The top 50 tips we shared in 2022 – Part 2

2022 is gone, but here is the first part of the throwback to our top 50 tips of the week. Nothing better to kickstart the new year than a bit of financial wisdom. Here's part 2 of last year's top tips!
Picture of Grégory Leclercq

Grégory Leclercq

26. Interest-free instalment payments are somewhat similar to credit cards: they share the same perks and pitfalls. They are on the rise everywhere, even in younger market segments. Don’t let them ruin your finances, use them wisely!

27. Think about reinvesting all of your investment proceeds, including dividend or interest yield. That way you ensure maximum compounding effect.

28. Insurance is always a good idea to protect anything that has value to you. This should include protecting yourself as well. More and more insurance products come out every year.

29. Remember that “time in the market” beats “timing the market”. The secret to sustainable wealth creation is not to predict, it’s to stand the test of time.

30. Know your personal risk aversion before investing. Not everyone has the same. Do not blindly listen to any friend or no one for that matter. If you can’t sleep on a financial decision at night, something’s wrong.

31. Investing for the first time is really not as hard besides requiring a leap of faith. The key when investing is to do your own research and never invest in something you don’t understand. Start small if you don’t dare to.

32. Many try to “beat the market”, but very few manage to do it. It’s even harder to do it consistently. Do not get burned trying to do so. Time is your friend.

33. Don’t forget to invest in yourself too, whatever it means for your life goals. Investing in yourself means investing in the future you, in long-term happiness.

34. It’s crucially important to align all incentives in a couple or family. This includes financial incentives. Do not be afraid to talk about money with your partner, family, or else. Be open with it so you don’t work against the current.

35. Think about investing through automatic orders. A lot of apps offer such features today. This way you don’t have to sweat it too much, and you invest periodically.

36. Of all investing strategies, “Dollar-Cost Averaging” (DCA) offers the greatest returns for the least amount of risk and worry. It feels slow, but it’s very effective. When investing, boring is often good. 

37. Credit cards can provide perks such as insurance protection, cash-back, additional security and more flexibility to plan and spread your cash flow. Use them wisely, they also have pitfalls as debt and overspending can mess up your finances.

38. There is such a thing as too much diversification because of profits dilution. You don’t necessarily have to spread as much as you can. It has to remain advantageous and sensible. 

39. Take the time to budget and you will: 1) become more efficient with your money, 2) generate more wealth over time.

40. Investing also comes in other forms: have you ever considered launching a (side) business? Being an entrepreneur, even if only part-time, can significantly increase your chances of financial success. Can you identify and solve a problem?

41. Trading can appear attractive to the investor but it has several pitfalls such as increased risk, fees, and higher taxes. Trading is not an extension of investing. Don’t be fooled by the idea of making quick gains.

42. Kiyosaki’s definition of “assets” is a good way to wire your mind for wealth creation. He only considers “assets” to be investments that effectively “put money in the pocket” (i.e. strictly cash-flow positive investments). 

43. Building wealth is like a game of Monopoly: you accumulate as you move forward. However, it would be misleading to believe wealth only comes through buying real estate.

44. Prepare for the unforeseen: have an emergency fund and account for margins of error when budgeting and planning (10-30% seems appropriate). 

45. With low-interest rates and high inflation, cash is hardly an asset. Holding cash allows for liquidity and saving, but not investing.

46. Subscriptions can trick you: they appear low-priced but quickly build up your expenses. Companies like subscriptions since they capture more value over time.

47. The cash in your bank account is not really there (lent out). Don’t think that you have custody of it. Both precious metals and digital assets can help with increased financial protection when stored the right way.

48. Diversification becomes more of a worry when you try to preserve wealth, to ensure its sustainability. With financial proceeds comes greater responsibility.

49. Leverage (i.e. debt) can speed up wealth creation but the risk increases through it. Although it is for most the only way to acquire real estate, it is hardly beneficial to take increased risks with other investments such as stocks, crypto, or else.

50. The real currency is not money, it is time. That is also why the compound effect is the ultimate financial asset. When we long for financial independence, we actually seek to dispose of our time the way we want it to. 

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