this video was made possible by brilliant.org there are four essential facts that every 20-year-old should know that most are never taught one your energy is a limited resource that you are consciously or unconsciously investing each day two how you invest your energy determines the outcomes of your life three most people will convince you to invest your energy into things that benefit them not you four you will likely never have as much disposable energy as you do in your 20s ever again and because most 20-year-olds don't consider these four facts deeply they make one big mistake
they don't invest enough energy into building a strong foundation for the rest of their lives they get lost in the pursuit of pleasure and until they realize the enormous cost pursuing pleasure will have on their future they will keep spending their most potent and fertile years on things that will never pay them back in the future the cost of chasing pleasure and comfort in your 20s is Regret in your 30s but if you become disciplined and invest your energy wisely in your 20s you will be surprised by what you achieve by 30 if you seow
the right seeds early on you will reap an abundance of health wealth intelligence love and strength in the future abundance is necessary in tough times but it requires forethought to produce abundance is also helpful to the community so the Abundant often become leaders if you become disciplined and invest your energy wisely in your 20s you will be dependable and resilient in your 30s and Beyond and there are three concepts you need to understand to become disciplined Concepts that explain why you need to invest your energy properly in your 20s and how best to invest it
those concepts are compound interest purchasing power and the five best assets to invest in the first thing you need to understand to be disciplined is the relationship between your energy and compound interest imagine this the year is 2024 we have two 20-year-olds Jack and Jill they both have 5,00 000 to invest every year the money is a metaphor for their energy which I will fully elaborate on later so Jill invests her $5,000 a year in an asset that increases by 7% in value each year that asset represents a good habit Jack invests his $5,000 a
year in an asset that decreases by 7% in value each year that asset represents a bad habit in the first year they both have have equal value in their accounts $5,000 but in the second year they have slightly different values Jill after a 7% increase and investing $5,000 more has $1,350 Jack after losing 7% and investing $5,000 more has $9,600 Jack looks at Jill's account and doesn't think much of it in his eyes they practically have the same amount so this pattern continues they each invest $55,000 a year and gain or lose 7% depending on
the asset they are invested in after 10 years of investing Jill has about $69,000 in her account but Jack only has around $37,000 at this point Jack looks at how much more money Jill has and feels regret how did she get so far ahead by consistently investing her money into something that would compound positively over time compound interest turns small investments into huge payouts over time and it's really the only way to generate wealth and abundance in any domain now if we apply this metaphor to habits the same logic applies if you invest in good
habits early on you will appear slightly different from your peers in the beginning but over time your good habits will compound and accelerate your growth and you'll be way ahead of your peers by the time you enter your 30s That's The Power of compound interest but compound interest is only one of the three pieces of our puzzle the second piece of the puzzle you need to understand is purchasing power let's go back to the financial metaphor imagine now that instead of having $5,000 to invest each year into an asset Jack and Jill lose $200 worth
of purchasing power each year of course as you can see as their purchasing power goes down so do their payouts this is exactly how your energy works too as you get older you have more responsibilities that place a demand on your energy like taking care of the house family loved ones and yourself you also have more bills to pay and you start getting sicker and losing strength the amount of free energy you have to invest is usually the highest in your 20s to mid-30s after that it tends to decline due to decreasing strength and increasing
demands on your time for example as you get older your eyes get weaker so you can't read as much or your energy declines so you can't work as long as you did in your 20s and the less free energy you have to invest the harder it is to make big sweeping changes in your life the easiest time to form good habits and break bad ones is while you're younger and your energy is unburdened it only gets harder as you get older and more stuck in your ways most young people never consider how declining purchasing power
will reduce their freedom as they age you will most likely never be as strong vibrant and as full of potential as you were in your 20s and early 30s so that's the second piece of the puzzle purchasing power now let's talk about the final piece of the puzzle the five best assets to invest your energy into there are five key forms of capital that you should be trying to acquire while you are young they are productive Capital spiritual Capital intellectual Capital social capital and physical capital productive capital is a measure of how much expertise you
have in an area you want to develop an area of expertise as soon as possible while you're young because the more expertise you have the more valuable you'll be to society and the more valuable you are to society the less trouble you'll have making a living for yourself spiritual capital is a measure of how strong your conscience is your conscience is the best guide you'll ever have access to so the stronger it is the more easily you'll be able to make wise decisions if you don't consciously use and strengthen it while you're young you'll lose
it as as you get older and become more lost in life intellectual capital is your ability to transform negative emotions such as depression longing and anxiety into insights and productive action as you get older the stress in your life increases and as stress increases so do negative emotions and if you don't learn to process your negative emotions correctly they will eventually overwhelm and devour you but if you learn how to transform your emotions as soon as possible you'll be able to leverage them for insight and productivity social capital is a measure of how many deep
relationships you have depth is more important than width because true social capital is about the quality of relationships you have not the quantity depth is measured by the amount of people who would voluntarily go through difficult times with you life is impossible to do alone so you want to have a strong Community around you a community that helps you when times are tough and celebrates with you when times are good as you get older developing these kind of relationships gets tougher so start as young as you can last but not least physical capital is a
measure of how healthy you are as I said before your physical health naturally declines as you get older but you can keep your strength up for a long time if you have good Fitness sleep mental mental health and diet habits and the more strength you have the more free energy you have to invest in building your dreams if you invest your energy into acquiring these five forms of capital while you're young you will be incredibly grateful for it by the time you're 30 now that you understand compound interest purchasing power and the five best assets
to invest your energy into the final thing to do is to construct a daily schedule create a daily schedule where you inv invest a little bit of time and energy maybe 20 to 30 minutes into acquiring each of the five forms of capital productive spiritual intellectual social and physical this schedule should be sustainable for the long term otherwise you'll never reap the benefits of compound interest this schedule will allow you to invest in pleasure and fun but at the same time it ensures that you're investing time and energy into habits that will pay you back
well in the long run and if you do that you'll make incredible growth in your 20s and enter your 30s in an amazing position now you know the mistake you have to avoid in your 20s investing your time in the pursuit of pleasure and you know why your 20s is the best time to invest in good habits because it's when you have the highest purchasing power and can benefit the most from compound interest and lastly you know how to implement these ideas by creating a sustainable daily schedule that allows you to acquire the five forms
of capital if you want more specific details on building each of the five forms of capital stay tuned for my next video and here's a bonus tip check out this week's sponsor brilliant.org brilliant is where you learn by doing they have thousands of interactive lessons in math data analysis programming and AI which can help you learn effectively build up your problem solving skills and develop a powerful daily learning habit my favorite thing on brilliant right now is their course on how large language models work AI is finding its way into every aspect of our lives
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