Finance plays a major role in everything you do.
If you understand the basics of finance, you will accumulate more wealth and have a better life.
And understanding finance isn’t as difficult as you think.
I put together this list to help get you started.
Live Below Your Means
If you remember nothing else from this article, remember this one.
Don’t try to keep up with your neighbors or friends and their purchases.
You don’t need a new car if you have one that works.
You don’t need to max out your budget to buy a big house.
Live within your income level.
You are as qualified as some financial professionals
These greats of finance can be intimidating.
Some of these people are brilliant with high IQ’s.
But most of them worked hard to get where they are.
That’s good news.
Because you can work hard even it you aren’t as smart as you would like to be.
Don’t Listen to the News
The news just wants eyeballs on their articles.
So they write headlines to get you to click.
Most of their articles are dramatic and sensationalized.
If you make decisions based on the news, your decision will be a knee-jerk reaction.
And it will turn out poorly for you.
Don’t Listen to the “Experts” Either
Everyone has an opinion and knows what stock will be the next Apple.
Don’t listen to them either.
They may not be as qualified as you think.
But even worse than that, they may have an agenda.
They may own a bunch of stock they want to unload so they push it to their followers.
Read About Finance
I know. Reading about finance is boring. I get it.
But it will benefit you exponentially.
Here are a few good ones:
- Rich Dad Poor Dad: What The Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
- The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey
- The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas J. Stanley
- The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) (Collins Business Essentials) by Benjamin Graham
- Common Stocks and Uncommon Profits and Other Writings by Philip A. Fisher
Fair disclosure here. I make money if you click those links but I wouldn’t recommend them if I didn’t believe in them.
They are great books that will teach you a lot.
Finance impacts everything you do.
There’s just no getting around it.
Understanding and accepting this will make your life much better.
And using these basic lessons will help you make better financial decisions.
You can make better financial decisions.
It’s not as hard as you think.
Can you think of any other financial lessons you should know?
Click the link to return to Finance Footing home.