Hey, John Crestani here and I'm not 40 yet, but
I'm gonna go over 13 financial mistakes you want to avoid in your 40s and I'm gonna give you my
little solutions on that. I feel like an old soul though I'm only 36 but I feel a lot older. So
hopefully this is relevant to all y'all in the audience, let's go. The first financial mistake is
no plan, right? No plan of what you're doing with your money. Now, in your 40s, you're going to be
at the height of your earning potential income potential, your income, you know, traditionally,
it's the highest of any decade you'll be at, even though wealth is higher as you get older in
the 50s and 60s, but your incomes the highest and that's gonna cause changes, right? You might be
motivated to you know, spend money on a car or you know, like a new house or upgrade some things
but, you know, the reality is, is you need to have a plan around these things.
Now, iron probably
more than most people in their, you know, 40s but, you know, from my experience, you know, I feel
like I lead and I've led an accelerated life, I don't know why but, you know, I'm just very active
or energetic or whatever, but my plan is basically my life I live, you know, you hear I have a
business making over half a million a month, but I live off of 20 grand a month, that's my
salary, quote, unquote, and if my business does, you know, makes profits does then at the end of
the year, I just put that all into investment accounts. And that's been my plan. Okay, and
so far it's worked you know, like you know, other people in my life have said, you know, John
spent more money you know, like I've had I won't name names, but you know, I just I just don't feel
the need I'd rather be set for life and you know, then save the piano then try to chase you know,
the dragon now the other mistake folks make is not having any what we call liquidity.
Now liquidity
means money that you can access at any time. Now real estate is not considered liquid because
you you know, you may have a million dollars with real estate, but you have to, you know,
it might take six months to sell the house and get that money right investment accounts,
depending on what sort of investment account is it could take a few days to actually access that
money after the sell wait for the opening bell, sell the stock, then transfer the thing the wire
transfer takes two to four days, something like that it goes from, you know, so it could take but
stocks are considered pretty liquid, you know, they are considered liquid in that sense, unless
they're in some sort of like Roth IRA or some sort of retirement account where there's a whole
different process but if you have investment accounts used for trading that's liquid and also
cash is considered liquid six months of liquidity would mean that you know, in my case, I want to
have 120k Sit in the bank so that worst worst comes to worst you know, we live for you know,
all everything hits the fan you know, I have six months that I can figure out the next step.
But
usually people use it for medical bills right six months is almost a proxy for you know, if you have
a big medical bill that happens out of the blue or a car accident or this or that, you know that six
months it's not there for vacations, it's there for emergencies and guess what emergencies and
unexpected life events. Again, I'm you know, only 36 but gosh darn they happen all the time. Okay,
that brings me mistake number three, which was folks neglecting their emergency funds. So I just
talked about how you should have six months of emergency money saved up well, neglecting it is a
big mistake too, because I know so many folks who say I saved up an emergency fund and I got money
and you know, and this great cruise came up and I've always wanted to go on this cruise around to
Alaska and I deserve it and you know, right there was this nice dress and I I just really I always
wanted this dress and I deserve it and I bought it with my emergency fund money.
That's not the way
to do it. That's not the way to do the emergency. The emergency fund is literally for emergencies. A
dress a cruise is not an emergency. So treat your emergency fund with care. Now, the next mistake
folks make is not having an you know, especially in your 40s is if you're 20 doesn't matter
but if you're in your 40s, not having enough insurance because if you're in your 40s, you have
a lot to live for, you're at the you're at the, you're at the height of your power, you're at the
height of your potential, you're at the height of what you can do and your wherewithal to make
money or start businesses or, you know, your your, you know, things should be coming together and
you shouldn't let things hold you back and ensure you know, these emergency situations that can come
out of the blue, like, you know, a few years ago, my house burned down everything in it.
Like
literally, it was a freak fire that came overnight, it burned down, you know, like, half
of Malibu burned down, what was it 25% Of all the houses in my neighbor, I'm in Malibu, and thank
God, I had insurance because I was able to build rebuild my house and get that back. Otherwise, we
would have lost millions and millions of dollars, right there and I lost all my possessions, it
still was a huge rebuilding process that you can't replace all these possessions. But in
your 40s, you you gotta have you got to have that insurance. What happens if you accidentally
you know, I was talking to this couple the other day at a Mexican restaurant I hang out at. And
it's like a 50 year old couple though. But they they accidentally bumped this nine year old guy
he was in their car, the guy didn't fall over, nothing happened. He just, you know, shook his
hand at them. The guy died two weeks later. And his wife sued them for his daughter sued them
for two and a half million dollars saying they caused the death even though nothing happened
from it, they had to pay it, their insurance policy was only 100,000 they paid 2.4 million
out of pocket, they had to sell their house, they had to sell all their possessions, or so what
they can divest their retirement accounts was off, right ruin their life.
So have insurance. Now, the
fifth mistake people make is putting off a state planning, right? It's kind of a morbid subject.
It's literally talking, we're literally talking about your death here. But you know, estate
planning is important. depending on you know, I think in their 40s Lots of people get divorced
freak, accidents can happen, whatever. Now, what I recommend, and what my friends do, is what's
called a generational skipping trust. So your kids, so if you ever have the event of a divorce
or anything like this, all your possessions are technically go to your kids anyways around in
the Trust for your kids. So that actually can't be taken from you the state plan, you know, write
up a will write up write up your plan, you know, and what could help, you know, I haven't done this
yet, but maybe I will is like, I'm gonna write my estate plan as if what I will have when I die
when I'm, you know, 90 years old, you know, like, what will I have, like, I'm gonna, I don't know,
I'm gonna make it into a game.
I'm thinking about this now, not 40 yet, but four years away, like
my space yacht goes to, you know, this person, you know, this goes to this person, but you can
make it fun. But you know, it's definitely a good idea. If you're in your 40s. So pretty old, you're
getting, you're getting old. Now, the next thing, the next mistake is not prioritizing, paying off
your mortgage, if you if you're in your 40s, it's assumed you still have a mortgage, pay it down,
paid off, who knows where life's gonna go, you're at the height of your income potential, you're at
half the height of your income. So pay off your mortgage, you know, these are the years the 40s
of yours, you want that mortgage off your plate, so your 50s and whatever else beyond there, you've
got that property, if you don't have a property, get the properties. Another mistake people
make in their 40s is it's really interesting, I've seen a lot is this desire, I don't know what
it is about when somebody hits the age of like 40 or 42 they just want to start remodeling things
in their house, like let's, let's turn this wall into stone and let's redo our kitchen.
Let's
change out, you know, let's put surround sound everywhere. You know, you just want to spend spend
spend money on you know, changing around things in your house, right, you're getting a little old,
I get it, you're in your 40s don't want to move around as much. You want to you're making money,
you want to spend it on the house. You know, don't just assume that it's an investment and
it's going to improve the value of your house, you know, that surround sound system you want
to spend, you know, 10,000 on you know, plus, you know, repairs and stuff might not be you know,
might not increase the value of your house $10,000 Not everybody might care as much as you do about
you know about that sound system. So, you know, again, prioritize paying off your mortgage, not
endlessly remodeling. Another mistake I've seen folks making is in their 40s I have a lot of
friends. Most of my friends are older than me actually. Is overspending on Children. I've
heard so many folks especially in California, which is like the biggest anti family state in
the nation saying, you know, kids are expensive. You know, when in reality I think most of these
single people are more expensive than they spend more if they were single than if they had
kids.
Kids aren't expensive. My kids their favorite thing to eat, you know, is Eggo waffles
in the morning, cost 20 cents a waffle, you know, favorite thing to eat for lunch? Kraft macaroni
and cheese, those things cost like 50 cents a carton or something like that, you know,
so you don't need to overspend on kids. I think college education is brainwashing. Why
would you send your kids to college anyways, you know, but there's so many things like that
where you know what, for what you think is like a necessary expense probably isn't, you know, your
kids will turn out fine. If you are a good and present parent, and you instill the right morals
in the ninth mistake I see folks making is over tapping their retirement savings. And this goes
back to my point over here, which was neglecting your emergency fund. People do the same thing
with their retirement, they say, oh, you know, let me let me use my retirement to buy a car.
It's like, No, you know, like, don't do that your retirement is for your retirement.
Okay? Yeah,
just just treat, treat that as your retirement, then just don't, you know, don't neglect it.
Another mistake folks make in their 40s is not just diversifying their investments, you know,
again, we we know, don't know where the world's going, you know, I say America is collapsing, and
the American Empire is collapsing in five to 10 years, right? We're gonna split into like a couple
different sections, like three or four sections, a lot of sci fi authors predicted but you know, what
does that mean for the currency, American stocks, you know, dividends, you know, like city bonds,
municipal bonds, state bonds, you know, whatever, no, I don't know. But if you don't have a
diversified investment strategy, you're gonna get hit at some point. The next mistake is just don't
think being risk averse is a bad thing. Avoiding risk is really good. You don't have to, you don't
have to be all risky in your 40s. The 12th mistake that a lot of 40 year olds make is thinking that
they're going to keep earning more and more money. Okay.
The 40s is traditionally the top, you're at
the top of what your income is going to be. Now, of course, all of us always think the best years
are to come. But the reality is, if you're in your 40s These are probably the best years. So
don't spend money, don't treat it like the best years are yet to come. Don't trick yourself. You
know, again, practice. You know, Don't overextend yourself. And the last the 13th tip I'll give
you if you're in your 40s is do not neglect your health. I'm 36 I'm getting older, right? But what
I do is I start the morning, literally, I roll out of bed like literally I roll out and I hit the
floor and I'm doing push ups 37 Push ups in the morning like clockwork, you know, but I make sure
I'm always you know, I'm doing a lot I'm working out during the day and other stuff.
But the
point is your health is so important, you know, eating sleeping exercise, you know, go out there
and do it. You know if the gyms too far away, right? I live in the middle of the mountains in
Malibu, right? You know, there's no gyms you know, the nearest gym is 15 minutes away from me.
I get my workout. I'm gardening I move rocks, I'm lifting rocks, I'm digging holes, I'll dig
holes just to dig holes you know, but I'm getting my workout in on my property working at home
without going to a gym. You know I go for runs you know I switch things up. But the point being is
you know what if gyms don't work for you something else does your health is so important. You know
what I did was I got a aura ring. A you are a or sorry. Oh, you are a it's like some like Finnish
company that tracks your sleep. I'm big on sleep hacking. I won't eat after 12 o'clock. You know
a lot of people eat after 12 o'clock.
You know, I don't I don't drink alcohol or smoke weed after
12 o'clock. You know, I make sure that I have some sort of healthiness I drink a ton of water, a
ton of water, because water is gonna keep you going. You avoid a lot of health problems. If
you're just conscious about it, and you think of those three main things again, it's sleep,
exercise and what you eat. So there's been John I hope something helped you out here. This was a
long this was a long video 16 minutes oh my gosh, and I'm not even 40 yet but I'm close. So let me
know what helped you out the most in the comments. Or let me know if I'm wrong on something or let
me know if you have other value that you can add to the audience again, we're trying to build a
community here and the way we build a community is we participate.
So please participate. If you
would like a free book, I have my book, you know, I made my money. I've made my money in affiliate
marketing, and I teach it to other folks now and if you'd like a copy of my book for free, it's
in the link in the description. Great seeing you, John Crestani here, looking forward
to seeing you in another video. Bye..
