4 Ways To Financial Success in Canada Before Turning 30!

No, you need to put your money place where it's working for you and where you could have $1 doing multiple things.

It doesn't matter what other people think about you. You have to live your life and you have to keep your goals and why it is that you're achieving those goals in mind.

If you're already saving money, pay yourself first. So if you get paid, and this is just a difference in mindset between a lot of people that are out Canada today is that some people get paid, they pay their bills, and then if there's anything left, well, that's what they save.

If you're under 30 and you wonder, what could I do to change things for me financially for the rest of my life? Well, you're in a good place. Today I'm here with my colleague Charan, and we're going to talk about just four things that if you did them, would make a real difference. And this is just great advice for anyone under 30. Hey, and I got one other thing to share with you. Hey, if you're under 40 or if you're under 50, 60 goes on. This advice is still applicable to you, but today we're going to focus that under 30 group and just help them with four things they could do to really make a difference. So here's one thing I wanted to start with. I've been fortunate now that I do this, where I speak to people about how they could change their financial outcomes, where I've been talking to people that are in their 20s, and I'm just amazed that, you know, there's a demographic out there in that under 30 group that has really taken the time to think about things financially. So with that tren, you fit in that demographic, what would you say about that group under 30 and how they deal with things financially out there?

Yeah. Thanks, Dan. So based on what I see with people under 30 and how they look at building wealth, the average person usually just thinks about, you know, getting a job and then saving a percentage of that. Could be 5, could be 10, could be 15%, whatever is comfortable for that person and then put that into, you know, a savings account as the starting point. Some of them might look into something like a mutual fund or put it. Put it into an RRSP or TFSA and invest it that way. From what I noticed is that their goal, it doesn't match what they're trying to achieve, if that makes sense. Like, it'll take them a long time for them to get to where they want to be doing what they're doing.

Yeah, I know. It's great insight, Trent. And yeah, it's like I. I really love the mindset of people that, you know, that that group that you were talking about, you know, figured it out that I'm going to have to do something. So today we're going to give you four things that you could do that would really help ramp up the kind of results. Like Tran talking about, you know, a lot of the times where you start out doing ain't going to take you to your objective. So today we're going to help you get there because we're talking about, you know, helping those that are under 30 with ultimate wealth kind of objectives and how you. This is advice for you. So let's talk about the first one. And I love this one. And I use it for everyone under 30, whatever age you're at. It's like pay yourself first. One of the key elements that's out there, and if you're already saving money, you probably got to that point, but pay yourself first. So if you get paid, and this is just a difference in mindset between a lot of people that are out in Canada today, is that some people get paid, they pave their bills, and then if there's anything left, well, that's what they save. So what we're telling you today is the first thing you should do is change that narrative to where when you get paid, the first thing you do is pay yourself. Now, there's a great book that I just wanted to touch on, and it's called Profit First. Now, this is for businesses, but the same principles apply to you and I, and it's really going to change things for you is if you make a decision to do that. You know, I was just thinking of that as I spoke to Ran Up. I was blessed. Where my parents taught me right from a very young age to always give back. And they taught me to give back 10%. And so I grew up just, you know, right off the top. I was always taking off 10% to give back. So I learned to live very easily and comfortably without that 10%. Well, if you can do it for giving, you can do it for saving. And so that's what I would really encourage you to do, is pay yourself first. And. And if you start that, it really does change an outcome for you. So, first principle, pay yourself first. Now, the second area, it's just kind of one of those things that Taran and I speak about a lot, and that's compounding. Now, if I was to ask you, Tran, so what's really an advantage of compounding over. No, not compounding.

Yeah, great question. Compounding builds off of what you got from the previous day. So, for example, if you got a dollar the previous day and you're putting it to work, the next day it becomes $2. And the next day it can become $4. And it builds off of that initial dollar amount that you started off with versus something that's not compounding. You could put that same dollar in a day and then the next day turns to $2, but then may $2. And so now you have taken out the $2 and you've broken the, the compounding that was taking place and you would have to restart again. So that's how I, that's how I see that.

But yeah, we're just going to share this little.

Slide and just talks about the power of compounding. Yeah, you start to do this. A lot of you, you know, you're, you're taking your profit first, you're paying yourself first, and you start to put it away. And just like Tron was saying, you know, this one's just using pennies. But if you could double that penny, you get two pennies the next day. And if you double those two pennies, it goes to four. And if you walk through just 31 days, always doubling the amount from the day before, you can see how big the compounding effect is. Was just this example. Yeah. And it's an exaggerated example because, yeah, if we could do this, what a, you know, what a great way to do things. It's just, you know, I haven't found nothing that gives me that kind of a effect over 31 days, but it just gives you an idea of the power of compounding. And the other piece that tram did such a good job of speaking about is what happens if you interrupt that. So on this little slide, we're just going to look. And what happens if you interrupt that? So same start going on. And all of a sudden on day 22, this person interrupts the compounding effect. And as soon as that happens, well, you're back to starting over. And you know, that's just a journey that's going to put you back, set you back. You've killed the girls of that money that you had. So the real trick is not to give up the opportunity that you had for that money to keep on growing. You don't want to kill that growth. You want to keep that growth going. Well, how would you do that? Well, this is one thing where I thought, hey, if you don't Know how you could do that? I'm going to encourage you to go and watch IBC.com that's right, you can just look below, there'll be a link there. Watchibc.com that's a 90 minute video about how you could have your money compounding and still be able to use it without interrupting its growth. Because as you can see the problem for most is when they, when you're using compounding is they give up the motion of their money, they turn it over to someone else and then it interrupt its growth. And that's just not an ideal outcome. If you can get to a point where your compound is uninterrupted for your whole life and you're under 30 again, this is advice for those under 30. If you can do that, you got a nice long Runway to use compounding effect for the rest of your life. I wish you know that I was still under 30, learned all this stuff and then started to put it to practice because boy, the power of uninterrupted growth of your money for the rest of your life is huge. So there is a way to do that and that's something that you know, Charan and I help individuals, Canadians like you all the time with. How do you do that? That's again go watch watchibc.com if you don't know it's a 90 minute video. Great, great content information on how that works.

Again, next piece is really important. It's not something that we're going to coach you to do, is just put your money in a place where it just grows slowly over time. We're going to coach you to put your money to work. And that's kind of the last key element to this is you need to put your money in motion. And what I thought is, well, think about banks. What do banks do with money? Do they let money sit still? What are your thoughts, Taran? What's some things that we can talk about putting your money in motion and why is that kind of a key element if you're going to get to an ultimate wealth kind of generation piece when you're under 30?

I believe in the velocity of money and in moving the money all the time. And to your example about the banks, this is exactly what they do. When you put your hard earned money into their savings account or their checkings account, guess what they're doing? They're flipping it over to someone else and they're making an interest out of that and then they're giving you a small portion of that, right? It's not. Your money is not just sitting there, if that's what you thought.

Exactly. It's in motion. Like, I love banks and I love their model because they put money in motion right away. It's like that money that sits still for them, they know it's not worth anything and so they put it in motion. And that's the thing that, you know, the third kind of piece that we wanted to get to, it's like put your money in motion. Without it, it's really, you know, you're not going to get to that point. Tran talked about it early on is you're just saving it, putting it away. And no, you need to put your money in a place where it's working for you and where you could have $1 doing multiple things. And again, when we talk about the infinite banking concept here in Canada, that's what that allows you to do. If you don't know about it. It's an opportunity just to help yourself gain insight as to how could I do this? Now when you're putting your money in motion, it's going to require work. You're going to have to think about it and how am I going to do this in a way that it gives me a result that I want. Now, there's some great resources out there. One book in particular that I love, and I've just started reading it in the last year, is this one, the Lifestyle Investor. Now, some of the things that I really like about what Justin says in this book is that it gives you principles on how to do it in a way that you're going to be successful because we all know that there's places out there that we can put our money that doesn't always turn out to be successfully for us. I've talked to people that have lost huge money in Ponzi type schemes. And just recently in Canada, one of those companies that was pretty big in the real estate investment kind of community.

Failed. And so you really have to make sure you take time, read information like this and just what can I learn about, you know, the ten commandments of cash flow investing? That's what this book's about. And then there's another great book I always like to share with people. It's this one and it's just about education. Now educate yourself on all things financial. And that's just another piece that we're going to talk about later too as we get into this, because I haven't got to the fourth point and I'm getting ahead of myself, Tran, which I do every once. Because here's the fourth element for anybody and we're talking to you if you're under 30 and you really want to build wealth. Well, it's about Parkinson's Law. He wrote a few books and one of them was called Parkinson's Law. And one of the things that he put in that book was expenses rise to equal income. Well, I think if you've lived any length of time, you've probably seen that happen or, you know, you got a little extra money coming in pretty soon it's just like it doesn't feel like you got extra money because your expenses have rise, rose up to that new level of income. And so what's this got to do with it? Well, reality of it is you're going to have to overcome Parkinson's Law to be successful. One of the things I always like to share with people is like, make big purchases small. Like we get pretty fixated on shiny objects and nice things. So if you think about an example, you need a mode of transportation and you can't get by in public transportation, so you need to have your own vehicle. Well, you can buy the Mercedes or the Lexus or the BMW or you can buy something that's maybe lesser, doesn't look quite as cool if you're not driving around in the Beamer or in know one of those type of cars. But hey, if you get that economical vehicle, the cost, the energy that you're going to have to expend to purchase, that is so much different. And if you can build those habits into your life, make big purchases small. And that's going to be a huge one to overcome because, hey, who wouldn't like to be sitting in the Mercedes or the Beamer or whatever it is that you think would be just a great vehicle to have? Those Land Rovers. How many Land Rovers do you see out there now?

Oh, yeah, Land Rovers. You got the BMWs, Mercedes, the Teslas. That's. That's a big one.

That's a good one. Tesla's like, how much would you drop on those top of the end kind of Teslas right now?

Easily. Easily 100,000. Easily, yeah.

And goes up to 200 pretty quick from what I've done my research there. So, you know, I think it's just a piece that you're going to have to deal with every day. I deal with it and I'm not under 30 anymore and I suspect you deal with it every day. And I know something we have to battle because we like to have things that look nice and make us feel good. But I tell you, that Toyota or that Nissan or whatever is going to do just as good a job as getting you around town and a lot less impact to your finances. So that's the, you know, that was number four on the list was really think about and know the realities of human behavior. Human behavior, it's always there. It's always fighting us to, yeah, I could, I could get that Land Rover, you know, I could make it work. But if you do that, all of a sudden, instead of having a 500, $600 a month kind of payment, if you're caught up in borrowing from the dealership, $2,500 difference, like, it's just hugely different. So think about those things now. What are some of the Parkinson's loss kind of things? Tran, if you were to give somebody advice on, what is it they're going to have to really deal with as they start off in life? You know, you're under 30, you're just starting off in life here in Canada. What were some of those other things that they really have to guard themselves against as they, you know, just live life?

Yeah, I think related to Parkinson's Law is worrying about what other people think. And I think that can go hand in hand because sometimes people end up getting that Tesla or getting that Land Rover, not necessarily because they need it, but because they want to show that they have that, because they want the other, the people in the circle or just people in general in their environment to, you know, look at them and, and get a sense of status from how they view them. So I think that's one thing that a lot of people under 30 get fall into. That's one trap that they fall into. And I have experienced this myself. And it's about being able to be aware of the Parkinson's Law and be aware that, you know, at the end of the day, it doesn't matter what other people think about you. You have to live your life and you have to keep your goals and, and why it is that you're achieving those goals in mind. And if, if that's what you truly want, then you would have to make sacrifices like not driving a Tesla or maybe driving a Toyota. Right.

Yeah, that's. That's very well said, Taran. You know, as you continue to take this in and you think, okay, now what is it again that we. You really need to do if you want to be successful, if you're under 30 and you really want to make a difference in your life? Again, pay yourself first. That's One of the first things we talked about, get to a point where your money is compounding it and it never gets interrupted. That's number two, never let your money get interrupted. And again, if you don't know how to do that well, we're going to encourage you to go and tap that link below that says watchibc.com when you got 90 minutes just to sit and take that information in, it'll be something well worth your time. So that's the second one. Don't let your money get interrupted as it grows the rest of your life. So compounding great if you don't interrupt it. And number three was put your money to work. Money that's not in motion really has no value. So remember that. Put your money to work, do your homework, make sure you educate yourself on where you can do it. Yeah, it's going to take effort. Anything worthwhile doing in life takes effort. And number four, overcome Parkinson's law. That's that human behavior that we all fight that we want to buy that Tesla. And to wrap this all up, one thought I had, Tran was just that if you're going to do this, find somebody who's already done it and ask them questions, hey, you know, how did you do it? Educate yourself through people, through, you know, get around people that are like minded and really get into a group that's going to help you think and challenge your thinking. Because you know what we've learned is it all begins with the way you think. What are your final kind of words of advice for people, Tran, as we really focus on helping that your age demographic get ahead financially.

Yeah, I think you, you said, you said a lot there, Dan. The last part that you said, rethinking your thinking, you have to be able to think differently, to think outside the norm in order to get to where you want to be.

Exactly. So lots of great videos on our channel and I'm just going to encourage you to go and watch some of them because they're going to help you on that journey. If you're under 30, you've got a great opportunity to really change things for your life financially. It starts by applying some principles, the ones we just went through. Take care.