10 Money Lessons You Should Know

10 Money Lessons You Should Know

The only thing that fascinates everyone is money. People try to find unusual base to make money for which they need not to put any efforts. 

You will get thousands of videos about money making online but no one will tell you the most important learning. 

In this article I will brief 10 points about money that I have learnt in the past 10 years of my career.

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1. Money takes time to grow

Making money is not a one day task, unless it is won through gambling or lottery, or earned through stock market. It has to grow slowly once use start saving. Basically, you should stay relaxed while it grows because money have the power of compounding

2. Making money is the way to the financial freedom

Financial freedom is desired by everyone and it is the reason people want to have multiple sources of income. Young people wants to retire early and this can be possible if there are multiple passive income sources.

3. Money is not enough for majority of people

I have heard people say that there income is not good despite earning Rs 50,000 or more in tier 2 and tier 3 cities. This happens when their expensive increases at the same ratio of increase in their income.

4. Health is more important than money

Someone rightly said that health is wealth. If you have maintain good health then you need not  to spend on medical expenses. Not keeping good health means you will lose money in the form of doctor consultation or medication. 

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5. Money can increase the quality of life

It is true that with money you will be able to buy everything you desire for. For example, if you want to buy iPhone 14 and have significant amount of funds, then you should buy it.

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6. Spend money wisely

You should not spend money on all of your desires. Now you must be thinking that I am contradicting to the fifth point. Yes that’s correct. You should observe difference between necessities and desires. Allocate money to the necessitates and cautiously spend on desires.

7. Talk about money, how you invested money, things worked and didn’t worked for you 

You should talk about money with your friends and relatives who knows how efficiently manage the money. You will get to know how to increase the return on your investment or saving

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8. It is easy to save more money than you make

The more you save the more you will make money. Once you start saving, the compounding will help to increase more savings than you make more money.

9. Money gives multiple options to explore

To explore your dreams and desires, the money will help to provide numerous options. For instance, if you want to start a business, if you want to travel, if you want to have night out with friends, if you want to give best birthday present to your parents or spouse you should have money.

10. Time value of money

The money earned today will have less value after a year or so. You must invest your money in various investment option so that the value of your money do not diminish.

To conclude, if you follow all these things related to money in your life then you will be able to have financial freedom. 

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Frequently asked questions

1. What should be the ideal ratio of savings and expense?

Your savings should be at least 30% of your income.

2. How to save money during pandemic?

Spend only on the essentials like food and health

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