5 Money Lessons I Would Give to My 20-Year-Old Self

Money makes most people force themselves to get up in the morning and go to work, endure inadequate instructions and the fact that nine hours five days a week are spent on it. And everything for the sake of being able to buy whatever you want, within the salary and credit limit.

Many people, even if they make big money, do not have financial literacy and do not know how to properly manage their funds. And at times they commit rash actions that lead to losses. And if you do not want to find out after each salary that there is no money left even for food, you should learn a few simple truths that will help you manage your earnings more efficiently.

1.  Trying to Prove Your Wealth Is the Fastest Way to Become Poor

One of the biggest financial mistakes of people who have gained access to higher consumption is a show-off. Many died in this battle for someone else’s attention when money is thrown into things that are completely unnecessary for a person, just to show off. They do not understand the simple truth: no one cares about it. What emotions will an expensive sports car evoke in people? Yes, it’s beautiful, yes, it’s fast, but this admiration will pass in a couple of seconds when the car disappears over the horizon. And if you make expensive purchases only for the sake of this momentary envy of others, then you risk being left without money at all.

2.  You Must Learn to Invest to Take Care of Your Future Self

This activity may seem boring to you because few people like to deal with numbers and figures, but this is one of the most useful skills in your life. You should understand as early as possible that no one owes you anything, including the country you live in (whether it is Nigeria or the UK), which exists today, and may fall tomorrow.

Forex trading, stocks, bonds, precious metals are also not 100% reliable assets, but a competent investment with the diversification of funds will not only save your money but also increase it. Already now, even if you are 20 years old, you should think about your old age and start saving at least a little money. This source and the Forextime blog can help you gain knowledge in how to invest in precious metals or other assets.

3.  Money Is Unstable

Few look into the future farther than a day; and most people consider money to be something like a stable constant, something that will always be unchanged. But you cannot know for sure what will happen to currencies in a year. And it is crucial to understand as early as possible that there is nothing you can do about it. As the market decides, so it will be.

That is why you should not strain too much or get excited about the surges and falls because this is an inevitable state of the free market. That is why, as we said above, investments need to be made in different products to protect yourself as much as possible. Putting everything in one basket is a bad idea.

4.  You Have to Live Within Your Means

You always need to take into account the ratio of your budget to your costs and occupy a certain consumption niche without going beyond it. And this applies to both excessive spending and maximum savings. In the first case, people get into huge debts, in the second — they don’t live in the present, which is equally bad. Costs must be adequate, not exceed a certain threshold to harmoniously combine comfort and economy. This will make your life more enjoyable and less stressful.

5.  There Are No Universal Rules for Money

Money is a very personal moment in terms of a recipe for success. And when financiers, personal growth coaches, bloggers, and other experts give universal advice on the topic of earning and saving, this shows their incompetence since each budget option is individual and all factors must be taken into account when drawing it up.

Some useful advice may even turn out to be harmful because they do not take into account the risks or the fact that people do not have the right tools to implement them. Remember, there are different strategies for budgeting, so do not rely on ready-made solutions and try to explore as many options as possible, taking from each the one that works best for you.

Of course, you will not be able to buy sincere feelings with any money in the world — this is priceless. But for everything else, it works, no matter how hard they try to prove to you otherwise.

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Source: Ghana Music