Maven Money – ‘five minute money message’ transcript

Grey podcast microphone

Maven Money is a fantastic podcast that takes a no nonsense approach to investing and wealth creation. As Andy Hart states in his intros, he is looking to ‘ensure you behave your way to wealth and don’t misbehave your way to poverty’.

His podcast presents actionable approaches to managing your finances: a fantastic resource for those looking to change their behaviour around money.

Last week, Andy released an episode titled, Five minute money message. This included a collection of useful quotes, and while I don’t agree with absolutely all of them, the vast majority I found to be quite thought provoking that will hopefully pave the way for you to, at least, consider alternative approaches to how you think about your money.

I found this such a useful resource that I wanted to put it in writing to refer back to when I needed some inspiration, which I hope you will find useful too.

Andy’s podcast is just one of many fantastic financial learning tools available. For more ideas, take a look at my list of podcasts to see if any take your fancy.

Enjoy…

“If you do use credit cards to maintain an expensive lifestyle, to impress people you barely know, this is a huge financial mistake”

[Intro]

“Being born poor is no ones fault, dying poor is. We have to take personal responsibility; we have to grow up and become financial literates, It’s a journey, a long journey, it’s not easy; why should it be easy?”

“Money is the story you tell yourself, as is most things in life, stop carrying negative money stories around, no one really cares”

“You should know how many months left you have on your wealth window. Your wealth window is from now until you stop receiving an earned income. I have 264 months left on my wealth window. Always quote months, years sound like an eternity”

“You have two important stages in life, your savings stage aka your wealth window, and then your spending stage aka retirement. All other traditional life stages are really transitions, which are all on-going and fluid”

“Life’s a balance between enjoying now and planning for then”

“Don’t ever think you can make money by financial trading: FX commodities or any other flavours of this form of gambling. The people who make money are the trading training companies and the financial bookmakers. The loser rates are off the charts. They rely on new blood aka mugs coming through, frequently middle-aged men with excess income and excess egos. ‘Surely I can beat the odds’ – no you can’t, grow up”

“Stick to wealth creation strategies that have always worked, this is either setting up your own business, or if you’re an employee, invest in all the other great businesses of the world: the stock market”

“Poor people save; rich people invest”

“The other wealth creation vehicle that has always worked is investing in physical property, which I call ‘bricks’. The only two ways to create real wealth, is investing in businesses or bricks – both provide a rising income and rising capital values over multi decades, history being our guide”

“Asset class index investing will beat 90% of your neighbours if you stick to it for one decade. If you stick to it to multi decades you’ll beat 99% of them. Each year an index fund is owned by a disciplined investor, it incrementally outperforms its peers and neighbours – it’s basic maths which few seem to want to understand”

“Once a globally diversified index fund portfolio has been purchased never, ever sell it; it will always be a mistake and it will always be your mistake. A permanent loss in a globally well-diversified equity portfolio is a human achievement of which the market is incapable”

“Maximise your pensions at work and benefit from your employers maxed, matched contribution; this is free money: very rare”

“If you run your own business, get investing and saving now and invest more than you think, you’re way behind the employees, trust me”

“Ideally, invest your age as a percentage of your net income. If you’re aged 30 invest 30% of your net income; if you’re aged 45 you should invest 45% of your net income. Most people can’t do this, me included. As a minimum default you should think 20% of your take home net pay you should be investing.

“Remember investing today, is spending of tomorrow of your future self; your future self should be your biggest monthly bill, more than your mortgage, certainly more than your holidays and cars”

“Ideally increase your top line which is your income. If you can’t do this, then your only other financial option is to reduce your bottom line, which is your expenses. Lifestyle creep is way more pervasive than we all think”

“Most people make financial decisions as a result of what happens close to them. Rich is richer than me  – Jordan Peterson”

“Credit cards can be really helpful during periods of your life, it’s best not to use them. If you do use credit cards to maintain an expensive lifestyle to impress people you barely know, this is a huge financial mistake; you deserve all you get financially”

“Delayed gratification is one of the most mature money skills”

“Insure yourself against bad surprises: hit by a car, serious illness, cancer, heart attack, stroke. If you don’t, when you most need it you’ll be uninsurable”

“Most people set up insurances as a consequences of some devastating personal news about a friend or a loved one. It is what it is. You hope all your insurance premiums are an utter waste of money, I know I do but I know this game well”

“Know you are, and have been, the biggest wealth destroyer of all; learn to not be”

“Becoming wise about your money will be the best gift you can give to yourself; financial literacy is a super power”

“Buy cheap, buy twice”

“Great financial advice is not a cost it’s an investment, they’re between you and all of you’re decisions which is invaluable”

“Tax is likely your biggest expense, learn how to control its impact. Also be happy that you have, or will have large tax bills, it will mean you are doing really well. You should frame tax as a good thing”

“The stock market, the great businesses of the world, reward the patient and punish the rest. Mistake of admission, as in things that you didn’t do, usually due to fear, have a far more deverstating, long term impact than actual mistakes of action: mistakes you actually made”

“Learn from the mistakes of others”

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