The 9 Money and Life Lessons Most People Learn Too Late
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Loading... - Adam Harris
- 01 Jun 2022
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Throughout life, several lessons are learned about how to manage our time, our decisions and our money. This time, finance expert Morgan Housel presents nine tips on life and finances for a better future in an article addressed to his three-year-old daughter that she will be able to read in a few years .
Don't underestimate the power of opportunity
It is easy to assume that people's level of well-being or poverty depends entirely on making good or bad decisions. Although it is important to keep in mind that hard work pays off , not all triumphs in life come from effort, and not all misfortunes are the result of inconsistency or laziness.
You should build a good work ethic , but keep these issues in mind when judging people you meet, including yourself. Not everyone gets what they deserve.
The greatest gain is knowing how to manage your time
Having the freedom to enjoy your time has much more value than any luxury item. A job with flexible hours that allows you to enjoy your family and be able to make leisure plans is what will really bring you happiness, beyond an expensive car or brand-name shoes.
If you want to have independence in your future, it is important to have an emergency savings fund, or ensure a good retirement tomorrow. Ultimately, saving is important . Before spending all your salary on unnecessary things, dedicate a part to building that little mattress that will help you not depend so much on your work tomorrow.
Don't wait for everything to be granted
To really know the value of money, it is important to experience what it means not to have it. You must learn that you can not always have everything you ask for to know the difference between needs and wants . This lesson will help you when it comes to managing your money, saving, and above all, valuing what you have.
Success is not always based on great acts
As Napoleon said : "a genius is one who can do ordinary things when the rest panic."
The same thing happens when we talk about money. The important thing is not to carry out large operations of thousands of euros, but to know how to be consistent and not make big mistakes over time. The best financial act is to avoid a serious mistake, and generating debt is the most serious of all.
Learn to live with less
Even if you have the peace of mind of a pension fund and a stable salary, it is good to know how to live with fewer expenses than income. A person who earns 50,000 euros and spends 40,000 is richer than someone who earns 100,000 euros and spends 101,000. An investor with a 5% profit who knows how to save it will have more money than the one who makes 10% and spends every penny.
How much you earn does not determine how much you have, and how much you have does not determine how much you spend. Read More...
