market for over 5 years. Things are often more simple than you think they are.

11. Tell me who your heroes are and I’ll tell you who you’ll turn out to be.

This is similar to the Warren Buffett quote “Develop and build the habits you admire in others”. If you want to be an entrepreneur, start joining local meetups of entrepreneurs. You learn SO MUCH MORE when you surround yourself with the people you want to be like. You can learn A LOT in a book, but you’ll learn even more by surrounding yourself with people you admire.

12. We have long felt that the only value of stock forecasters is to make fortune-tellers look good.

No one can predict the stock market, no one. Not even Warren Buffett. Anyone who says they know exactly how the market works is trying to sell you something. You can lump stock forecasters being as accurate as the carnival fortune-tellers. You know the ones with 3 teeth, crystal ball and you’re going to die in 2083.

13. When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.

If you invest in an outstanding company, even if the stock price goes up, why would you ever sell it? No matter when you sell it, outstanding companies will continually do better and better. Don’t sell until you absolutely have to, otherwise, you’ll just be losing money in the long run. Many of Warren Buffett Quotes are like this, they are all very Anti-Day Trader.

14. You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.

If you follow the basic principals of Warren Buffett and buy outstanding companies with strong competitive advantages like Apple (AAPL). You don’t have to be a genius. Just buy and hold forever, you literally don’t have to do anything until you sell.

Many Warren Buffett quotes are similar to this because he stresses that anyone can invest in the stock market. The simplest way is just to invest in index funds that follow the market. Set it and forget it. The market sees an average increase of 7% per year and that’s WAY better than a savings account.

15. I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.

Look for companies to invest in that are so strong that they can weather any storm because soon enough they will have to. Think about Apple (AAPL), as long as they keep pushing out iPhones it doesn’t matter who runs the company, they’ll continue to do well. People were worried when Steve Jobs passed because they didn’t know the future of the company, but Tim Cook stepped in and maintained the same Apple legacy. As long as Tim Cook sticks to the secret Apple recipe, they’ll be in good shape.

16. Buy into a company because you want to own it, not because you want the stock to go up.

If you see a company that you think is going to do well or heard will do well, don’t buy it unless you’re willing to hold it for awhile. If something goes wrong and the stock dives, you’re stuck with a company you don’t believe in and will likely sell at a lower price to get rid of it, ruining the reason you bought it in the first place.

17. Wall Street is the only place that people ride to work in a Rolls Royce to get advice from those who take the subway.

This is just a funny Warren Buffet quote.

18. Charlie and I have not learned how to solve difficult business problems. What we have learned is to avoid them.

I’m sure Warren Buffett and Charlie Munger have learned how to solve difficult business problems, but the best way to navigate murky waters is to avoid them all together. The more problems your business can avoid, the better shape you’ll be. You can avoid a lot of problems from being proactive instead of reactive.

19. Long ago, Ben Graham taught me that “Price is what you pay; value is what you get.”

Ben Graham, Warren Buffett’s mentor had this popular quote. I always think about it simply. Price is what you buy a stock for and Value is what you sell that same stock for.

20. It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.

If you can’t tell, Warren Buffett believes in surrounding yourself with the right people. He credits much of his success from surrounding himself with smart, good people.

21. If past history was all there was to the game, the richest people would be librarians.

When you analyze a stock based on its historical performance, it’s called technical analysis. Yet past performance does not necessarily mean future performance. Just because you know what the stock has done in the past doesn’t mean it’s going to follow that same trend.

22. You only have to do a very few things right in your life so long as you don’t do too many things wrong.

It’s ok to mess up, focus on learning from those mistakes for the next time. It just sounds cooler when Warren Buffett quotes it. Or you can take this as no matter how many mistakes you’ve made in the past, you always have a chance to do more good. It’s one of those life quotes that can go many ways.