How we got rich by 26 (our recession-proof money rules)

This is personal finance one O 1 from 2 Harvard and Stanford graduates and let's be honest, they didn't teach us this in school. We became self-made millionaires in our 20s and we're sharing the tips, tricks and also mindset that helped him get us there. I'm Cherie, I'm Jean and. We're the Tiger sisters. And so the outline for this

episode is that Gina and I are going to share a little bit more about our backgrounds, where we grew up, how we grew up. We don't come from generational wealth. So everything we learned, we kind of learned the hard way and want to share that with you. And then in this episode, we're also going to give very tactical advice and break it down from beginner to intermediate to advanced strategies and. We'll get started right after this break.

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So the first section, Gene and I are going to share more about our backgrounds. And honestly, the biggest contributor to becoming a self-made millionaire in our 20s had to do with our first job out of college. And this goes back to what we chose to study in school. So Jean, can you talk a little bit more about how you thought

through that? Yeah. So in college I basically had the concept that I wanted to work in business or do something in business, but I went to a liberal arts school, so we didn't have a business major. So the closest that I could get was studying economics. So that was kind of like where I decided to focus my energy.

And once I was actually in the economics program, what I did was I looked to the older students and I kind of looked to see who was sort of being like upheld and acclaimed as being like the most successful seniors and like what jobs they were

getting. And it was like, pretty, it became pretty obvious to me that there were just like a few jobs that everyone was like, Oh my God, like you got, You got a job at McKinsey. Like, Oh my God, you got, you got into Goldman, you got into Morgan Stanley. And so that was kind of like the first time I even really heard about those companies because that's not what we grew up with, right? So once I like heard that enough times and I started to ask about it and like learn about what

these companies even were. That was kind of how I even formed the goal for myself where I was like, OK, I want to get a job at Goldman Sachs out of school. That's going to be my goal for the next 4 years of my life. So then once I sort of had that goal in mind, I worked backwards and then I figured out like, OK, what are all the things that I need to do in order to get this job out of school?

I need to get an internship my junior year at ideally at the company, which didn't happen because it was the Great Recession, but still it, it was, it was a good goal, right? So I was like, OK, I need to get that internship. Then before that, I need to do something valuable my sophomore year so that I can like ladder up into the internship, like all that sort of stuff. Even if you don't know what you want to do, a lot of it is being curious and asking questions.

And then also like looking at people around you and people that you admire and then learning from them and their path and almost trying to copy them. I think it's very legitimate to copy. Yeah, it's really important, I think more than anything else. Like, it's really important to have that mindset where you're curious about others and then you, like, seek out information. Yeah. You're talking to people.

You're Googling things. Yeah. And like having you're like once you have the information, you can create a plan of like how best to get there. Yeah. And like, it's not saying that just because you create the plan, it'll automatically be successful, right? Like you could be hit with the greatest recession in COVID, yeah, in like 20 years or whatever. But as long as you have something, an idea of like what you're working for, what you're working towards, you can always pivot.

You can always make adjustments. I guess the take away here is

that like information is power in the sense that like even when you're an undergrad, you didn't really know what roles out of school would be like high paying or would be very successful or lead you to like wouldn't lead you to long term career success. But by like talking to more people and seeing what was around you, you can kind of put the pieces together.

In that way, I feel like I was very lucky that the opportunities were there, but then I had to do a lot of the legwork to even like understand the opportunities and then eventually position myself so that I was a good candidate. And I think also in today's day and age, the equivalent of what that would be is just doing a Google search. There's like so much more information out there today now, like on Glassdoor and also just, I don't know, like LinkedIn

salary. You can see what industry and what roles in each industry, like which ones, how much money they do they make and how to get there is a different story. You kind of have to piece it together through networking, etcetera. Check out our Networking One O 1 episode here here. But also, I guess, like, information is power. You can now know like right out of school what to expect in those more corporate jobs.

Yeah, And even I think I feel like podcasts such as ours, like where we really try to lift the veil and share with everyone, like, what are these jobs actually like? What are the jobs that are out there? I think the information is out there, but you do have to do the legwork to find it. So Sheree, how about you?

How did you think about what major to do in school and like what sort of path you wanted to be on in undergrad as it relates to personal finance and your first job out of school? Yeah. So college was an interesting time, I guess just in the personal finance aspect, like Jean and I both had student loans of some sort.

And so that definitely like weighed on my mind of like, yes, I want to have a really interesting college experience where I can choose all the like most amazing classes and just really follow my curiosity purely, but also balancing like the reality of like, Oh my God, I definitely need a a job out of school that will help pay loans that I have and pay the expenses that I have. Jean and I don't have generational wealth or family money to fall back on.

So really when we say we're self-made, it, you know, double underlined there. So I felt really lucky because obviously Jean was like looking around to people who are older than her when she was a college student. And I have my older tiger sister, Jean, and she was the one who put me on computer science. So I would originally wanted to be a doctor in college. I really, I was good at bio and I liked helping people. So I'm like, why don't I be a doctor?

And doctors at the time make a decent living. But then Gene put me on computer science where then I was like further immersed in those classes in the world of Silicon Valley, not only learning about like what engineers do, but how vast this industry is and also how much this industry can pay in kind of like a crazy entrepreneurial business way as

well. You know, like there's a very steady paycheck of like you can be a doctor and you know, you earn this much in salary, But there was kind of like a bit of a gamble at the time when I was a student of like, Oh my God, there's so many startups blowing up like this is it could be a like crazy lucrative life changing career. So I think that was really appealing to me as well.

In addition to like I enjoyed my computer science classes, but it would be, I'd be lying if I said like if I had the chance to like pursue for example, art history or a more like liberal arts degree, that it might not be as easy to get a job out of school. Like that could have also been a path that I went on, but I definitely knew that I couldn't given that like I don't, it might, I might not see success there, but I could see more success doing engineering and having more guaranteed,

guaranteed. It's never guaranteed. But like, yeah, job financial. Success. Yes, financial success. Because there's a lot of different ways you can define. Success. I meant financial success given the loans and the bills. Yeah. And so like the context from my perspective is that it kind of worked out since we're seven years apart, that by the time I had wrapped up two years at Goldman, my first job out of school, I was kind of looking to

decide what I wanted to do next. And I wanted to work in tech. And by that time I kind of figured out, OK, the role that I want to do is product manager. And having done all this like research and having all these conversations, I really found out that it's, at the time it was very, very hard to break into a product manager role if you didn't have a technical background, meaning if you didn't study computer science and an undergrad and have a computer science degree.

So I kind of like, I don't know, I feel like I, I got lucky and I was able to like leverage the skills that I have and the network that I have to get a product management job without a computer science degree. But that was when I told Sheree,

because you started undergrad in 2013. That was why I told her I was like, you need to study computer science because it's going to set you up and have it's going to set you up so that you have the most options out of. Undergrad, I think that's the best way to put it, is that like it just gives you more freedom. You know, finding it gives you more financial freedom if you study something that like, you know where you will. I don't know what am I trying to

say. Where you know that should you want to take it, there is a there are lucrative opportunities right out of undergrad and like. Also, I'm not saying I don't know if the exact same advice is true today, because, you know, in the year of our Lord 2025, I don't know if a computer science degree is as valuable as it was. Chachi BT be replacing engineers these days. So I don't know if it's like exactly like word for word like you should get a computer science degree so that you can.

It's more the mindset. It's more the mindset. It's more like try to talk to people and figure out and understand like what is the best way for me to position myself for my goals right out of school? And if your goal is to maximize your earning potential right out of school, then, you know, follow that path. Yeah, and honestly, maximizing your earning potential right out of school, the reason why we're talking about it is it just gives you more freedom to then choose what you want to do.

I think a lot of people ask me like right now, like how are you able to have a podcast as a full time job and have the startup as a full time job? It's because of the decisions that I made that were informed by Jean back when I was 19 years old that lead me to where I am at 29. Well as a full time job, bootstrapped without having raised money like we haven't raised any. Venture capital or? Like any sort of Angel funding or anything like that, we support and pay for everything

on our own. Yeah. So I think it like, that's kind of what I'm harping at and I hope it's not taken the wrong way, but like we're genuinely like sharing our advice so that like if this is what you want to do as well, maybe you can develop a path to that as well. Yeah, And I think even just like being conscientious of it and like thinking about is that something I want to optimize for? Like do I care? Or maybe the answer is no. Like I actually don't care to to

do that. Like I'm not stressed about student loans or I don't have student loans and like I actually want to take the time out of undergrad to explore and like try a lot of different paths then that's great. But this is just like. More security for the insecure way that I think. But I will say, you know what, here's another me revealing and being vulnerable, another

insecure way. I know people who have studied art history or have studied political science more like liberal artsy majors in college and then started working at McKinsey or started working in investment banks, like they were able to do that as well. I know I like, I just don't think I'm that smart that I'm able to do that quite honestly, like or. It's not all about smart, but

sometimes it's about access. It may be well, I just know that like I was not in a position to do that, which is why I needed more of like a bulletproof, foolproof plan that I was like, I'm going to be an engineer. At the time people were hiring for engineering and in tech press, product managers. This is what I know is going to be a bit more certain. And so that's why I chose that path. Yeah, you were doing everything you could to maximize your chances. Exactly.

So now you guys know that's some of the background of how we even thought about like what to study and how to land our first job out of school to set us up on this path. So that, you know, the next things that we're going to be talking about in terms of like beginner, intermediate and advanced tactics are kind of based off of like having expendable income and also having a mindset of like, how do we guarantee savings, guarantee a more like stress free financial life over the next? Decade.

OK, so Sheree, let's say you're at the point now where you've actually gotten the first job out of school. What are some of the things that you should look out for or definitely do? So the first thing we're going to talk about, and this is like the very beginner recommendation for us is basically it's free money. Free money is 4 O1 KS. If you have a job out of school, especially at a big company, they often have 401K matching and basically This is Money that you're putting away for your

retirement. You put it away now, you know, when you're not retired, when you're working, so you can take the money out for when you are retired, when you're, you know, 62 to 65 or possibly older. There's different time periods you can take it out. But basically, I think people don't take advantage of this enough because they're not thinking about the future in a way that is accessible. You're like, oh, OK, 65 year old me. You're like, I don't think about that Now, you know, I'm 2122

years old now. Like, why am I saving for the future? But I say that this is free money because many big companies have matching programs. So what this means is that, you know, you go inside the portal, you have to set it up so that when your paycheck comes every two weeks, it automatically takes a portion of that out and it puts it into your 4O1K. So you're basically automatically taking it out and you have some money put into your retirement. That amount of money.

Some companies do really great matching. They're like whatever money you put in, we'll put in the same amount. That's what I had at my company, which was fantastic. And that's why it's usually referred to as like free money with these matching. Programs up to like a certain percentage, usually like up to 3% or something like. That exactly some other programs that they have are like will match up to, you know, some sort

of X percent. So you guys just have to do some research to figure out what your program is if you work at a big company. But I would say so many people miss out on this because they they don't think about retirement and they don't think about the future because it is, you know, I don't know, 40 years. Away and then just to sort of set the basic context, the

reason why you would even want to contribute to the four O 1K program through your company is because the money that you put into the four O 1K is contributed pre tax. So let's say you put in, you know, $100,000 over the course of however many years instead of if you receive that money as your income, usually you would have to pay like say $30,000 in taxes. But if you had put all of that into your 4O1K, then all of that 100,000 goes straight into the investments and it sort of grows.

And then you only get taxed when you actually take the money out post retirement. And the thinking is that after you've retired, you aren't really making money, so that you pay a lower tax rate in the future and you've had time for all of those investments to compound and you've invested more money than you would have were it not in a 401K. That's a really, really good explanation. Thank you. That it was super clear. And I think I would double underline the word compound.

Yeah. So the power of compounding, it's amazing to talk about retirement funds because that is 40 years in the future. And my brain can't even comprehend the power of compounding over time. But think about like, your money over 40 years, literally in investments, Like you just leave it in there and ostensibly, like, you know, your investments will grow year over year. How? However many? Yeah. What is it? The 10% or whatever. Yeah, it's the average.

I've never really thought about it that closely to be honest, but it is actually really helpful that you're kind of like putting in 30% more money that can then compound over time. That's cool. Yeah. And you don't really. Have to manage it either so the reason why this is in the beginner section is that basically all you need to do if you haven't already if you want this is not financial advice you you guys can do whatever you.

Want I guess what we did, what we did and we are pleased about. Is that just start putting money into your 401K through your

work? Just configure it once and then it'll be taken out of your paycheck automatically. You don't have to think about it. Yeah, well. What percentage contribution did you put? So I actually don't remember what percentage contribution I did. But the way I don't remember either, but it doesn't. Matter. The way that I thought about it was that I maxed it out every single year. I maxed it out so that I would do.

You maxed out the match. I maxed out the match contribution for MY4O1K which I think ended up maxing out. Like however much money you can contribute to your 4O1K. And it doesn't matter if you do that, if you choose to have the most amount of money taken out of your paycheck for a short amount of time or you kind of drip it over time. It really depends on your lifestyle, your needs and your

need for liquidity in your life. If it's taken out even before you get your paycheck, then you kind of don't miss it because you don't realize that it was even there. I think I had an ex-boyfriend who worked at the same company as me and we talked about this, about personal finance, and his strategy was to Max out the contribution over a short period of time such that his like salary, his take home salary was like $1000 a month. He's just like, let me just get

it over with, you know? OK, how did he pay for his like? He had like, he had like savings and other stuff otherwise to use from, but he's just like, let me just do this, you know, it was just, I don't, that was his strategy where I dripped it out over time. He wanted the Max Payne he wanted. He wanted the Max Payne. I don't know. But it just sucks to see your paycheck is like $700. Like, I don't know. I wouldn't want that. Yeah, OK.

And next, we'll be talking about the intermediate section of this podcast and the most impactful book that we read that changed our financial thinking forever. And Gene actually put me on this book. Thank you. It is Remit Sethi's book called I Will Teach You to Be Rich, which is a very catchy, catchy title actually. Should we make out the title of our podcast? Sure. Of our podcast episode. I mean, it's funny because the the the title is very catchy.

It's not really about teaching you how to be rich. It's more about teaching you to have like a very healthy, healthy habits to then I guess eventually be rich through compounding and making money of your own that you then allocate correctly. Honestly, that book changed my

life. Like I don't know who told me to read that book, but or how I discovered it, but I read it and there are things that I implemented that, you know, this was like 15 years ago that are still my go to standard today. Like for example. The OK, the good thing about the book and obviously we encourage you guys to read it, is that it had very directive specific things to do. So one of the things that I remember it said open a Charles Schwab checking account because 1.

You can do it online, just, you know, you don't have to go in person. And then two, the ATM card that you get gives you refunds for any ATM fees. It was very tactical, yes, like it told you, like very random tidbits. Yeah. And it was like open a Vanguard fund specifically like put your money in like this type of fund in Vanguard. I love that. Well, I think it's also really important that like these little actions compound over time.

Like we're going to keep talking about the power of compounding, but also like to be rich and to be wealth and to be self-made millionaires. Like there is no silver bullet. Maybe I should have said this in the beginning, but there is no silver bullet where like we got rich overnight. Like everything we do is building and accruing wealth over a long period of time. Wealth.

And I think it's also just like, feeling like you kind of like, did the right thing and feeling like you have, like, a strong foundation. Yeah. Like I feel like that book really helped provide some just really key steps when like after graduation I was like. What do I what? Do I do? I have no idea. Yeah. I think. Thank you. Thank you. Also, I think the biggest take

away from from that book for me was the section on budgeting. OK, And we'll go through a breakdown of like, how to think about budgeting, but I want to start first about talking about the mindset of budgeting. For me, when I was a new grad, I was just like paralyzed for months. And I actually talked about this in therapy because I didn't have

a good relationship with money. I was like scared to spend money because I didn't know how much money I was spending and how much I could spend, which it was really useful. So like I would kind of lived a lifeout of fear where I'd be like, oh, I don't want to go to that event because I guess I'll have to Uber. But like the Uber's like $30. Can I afford that right now? You know what I mean? Like it's like sent me into a spiral. But you made like so much money out of.

Undergrad exactly like that was the bad part. I just like didn't know where the limit was because I didn't do some calculate like initial calculations. It like came at me all at once because in undergrad I had this mindset. Where like I had, you didn't have. Money. I didn't have money. And I was like, Oh my God, can I spend that money on a sweet green salad? Oh, wait, you know what I mean? Or like, should I go to the

dining hall? Like kind of like that mindset which carried over, but it didn't make sense now that I did make money. Right. It was an outdated mindset. Exactly. It was like scarcity in college, which didn't need to be, I didn't need to have that mindset after school. So I think the thing that was really important was to then be like, this is how much I'm spending. This is how much I and spend. This is how much should go into savings. How much should go into four O

1K? My mindset when it came to like budgeting out of school is that I didn't really do it. I think I was also like avoidant about money, aside from like these few things that roommate Sethi said to do in the book. So I like did those things. And then other than that, I was kind of like avoidant. Like I didn't want to think about money, but luckily I had done the step where I kind of tried to optimize for a job that was lucrative out of school.

So like, I definitely had enough money to like cover all my expenses and more, but I just never like thought about that. So I never budgeted. I never was like, can I afford this? Can I afford that? But I was pretty frugal because I was like similar to you. I was, and also pretty much all I did was work and like occasionally go out to dinner. But you also had many dinners covered by work, too, yes. So like you didn't have to like think about that. Yeah.

And like the gym was at work. I think we paid like a nominal free fee every month for it. Like I just didn't really have that many expenses. You don't have that many expenses when you work 90 hours a week. Like that's just and and like you're not really travelling anywhere because you're working on the weekends too, right? You know, so you didn't. Have the freedom of leisure time yeah, to even spend your. Money, have time to spend money.

And then like occasionally, I don't know, like we would go out to clubs, but like I was a girl. So then like this was 15 years ago, but so like, you know, someone would have a table and then you'd just be like at your friend's table. And like, I wasn't spending that much money to be honest. So I didn't really think about it. So it suited my money avoidant mindset at the time.

I was avoidant too. Avoidant is such a good word here, but I just didn't want to know because I was just scared to know that if I was spending a lot of money, I was like scared I would get in trouble with myself. So I just like. So I just avoided it for maybe like 5 months but it kind of like drove me crazy because I was just like. Oh, you never talked to me about it. Yeah, I talked to my therapist about it. Oh. Why didn't you ask me? Because I was afraid I was going

to get yelled. At by me, yeah. For what? Reprimanded for not budgeting. Oh. So this is the breakdown, this is a guideline. Obviously the numbers are a bit squishy and you can make it your own, but basically this is what the the budget breakdown is at 50% goes into fixed cost. This is like how much you're spending every month on like rent and food, your car payment, things you need to live. So you know, after you have your take home on salary, 4050% can

go to your fixed costs. And also, you know, these are fixed costs like utilities, student loans. These are generally things you can't really change. I mean, you can get cheaper housing Gene and I always optimize for cheap, cheap housing. So, you know, take a look at where where things can flex. 10% should go into your investments. This is like your 4O1K or your index funds. Usually 5 to 10% can go into

savings. This is if you want to travel or you have an emergency fund or if you're saving for, you know, a wedding or a big thing in the future that's coming up. And the last category, this is what remit Sethi talks about. And what I really took away is guilt free spending. Like I spent with so much guilt because I just like didn't know how much I was spending and if I was going over.

But this is around 20 to 25%. This is like you can spend on going to the spa, getting your matcha, getting your nails done without feeling bad because you know, it's all within this bucket of like this is spending for fun and for leisure that I can just use up. I think probably I was a little hyperbolic in saying that I like never budget in my life.

I think what I probably, I think what I did at the time is I like looked at these guidelines and I like assessed my own personal situation like once or twice and I was like, OK, I'm doing fine within these guidelines. And then I kind of just never thought about it again. And I was like, OK, I'm making enough money so that my natural inclinations and how I naturally spend money is not exceeding these guidelines.

So like I'm good. And then I just never really thought about it. But to be honest, I could have been much more nice and to myself and like permissive in my spending because I love shopping, I love fashion and I like, love spending on clothes. And I think I could have, had I had the time, just done more shopping and just like enjoyed

myself more I could. Have enjoyed life a bit more out of school. Yeah, like one of my friends bought a couch. This is maybe when I was like 2324 and still kind of in that scarcity mindset. I, you know, and then he bought a couch and he's like, yeah, I was like 2500. I was like, huh, like you paid 22 / 2000 dollars for a couch. I was like, not everyone gets their couch from Facebook Marketplace.

Like, didn't you have a couch? Yeah, from Facebook Marketplace that we paid $80.00 for 80. Dollars it. Was like a used used couch. I guess that's a great deal though. Did you like the couch? No, it was smelly and uncomfortable and so. But The thing is, your roommates also were in the same mindset as you, even though they were. Doing the same thing. Just as well. We were just so. They were in the same. Same scarcity mindset. Yeah, we were, we were in the same boat.

We've had the same experiences. It was kind of crazy that like I could have had nicer things. I mean, you know, looking back on it now or just enjoyed a bit more, but obviously we are where we are. It's just so funny because your roommates at the time worked in investment banking. And in Facebook, yeah, right. And in tech, so like, and we got like a stinky couch and we got like tables and stuff from

Facebook marketplaces for $10. Like our TV stand was an IKEA table that was messed up. It's like scratched all over for $10. I guess those things weren't that important to you guys at the time it. Wasn't, but I was just like, I guess we didn't need to do that given how much we were spending, but it was our first place out of school. Like it's not. I guess it's not meant to be nice, but now I'm just like, what the hell, like. I mean, that's, that's fine.

I don't. See, nothing, nothing matched. I guess another thing was that like something that I'm very proud of is that all my time living in San Francisco, I didn't own a car and I made use of the public transit in San Francisco. Well, because it served you.

It served me and I don't know, a lot of people complain about it, but I'm just like, you can use public transit and SF the way that you would in New York City. Obviously it's not as good, but like I'm really proud that I did that and I saved money. Cherie's personal story time. Cool story, bro. OK, she's like I took the bus once. No, I. Took the bus every. Single day to work. I know so did I. I took the 22 and the mission was just like a crazy ass line I think I took. A38R Rapid.

I think that was what it was called when I lived in Pack Heights, an upgrade from my life in Noe Valley. She's sick. It's a joke because both of those are like, beautiful. Really nice place. Neighborhoods in San Francisco. And the last section is our

advanced section, and we're gonna just drop some like terminology that you guys should be familiar with. This is obviously for the advanced folks. Once you've figured out your 41K, once you've figured out your budgeting, these are things that Gene and I have done, but they're a bit more complex and we just want you to know about them and you can look into them, like do a Google search and learn more about them if they apply to you. So the first thing is a backdoor Roth.

There's also a mega backdoor Roth. There's also HSA, which is a health savings account. Look these up if you're interested in learning more

about them. And then what I want to talk about is the Super, super advanced stuff. And these are actually things that I myself and have not done, but I recently learned about and I wish I had done. So I'm going to kind of talk through them and then, you know, you could always look it up more and see if it applies to you.

So this is more so for people who have worked at a company and have received a lot of Rs US or stocks in that specific company because a lot of companies, especially in tech, a lot of the compensation is through stock, not just, you know, cash income. And if you are in that case, a lot of times you have a very highly concentrated equity portfolio where a vast amount of your net worth is in just one share, which is not a good position to be in. And again, yeah, diversify.

So I'm telling you guys all these things because this is what I freaking wish I had done. And I recently learned them through a friend of mine who is who leads a private net worth like PWM team at Morgan Stanley. And two of the things to be aware of, the first one is called an exchange fund. The second thing is called a 0 cost collar. So I'll just kind of talk to them at a high level. The first one exchange fund. First of all, you need to have a

good amount of equity. It's usually several million. I think sometimes the minimum is around like 5 million. So this is for people who have like a super concentrated portfolio. Actually, it happens a lot more than you think. If like think about all those people at NVIDIA like their net worth is probably like 90 plus percent if. You're an engineer at NVIDIA. This advice is for you. And if you're an engineer at NVIDIA, call. Me.

That's funny. So the idea of an exchange fund is that you pool your shares with other people and then you somehow can buy into this diversified fund using your existing single equity shares and you don't have to sell your single equity. The thing is you have to keep your money in that fund for a minimum of, I think it's usually seven years. And then after that you can

actually take the money out. But the benefit of this is you don't need to incur the like taxes of selling the shares that you own in order to diversify. You could like take those shares and just like diversify right away. So it's like as if you had invested the same dollar amount of those shares into a diversified portfolio. I understand that because that's kind of what I do now anyways. Is that when I have my stock I have to sell it and then

reinvest it my on my on my? Own but you have to sell it. So 1 you have to pay those taxes and two, if those are short, short term gains, you have to pay like pretty high taxes, correct? As opposed to like, you know, if you held them for longer for long term gains. Yeah. So this allows you to kind of like circumvent that. So like I was asking, I was like, is this like a new invention? Like how come I've never heard of it? He's like, no, it's not new. So learn from my mistakes, my

friends. My costly, costly mistake. Learn from our mistakes my NVIDIA friends who have over $5,000,000 in stock at concentrated stock. Is more is more common than you think. So, OK, so that one has sort of like a cost minimum to it or like a you know a floor of investment.

The second method which is called 0 cost collars is it sounds a little bit complicated, but actually most people can do it as a retail investor as long as you have the ability to buy options, which most people do like even in your retail account. The idea behind that is that you buy a put option and you sell a call option. And what that does is it limits your downside for your your stock that you have like a lot of concentration in, but it also

caps your upside. But importantly, it limits your downside. And the reason it's called a 0 cost collar is that profit that you get from selling the call covers the cost of buying the put.

So this seems like pretty advanced, like you have to be a bit more in the weeds and know what you're doing, which is why this is in the maybe ultra advanced category. So this is really good information for people who are like not afraid of their personal finances, want to take a more involved approach and also that involves Googling and learning more. Or if you have a financial advisor, you can talk to this about too and be like, hey, can we do this? Like we always say, information

is power, right? These are things that I wish I had known so badly, like let's say 5-6 years ago because then I would have done a much better job of my own concentrated portfolio situation. But you live and you learn. And this is the lesson that I have learned that in the future we will apply for whatever situation that we're in and that we can share with you guys. And finally, just to wrap up this episode, reminder, we are not financial advisors.

These are just interesting concepts that some of we've applied to our own lives and some that we wish we've applied. I did pass the series 7 and the series. But I have not and I would like to not be sued for this episode. OK also mine was like 15 years ago so it doesn't. I'm not qualified so. We're not financial advisors. Advisors, please Google everything to, you know, make your own decision. This is big sister advice.

For you big sister advice, yeah. OK, so the key take away from this episode is that you don't need to come from money to build wealth, but you. Do need knowledge, discipline and to understand the trade? Offs and also just a reminder, money doesn't buy happiness but it can buy freedom and Peace of

Mind. And so if you are interested in buying Remit Sethi's book, we're going to link it in our Amazon storefront, which is connected. You can find it in the description of this video. And I do want to, you know, give a quick plug, Shameless plug Gene and I have a matcha brand called Sisters Matcha. And while you're budgeting for your, you know, I can just spend money on things that make me happy. You can also and healthy and

healthy. You can purchase sisters matcha, which is available on our website, also energetic and also LinkedIn the description of this video. So thank you guys so much for watching this episode. Hopefully it was helpful for you. Please remember to like, comment and subscribe and share this

episode with someone who would also find it helpful. Yes, learn from our mistakes. Love you guys. Bye.