Introduction

In todays blog post I am going to take you back to my late teen years to share an untold story of my own path to financial freedom. We'll navigate through the pitfalls, the misjudgments, and the financial fumbles that marked this period of my life. From impulsive investments and overlooking crucial business decisions, this narrative serves as a guide, written in the hopes that you can learn from my mistakes the easy way rather than the hard way.

I have curated a list of 3 things you should avoid when trying to achieve financial freedom, each accompanied by practical tips of how to stay clear of these mistakes.

1. Avoid Social Media Gurus

Throughout my entire schooling life I was obsessed with the idea of running a successful business and making more money than those around me. This subsequently became my first downfall as I let my impatience lead me down a path where the allure of quick success overshadowed sound business fundamentals. I began to consume content from online gurus who promised lucrative ventures and success beyond imagination, I found myself entrapped in a web of business models that lacked substance and practicality.

The consequences of listening to social media gurus was swift and humbling. Seduced by the promise of a lucrative business model that boasted six-figure earnings within a month, I ventured into the realm of dropshipping. It quickly became apparent that this was a flawed idea, dissatisfaction among customers grew exponentially due to delayed shipments, subpar product quality, and a lack of genuine value. The large majority of my customers were left dissatisfied which became glaringly evident when 80% of buyers requested a full refund.

I was left feeling defeated and like a failure, but I came out the other side learning a valuable lesson; providing authentic value to customers is paramount in any business endeavor.

How to Avoid Social Media Gurus

Proof of concept: Develop a critical mindset and be skeptical of grandiose promises. Question the credibility of claims made by social media gurus and seek evidence of their success.

Does it sound too good to be true?: Assess the realism of the claims being made. If something sounds too good to be true, it probably is. Genuine success typically involves hard work, dedication, and continuous progression over a long timeframe.

Financial Literacy: Enhance your financial literacy and business knowhow. Understand the fundamentals to a successful business model and apply that knowledge when seeking new ventures.

2. Resist External Validation

In my younger years I had a strong desire to flaunt expensive brands, I was infatuated with projecting an image of affluence to those around me. I lived with the perspective that my entire self worth was based on the brand written across my chest. It soon dawned on me that the substantial amounts of money I was habitually spending on luxury brands were, in reality, quite absurd. The ephemeral thrill of owning prestigious labels began to pale in comparison to the prospect of securing my financial future through long-term investments.

Resisting external validation goes much further than just financial gain, resisting external validation from others is crucial for fostering genuine self-worth and personal fulfillment. Relying on external validation means placing one's sense of worth in the hands of others, leaving it vulnerable to the ever-changing opinions and expectations of those around us. When individuals learn to validate themselves from within, they cultivate a resilient sense of identity and self-confidence that is not contingent on external factors. This autonomy allows for authentic personal growth, as individuals can make decisions and pursue paths that align with their true selves, rather than seeking approval or conforming to societal expectations.

The shift away from seeking validation through material possessions allowed me to prioritise spending on experiences, personal development, and long-term investments. In doing so, I not only learned the art of financial prudence but also discovered a profound sense of authentic self-worth that transcends external opinions.

How to Resist External Validation

Focus on Personal Growth: Channel your energy into continuous self-improvement and personal growth. Strive to become the best version of yourself in every realm of human endeavor.

Set Intrinsic Goals: Define personal goals based on your values and aspirations rather than conforming to societal expectations. Focus on achievements that align with your authentic self.

In the video below, Jordan Peterson does a great job at articulating how to stop caring about what others think. He breaks down exactly how you should go about resisting external validation.

3. Avoid Impulsive Investments

As mentioned previously in this article, I was obsessed with the idea of getting rich quick. My impatience lead me into making impulsive investments chasing short-term gains. The thought of immediate returns and the thrill of attempting to capitalise on market fluctuations blinded me to the inherent risks associated with impulsive investment choices. It was a valuable lesson in understanding that sustainable financial growth requires a measured and informed strategy, emphasising the significance of disciplined, long-term investment practices over the impulsive pursuit of short-term gains.

How to Avoid Impulsive Investments

Focus on Long-term Sustainable Investing: A great article we have formulated that educates you about a brilliant long term sustainable investment strategy is Strategic Investing - The Power of Index Funds. Here, we explain exactly what the S&P500 is and why it might be a step in the right direction for you.

Establish Clear Financial Goals: Define specific, measurable, and time-bound financial goals. Having a clear roadmap can help you stay focused and avoid deviating from your long-term objectives.

Educate Yourself: Take the time to educate yourself about investment principles and market dynamics. A solid understanding of the investment landscape will help you make timely, pragmatic investments.

Conclusion

I want to conclude todays blog by reiterating that every mistake we make becomes a stepping stone, offering invaluable insights into refining our strategies and making wiser choices in the future. Remember, it's not about avoiding mistakes altogether, but rather learning from them. Obviously, the purpose of todays blog was to help you avoid making the same mistakes that I have, but if there’s anything I want you to take from this, its that the mistakes we make today bring us closer to the person we want to become tomorrow.