I was quite naive when I landed a 'real' job in the financial markets even if I was cautiously excited. Looking back if I'd had a road-map or mentor to guide me even in a very general way, it may well have helped me not make so many ill-considered financial decisions. Grads starting out these days seem to be a bit more ahead of the game than I was at their age.
Delete or use, here are a few things I wish I was told in my early 20's.
Passion is overrated. People always say “go into something you’re passionate about”. Recently I heard Scott Galloway of NYU Stern, say that "it's better to concentrate on something you are good at and then develop a passion for it".
I was always one for deep analysis..mostly sport and racehorses from when I was very young and I grew into my love of investing and the markets and only became passionate about it after spending some time doing the work. The same thing could be said about my interest in sharing knowledge and mentoring.
Learn about behavioural psychology and human nature. You have to understand how humans generally function and how things like incentives, blind spots, and cognitive dissonance guide our actions. Human nature is a fascinating subject matter that far too few people ever take the time to study. Understanding your own biases and how other people are hardwired will help you understand much of how the world works.
Avoid defeatism at all costs. Don’t let people tell you the horrible job market is holding you back. The headlines don’t run your life or make decisions for you. Don’t worry about what everyone else is doing. Focus on getting better and avoid negative people like the plague. Negative people will drag the best of people down.
Think in terms of systems over goals. A goal would be: How do I accumulate $1 million? A system would be: How do I put processes in place to become wealthier over time? If you’re only focused on the end goal it can make you feel like a letdown if you fall short. You can’t control life and all of its unpredictable outcomes so it’s more important to implement good systems you can follow over and over again in hopes of putting the probabilities in your favour.
Avoid lifestyle creep. Being a big spender is a tough habit to kick. Investigate the term "pay yourself first", which basically means automatically deduct your savings the day you get paid.
Learning about great investors is very entertaining, and also a great way to develop passion to put yourself on the right path. Personal finance is also one of the most important, yet ignored topics on becoming a functioning adult.
Kick off your superannuation account. Saving money is the most important investment decision you can make, especially at a young age when you have the wind at your back in terms of human capital and compound interest. With compulsory super and voluntary contributions you can increase how much you save a little each year, make it automatic and your future self will thank you. I have seen a book titled "The Automatic Millionaire", ....it is simply about setting up auto deductions from your income account to your savings account or some form of digital wealth advisor account.
Keep up the study. One of the best ways to become smarter is to read as much as possible on a wide range of subjects. Being well-read can help level the playing field when you’re young and inexperienced. As Charlie Munger has said "people who are well-read do far better than those who were born with a high intellect".
Understand the difference between being productive and being busy. If you land an internship at Macquarie of Morgan Stanley you'll see so many of the people there work 70-80 hour weeks that are typically really busy but not really productive. Some jobs force you to do busy work but figuring out how to manage your time productively is essential if you ever want a life outside the office or a fulfilling career.
Ask questions. You feel like an idiot at times, but one of the ways I learned on the job was simply by asking questions every time I didn’t understand something. Not only does this help you figure out what’s going on faster but it shows you’re interested. From there it’s up to you to become a fast learner so you can help solve other people’s problems.
Take care of your health. You'll have to figure out this for yourself, but there is so much info available on becoming sugar free and staying fit.
Learn how to sell. Everyone is in some form of sales whether they understand it or not. You have to be able to sell yourself, your message, your product, your firm or your philosophy. This includes adding value to your resume', and asking for a bigger bonus.
And finally. Life is all about balance. Aussie's are great travellers s throw the backpack on and do the bolt every now and then...even if you have to resign.