I think my parents are as good as they come. They fed me – educated me – disciplined me. The only thing I did not learn from them was how to be financially fit. So I turned out to be a highly educated adult who had to discover the hard way how to balance a bank account. This plight is one my friends grapple with too. As with mine, their mother and father did not focus on teaching them about money because they thought other areas of development were more important. Big mistake!
- Rich people often take financial risks. As a result, a lot of millionaires have filed bankruptcy. They aren’t overly cautious opting to save a dollar versus investing the same bill into a good idea. So, at times, being too safe can actually be a financial detriment. (Related: 10 Facts about American Millionaires)
- Wealthy people work for themselves. They usually aren’t nine-to-fivers who let someone else tell them what to do. Of course, there is nothing wrong with being a nine-to-fiver as long as you understand that another entity holds the purse strings to your wallet. If the industry you are a part of begins to die out, your paychecks will too. I found this out after building a career in insurance, an industry that’s been slowly doing away with certain jobs.
- You can lose everything and it not be your fault. Chronic illnesses can drain hardworking people of their money even when they have insurance. Hurricanes can blow away houses. Greedy people can rip off their employees of life savings. Think Enron. In cases like these, you need to know how to rebuild and start over again penny by penny.
- You should invest in tech trends. Trends in technology aren’t the same as those involving hair and clothes. It’s okay to look funny, but if you don’t understand how to use a computer you can lose out on money-making opportunities. I know this truth all too well because of friends who rely on me to complete PC tasks over their head.
- Money shouldn’t define you. The ‘bling’ really doesn’t mean a ‘thing’. Therefore, losing a good job or getting a less lucrative one shouldn’t be the end of your world. Change is constant, which means your ability to earn money might be too. As a result, other things like your character should define who you are. (Related: Do you Define Yourself By Your Career?)
In conclusion, as I get older, I am studying the area of finances more. It’s a learning curve that I am trying to master, but hope my much younger predecessors get control of earlier on than me.
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Also See: Nonprofits – Ways to Earn Money During the Holidays