From: alexhormozi
Navigating your twenties effectively involves strategic choices regarding your living environment and spending habits, prioritizing personal growth and unique experiences over superficial gains [00:00:14].
The Impact of Community and Roommates
The people you live with significantly shape your outlook and progress [00:05:24]. It’s crucial to choose wisely:
- Avoid negative influences Roommates who are irresponsible, break things, or are consistently late on rent can be major distractions [00:04:41].
- Align with shared goals Even responsible roommates might not have the same aspirations as you [00:04:50]. They can undermine your efforts with limiting beliefs or by not actively supporting your unique path [00:04:54]. Do not heed advice from those with smaller goals for your life [00:05:12].
- Seek mutual encouragement Living with individuals pursuing similar goals fosters mutual encouragement and shapes your worldview positively [00:05:16].
- Practical benefits of shared living Living with multiple people in your twenties can combat loneliness and significantly reduce costs [00:05:25]. For example, one individual lived with seven people in California, paying only $400 a month in a desirable area [00:05:30].
- Prioritize a supportive micro-community Your immediate living environment, or “micro-community,” is highly important [00:05:36]. It’s often worth paying more to be conveniently located near essentials like highways, gyms, and affordable food [00:05:38]. This saves time and reduces ancillary costs like gas, making it a better choice to live with more people in a superior, safer area than fewer people in a less desirable one [00:05:56].
Investing in Experiences
While the focus in your twenties should be on learning and increasing your earning capacity, there’s a specific type of spending that is highly recommended [00:01:26]:
- One-time experiences Prioritize spending on unique, one-time experiences that are typically only feasible in your twenties [00:08:05].
- Optimal windows for experiences Certain life experiences are best suited for particular age ranges, and these windows eventually close [00:08:19]. Examples include backpacking through Europe and staying in hostels for months, which might not be practical at 40 [00:08:10].
- Experiences to be proud of Support experiences that you will look back on with pride [00:08:24].
- Controlled spending Grant yourself permission to spend on these experiences in a limited fashion, without draining your entire investment account [00:08:30]. Short trips, like a three-day visit to the Grand Canyon, are good examples of unique, justifiable expenses [00:08:36].
- Beyond financial sense These experiences are worth the time and money, even if they don’t make perfect financial sense, because ultimately, “you’re going to die it’s not going to matter anyways” [00:08:45].