Go to school, graduate, get a job, then retire with some benefits. That's the dream, right? Every single school will train their students that this is the right path to take; the only problem is this doesn't work anymore. Some many years ago, this financial route would make so much sense but a lot has changed so much making what they currently teach in school about money completely redundant.
A lot of poverty and unemployment in this country is due to the lack of financial literacy classes in our education system. Times have changed and if you don't want to be broke for the rest of your life you better grab a pen and paper right away before you delve deeper into this awakening article. Below are 5 money secrets school doesn’t teach you.
1. Correlation between Emotions and Money
Let's start with the most important money secret only marketers and big brands know about. 30% of what you spend your money on is tied to a certain emotion. I bet you didn't know that most of the time, what we buy is based on how we feel. Because of this, brands have capitalized on triggering the right emotions just enough to get us to open our wallets.
I must say that I've been a victim to this sometimes; I'll just buy something at the end of a horrible day just to feel better the same way sometimes women will go on shopping sprees to feel better. There's nothing wrong with doing this occasionally, the problem is when you fall victim to these marketing tricks every now and then.
2. Multiple Income Streams
The only way to make money is by getting a salary, that's according to school. We’re hardly taught about alternative ways of making a living, all the education system preaches is how to apply for a job, build a cv and get a job. In short, the system trains us on how to be slaves, building someone else's dream. If you solely survive on your salary, then you'll have a problem.
There are several ways you can make extra income aside from your job; you could invest part of your salary and investments with high returns, you could start a business, offer services in your area of expertise after work hours. There's so much we don't learn in school that I wish they would teach us. If you don't have a side hustle already, you need to find one as soon as possible.
When did you ever hear a teacher/lecturer come into class and say today we're going to learn the importance of saving money? I’m guessing your answer is never. Well, it's not your teacher's fault, they're only following the curriculum to the letter. But it would have been great if we learned one or two savings tips along with those complex algebra calculations. It's sad that every adult has to learn this the hard way through experiences or if you were lucky enough your parents taught you how to save.
If you weren’t, this is the basics. First, before you start saving, create a budget for everything you spend, reduce the budget, and cut off what you can from the list. The next step is to determine what percentage of what's remaining from your salary can be saved. The ideal percentage is 40 but if you can't achieve that yet, start small and grow it gradually. Once you've saved for some time, which could be as soon as three months, don't just leave that money in the bank, invest it somewhere
4. Passive Income
Let's be honest, most of you reading this article don't know anything about passive income. Or if you do, you didn't learn it in school but somewhere on the internet like you’re doing now, right? The reality is most of us make money by saving our time in exchange for a salary or wages. Not everyone considers making money in channels that won't necessarily require them to spend that much time. We've been trained that we must spend a lot of time and energy to get the results, therefore, selling the idea that you can make money while you sleep is often shut down. I bet some of you are already second-guessing what I'm saying but I don't blame you. I blame the education system.
5. Assets Are the Key to Wealth
Assets are important as long as you want to build your wealth, but the thing is school will never teach you this. There are assets that depreciate in value such as motor vehicles and those that appreciate such as land and real estate. You \ want to focus more on acquiring assets that appreciate in value as opposed to those that depreciate. Being wealthy means owning your own time and the certain way to earn this sort of freedom is by acquiring assets that earn for you while you sleep. These could be stocks, property that generates income through leasing bonds, a website that earns you money and a business. Once you have enough assets, you'll shift into the wealthy category of people, you will no longer need a day job and you will own every minute of your day.
I hope you learned one or two things about money it's quite unfortunate that the most important things aren't taught to us in school. Kindly share it with your friends to educate them and tap on the like button if you found it valuable.
Thanks for reading. See you in the next article.
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