Mon Apr 15 2024, by Tyler Gardner

10 Personal Finance Lessons You Were Never Taught in School

Is it true that you’ve spent just under a million dollars on your education so far?

Yep.

Could you tell me the top 10 things you were never taught about personal finance in any of those schools?

Absolutely.

1. The Impact of Inflation

Number 10 is easily the most important for me personally: inflation will eat your money if you don’t learn to invest it in vehicles that keep pace with or outpace it.

2. Government Taxes

Number 2: The government will take more of your money than they should if you don’t learn how to protect it.

3. Keeping Money in Banks

Number 3: By keeping your money in a bank, you are literally letting other people make money off of your money.

4. The 50-30-20 Rule

Number 4: Following the 50-30-20 rule will keep you poor.

5. Small Daily Investments

Number 5: Investing $3.47 a day into a low-cost index fund at the age of 20 will actually make you rich.

6. Understanding Interest Rates

Number 6: Remember that when interest rates go up, that can be a good thing because we can lock in long-term rates to lend our money.

7. The Joneses Mentality

Number 7: You should never try to keep up with the Joneses because once you finally catch up, there’s always going to be another one right down the road.

8. Market Predictions

Number 8: You cannot predict the market, and neither can I, so you better learn to dollar-cost average now.

9. The Importance of Reading

Number 9: Read every single personal finance book you can get your hands on and then read some more.

10. Hidden Aspects of Wealth

Number 10: Remember that wealth has always been what you do not see. If you spend it, you no longer have it.

But is that why you only have eight articles of clothing and all of them have holes in them?

Yep. That and I follow Social Cat.

Source