00:00:00
Renting versus owning a home is the
00:00:01
biggest financial decision most people
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make in their life. So, we're going to
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talk about all of the unreoverable costs
00:00:06
of owning a home, including property
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taxes, maintenance costs, which is the
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one that I think people underestimate
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the most. And then there's also
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emergency costs. I've got a whole stack
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of them, as well as a 5% rule to figure
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out if renting is a better financial
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decision. We'll go through that. What
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else have we got?
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>> So, this is something that people just
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don't think enough about, which is the
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top 10 financial mistakes that I think
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people make. For example, tax planning
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opportunities. Like there are simple
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things that people can do to minimize
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the amount of tax they're paying. We'll
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go through those.
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>> Ben Felix's firm manages the money of
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more than 3,000 people, ranging from
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people with huge amounts of money and
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not so much money. His whole thesis is
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giving people money advice that is based
00:00:43
on academic research.
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>> Our brains, our psychology absolutely
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gets in the way of making good long-term
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financial decisions.
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>> And today we're going to answer the big
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money questions like what should I
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invest in? A lot of people believe they
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need to have a lot of background
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information before they can start
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investing, but I would argue that people
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who know just a little bit, they will be
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better long-term investors. There's a
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ton of evidence supporting that this
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will outperform most other investment
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strategies.
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>> And also, what is the mentality, the
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mindset of people that end up making
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money over the long term?
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>> Psychology is important for determining
00:01:15
what your financial goals are. So, this
00:01:16
is a framework that we developed to
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elicit higher quality goals.
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>> What would you say to young people that
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are thinking about their financial
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strategy? A lot of young people feel a
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lot of pressure to save, but there is
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research suggesting that it's probably
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suboptimal for young people to save,
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which we'll talk more about later.
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>> And then in a world of AI where
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everything is changing so quickly, what
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should I be doing with my money right
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now? Ben Felix has the
