1/ My Mission: To Spread Financial Wellness (thread)

Here’s what "financial wellness" means to me

⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️

2/ Mindset

Humans are programmed to think short-term

Evolutionary, thinking short-term makes sense. It helps with survival.

Financial wellness is all about training yourself to develop a long-term mindset

Not easy -- it takes practice
3/ Mindset

If you join the right tribes, you can’t help but improve

My favs:
@AffordAnything
@ChooseFiFI
FinTwit
@MicroCapClub
@themotleyfoolFool
@visualizevalue

Twitter / Podcasts / Blogs / YouTube -- when used correctly -- are amazing resources

https://t.co/SzcOpzuIq0
4/ Mindset

Educate yourself - constantly!

Especially about:

1⃣Money
2⃣Relationships
3⃣Health

These 3 categories have an outsized influence on all areas of your life

Books help

https://t.co/OLFscnwtZh
5/ Career

In the beginning, focus on growing your income

Do more than what is expected

Become a lynchpin

Find a career that you ENJOY (<- important!) that also has high-income potential

Start a side hustle (<- important!)

Build your talent stack

https://t.co/7wd8LJbZaE
6/ Career

Network!

@jordanharbinger’s course is great

Ask co-workers you don’t know out to lunch. Pick their brain. Don’t ask for anything in return.

Just focus on developing relationships
7/ Personal Finances

You don’t get rich at work — you get rich at home

Its YOUR responsibility to become wealthy, not your employers
8/ Personal Finances

Track your spending!

@Mint / @PersonalCapital / @ynab / Excel / Google Sheets

I don’t care how, just do it!
9/ Personal Finances

Attack ALL costs

Big 4 especially

1⃣Housing
2⃣Transport
3⃣Food
4⃣Education

Eliminate all luxuries - You can always add them back if you truly miss them

Use @FrugalWoods / @mrmoneymustache / @ChooseFi as guides
10/ Personal Finances

You need to know where you stand today

Create an:

1⃣Income Statement
2⃣Net Worth Statement

https://t.co/QYHH8o8l2I
11/ Personal Finances

The average millionaire has 7 sources of income

Develop new income streams!
12/ Personal Finances

Boost your savings rate

10% is the minimum

20% is achievable for most

50%+ is hard, but not impossible

Go hardcore for a few years, especially in the beginning

It makes a huge difference
13/ Personal Finances

Use your savings to eliminate ALL non-mortgage debt

Then, build an emergency fund of 3+ months of expenses
14) Personal Finances

Max out all retirement accounts

401(k) / 403 (b) / IRA / ROTH IRA / HSA.....etc

Broad-based, low-cost index funds are a great choice
15/ Personal Finances

Protect your family from disaster!
16/ Investing

Once your personal finances are rock-solid, you can focus on growing your wealth

If stock investing bores you, just buy broad-based, low-cost index funds

If stock investing interests you, learn how to invest
17/ Investing

I highly recommend subscribing to @TMFStockAdvisor and @TMFRuleBreakers

I'm biased, but this is where I learned almost everything that I know about investing

Free podcasts:
@AnswersPodcast
@MotleyFoolMoney
@MFIndustryFocus
@MarketFoolery
@RBIPodcast
18/ Investing

What I wish I knew when I first started

https://t.co/AQj6IXOaxO
18/ Investing

Use checklists, journals, and watchlists!

https://t.co/wbA3UYxYyb
19/ Investing

Invest in high-quality businesses Part 1

https://t.co/GTP6B0zKy4
20/ Investing

Invest in high-quality businesses part 2

https://t.co/FgHUb7UMUO
21/ Investing

How to build positions

https://t.co/wz34d9VbGk
22/ Investing

It's OK to suck in the beginning

I sure did!

https://t.co/1JRKsf1d0I
23/ Investing

Connect with other smart investors on Twitter

Every Friday, I share a list of follows that made me smarter that week

Follow them!
24/ Investing

Share!

The key to learning faster is to publically share your wins and losses

Peer review is a powerful resource

More from Brian Feroldi

More from Finance

Ok here is the explanation. Grab a cup of coffee and read on. If you have not read/noticed this, you will see intraday options movement in a new light.


Say we have two options, one 50 delta ATM options and another 30 delta OTM option. Normally for a 100 point move, the ATM option will move 50 points and the OTM option will move 30 points. But in a high volatile environment, the OTM option will also move nearly 50 points

To understand why this happens, first understand why an ATM option is 50 delta. An ATM option has the probability of 50% of expiring as ITM. The price just has to close a rupee above the strike for the CE to be ITM and vice versa for PEs

Now think of a highly volatile day like today. If someone is asked where the BNF will close for the day or expiry, no one can answer. BNF can close freakin anywhere, That makes every option of an equal probability of being ITM. So all options have a 50% probability of being ITM

Hence, when a huge volatile move starts, all OTM options behave like ATM options. This phenomenon was first observed in the Black Monday crash of 1987 at Wall Street, which also gave rise to the volatility skew/smirk

You May Also Like