Curious about the secrets of financial freedom? How did a fresh NYC graduate navigate the dating scene and Wall Street to realize the importance of financial literacy? Why are rich people's money habits and attitudes crucial in breaking financial barriers, especially among marginalized communities? Dive in to learn how to leverage your earnings, manage your debts, and plan your taxes effectively for a secure future.

Rich AF: The Winning Money Mindset That Will Change Your Life

A while back, Vivian Tu, the author, was on a relaxed vacation in the Hamptons with friends. They stopped at a CVS, and Vivian's friend Lauren spotted a Hamptons-themed Monopoly game. Lauren was incredibly excited, and her enthusiasm rubbed off on Vivian. That night, the Monopoly game turned intense quickly due to Adam, Lauren’s boyfriend. Adam claimed he knew a secret strategy from reading the rules thoroughly. None of them were aware of this loophole, and Adam bested them all.

Adam's strategy relied on leveraging money he didn't have to buy property, similar to real financial systems. This made Vivian realize that financial knowledge and strategy, like Adam’s, are crucial, yet many people don't delve deep into the rules.

Vivian believes that the education system has failed many by not teaching essential financial skills. People are not taught to manage money, file taxes, or invest wisely. Financial literacy is often gatekept, keeping many stuck in the working class. But, Vivian insists, it’s never too late to learn.

According to Vivian, rich people think differently about money—they leverage it, think long-term, and share their knowledge. They’re not about impressing others but building wealth through smart investments. They also help each other out, creating networks of mutual benefit.

Sadly, Vivian notes, systemic issues have made it harder for many, especially women, POC, and the LGBTQ+ community, to build wealth. Historical and ongoing discrimination has compounded financial disadvantages. Despite this, Vivian argues that understanding and adopting rich people's financial strategies can help break these barriers.

In the end, Vivian suggests, it’s about learning the rules and developing a strategy to use them to one’s advantage. It’s never too late to start, and with the right mindset and knowledge, anyone can become Rich AF.

Can Adopting Rich People's Financial Strategies Make You Rich AF?

Most money books emphasize budgeting, but Vivian believes they miss a crucial point: focusing first on how much you earn. She posits that rich people understand that while budgeting is important, earning more money is key. They can only save what they earn, but they can always earn more. Rich people, according to Vivian, constantly seek raises, better jobs, and investment opportunities. 

Take Vivian's first job as a club promoter, for example. She made $250 to $500 a weekend by leveraging her college network to fill bars. This experience taught her that earning more was easier than cutting back on expenses. However, this lesson wasn’t straightforward. 

When she worked at J.P. Morgan, Vivian thrived under supportive managers who pushed her to excel. But when a new boss took over, the environment became toxic, and she realized her hard work wouldn’t be rewarded. She left and found a better fit at BuzzFeed, where her contributions were valued, and she could leverage her skills and network to succeed.

To earn what you're worth, Vivian suggests that you need to sell your skills, network effectively, and know when to leave an unsupportive environment. Networking is crucial; it opens doors that skill alone cannot. She encourages readiness to explore new opportunities, even if you're happy in your current job. And remember, asking for a raise is essential. It’s not about being greedy; it’s about being paid fairly for your contributions. 

Vivian recommends creating a "Brag Book," a folder of all your accomplishments and positive feedback, to support your case when negotiating a raise. Practice your negotiation skills and prepare thoroughly. If asking for a raise is daunting, remember the potential reward: a significant increase in your income for just a few hours of work. 

Additionally, Vivian suggests considering side hustles to boost your income. They don’t have to be passion projects but should fit your schedule and genuinely make you money. Avoid high-risk ventures like MLMs, which often result in financial loss. Choose low-risk, manageable gigs that provide a steady income boost.

In short, to achieve financial success, Vivian advises focusing on earning more, skillfully negotiating your worth, and strategically using side hustles. Your career should be a balance of earning, learning, and being in an environment where your value is recognized and rewarded.

From Club Promoter to BuzzFeed: How Networking & Negotiation Propel Financial Success

Vivian's first big splurge after landing a job on Wall Street was a stunning black leather Prada bag. She had been eyeing it for months and finally, with a mixture of excitement and nervousness, she bought it. The sense of accomplishment was immense, not just because of the bag but because of the hard work that led to that moment. However, this purchase was possible not only due to her job but also because she had a budget.

Many people think of budgets as restrictive, but what a budget could help you confidently buy that dream bag? Budgets are not about deprivation; they are about planning to enjoy life without financial stress. Rich people budget meticulously, not because they have to worry about money, but because they want to maximize their wealth and live their dream lifestyles.

To start budgeting, you need to do a spending audit. Gather all your spending records, categorize your expenses, and evaluate them. This helps you understand where your money goes and where you might cut back without feeling deprived. Budgeting also means planning for spontaneity and ensuring you have money for emergencies and investments, which are crucial for long-term financial health.

There are different budgeting methods to choose from, such as:
- 50/30/20 Rule: A simple budgeting method that allocates 50% of income to needs, 30% to wants, and 20% to savings or debt repayment.

- Zero-Based Budgeting: Every dollar of income is assigned a job, ensuring income minus expenses equals zero at the end of the month.

- Reverse Budgeting: Prioritizes savings goals first, then allocates the remaining income to expenses and discretionary spending.

- Half-Payment Budgeting: Splits large monthly bills into two smaller payments, aligning expenses with paycheck cycles to reduce financial strain.

Each has its strengths, so find one that suits your lifestyle.

Lastly, value-based spending is essential. It means assessing whether a purchase is worth the work you put in to earn that money. This mindset helps prevent overspending and ensures you get the most satisfaction from your hard-earned cash. Nonnegotiables are also vital as they bring joy and comfort to your life.

Remember, a good budget should leave you feeling good about your spending and ensure you have money left to save and invest. Budgeting isn't about restriction; it's about empowering you to live your best life.

Can a Budget Help You Confidently Buy That Dream Prada Bag?

Vivian shares two crucial stories about the importance of saving money. 

First, on her 25th birthday, Vivian ended up slicing off part of her finger while making a sandwich. Vivian's boyfriend rushed her to the hospital, where she spent six agonizing hours. The bill? A whopping $16,000. Thanks to good insurance, her share was $1,300, but without an emergency fund, she would've struggled to pay it, risking medical debt and a hit to her credit score.

Contrast that with a happier tale: for Vivian's parents' 30th anniversary, she saved up and sent them on a luxurious $6,500 cruise. By setting up a dedicated savings account and regularly contributing to it, she could give them an unforgettable gift without financial strain.

These stories highlight that having savings can protect you from unexpected financial shocks and help you achieve your dreams. Savings build a foundation of financial security, enabling you to handle emergencies and make significant purchases without stress.

To save effectively, consider the following tips:

1. Build an Emergency Fund: Aim for at least three to six months of living expenses in a high-yield savings account.
2. Create Sinking Funds: Set up separate savings accounts for planned big expenses, like vacations or major purchases.
3. Strategize Your Bank Accounts: Use multiple checking accounts for different spending categories to simplify budgeting.
4. Choose High-Yield Savings Accounts: These accounts offer better interest rates, helping your savings grow faster.

Saving money isn't about penny-pinching; it's about making informed decisions and giving yourself financial options. By managing your savings wisely, you can avoid desperation, make confident financial choices, and ultimately live a more secure and fulfilling life. Remember, you are worthy of good financial services and deserve to make the most of your money.

From ER Bills to Dream Cruises: The Power of Smart Saving

Investing can seem daunting, but it doesn't have to be. Here are three truths: investing is simpler than it looks, you don't need to be a stock market genius, and investing—not saving—is the key to getting rich.

Take Vivian's friend in private equity, for example. Despite working with investments daily, he avoided setting up a retirement account for years because it seemed too complicated. This procrastination cost him substantial investment returns and employer-matched contributions.

Even though setting up investment accounts can involve some paperwork, it’s crucial to start. Remember, you don’t need to be brilliant at picking stocks. Vivian learned this firsthand after losing half of her investment on a biotech stock despite having great resources and advice. Instead, focus on diversified portfolios that spread your risk across different sectors.

Investing is about putting your money into assets that grow over time. Unlike saving, which offers minimal returns, investments can appreciate significantly. Rich people use their money to make more money, and so can you.

To get started, you need to understand the types of accounts (like 401(k)s, IRAs, and HSAs) and the investments they hold (stocks, bonds, funds). Prioritize tax-advantaged accounts and diversify your investments based on your risk tolerance, time horizon, and financial goals.

Avoid the urge to chase trends or meme stocks. Stick to a consistent investment strategy, contribute regularly, and let your money grow over time. Whether you start with $20 or $2,000, the key is to begin.

Investing wisely will set you on a path to financial success, ensuring that your money works for you around the clock.

Is Investing Your Ticket to Financial Freedom Without Being a Stock Market Genius?

When Vivian first moved to NYC, she was a 22-year-old fresh graduate, eager to explore the city and its dating scene. One memorable date was with a seemingly successful Wall Street guy, dressed in designer brands. 

However, halfway through the evening, he admitted to having five-figure credit card debt. It was a shocking revelation and a clear example that being rich doesn’t necessarily equate to being financially wise. This experience taught Vivian the importance of understanding financial fundamentals beyond just earning and spending money. 

Vivian explores the deeper aspects of financial management, including credit, debt, and taxes. Knowing when to use cash, debit, or credit is crucial. Cash lacks protection and can easily slip through your fingers, while debit cards, though convenient, offer little security if lost. Credit cards, on the other hand, provide fraud protection and rewards, but only if used wisely. 

Your credit score is like a real-life grade that affects your ability to borrow money. It’s influenced by factors such as payment history and credit utilization. A good score opens the door to better financial opportunities.

Debt, often seen as a dirty word, is actually a tool that can be leveraged for financial growth. Rich people use debt strategically, understanding the difference between good and bad debt. For those burdened by debt, strategies like the snowball or avalanche method can help manage repayments effectively.

Taxes are another area where knowledge is power. Understanding tax brackets and managing deductions and credits can help you retain more of your earnings. 

Ultimately, achieving financial freedom involves setting a personal FU number—the amount needed to live comfortably without financial worry. This number is unique to each individual, reflecting personal goals and lifestyle choices.

As you navigate your financial journey, remember that wealth is not just about money management; it’s about mindset. Break away from inherited money habits and embrace a rich person’s mentality. This involves recognizing the value of investing, understanding that spending isn’t inherently bad, avoiding spending for others’ approval, and taking proactive steps to improve your financial situation.

In essence, financial domination is within reach if you understand the rules and play the game wisely. It's about making informed choices, leveraging opportunities, and building a future where you’re in control of your financial destiny. Remember, you deserve to be Rich AF, not just for yourself, but for the betterment of your community and future generations.

Mastering Wealth: Lessons from NYC's Wall Street and Beyond

Understanding financial strategies and leveraging money effectively is crucial but often overlooked. Our education system has failed to teach us essential financial skills, leaving many stuck in the working class. Rich people approach money differently; they focus on earning more, investing wisely, and leveraging their networks.

Systemic issues have compounded financial disadvantages for marginalized communities, but adopting rich people’s financial strategies can help overcome these barriers. Financial success involves learning the rules, developing a strategy, and focusing on earning more rather than just cutting back.

Negotiating your worth is essential, supported by tools like a "Brag Book" to document accomplishments. Side hustles can boost income, but they should be manageable and low-risk. Budgeting empowers rather than restricts, enabling confident spending and saving for emergencies and goals.

Effective saving strategies include building an emergency fund, creating sinking funds for big expenses, and using high-yield savings accounts. Saving is about making informed decisions and building financial security.

Investing, though daunting, is key to wealth. Diversification, tax-advantaged accounts, and starting early are critical. Avoid chasing trends and stick to a consistent strategy.

Understanding credit, debt, and taxes is also vital. Good credit management opens financial opportunities, and strategic debt use can aid growth. Managing taxes efficiently helps retain more earnings.

Ultimately, financial freedom involves setting a personal FU number for comfortable living. Wealth is about mindset and informed choices, leveraging opportunities, and building a secure future. It’s about taking control of your financial destiny and recognizing your worth.

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Rich AF: The Winning Money Mindset That Will Change Your Life

Vivian Tu

7 Key ideas

15 MINS

4.6 (606)

Curious about the secrets of financial freedom?

How did a fresh NYC graduate navigate the dating scene and Wall Street to realize the importance of financial literacy?

Why are rich people's money habits and attitudes crucial in breaking financial barriers, especially among marginalized communities?

Dive in to learn how to leverage your earnings, manage your debts, and plan your taxes effectively for a secure future.

Key Ideas

#1