Seven Things to Avoid for Financial Success

If you don't want to be like everyone else, you have to make sacrifices others aren't willing to make. That's what my mentor told me in my early 20s, and it stuck with me ever since. I started out with no qualifications and no money but still managed to become a multi-millionaire. A big part of that was avoiding the seven things I'm going to share with you today.

The first thing to avoid is working for only money. Imagine you got a boring but well-paid job. You quickly start stacking some nice cash. As your earnings grow, your friends will think you're absolutely killing it, and your parents will probably be pretty proud too. However, over time, your earning potential would start to plateau. This is path A.

Now, imagine instead you get a challenging but lower-paid job. You might struggle for a couple of years as you improve and adapt. You may even struggle to pay the bills. Your friends will probably think you're falling behind, and your parents may not agree with the path you've taken. However, over time, your earning potential will start going through the roof. This is path B.

So, what's the difference between these two examples? Path A prioritizes money early on, whereas path B prioritizes two key things: skills and equity. Every self-made millionaire I know has followed path B, as it's the only way to build that kind of wealth.

As I mentioned, I left school at 16 with no qualifications. However, I immediately went out looking for jobs and actually got offered more than five opportunities. I had a big decision to make— which should I choose? I decided to become a carpenter's apprentice. The pay wasn't great, but I knew the skills I'd learn would be extremely valuable, so I prioritized those. There was no way I was going to get equity in the business, but at least I was working for more than just money. That job taught me a lot, and although I was forced to quit after being relentlessly bullied by my manager, I still use many of those skills today when I'm designing my best-selling brand of radio-controlled planes that I sell across the world.

By learning a wide range of high-income skills, it makes it almost impossible for you to ever be broke again, as you become your greatest asset. I like to think every job I had when I was younger added to my skill set, like a Swiss army knife. Nowadays, I'd recommend prioritizing online-based high-income skills such as copywriting, video editing, and coding. The demand for these skills is only growing, and I can speak from experience that there is a huge skill shortage at the moment. Sure, there are lots of people doing those things; however, 99% of them are just not up to standard. Honestly, your competition really isn't that tough.

Now let's move on to the second thing: equity. This just means owning a percentage of a business so you can benefit from the profits. My radio-control model brand is a perfect example of this. You can gain equity in a few different ways. The most obvious way, and the way I did it, was to start the business myself. However, you can also gain it by working for it if you're extremely skilled in certain areas; this is known as sweat equity. Lastly, you can purchase equity in certain businesses, although I wouldn't recommend this as much unless you have the skills that can help accelerate that business forward.

My friend Simon Squibb often goes around in public telling people to start their own businesses or ask for equity from their boss. While I 100% agree with the sentiment, you need to have some self-awareness with this. Firstly, it's worthwhile working for someone to gain skills before starting a business of your own. Secondly, you need to be realistic. I didn't think for a moment that I'd get equity in the carpentry business when I was an apprentice. So when you ask, make sure you have a solid case for why you deserve it and how you can add value to the business instead of just taking from it. You need to first focus on becoming someone worthy of equity.

The main takeaway here is that too many people get blinded by money, forgetting the importance of skills and equity. This is the biggest trap. The more you obsess over earning just money, the less you'll likely make in the long run.

The second thing to avoid is buying a luxury lifestyle. Picture yourself cruising through Dubai's sun-drenched streets in a bright yellow Lamborghini. You pull up to a swanky restaurant and order a $500 steak without batting an eyelid. How does imagining that lifestyle make you feel? Pretty successful, right? Well, here's the truth: most people you see living this way are far from successful. The majority are paying for cars they can't afford, taking trips to Dubai on credit cards they'll spend five months paying off, and ordering steaks at Salt Bae's restaurant that leave them with a bill they can't handle. These people are living a lie, pretending to be rich while drowning in debt. It's all smoke and mirrors, as it's much easier to impress others on social media than build real wealth.

Seeing people live these luxury lifestyles might tempt you to start playing the flexing game too, as you feel like everyone is living a better life than you. However, this is far from reality. In fact, 37% of Americans can't afford unexpected expenses over $400, 39% worry they can't pay their bills, and 60% of American households can't afford to buy a new car. Once you've made your millions, you can buy whatever you want—that's the point of becoming wealthy. However, in the early days, you can't live like a king and build wealth at the same time. Instead of buying depreciating items like flashy cars, designer clothes, and dining in expensive restaurants, invest in assets such as stocks, shares, crypto, and real estate. These assets will increase in value and generate income that you can then use to do whatever you want.

The third thing to avoid is doing everything yourself. You might be really great at what you do, but no matter how hard you try, you'll never be able to outcompete a group of talented people working together. Look at anyone who's made it big in sports or business; if you do some digging, you'll see they all had help. Let's take Elon Musk as an example. On the surface, it might appear like he's a genius entrepreneur who's achieved everything single-handedly. However, that couldn't be further from the truth. He was part of the group that launched PayPal. When eBay acquired PayPal for $1.5 billion in 2002, these newly wealthy tech experts spread across the industry like a virus. Now they're known as the PayPal Mafia, as they've become such a powerful group. After leaving PayPal, they started many successful companies. These include big names like YouTube, Yelp, LinkedIn, and SpaceX. They often invest in each other's projects and give advice.

But what if you're not aiming to launch the next billion-dollar company and instead just want to earn some extra money with a side hustle? Well, a lot of older business owners are kind of lost when it comes to everything tech-based and using the internet for their companies. I mean, a lot of them don't even know there are online tools for literally everything, whether it's managing your team, handling invoices, keeping track of projects, or even building a website. I don't blame them, as back in the day, we didn't have any of these things. But now, the younger generation has a real advantage. So, if these older business owners don't know how to do a lot of this online stuff and they understand they can't do everything themselves, guess who they need? You. You can help them bring their businesses into the 21st century and make a lot of money in the process.

It's all well and good saying this, but how could you actually do it? Well, if you want to give this a try, then I'd recommend using an all-in-one management platform. There are plenty of options out there that include the tools I just mentioned and more, all in one place. Here's a great example of a website that needs a proper update. It looks like it was built over 10 years ago. With the right platform, you can quickly make something a bit more up-to-date. These tools offer features like drag-and-drop editing, AI assistance for content creation, and much more. In just a short amount of time, you can create a professional and modern website that could seriously impress these older business owners and potentially make you some serious cash.

The fourth thing to avoid is having too many inputs. Do you ever feel like you're being pulled in a million different directions? This happens with everything in life, from side hustles to fitness training. Everyone seems to have a different opinion on what you should be focusing on. It can look a little bit like this: This is you, and these are the people telling you what they think you should be focusing on. For the sake of simplicity, let's just call them inputs. All these inputs create hundreds of paths you could follow, like becoming a doctor, entrepreneur, joining the family business, getting a stable 9-to-5 job, traveling, and having a family. Let's call these your potential paths.

The sheer number of these pathways can create something called cognitive overload, which is where your brain simply can't cope with the overwhelming amount of information and choices. So, what's the solution? Well, I've always started with my end destination in mind and worked backward. Of course, I didn't know exactly what I wanted to do when I was 18, but I was always very clear on what I didn't want to do. This helped me to eliminate most of the inputs that were causing cognitive overload. In a nutshell, the best advice I can give you is to learn to say no. When you decide to say no to things that aren't on your path, it's almost like a superpower. If I look back at the past 15 years of my life, almost everything that went wrong was because I wasn't brave enough to say no to people and things I knew were distractions. I know it's hard, but when you get the courage to do it, you'll suddenly find yourself on the path you're meant to be on.

The fifth thing to avoid is investing too early. One of the most important things I've learned is that timing is everything when it comes to investing. You don't need to rush into it. Many people make the mistake of investing their money too early, often due to pressure from peers or the fear of missing out. But if you invest before you fully understand the market or have a solid financial foundation, you risk losing everything you've worked so hard for. Instead, focus on building your knowledge and skills first. Educate yourself about different investment options, understand the risks involved, and ensure you have a stable income before making any significant financial commitments.

The sixth thing to avoid is letting ego drive your decisions. We've all been there—our ego gets the best of us, and we make choices that aren't in our best interest. Whether it's taking a high-paying job you hate just to prove a point, buying something expensive to impress others, or sticking with a failing business idea because you don't want to admit defeat, letting your ego guide your decisions can be detrimental. It's crucial to remain humble, recognize your weaknesses, and make decisions based on logic and long-term benefits rather than short-term gratification.

The seventh and final thing to avoid is not asking for help. There's a misconception that successful people achieved everything on their own. But the truth is, everyone needs help at some point. Whether it's seeking advice from a mentor, learning from others' mistakes, or simply asking for support when you're overwhelmed, don't be afraid to reach out. Surround yourself with people who inspire you, challenge you, and offer guidance. Remember, no one achieves greatness alone.

In conclusion, financial success isn't just about making money—it's about making the right choices, avoiding common traps, and continually learning and growing. By steering clear of these seven mistakes, you'll be well on your way to achieving the wealth and freedom you desire.