Key Summary of strategies THE TOP 1% USE to manage their money by Nischa

Monica Bernard

Jul '25 • Long term investing ideas

I found Nischa's content pretty good, so I thought I would share with you.

1) KNOW WHERE YOU STAND FINANCIALLY NOW. Your yearly net income, expenses & net surplus or deficit.

*Remember income buys assets and lifestyle, and NetWorth buys you freedom.

*The 5 money personalities: Contemporary, enterpriser, minimalist, realist, socialite.

Here is the link if you are curious about yours.

https://sorted.org.nz/tools/money-personality-quiz/the-enterpriser/

2) THE BEST DEBT REPAYMENT STRATEGY: Avalanche (save money as you pay off the highest interest rate first) or Snowball (motivation as you focus on the smallest loan first).

*Credit card can be a VERY SMART TOOL if you use it WISELY (meaning paying back ON TIME IN FULL) as it offers free stuff on things you would have to spend anyway via cash back, points, or travel rewards.

3) HOW TO SET GOALS THAT MATTER (& where to keep the money). Write down each of your goals with a time frame & how much it will cost.

*Knowing what you are aiming for is critical.

*Money depends on timing: Short-term (0-5 yrs), medium-term (5-15 yrs) & long-term (15+yrs).

4) BUDGETING. Build a 12-month action plan with monthly check-in.

*The 50%/20%/30% Rule: 50% for fundamentals spending, 20% future you, & 30% fun

*Monthly, monitor actual spend vs. target and make adjustments to keep you on budget.

5) MAKE YOUR MONEY WORK FOR YOU. Shop around for the BEST interest rate from bank, online bank & investment platforms.

6) START INVESTING (WHEN, WHAT, HOW). Step1: Save 1 month of expense. Step2: Pay off debt over 8%. Step 3: Grow 3-6 months of emergency fund and start long-term investing.

*Regarding long-term investing: Understand your risk tolerance & avoid concentration risk.

*Formula: Round your age to nearest 5, then minus 10 = % in bond + rest in stock. Examples: Age 32 = 35-10=25% bond + 75% equities. Age 58 = 60-10= 50% bonds + 50% equities.

CAR & HOUSE:

*How to beat the car trap. The 20/4/10 Rule = 20% down payment, 4-yr max loan term & 10% of income on car. Example: $6K down payment on $30K car, pay off within 48 months, & 10% of your income should cover the car loan + insurance + maintenance

*How to decide to rent or buy? Time has changed, so one needs to consider all the factors before considering if buying is still the best option for you

Here is the link if you want to know more

Master Financial Literacy in 54 Minutes: Everything They Never Taught You About Money! - YouTube

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