Learn Andrei from One Minute Economics favorite financial books, money habits, and what you should be doing with your money in this in-depth interview!
This week I've got a great interview for you from Andrei, the creator of One Minute Economics.
If you haven't checked out his youtube page it's worth a look. I love his concept. He breaks down complicated economic topics into easy to understand video shorts.
Andrei is also releasing a brand new book called, The Age of Anomaly! You can check it out here and then come back and enjoy this in-depth article revealing tons of great money advice straight from Andrei.
What are your favorite books related to money?
First and foremost, I'd urge everyone who is reading this to pick of a copy of The Intelligent Investor by Benjamin Graham... a book that you *don't* read for specific context-dependent tips but rather because it's the #1 book on investing mindset. Something that makes or breaks an investor, in my opinion.
If you're completely new to investing in general, then no matter what some people say about Robert Kiyosaki, there's plenty of value in reading Rich Dad Poor Dad, it's decent at covering the basics.
For a balanced view on all things human nature-related, I'd also recommend Schiller's Irrational Exuberance, Stanley's The Millionaire Next Door and something (whatever it is you find more appealing) written by Bogle.
What are your favorite apps related to money?
For someone who earns a living online, I'm remarkably old school. Pen and piece of paper all the way. Although for things like price alerts, I do use apps like the Investing.com one.
What is the worst money advice you hear?
The most cringeworthy money-related advice, in my view, is usually that which revolves around a "tunnel vision" approach: in other words, when some flavor-of-the-month self-proclaimed guru tells people he knows *exactly* what will happen and therefore has the *perfect* strategy. My blood is boiling as I type this.
Guys, please remember this: humans tend to be notoriously bad at predicting the future. Pick a few gurus, research their past predictions and you'll undoubtedly agree with me that strategies which revolve around crystal balls are sub-optimal. Unlike many of my peers, I not only embrace my incompetence but actually make it a core pillar of my strategy. In other words, instead of trying to predict what happens next and only preparing for that scenario, I'd much rather come up with a robus strategy which enables me to land on my feet under a wide range of scenarios.
What money advice would you give a 25-year-old starting out in life?
If you just take a minute (a tongue-in-cheek reference to my One Minute Economics YouTube channel) to think about financial stuff every now and then, you're automatically ahead of most people. If you spend even 5% of the time you waste binging on Netflix to educate yourself, I promise you that in the long run, this single piece of advice will change your life.
On my YouTube channel, I've chosen the one minute format precisely so as to give people the best bang for their time rather than the best buck that I possibly can. I get it that we all have lives, priorities and what not, which is why I've gotten better and better at educating people without demanding a huge investment of time on their part. This is what more people in the education space need to understand.
Do you have any financial habits you live by?
I'm a minimalist who has developed the habit of focusing on financial security rather than instant gratification.
I derive pleasure not from consumerist mirages but rather from knowing that I'm on the right track. That I'm able to react properly in the event of a financial emergency. That my family is on a stable path.
Also, as mentioned previously, I understand that humility is a muscle you have to train. I have no problems whatsoever accepting and even embracing my incompetence when it comes to things like predicting the future and frankly, I consider it one of my top skills as an economist.
Finally, don't forget that it's all a matter of dosage and context: spend a bit of time educating yourself on "big picture" things, spend a bit of time keeping track of current events and you'll realize that you can be on top of your financial game without making huge time-related sacrifices.
What is #1 thing people should do today for a better financial life?
Dare to question the status quo and think for themselves. The McLife you see advertised all over the media will probably not lead to sustainable happiness. In fact, a fair case could be made that it's pretty much a scam.
Think for yourself. Always think for yourself. Gather information from as many sources as possible (even or actually especially from those which question your financial beliefs) but in the end, understand that the final decision is something you cannot afford to outsource.
Did you overcome any personal failures to get where you are today?
Unfortunately, even if you're a financially responsible person... life happens.
For example, 10+ years ago, I was making quite a bit of money online and didn't squander that wealth on a fancy car, useless gadgets and so on. However, I still ended up losing it all when my mom got sick and I decided to get her the best treatment possible abroad. Needless to say, it ruined me and I had to practically start from scratch. Would do it all over again in a heartbeat!
Remember, guys: be humble enough to understand that life can and will throw quite a punch every now and then.
What was the turning point in your life to become financially successful?
I used to be really good in school and at one point, was at a national competition with tons of other bright young people. Unfortunately, they made all of us stay in awful living conditions (matresses held together by more or less stable piece of wood, lack of access to proper hygiene conditions and so on) and it's that context which made me realize that perhaps it's time to think outside the box and question the status quo. In other words, rely less on the state and more on myself. The rest, as they say, is history.
What is the most worthwhile investment you have ever made?
Deciding to learn, learn and learn some more. I keep telling people that investments in yourself yield amazing long-term dividends. Everything that came after that is kind of like a gratifying harvest.
Did I buy lots of domains at let's say 30+ a pop which I sold in bulk for 8-10 times more? Yes.
Did I invest in bitcoin relatively early on? Yes.
Have my real estate investments done well? They have.
But keep your eyes on the big picture and understand that my decision to *learn* is what ultimately brought about individual success stories.
What can we expect from your book, The Age of Anomaly?
A no-nonsense guide about what you can do to:
1) prepare for the next financial crisis
2) become more resilient in general so as to better withstand life's occasional curveballs
I take things one step at a time by helping people:
a) learn from past financial storms (from the Tulip mania all the way to the Dot-Com bubble, the short domain mania of late 2015 to early 2016 and so on) not so they can try to predict the future but so that they better understand human nature... history is a mirror, a gateway to understanding what makes us tick, not a miracle pill
b) find common denominators and draw conclusions that help them prepare for the next crash (which doesn't mean they'll be able to predict the future, important distinction!)
c) understand that even someone like myself (who dedicates his professional life to thinking about these things) might be caught off-guard by the next crash and therefore allocate just as much time and energy to become more financially resilient in general.
When reading The Age of Anomaly, I promise it will be kind of like talking to a friend who happens to be good at economics rather than receiving a lecture from an arrogant economics professor.
Oh, and by the way, I'm discounting the book from 10 bucks or so all the way down to $0.99 until Sunday so as to give as many people as possible an opportunity to gain access to my work. The book has 400+ pages and needless to say, a lot of sweat, blood and tears have been invested in it. But as those of you who research me will realize, I'm not in it for the money, I write books and educate people because it's honestly the thing that gives my professional life meaning!
How can we prepare for a large-scale economic downturn?
If you remember just one thing after reading this interview, I'm begging you to remember this: you're not preparing so you get rich when everyone else loses. You're preparing so you can land on your feet.
That's the name of the game: putting together a personalized strategy which enables you to land on your feet under a wide range of scenarios, this is what I try to help people do through The Age of Anomaly. Will I make the final decision(s) for you? Nope, never! Some things should never ever be outsourced and there's no better person to do that then the guy or gal you see in the mirror each day.
How can people follow and get in touch with you?
You can find my book by searching for "The Age of Anomaly" on Amazon, Barnes&Noble, iBooks, and Kobo.
Also, don't forget to check out my YouTube.com/OneMinuteEconomics channel and get in touch either through commenting on a video or by sending me an email at the address listed in my channel's "About" section.
I do my best to keep in touch with all friends of the channel and it would be an honor for you guys to be among them!
If you love what you're reading, please help me spread the word and share this post with the share buttons on the left!
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