Once you get money, upgrade these 10 things immediately — Transcript

Full transcript

1. 0:00Most finance content tells you to cut
2. 0:02back, stop spending on this, stop buying
3. 0:04that, and there is a time and place for
4. 0:06that advice. But today, I'm going to do
5. 0:08the opposite. There are 10 things that
6. 0:11you should upgrade once you start making
7. 0:13real money, specifically because of how
8. 0:16directly they impact your mental health
9. 0:18and your day-to-day quality of life.
10. 0:20Now, of course, this assumes your
11. 0:22financial foundations are already in
12. 0:23place, you're saving, you're investing,
13. 0:25and then you have some disposable income
14. 0:26left over. So, if that's you, this video
15. 0:28is for you. Let's get into number one
16. 0:31and that is your sleep setup. If there
17. 0:33is one upgrade on this list with the
18. 0:35most immediate measurable return, it is
19. 0:37probably your sleep setup. In fact,
20. 0:39Matthew Walker, who is a neuroscientist
21. 0:41and author of Why We Sleep, found that
22. 0:44sleeping less than 6 hours a night
23. 0:46impairs your cognitive performance to a
24. 0:49level equivalent to being legally drunk.
25. 0:52And most people are doing this almost
26. 0:53every single night. So, I upgraded my
27. 0:55mattress 2 years ago and genuinely could
28. 0:57not believe the difference within the
29. 0:59first week. Not just sleep quality,
30. 1:01focus, mood, energy. It compounds into
31. 1:03everything else on this list. The
32. 1:05specific upgrades worth making are a
33. 1:07quality mattress, a supportive pillow,
34. 1:09blackout curtains, earplugs if you live
35. 1:11somewhere noisy. You spend a third of
36. 1:12your life in bed. It is the one piece of
37. 1:14furniture that is worth spending
38. 1:16properly on. Right, let's move on to
39. 1:18number two, and that is your health
40. 1:20access. So, this one looks different
41. 1:21depending on your situation, but the
42. 1:23principle it's the same. Once you're
43. 1:25earning well, it's worth spending money
44. 1:27to make health care faster and easier to
45. 1:30access. So, the first thing to check is,
46. 1:33does your employer already offer you a
47. 1:34health insurance as a benefit? A lot of
48. 1:36companies do actually include it in a
49. 1:38package. So, you just need to make sure
50. 1:39you've opted in and check what it
51. 1:41covers. If you don't have it through
52. 1:43work, then a private health insurance
53. 1:44policy is, in my opinion, an absolute
54. 1:47must. something that gets you the same
55. 1:49day GP access, fasttrack specialist
56. 1:51referrals, private hospital treatment if
57. 1:53you need it. The average NHS weight for
58. 1:55a specialist referral is currently 18
59. 1:57weeks with private insurance. That's
60. 1:59typically days. And of course, my point
61. 2:01isn't to completely opt out of the NHS,
62. 2:03is to use money to remove delays when
63. 2:05those delays are costing you in health.
64. 2:07Okay. Right. Number three, and that is
65. 2:09your pension. This one is specifically
66. 2:11for my UK people, and this is
67. 2:13essentially the equivalent of an
68. 2:15investing upgrade. Most people who are
69. 2:17earning well are massively underusing
70. 2:19it. So the first concept is simple. I've
71. 2:21covered it in my videos before. Most
72. 2:23employers will match your pension
73. 2:24contributions up to a certain
74. 2:26percentage. So if you're not
75. 2:27contributing enough to get that full
76. 2:28match, you are turning down free money.
77. 2:30That is it. Log into your HR system,
78. 2:32find out what your employer's maximum
79. 2:34matches, and just make sure you are
80. 2:35hitting that. The second concept is less
81. 2:37wellknown and it's specifically relevant
82. 2:39if you are earning over £100,000 or
83. 2:42about to earn or step into that £100,000
84. 2:44within your overall income in the coming
85. 2:46year. So with this, once your salary
86. 2:48crosses that threshold, you start losing
87. 2:50your personal allowance, which is the
88. 2:52amount that you can earn tax-free. And
89. 2:54for every £2 you earn over £100,000, you
90. 2:58lose £1 of that allowance, which means
91. 3:01your effective tax rate in that band
92. 3:04isn't 40%. it's 60%. So the way out of
93. 3:08this is to increase your pension
94. 3:09contributions. Pension contributions
95. 3:11just reduce what HMRC calls your
96. 3:13adjusted net income. So if you're
97. 3:15earning 110,000 and you contribute
98. 3:1710,000 more into your pension, you're
99. 3:20essentially bringing yourself back down
100. 3:22to 100,000 and then you're restoring
101. 3:24that full personal allowance. So you
102. 3:26haven't lost that money. It's just
103. 3:27sitting in your pension, but you're
104. 3:28avoid paying 60% tax on it. So overall,
105. 3:32you are better off. When I was in
106. 3:33banking, this is something that was
107. 3:35often spoken about, but I've met people
108. 3:37who are earning over six figures who
109. 3:38haven't factored this in, and it's one
110. 3:40of the first things you need to make
111. 3:41sure that you're aware about, right?
112. 3:43Number four, and that is your financial
113. 3:45infrastructure. The biggest financial
114. 3:46mistake people make when they start
115. 3:48earning well, is leaving money sitting
116. 3:51in a current account doing nothing. I'm
117. 3:53a chartered accountant. I've spent years
118. 3:54teaching people how to manage their own
119. 3:56money, index funds, ISAs, pensions. I
120. 3:58genuinely believe that you can learn
121. 4:00this yourself and you do not need to
122. 4:02hand your money to someone else to
123. 4:03manage it. This is what this channel is
124. 4:05built on. But what I see constantly is
125. 4:08people who understand the concepts mean
126. 4:10to get started but just never quite do
127. 4:12it. The money sits in that current
128. 4:14account for months, for years, and then
129. 4:16the whole time inflation is eroding its
130. 4:19value. And so if you are someone who's
131. 4:21watching this nodding along that you
132. 4:23have money sitting in your bank account
133. 4:24and you're not investing yet out of
134. 4:26everything on this entire list, this is
135. 4:28really high up. Every month that's
136. 4:29sitting there, you are never getting
137. 4:31that compound interest back. I have a
138. 4:34completely free investing workshop. I
139. 4:35will link it below and it goes through
140. 4:37exactly where to start and everything
141. 4:39you need to know in a lot more detail.
142. 4:40It's happening this Sunday. So if that
143. 4:42is you, please go and watch it before
144. 4:44you do anything else on this list. You
145. 4:46just need to make sure that your money
146. 4:47is working as hard as you are. Right.
147. 4:50Number five, and that is your home
148. 4:52environment. I had a broken door handle
149. 4:54in my flat for over a year and I just
150. 4:57lived with it and it annoyed me every
151. 4:59time I opened the door that I couldn't
152. 5:00use the handle properly and I just had
153. 5:01to pull the door open and I figured it
154. 5:03was fine. I didn't bother fixing it.
155. 5:05Then I rented out that flat because I
156. 5:07was going traveling. And before I rented
157. 5:09it out, I fixed it. I fixed that and I
158. 5:11fixed everything else that I'd been
159. 5:12ignoring for months. And I remember
160. 5:14thinking at the time, why did it take
161. 5:17renting this to someone else for me to
162. 5:19do that? Why wasn't I worth doing it
163. 5:21for? And I actually think a lot of us do
164. 5:23this. We tolerate things in our own
165. 5:25homes that we would never accept
166. 5:27anywhere else. The flickering light
167. 5:29bulb, the uncomfortable sofa, the
168. 5:31bedroom that never really feels quite
169. 5:33homey or comfortable. And we just adapt
170. 5:36around them and delay making them nice.
171. 5:39But you probably spend more time in your
172. 5:41home than anywhere else. And if that is
173. 5:43a backdrop to almost everything, like
174. 5:45how you sleep, how you work, how you
175. 5:47decompress, the quality of that
176. 5:49environment has a direct impact on how
177. 5:51you feel every single day. The upgrades
178. 5:54don't have to be big at all, like better
179. 5:57lighting, warm rather than harsh
180. 5:59overhead lights, plants, which have been
181. 6:01shown in multiple studies to reduce
182. 6:03stress and improve mood. A proper
183. 6:04workspace if you're working from home. I
184. 6:06upgraded to a much larger monitor. I was
185. 6:09working from my laptop for god knows how
186. 6:10long. And this monitor has just made
187. 6:13working so much more productive. So, I
188. 6:16cannot recommend this enough. Upgrading
189. 6:18your workspace and especially the rooms
190. 6:19that you spend most of the time in.
191. 6:21Number six, your passions and interest.
192. 6:23This is probably a it sounds like a bit
193. 6:25of a weird one, but there is a version
194. 6:26of financial success that looks great on
195. 6:29paper and feels completely empty in real
196. 6:31life. And that version is good salary,
197. 6:34ticking the boxes, no idea what you
198. 6:35actually enjoy anymore because you spend
199. 6:37most of your time just working. And I
200. 6:38think hobbies and interests are one of
201. 6:40the most underrated things that someone
202. 6:42could spend on because it's one of the
203. 6:43first things that people drop when they
204. 6:45get busy. But there is a study that
205. 6:46found that people who regularly engage
206. 6:48in leisure activities has significantly
207. 6:51lower levels of negative effect of
208. 6:53depression and stress. That's not
209. 6:55marginally lower. It's significantly
210. 6:57lower. And even beyond the research,
211. 6:59there is something important about
212. 7:00having a part of your life that exists
213. 7:02entirely outside of your work and your
214. 7:04productivity. something you do purely
215. 7:07because you enjoy it, because you're
216. 7:08good at it, because it helps you escape
217. 7:11from the mundane day-to-day. So once you
218. 7:13have some disposable income, invest in
219. 7:15that properly. And I'm not just saying
220. 7:16in the hobby itself, but also in the
221. 7:18equipment, the lessons, the community
222. 7:19around it. If you're running, get
223. 7:21properly fitted shoes. If you're really
224. 7:23like cooking, take a course. If you want
225. 7:25to get into golf, get the lessons.
226. 7:27Whatever it is, take it seriously. For
227. 7:29me, recently, this has been swimming. So
228. 7:31I spend some of my disposable income on
229. 7:33everything swimming related. And for me,
230. 7:35it's such a nice way to get out of my
231. 7:38day-to-day and not have any technology
232. 7:40around me, not be around anyone, and
233. 7:42just do my own thing for a bit. It's
234. 7:44made such a difference on my day-to-day.
235. 7:46So, highly, highly recommend this. And
236. 7:48figuring out what your hobby or your
237. 7:50interest is and then going all in and
238. 7:51spending on that thing to make it even
239. 7:53more enjoyable for you. I know a lot of
240. 7:55people watching this are really good at
241. 7:57their job and love working, but you are
242. 8:00not just your job. Your passions and
243. 8:01interests are a huge part of what makes
244. 8:04life feel like yours. Right. Number
245. 8:06seven, convenience. Not just for you,
246. 8:08but also for your family. There is a
247. 8:10type of stress that doesn't show up in
248. 8:12any productivity framework. And it is
249. 8:13the mental load of running a household.
250. 8:16The admin, the logistics, the invisible
251. 8:18list of things that need doing that
252. 8:19lives permanently at the back of your
253. 8:21mind. And if you have a family, a
254. 8:23partner, children, parents you support,
255. 8:25that mental load, it multiplies. So once
256. 8:27you have disposable income, spending
257. 8:29money to reduce that load is one of the
258. 8:31most direct investments you can make in
259. 8:35your home life. Examples of this could
260. 8:37be a cleaner, a meal delivery service on
261. 8:40a busy weekn night, paying for someone
262. 8:41to do the garden, having someone do the
263. 8:43laundry and drop it off. All these tasks
264. 8:45that add up and can really drain not
265. 8:48only you but your relationships. There
266. 8:50is also something worth saying about the
267. 8:51people in your family who need support.
268. 8:53Whether that is helping a parent with
269. 8:55something they're struggling with or
270. 8:56taking something off a partner's plate,
271. 8:59money spent reducing friction in the
272. 9:01lives of people you love has a return.
273. 9:03And that is very hard to quantify, but
274. 9:05it's very easy to feel, right? Number
275. 9:08eight, and that is your mental and
276. 9:10physical fitness. Okay, so I have very
277. 9:13little natural discipline when it comes
278. 9:15to going to the gym. If I don't, the
279. 9:16most boring thing to do, and I know that
280. 9:18about myself. So rather than pretending
281. 9:20I would just figure it out for a short
282. 9:22while I hired a personal trainer. It was
283. 9:24one of the first things that I hired
284. 9:25when I got money. And when I did my
285. 9:27spending tracker last year, which I'll
286. 9:29link below as well, it's completely
287. 9:30free. It was my single biggest
288. 9:33discretionary spend. And I do not regret
289. 9:35a penny of it. And I'm not saying a
290. 9:37personal trainer is the only way to get
291. 9:38fit, but because I knew without that
292. 9:40accountability, I simply would not show
293. 9:42up. When I used to work in banking, it
294. 9:44was a lot more easier for me to just go
295. 9:46to the gym on my way home from work. But
296. 9:48now it's really hard for me to get out
297. 9:50of my office to go to do a workout. And
298. 9:52that investment forced the habit. And
299. 9:54once that habit was there, everything
300. 9:56else improved. It literally compounds
301. 9:58into everything. Maybe for you, your
302. 10:00version of this is actually paying for a
303. 10:02nice subscription that makes you more
304. 10:04motivated to work out or a nice gym set
305. 10:06that motivates you to work out or
306. 10:08something like that. And when it comes
307. 10:09to the mental health side, therapy,
308. 10:11coaching, even a consistent journaling
309. 10:13practice, these are the most underrated
310. 10:15and most deferred upgrades on this
311. 10:17entire list. It's the internal work,
312. 10:19which is understanding how you make
313. 10:21decisions. What drives your behavior,
314. 10:23what is really going on underneath the
315. 10:25surface. Most people will defer this
316. 10:27part of their upgrade indefinitely
317. 10:30because it feels less tangible than
318. 10:31getting a gym membership. But the return
319. 10:33on this is huge. And again, if you have
320. 10:37insurance with work, a lot of companies
321. 10:39do provide that through your work
322. 10:40insurance as well. Um, that is what I
323. 10:42did, so it's worth checking if that's
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350. 11:41Then you have your skills. So once you
351. 11:43have some disposable income, one of the
352. 11:45smartest places to put it is back into
353. 11:48yourself, specifically into skills that
354. 11:50directly increase your earning
355. 11:51potential. And this isn't about going
356. 11:54and doing another degree, but in fact,
357. 11:56the most valuable upgrades are like
358. 11:58certifications, technical training,
359. 12:00courses that have a clear and direct
360. 12:02line to either a higher salary or a
361. 12:05better job or a better industry. And so
362. 12:08the way I like to think about this and a
363. 12:09good rule of thumb is if this skill
364. 12:10you're investing in will pay for itself
365. 12:12within one or two years, it is worth it.
366. 12:14A course on AI, a financial modeling
367. 12:17certification, these are things that can
368. 12:18add 10,000, 20,000 to your annual salary
369. 12:22really quickly. So the ROI on that is
370. 12:24obvious, but there is also a second
371. 12:26category of skills worth investing in
372. 12:28that people tend to overlook and that is
373. 12:29the ones that make you better at your
374. 12:31existing job without necessarily
375. 12:33changing your title. So, I'm talking
376. 12:35about public speaking courses,
377. 12:37negotiation training, management skills.
378. 12:39These are the things that determine very
379. 12:41often whether you're going to get
380. 12:42promoted, whether you're going to get
381. 12:44that pay rise, whether you're going to
382. 12:45get taken seriously in that room. So,
383. 12:47the way I would think about this is ask
384. 12:49myself, what is the one skill gap that
385. 12:51is currently costing me the most or
386. 12:54stopping me from getting to the amount I
387. 12:56want to earn? And then go and spend
388. 12:58money to go and close that gap. Right.
389. 13:00And finally, number 10, which is your
390. 13:02wardrobe. And you're probably thinking
391. 13:04that's rich for someone who always wears
392. 13:05black and always wears the same thing.
393. 13:07But I don't actually outside of YouTube.
394. 13:10I've definitely spent money to upgrade
395. 13:12this part of my life. And I think there
396. 13:14is a guilt that comes with spending
397. 13:16money on yourself, especially on
398. 13:17clothes. Like it somehow is frivolous or
399. 13:20a bit vain. But the research actually
400. 13:21doesn't support that. A study published
401. 13:24found that satisfaction with clothing
402. 13:26choices was actually a significant
403. 13:28predictor of overall well-being. And the
404. 13:30research shows that when you wear
405. 13:32clothes that fit well, that make you
406. 13:34feel confident, that makes your posture
407. 13:36improve, you actually feel more self
408. 13:38assured. And there's actually a term for
409. 13:40it. It's called enclod cognition. It's
410. 13:42the idea that what you wear directly
411. 13:44changes how you think, how you carry
412. 13:46yourself, how you show up. And I've
413. 13:48definitely noticed this in my own life.
414. 13:50If I'm going somewhere where the way I
415. 13:52carry myself makes a difference, I
416. 13:53consciously make an effort to wear
417. 13:55something that I know will make me feel
418. 13:57more confident. And this isn't about
419. 13:58buying designer or dressing to impress
420. 14:00anyone else. It's literally about
421. 14:02wearing things that make you feel better
422. 14:04when you walk out the door in the
423. 14:05morning. Once you can afford to buy
424. 14:07things you genuinely love wearing, do
425. 14:09it. You don't really need anyone else's
426. 14:10permission to tell you what you can and
427. 14:12can't buy. I think there is a version of
428. 14:14financial success that people chase for
429. 14:16years and arrive at feeling surprisingly
430. 14:19empty. The number is there. The life
431. 14:21doesn't feel that different. And that is
432. 14:22usually because the money went into the
433. 14:24right accounts maybe, but never went
434. 14:26into the right places. Whether that's
435. 14:28sleep, health, your home, your passions,
436. 14:30the people you love. Your sense of who
437. 14:31you are outside of work. These aren't
438. 14:34luxuries to consider when everything
439. 14:36else is sorted and you're living your
440. 14:38retired life. They are the point. You
441. 14:40work hard for money and at some point it
442. 14:42has to start working for your life. So
443. 14:44that is what this list is really about.
444. 14:45If you want to understand the financial
445. 14:47foundations, I have covered all of that
446. 14:48on this channel as well. I will leave
447. 14:50one of the best videos that everyone
448. 14:52raves on on about right here. If you
449. 14:54found this useful, let me know in the
450. 14:55comments which one you're going to
451. 14:56upgrade first as well. And thank you so
452. 14:59much. Don't forget to subscribe if you
453. 15:00haven't already.