Best Money Advice for Each Phase of Your Financial Life

Gabrielle Olya   Tue, May 30, 2023  GoBankingRates

‘Set for Life’ Author Scott Trench Shares His Best Money Advice for Each Phase of Your Financial Life

Scott Trench is the author of “Set for Life” and host of the “BiggerPockets Money” podcast. He is an experienced real estate investor who now serves as CEO of BiggerPockets, where he helps everyday people build wealth through real estate.

Recognized by GOBankingRates as a Top Money Expert, here he shares the four levers to building wealth, and how to know which one you should focus on.

What’s the one piece of money advice you wish everyone would follow?

I wish that everyone would remember that the big expenses — housing, transportation and food — are what matters when it comes to saving money, and that a home, in particular, is not an investment — it is an expense. The less you spend in these three categories, and especially on housing, the wealthier you will become.

What’s the most important thing to do to build wealth?

The most important thing to do to build wealth is to recognize that there are four key “levers” — spending less, earning more, investing and creating assets — businesses, intellectual property, etc. There’s a time and place for each lever — a time and place on your financial journey where each is the most important.

Single 20-somethings likely should concentrate most heavily on earning more. A middle-class family with less than a few hundred thousand dollars in wealth likely needs to tightly control expenses. A millionaire needs to focus on investing. And, the self-employed/entrepreneurs need to focus on creating.

These levers aren’t perpetual, but too many people attempt to focus on levers that don’t apply to them — [for example,] the person with $25,000 who spends hundreds of hours thinking about investing is wasting their time, because even great returns on a $25,000 investment aren’t meaningful compared to what can be saved or earned. Folks need to realistically self-assess and focus on what is meaningful to their position, with where they are at currently.

What’s your best tip for fighting the impacts of inflation?

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