The most powerful way to think about money | Paula Pant

Financial expert Paula Pant explains how you can afford anything, but not everything.

It's oh-so-easy to look at shiny, quickly rewarding options for your money as a ticket to financial independence. A big hit on the stock market; a hockey sticking cryptocurrency; an app that can put you on the path to easy street. But truly building financial independence is a life-long process, says Paula Pant, the host of the Afford Anything podcast.

Think of your finances like a tree. While the leaves and fruit are grabby and exciting, they aren't where the tree's strength lies: that's in the roots. So too do healthy finances begin from a core base: figuring out what you value most, what you truly want to afford.

From there, you can make the long term plans to see that come to fruition. With a stable, value-driven approach and some discipline, a world of freedom can open before you. You may not be able to buy everything, but you can buy anything.

0:00 Afford anything (not everything)
1:03 First principles thinking
2:30 Financial independence
3:35 Simple steps to independence
4:31 The 20% rule
5:18 Survive a scary economy

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About Paula Pant:
Paula Pant is the host of the Afford Anything podcast, an award-winning show with more than 24 million downloads. It was named by the New York Times as one of “7 Podcasts Your Wallet Will Love.”

She is also the founder of Afford Anything, a personal finance brand with more than 75,000 newsletter subscribers.

She is a Knight-Bagehot Business and Economics Journalism Fellow at Columbia University.

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Read more of our stories on personal finance:
Gamification: can video games change our money habits?
5 realistic ways to save money, according to experts
How to become a millionaire

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[ThomasSmith]

For me the biggest mindset change came after reading the book 25 Money Secrets From Donald Trump, since reading it the only thing I think about is money

[TheJackCain-]

Protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over.

[Ziggler-kykv]

It's surprising how under the radar the book Matrix Golden Cashflow Tactics is. If you're curious, It is definitely worth a look.

[Patriciabanks]

Most people miss it, but the secret to retiring comfortably is finding a way to make returns while your money works for you. My dad, as I remember, started saving for retirement quite late, but I know he was making more than 10k returns from his investment monthly and it was completely passive.

[RuthEvelyn-rcbg]

Creating wealth entails establishing positive routines, I had only $78k to my name at 42 when I first woke up to this reality. I chose the stock market as a medium of growth, got an excellent financial advisor, Financial management is a vital subject that many avoid, often leading to future regrets.

[abrahamibizugbe]

1. Grow the gap (the difference between what you earn and what you spend)
2. Invest the gap.
3. Repeat step 1 and 2.

Well taught priceless steps to financial freedom 👏

[chriswalter]

Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking the bold steps we need in other to reach our goals.

[rannyorton]

The first hundred thousand is so hard to get

[Robertgriffinne]

As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?

[MathiasLaurel]

I agree that many people are considering NVDA as the "Stock of the year." However, I'm curious about which stocks could potentially become the next META in terms of growth over the next decade. I've allocated $200k for investment, looking for companies to make additions to boost performance

[JefferyDuns]

I love how you take your time to educate your viewers we all strive towards financial stability and a better Life. It is easy to achieve this through the right investment, by living frugally and budgeting. I'm glad I learnt early in life to work hard for financial freedom

[sebastianspiegler]

Investors of your age can afford to wait for the ''Bull market'' and see your investments grow, but little is discussed on these or other videos on YT about investing for pensioners like me (68) who are already in receipt of state and workplace pensions. Where should I invest, yielding good returns this year? I have my funds ready, but where to go? Or take the bank's 12 month guaranteed bonds at 4.75% and skip the market?

[Raymondjohn]

More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.

[Willycheng]

As a middle class citizen seeking a stable finance, I saved 10k last year and flipped into six figures within a few months and still going. I’ve always been an advocate of investing in the stock market because it has been rather rewarding.

[YFolermira]

Creating wealth entails establishing positive routines, such as consistently setting aside funds at regular intervals for sound investments. Financial management is a vital subject that many avoid, often leading to future regrets.

[arickbakken]

Instead telling me to simply "save more", someone once told me to "pay yourself first". It's a slight shift of framing the thought but it landed so well with me in my 20s. When I get money from a job, I'm going to pay myself first, divert 10% into investments/emergency savings and then I can think about paying other people for stuff I want/need. I know it's the same thing but just telling me to save didn't seem to have the same impact.

[SophiaAlbury]

*Appreciate your videos! I’m 54 and younger generations should know there’s no shortcut to acquiring wealth, but there are ways to go about it. Fellow millionaires don’t tell the poor/middle class they need the knowledge of finance coaches to help build their wealth. If anyone here needs a good coach, here’s it..*

[carter]

After a nightmarish 2022, shell-shocked investors have losses to recoup and plenty to ponder, as an inflation report and a raft of other data did little to change expectations that the Federal Reserve would likely continue hiking intrest rates even if the economy slows down, Which means more red ink for portfolios for the first quarter of year 2023. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $250k bond/stocck portfolio

[HodgeChris]

The financial system has been artificially pumped for over a decade to ensure big pockets were lined; and now those same hands will make a fortune in the largest transfer of wealth in human history by shorting it on the way down. Inflation does have a roll, but that's to keep everyone panicked, and focused on their bills and expenses, rather than focus on the capital crimes of politicians and corporations, I'm still at a crossroads deciding if to liquidate my $338k stock portfolio, what’s the best way to take advantage of this bear market??

[joshhushed]

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.