Whitney Hansen – Do Your Own Research to Gain a Basic Understanding

Whitney Hansen teaches millennials how to pay off debt and gain financial independence. She gives them the tools to have more fun with money while sprinkling in a little silliness. She’s got a Master’s in Business, a Bachelor’s in Accounting, experienced paying off debt ($30,000 in 10 months), and a true “started from the bottom” story. When she is not writing about money and creating financial plans for others, she can be found taking spontaneous road trips, reading in coffee shops, or mentoring other entrepreneurs. She is also a podcast host for The Money Nerds Podcast, where she gets to interview cool people and hear their secrets to financial success.   “Never, ever make any decisions in your financial life until you do your own research and try to get a basic understanding. I think that is rule number one for any financial decision.” Whitney Hansen   Worst investment ever Blindly trusting others did not serve her well At an early age of 18, Whitney opened up her investing account and hired a big broker firm. As she was looking at her statement one year, she noticed that she was in the hole. Not because her stocks had gone down. They were higher, but because the fees were getting so high, and she didn't even realize that she was paying a 7% fee! She admitted that when she first started investing, she had no idea about these fees and how it affected her investment. Ignorance did not serve her well either Whitney also shared that during her early years, she had financed a family car. Without any knowledge about cars, she, of course, trusted the car dealer and bought one. She did the best she could to make the monthly payments. After a couple of months, the engine blew and the car could not be used anymore. That’s when she realized that people would sometimes lie to make a sale and her ignorance did not serve her well. The common denominator to her failures Whitney realized that all those lessons combined taught her to not blindly trust professionals. Now, before making big financial decisions, she always does her homework diligently and to lean into her intuition. Lessons learned Do your own research and try to get a basic understanding Never, ever make any decisions in your financial life until you do your own research and try to get a basic understanding. I think that is rule number one for any financial decision. Andrew’s takeaways Compound interest is all about getting your money in and keeping it in We’ve all seen that chart that shows the exponential rise caused by compound interest. Always remember that the exponential rise doesn't start occurring until around year 20. So, one of the highest priorities when it comes to investing is getting your money in and keeping it in. One of the six key ways that people make mistakes or lose money is a misplaced trust When you trust the wrong people, your investment will likely fail. Don’t try to close the knowledge gap As an investor, you don’t need to close that gap but to understand that the knowledge gap exists and look for an ethical person that's not going to take advantage of it. It is the investor’s right to ask and get an answer that you can understand You have a right to understand the fees that you're being charged. And if you do not understand that, you have a right to ask for an explanation that you can understand. Actionable advice Do your own research and make sure you understand what you're getting into. But do not over research because even if there are mistakes that you’ll make, being in the financial game, investing, and taking those risks, that's where you're going to find success. No. 1 goal for the next 12 months Whitney excitedly shared that she’s dying to build a cabin in the mountains of Idaho and rent it on Airbnb when it's officially ready. Parting words   “Just take action and stay on your budget when you're with your big financial goals.” Whitney Hansen   Andrew’s books How to Start Building Your Wealth Investing in the Stock Market My Worst Investment Ever 9 Valuation Mistakes and How to Avoid Them Transform Your Business with Dr. Deming’s 14 Points Andrew’s online programs Valuation Master Class Women Building Wealth The Build Your Wealth Membership Group Become a Great Presenter and Increase Your Influence Transform Your Business with Dr. Deming’s 14 Points Connect with Whitney Hansen LinkedIn Twitter Facebook Instagram YouTube Website Connect with Andrew Stotz astotz.com LinkedIn Facebook Instagram <a href= "https://twitter.com/Andrew_Stotz" target="_blank" rel=...