Your financial behavior is their blueprint.
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Lesson 1: Spend less than you earn. Always.
The less you spend. The more you keep.
If you spend more than you earn, you will never ever ever reach a positive net worth, build substantial wealth, or experience financial freedom.
Building requires discipline.
Discipline requires sacrifice.
If you are unwilling to live below your means, say goodbye to a healthy financial status.
Lesson 2: Treat debt like a liability, not a lifestyle.
There is good debt.
Debt that creates more financial opportunities and wealth.
There is bad debt.
Debt that subtracts financial opportunities and decreases your net worth indefinitely.
Audit the reasons behind your debt and always ask yourself does your debt create more wealth for you or detract wealth from you.
Lesson 3: Never rely on a single income stream.
Single income streams can blow up at any point.
Never bet all of your money on one horse.
Instead diversify your income streams.
Hedge yourself against putting all your eggs in one basket.
If one basket goes to sh*t, you still got others.
I’ve never heard of anyone complaining about having more than one income source.
I’ve definitely heard of people complaining about losing their one and only income source, though.
Lesson 4: Learn money continuously or pay the ignorance tax.
Start your financial education early.
Don’t rely on hearsay.
Don’t rely on luck.
Don’t rely on “figuring it out the hard way”.
Educate yourself financially by reading books, watching documentaries, listening to podcasts, and watching videos.
Take everything you learn into account, analyze and determine what will work best for you, and throw out anything that won’t be a good fit for your long-term goals.
Remember, not all financial advice is right.
It’s only right if it works for you.
Lesson 5: If you don’t need it, love it, or use it — don’t buy it.
I stopped buying pointless stuff years ago.
I now focus on buying experiences or things that truly bring me joy and satisfaction. We don’t need a lot of stuff in this world. Just a few things.
My dogs get more stuff than me.
If a lot of your things end up unused, in the trash, or forgotten, you’re buying too much stuff, and therefore wasting too much money.
Lesson 6: Financial alignment matters more than chemistry.
Who you pair with matters significantly in the grand scheme of things.
If there are misaligned values, it will wreak havoc on your relationship.
Talk about money with your partner early.
Discuss everything together.
Review everything together.
Make decisions together.
Get on the same page about money.
Lesson 7: Avoid student loans when possible — work, apply, and earn your way through school.
Pay your way through school or find programs, scholarships, and grants to help you pay for it, so you don’t have to take the hit financially.
Find ways to grow your expertise for free.
Lesson 8: Reject materialism. Own less, live freer.
The less you own, the less responsibility you have.
Moreover, the lower your moving costs will be.
You’re more mobile when you own less.
You feel lighter as well because you’re not having to keep up with and maintain so much sh*t.
Materialism is common.
Minimalism is less common.
It’s easy to accumulate.
It’s hard to be intentional about what you bring into your possession.
What’s less easy? Saying “no” and acquiring less.
Lesson 9: Make kids earn money early — comfort breeds dependence, not competence.
I started working early. I did the lemonade stand. I worked with and for my parents. I started businesses. And I learned the value of money through work ethic and investing.
I never wanted to be financially dependent on parents, so I decided to take financial matters into my own hands.
Teach kids how to fish, so they don’t rely on you to catch it for them forever or for an extended duration.
Lesson 10: Prioritize investing money in experiences; these last a lifetime.
The best memories often don’t involve money.
They involve experiences. Usually travel for me.
It’s the moments that are priceless. Not the paychecks.
Lesson 11: Invest early and don’t stop.
Open up your kids investment accounts before they’re born.
Teach them how to invest, but more importantly, teach them where to learn about investing, so they can practice acquiring and filtering financial knowledge for themselves.
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This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.