Latest / Money Grows on Trees / #260 - 10 Brutal Money Mistakes to AVOID in Your 40's (In Under 10 Minutes)

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#260 - 10 Brutal Money Mistakes to AVOID in Your 40's (In Under 10 Minutes) · Money Grows on Trees

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  Brutal money advice to avoid in your 40s. Having two cars! I
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  get it. I understand. Not for everybody. Just one toy at a time would work. You
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  don't want to get caught out having all this stuff in your house you don't use.
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  If you're a parent and you've learned about money, then pass the
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  wisdom on to your children. We were just in Thailand recently on holiday and one of the people goes,
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  oh, I just started using ChatGPT. I was like, what? You just started using
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  it now? People think just because they hit 40, well, I'm over the hill now, it's like,
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  oh, I'm 40, I'm old. 40's like the new 30. Oh, I'm
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  hit 40. I don't have all the compounding. Oh, it's too late for
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  me. No, you still got 40 years. You can create a
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  whole new life in 15 years. I'm Lloyd James Ross,
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  seven-figure investor and entrepreneur, and I've helped thousands of business owners
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  and professionals turn financial stress into success. If
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  you're stuck in old money habits, overwhelmed by investing, or unsure where
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  to start, this is for you. I'll give you the mindset and
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  strategies to take control, grow your wealth, and achieve financial
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  freedom. It's time to make your money work for you. 10 brutal
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  money mistakes to avoid in your 40s in under 10 minutes. First one,
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  don't get divorced. I know no one intends to get divorced,
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  but do your best to salvage and save, if you
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  can, your marriage, your relationship, and invest
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  your time in nurturing that relationship so it doesn't lead
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  to divorce. If you have to take on a relationship, coach, do it. If you have
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  to shift your life and move somewhere or change jobs, do it. One
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  of the most brutal money mistakes you
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  can make in your 40s or any age for that matter, but certainly if
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  you get older, is to get divorced because you split resources,
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  you split assets, you split friendship groups. It can completely drive a
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  stake in your personal and spiritual life as well and
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  it can just be gnarly. One of the most important things
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  to do is to, no matter what happens, salvage what you
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  can if you still obviously want to do that. Of course, money
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  is not everything. Even though it's right up there with oxygen, But if
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  you can, salvage a relationship. Do not get divorced, all right? Number
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  two, look after your health. Look after your
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  health. If you think it's expensive to look after your health now, wait till you
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  get the bill when you get to 70. It's going to get dearer and
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  dearer and dearer. You don't want to stay in hospital too long as you get older. You
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  want to enjoy your older years. You want to enjoy your wealth. Stay
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  healthy, which means minimize the alcohol intake. You
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  don't have to drink every day. Certainly, that's going to hurt the back pocket too,
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  not just in your health, but literally in your cash flow every week. And
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  watch out for cigarette smoking. I mean,
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  people have gone crazy at the tobacco tax and the alcohol tax. By
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  all accounts, I agree it sucks to buy beer for $12, but the
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  reason why also the taxes are high on those is to prevent people doing it
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  because the government knows that it does protect
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  your health if you don't drink that much and if you don't smoke as much as you need to. I'm
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  more of a cigar type smoker. Once in a while, I'll have a cigar. It's
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  not as bad for your health. Just those little things. I quit smoking when
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  I was younger and I stopped drinking as much as I used to because
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  I could see the compound effect of those decisions catching up
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  with me down the track. Now, I'm 41. I just not in
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  – I don't have those health – my body is not falling apart. It seems to be in really good shape because of
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  those decisions. Next one, number three, avoid jumping houses. They
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  say the average time that someone lives in a house,
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  be it renting or owning, is about five and a half years,
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  which just blew me away, that statistic. I was like, oh my God, imagine
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  if you had to sell your house every five years. Yes, you get some compounded gains
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  in the growth of the land, but if you had to sell your house every five years, you've got
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  to pay transaction costs. When you're buying a house, you've got to pay stamp
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  duty and you may have to pay mortgage insurance if you upgrade and don't
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  have a big enough deposit. Then, of course, you have to pay legal fees and
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  other any transaction fees like the moving cost and agency
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  fees for marketing the property too. If you shift
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  houses every five years, if you did that for say 40 years,
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  then it means you're going to have like eight transaction costs.
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  Like eight stamp duties. It's going to build up
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  to be like maybe a million bucks. So if you can,
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  stay in the same place. That even goes for renting too. My wife and I have been in our place. We
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  only rent and we've been there for 11 years. We're just not into moving a
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  lot because it does interrupt a lot of things, not just your wallet but
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  your life as well. Next one, expensive family holidays. I
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  don't know why people think they have to go on expensive family holidays to
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  have fun with their family. My wife and I
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  just went to Thailand for a month, so we just decided to go away. We went to
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  Thailand for a month, and the way we orchestrated it, the timing
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  of it, when we did it, how we did it, we spent around
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  about, for that time, it was about $10,000, which is Now
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  you think to yourself, why don't I have $10,000? But think about it, we could go on any
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  holiday, we could spend a million dollars on a holiday, and for the same price. I
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  know people that have done staycations and gone to other places and
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  spent $10,000 in three days. So just
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  because you're going on a holiday doesn't mean you have to spend $30,000, $40,000, $50,000, $60,000. Do
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  it intelligently, do it correctly, time it right, so forth. Just be sensible
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  with it, all right? Number five, brutal money advice to avoid in your 40s,
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  having two cars. I know sometimes you can't have
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  one car because I get it, I understand, not for everybody. but
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  certainly don't have three and don't have multiple motorbikes and
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  multiple jets, just one toy at a time would work. You don't
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  want to get caught out having all this stuff in your house you don't use because
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  one, it'll cost money to insure it and rate and upkeep it and pay registration for
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  it, but also you'll feel guilty not using it and so it
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  will clutter your mind. So I've got this saying, one car, one
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  house, one spouse. Just keep it simple. Just think
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  one car, if you can. If you need two, sure, but
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  don't go overboard. This is a kill, you'll crush you. As a
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  student of mine once, she said, oh, we're almost going to go bankrupt. I was like, well, let's look
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  at your assets to sell and move out. She goes, well, I said, how many cars you got? She goes, five. I
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  was like, oh my God. You want to avoid that, right? Just quickly, if
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  you're ready to take control of your finances but feel stuck on where to start,
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  I have a solution. My book, Money Bias Happiness, simplifies
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  investing and wealth building with practical steps to help you achieve financial
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  peace. Get your copy via the link in the show notes and let's get your
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  money working for you. Now back to the episode. Next one, number
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  six, having a home bigger than you need. I
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  mean, how many people live in a house with five bedrooms that are just by themselves? You
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  don't need all the bedrooms, right? And so downsizing, look
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  at these friends of mine that did really well in the recent real estate market and
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  they bought many years ago and they sold their house for
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  about $4 million and they didn't need to sell it. Think
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  about that. They got kids, they didn't need to, but they did and they downsized to
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  a unit and they downsized to a $2 million apartment, they
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  banked $2 million and put it away. So downsizing can
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  be an intelligent way to mitigate any
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  loss of capital growth or opportunity cost in your capital by having
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  all your money stored under your bum or
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  under your feet in land when you don't need the room. So either rent them out
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  or level down and create more efficiency in your assets, okay? Next
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  one, where your kids go to school, right? Where your
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  kids go to school. Is it private school? Is
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  it public school? Is private school worth it? The $20,000 a
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  year to send your kid to, and that's just one example, could be 30,000 a
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  year for 15 or for 12 years, I should
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  say, plus kindergarten and so forth. Is it worth spending the
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  money on that? Is the ROI in that education really there? Or
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  are you just sending them there because you want them to tap into the network, or you
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  want to tap into the network? Or are you sending them there just to keep up with the Joneses and tell every
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  one of your friends, your kids go to that school? It happens, right? I'm
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  not suggesting you don't. Just have a think. Is the juice worth the squeeze? And
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  also, for daycare, is the juice worth the squeeze to do full-time daycare?
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  Is it better for the one spouse to stay at home, look after the child, and create
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  something else? It's just helping you understand that
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  you don't have to just follow the norm in your 40s. Next one, we're
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  up to number 8. Number 8 of
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  the 10 pieces of brutal money advice to avoid in your 40s, stopping,
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  skilling up, and learning. People think just because they hit 40, well, I'm
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  over the hill now. It's like, oh, I'm 40, I'm old. 40 is
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  like the new 30. With AI coming out, you need
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  people We were just in Thailand recently on holiday and one of the people goes, I just
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  started using ChatGPT. I was like, what? You just started using it now? So
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  don't be so slow to adopt new technology. Don't stop
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  learning. Don't stop reading. Don't stop skilling up and
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  don't stop adopting new technology because what
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  you don't want to happen is you get to your 60s and 70s if technology goes
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  way past you and you can no longer communicate. Fact. You
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  don't want that to happen. So to remain cool as
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  you get older, keep up with technology. Next
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  one, last one, number nine. Oh, second last one, number nine. Stop investing because you
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  think it's too late. Again, I'm hit 40. I don't have all
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  the compounding. It's too late for me. No, you still
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  got 40 years to build some level of wealth. You
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  can create a whole new life in 15 years. Start
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  now. You don't need to be 55. Last time
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  I checked, people who turned 55 would rather have
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  more money than less money. So I don't think it's never too late. Never too
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  late. Start now. If you're looking for a sign, this
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  is it. Start today. Last one. The
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  last piece of brutal money advice to avoid in your 40s
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  is neglecting teaching your kids about money. If
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  you're a parent and you've learned about money, then
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  pass the wisdom on to your children. They'll model what you do, give
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  them books, suggest things to them, showcase in your own behavior what
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  you're doing, quips, things like that. My mom used to say, look
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  after the pennies and the pounds will follow. My dad used to say, money will make you
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  handsome. And so just thinking
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  about how they approach money, how they have
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  a relationship with it, do not discount it in their young life
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  because they will grow up one day into adults and they'll be wondering, well,
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  why didn't anyone teach me about this? Why didn't someone, why didn't my
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  parents send me Lloyd's podcast episode to listen to so I could listen to
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  some of the financial education and the philosophy of wealth around
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  what I should be doing? Why didn't they give me his book? All
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  right, they're the 10 pieces of brutal money advice to avoid in your 40s. So
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  if you are avoiding them right now, please don't
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  avoid them any longer. Today's the day. Step up to the plate and
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  shift your behavior, shift your financial future, and at the very least,
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  shift your children's financial future because you're gonna be the one that they're gonna depend
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  on the most over the next 10, 20, and 30 years for their financial
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  education, all right? So I hope that's been valuable for you. If you've enjoyed it, bang,
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  hit the subscribe button and leave a comment below which one's been your favorite
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  piece of money advice to follow in your 40s?
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  Which one are you going to do that you haven't been doing? I'd love to know. Leave me a comment below and
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  I'll see you in the next episode. Thanks for listening to Money Grows on
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  Trees. If you enjoyed the episode, leave a five-star review on Apple Podcasts
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  and Spotify and subscribe to us on YouTube so you never
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  miss an episode. And if you're serious about building wealth, make sure to
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  check out the links in the show notes and follow me on all social media
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  platforms at LloydJamesRoss for more. See