A Letter to my 20 Year Old Self

I’ve just invented a time machine that is good for one letter to myself and I’m only allowed to talk about finances and general life. So obviously I cant just tell myself to buy Apple, Microsoft and Amazon as soon as they list as that would be cheating and my time machine wouldn’t allow it. Any sort of insider information like the Internet bubble or the 2008-09 financial crisis is also not permitted.

No trickery of any kind. Just general advice that could work in any period of time. Which means that it’s probably advice that I should be taking now as the things I share with my younger self should still be valid today.

Dear Younger Self

Hello you fantastic looking freak. I know you don’t like doing what you’re told and you have zero respect for the system and the many arms it uses to trick and control the masses but you’re going to listen to me now and do exactly what I tell you to do. Ignore my message and I will haunt you night after night until the end of time.

You’re right about it all. The lunatics have control of the madhouse and that’s not changing anytime in the next few centuries, so stop researching anything to do with the system, politics, media, education, and the many hot button issues that the filth will continue to shove down your throat. You know and I know that we’re run by psychopaths and they will manipulate, control and divide us for as long as they continue to exist.

This is a monster planet run by non-human beasts but there are ways to exist as if this earth is paradise. You won’t be completely free as the monsters will still be in control, but it’s as close to freedom as possible on this beautiful rock hurtling through space.

Make Money

You are not even human until you have a passive income that covers all of your living expenses and increases by at least 5% every year. So for the next ten years I want you to work every single minute you can. Get a job, start a business, create websites. Forget about university degrees, just work and make as much money as you can now.

That’s the easy part, now for the hard part.

Invest Money in Stocks

Working hard and spending every dollar you earn is just stupid. But you’re not going to be stupid because you’re going to invest at least 50% of every dollar you earn into income producing investments! There are no excuses. Do what you have to do to make it happen. Live with your mother, don’t take holidays, and definitely don’t buy a new car.

Start with ETFs and build core positions. Keep things simple and don’t buy any individual stocks yet. Something like..

1. S&P 500 ETF (500 largest listed American companies) 25% of portfolio
2. NASDAQ 100 ETF (I can’t share any tips but technology will be big in the future) 25% of portfolio
3. ASX 300 ETF (Or an index of your local market. I’m in Australia so I want local companies listed on the ASX) 25% of portfolio
4. All World Ex-USA (An index of 1000 or more of the biggest companies in the world, minus the US because you already have that market covered) 15% of portfolio
5. Do some research and choose something yourself (think long term, income producing, growing dividends by at least 5% per year) 10% of portfolio

After two or three years you should have a very nice portfolio of ETFs producing a nice income which is obviously being reinvested. Hopefully you’ve also been learning a lot more about stocks.

You could easily continue investing in ETFs forever and become a free man in less than 10 years. But if you’re interested in business and how to value them then look into buying individual stocks. 33% ETFs, 33% local stocks and 33% international stocks could be something worth looking into.

Make the transition slowly though as you should read 50 books on valuing stocks before buying anything. Here’s some things that I look for when Valuing a stock.

Invest Money in Property

While living with your mother buy a rental property. Ideally a 4 bedroom home with a yard. Let the tenant pay the mortgage while you focus on increasing your dividend paying stock portfolio.

Repeat every 5 years if you don’t mind dealing with house repairs and tenants. If not, just look into some diversified REITs and you’ll be exposed to real estate without having to maintain properties.

You should buy at least one property though as you can eventually live in it if you choose to.

More Finance Things

Reward yourself with a Ferrari 250 GTO, a Shelby 427 Cobra Roadster and a Holden Torana A9X. Keep them garaged with low miles please!

Only borrow money for investments but keep the ratio very low and use leverage only when you absolutely have to. All three toys above are investments so use whatever debt you need to in order to get your hands on those little babies.

This 10 years of sacrifice will set you free for the rest of your life. You can then choose to work or not, your choice.

Relax a little after you can cover all of your expenses with passive income. But keep growing as you now need to double your expenses so that you can live on half of your dividends or rental income and reinvest the other half. This will ensure that your income will continue to grow fast into the future.

Inflation is constantly stealing dollars from your pocket. It’s the silent tax used by the filth to keep the masses on the treadmill. So don’t ever invest in bonds or cash or anything similar. You need income producing assets that are increasing in value over time to escape the clutches of inflation.

Once you have twice the income required to live a comfortable life, start looking into alternative investments that may or may not produce an income. Keep reinvesting in the stocks and/or properties that have set you free but also look at assets like art, coins, Rolex and Patek Philippe watches, precious metals, classic cars, design objects, antiques, and other collectibles.

Some Other Things You May Find Useful

Pot bad. Sugar bad. Alcohol poison. Gluten in moderation. Learn to like an alternative milk from a plant or nut. No credit cards, only debit cards. Keep away from toxic people. Don’t try to change people. Definitely don’t try to set people free as most people are deathly afraid of freedom (even if they tell you they want to be free). Mainstream media is all lies. Democracy is a sick joke. Question everything. If you’re not reading at least one book per month you’re quickly retarding. Exercise for at least 30 minutes everyday. Grow as much of your own food as possible. Everything is energy. You’re responsible for everything in your life. Draw something everyday. Life is good. Everything will be fine.

Ps.. Magical things rhyme with Pit-Join and they’re the opposite of Macro-Hard. Pull out when you make $10,000,000 on the former and put it into the latter.

Pss.. Some of the richest people in the world today include Jeff Bezos, Warren Buffett, Elon Musk and Bernard Arnault.

What would you write to your 20 year old self? No cheating. We can’t give away too many secrets of the future. Just general advice. So you can’t tell yourself to keep away from Jenny as she’s a nutjob or anything too specific.