1. Remember to consider the role of opportunity.
4 lessons about money that when you learn it to live a life without hard work. It’s easy to assume that wealth or poverty is up to you, but remember the role of chance in life.
The family, our values, and the country. The generations into which we are born and the people we meet. All play a part in the results we achieve more than most people like to admit.
We must believe in the results of hard work. But also understand that not all success results from hard work and failure; poverty is due to laziness. Keep this in mind when you comment on someone, including yourself.
2. Money’s most significant value is the ability to control time.
You can do what you want with anyone, anytime, anywhere you want to bring happiness beyond compare. The thrill of having your child’s favorite things quickly fades away. But a job with flexible hours and short travel times will never bore your child.
Having enough savings to give your child time and options in an emergency is something that always stays in style, and many people dream of life without hard work. Retirement, whenever you want, is the same. Self-control is a primary goal in everyone’s life. Every penny you save will be like owning a piece of the future where no one controls you.
3. Don’t rely on your parents.
No one can understand the value of money without experiencing deprivation. Although parents will do their best to support their children, they will not spoil them. Learning the truth that you can’t have everything you want is the only way to understand your needs and wants. This will teach your child to budget, save, and value what he already has.
Knowing how to save without hurting yourself will be an essential life skill that will come in handy during the inevitable ups and downs.
4. Living below an income
The ability to live below income is one of the most potent financial leverages because it is easier to do than controlling your child’s income or investment returns.
The person who earns $30,000 per year but needs only $20,000 to be happy is more affluent than the person who earns $200,000 but needs 201,000 to be happy.
An investor who earns 5% profit but has low expenses is better than an investor who earns 7% a year but needs to spend the entire amount.
How much money you earn does not determine how much money you have, and how much you have does not determine how much you need.