8 - Why You Should Earn More Than What You Spend as a Young Adult
In this episode of Get Real Wealthy Season 3, Quentin talks about managing your time and earning more than what you spend.
Quentin says that while he usually focuses on investment earnings, for people starting out, leveraging earnings from different sources, such as part-time, gig-based jobs, can be a great way of making more money. He adds, "things like the gig economy are based on how hard you want to work; you can work more and get paid more in a shorter amount of time. And therefore, you manage your time better, but you can earn more money…." He says that one of the things he wishes he had done as a young adult was to take advantage of opportunities that allow you to learn while you earn.
One of the ways to utilize that is by working on something that aligns with your ten-year goals. For example, you could be working in a beginner-level position in real estate; learn the steps through the process. What is it that needs to happen? And when does it need to happen? Another thing you could do is become an assistant to a business owner or entrepreneur, where you can learn what is going on to earn some income, and then you can go off and do it on your own.
Now, if you could use some of the gig economies to support you while you're learning, there's an opportunity to continue growing. The other piece that we want to discuss is when you're earning more than what you're spending every month is to have a frugal mindset versus spending what you have. This way, you can use the leftover money to invest. Furthermore, you have to watch out for the lifestyle creep. He adds, "Remember, you are at a different place than other people are; you're starting out, and you want to keep that frugal mindset, which is saving money versus spending all of what you have…."
In conclusion, he says that the homework for this episode is to look at what you spend each month, and I want you to try to save at least 20% on what you spend every month. This way, you can get started on your journey of the frugal mindset.
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