Notes on Life Lessons

20 Cheat Codes I Wish I Knew In My 20s

Source: YouTube video by the MIT Monk

1. Saving is Not Investing

• Core Idea: Simply saving money isn't enough; you need to make your money work for you.
• Actionable: Invest early and consistently, ideally in broad market index funds like the S&P 500.
• Key Takeaway: Don't try to time or beat the market. Stay invested for the long term.

2. Stop Following Your Passion

• Core Idea: Passion rarely leads directly to a high-paying career. Success often breeds passion, not the other way around.
• Actionable: Focus on building valuable, marketable skills.
• Key Takeaway: Be great at something, and the passion will follow you.

3. Practice, Practice, Practice

• Core Idea: Excellence isn't natural; it's built through dedicated, consistent effort.
• Actionable: Identify skills that are monetizable and commit to honing them daily (even 8-10 hours).
• Key Takeaway: Persistence always pays off.

4. Treat Your Career Like an Investment Portfolio

• Core Idea: Your career grows based on the compounding value of your skills and connections.
• Actionable: Continuously learn new skills (hard and soft) and build your professional network.
• Key Takeaway: Get paid to learn early in your career. Offer more value to earn more.

5. Move Where the Opportunities Are

• Core Idea: Physical location can significantly impact career growth and networking.
• Actionable: Seek out vibrant hubs for your industry or desired career path.
• Key Takeaway: You need to be visible and interact face-to-face for crucial collaborations and skill development that remote work can't fully replicate.

6. Understand the Difference Between Equity and Salary

• Core Idea: Salaries provide income; equity provides potential long-term wealth and ownership mindset.
• Actionable: Aim for opportunities that offer equity, especially in high-growth potential companies.
• Key Takeaway: Salary buys you furniture, equity buys you future. Have an ownership mindset.

7. Humble Yourself and Get a Mentor

• Core Idea: Learning from experienced individuals is a massive shortcut to success.
• Actionable: Actively seek out mentors who are invested in your growth.
• Key Takeaway: Don't wait too long. A mentor provides the ultimate "cheat code" for navigating your career path.

8. Have an Emergency Fund

• Core Idea: Be prepared for unexpected life events like job loss or medical emergencies.
• Actionable: Save 3-6 months of your living expenses in an easily accessible fund.
• Key Takeaway: Expect the unexpected. Don't touch this fund unless it's a true emergency.

9. Form Your Own F.B.I. (Financial Bureau of Investigation)

• Core Idea: You need to understand and control where your money is going.
• Actionable: Track your expenses rigorously using budgeting apps.
• Key Takeaway: Categorize your cash into four buckets: Emergency, Essentials, Equity, and Enjoyment (fund in that order).

10. Forget the American Dream (Unless you want American Debt)

• Core Idea: Chasing status symbols often leads to unnecessary debt and hinders wealth building.
• Actionable: Prioritize saving and investing over buying expensive possessions on credit.
• Key Takeaway: Wealth isn't about what you buy, it's about what you keep. Avoid high-interest debt like credit cards for discretionary spending.

11. Get Financially Literate

• Core Idea: Understanding fundamental financial principles is crucial for long-term prosperity.
• Actionable: Learn how compounding interest works, how credit scores function, and how taxes work.
• Key Takeaway: Financial literacy is the best investment you can make in yourself.

12. Automate Every Financial Transaction

• Core Idea: Remove friction and human error from your financial habits.
• Actionable: Automate your savings and investments before your paycheck hits your account. Automate bill payments.
• Key Takeaway: Use technology to set guardrails and ensure consistent financial discipline.

13. Go Analog

• Core Idea: Excessive digital consumption harms critical thinking and focus.
• Actionable: Take breaks from social media ("doom scrolling"). Engage in deep reading and activities that require sustained attention.
• Key Takeaway: Your ability to be focused will be your superpower in a distracted world.

14. Think of Failure as Your Friend

• Core Idea: Failure is an inevitable and valuable part of the learning process.
• Actionable: Embrace failures as lessons, not personal defeats. Learn and adapt from them.
• Key Takeaway: The most successful people often failed the most. Failure is not your tormentor, it's your teacher.

15. Don't Be Afraid to Ask for Help

• Core Idea: Success is a team effort, and seeking help accelerates progress.
• Actionable: Overcome the fear of rejection. Reach out to your network and potential mentors.
• Key Takeaway: Find your tribe – people who inspire, support, and challenge you.

16. Don't Play the Victim Card

• Core Idea: Dwelling on misfortune or blaming others keeps you stuck.
• Actionable: Take responsibility for your situation and focus on moving forward. Maintain positive relationships, even with those who may have wronged you professionally.
• Key Takeaway: Business is rarely personal. Playing the victim only hurts yourself; the world keeps moving. Life is too short to hold grudges.

17. The Most Important Decision: Your Partner

• Core Idea: Your life partner's support and compatibility significantly impact your overall well-being and success.
• Actionable: Use a slow, rational approach (System 2 thinking) when choosing a long-term partner, focusing on shared values and compatibility.
• Key Takeaway: The wrong partner can lead to emotional (and sometimes financial) bankruptcy. Choose wisely.

18. Forgive Yourself for Your Past

• Core Idea: Holding onto past hurts or mistakes prevents you from moving forward.
• Actionable: Practice self-forgiveness and release the weight of your past.
• Key Takeaway: Your past is like a bag of bricks; you can decide to put it down. Don't let it define you.

19. True Value is About What You Bring to Others

• Core Idea: Meaningful success is measured by the positive impact you have on the lives of others.
• Actionable: Focus on contributing value and improving the lives of those around you.
• Key Takeaway: Your legacy is the echo of the lives you improve, long after you're gone.

20. Your Happiness Equation

• Core Idea: Happiness is a function of what you own divided by what you desire (H = O / D).
• Actionable: Increase happiness by increasing what you own (through smart financial habits) or, more powerfully, by decreasing your desires.
• Key Takeaway: When your desires approach zero, your happiness goes to infinity. Manage your desires.

Applying these 20 cheat codes won't make life effortless, but they provide a solid framework for building a successful and fulfilling life, starting in your 20s.