40 Things Everyone Must Know About Money

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After reading thousands of blog posts, hundreds of books, and dozens of research papers all on personal finance,  I’ve come to a few conclusions about money. Well more like 40…

Here’s the 40 things I find that everyone should know about money in order to live a rich life. (My favorites are in bold)

1. If you want happiness, spend your money on experiences, not on stuff
2. A financial goal not written down and with no deadline, is only a financial wish
3. The only person that will truly ever care about your money is you
4. There is no single way to manage your money correctly
5. You can have anything you want in life, as long as you prioritize it
6. Investing in index funds, isn’t average
7. The goal for an investor is to earn the highest return after-taxes and expenses
8. 99% of financial news is meaningless
9. The 1% of financial news that does matter isn’t on TV
10. Investing really can be as easy as putting your money in a good targeted retirement fund
11. The best investment, is an investment in yourself
12. You have a limited ability to save money, and an unlimited ability to earn money
13. You control what’s possible, by what you believe is possible
14. Money without time, is worthless
15. You don’t have to make money back, the same way you lose it
16. Compound interest really is magical
17. The fastest way to decrease your net worth, is to borrow money to buy an asset that depreciates
18. It’s not about how much you make, but how much you keep
19. You can borrow to pay for your kids college but not for your retirement
20. For a young investor, it’s better to focus on how much you save, rather than focusing on a marginal increase in investment returns
21. An employer match is an immediate return on your savings
22. Money can make you money, which can make you money
23. The goal of money, is to manage it to reach your goals in life
24. Investing is simple, it’s just not easy
25. The purpose of a budget isn’t to determine where your money went, but where your money should go
26. The unexpected will happen, an emergency fund is your insurance
27. The cheapest insurance is self insurance
28. What can’t be self insured, must be insured
29. It’s better to actively manage your life, not your investments
30. You can only change one financial habit at a time successfully
31. When trying to change a financial habit, make that change as small as possible
32. Your environment, shapes your decisions
33. Information, doesn’t lead to action
34. You don’t lack willpower
35. You overestimate how much money you need to live your desired life
36. Money is a tool to get what you want, it’s not the end goal
37. Your mind is your greatest asset
38. There’s a small correlation between your salary and happiness, but only to a certain extent
39. If you THINK you can afford to buy something, you can’t
40. Life isn’t about money, it’s about time

What am I missing? Let me know in the comments.

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Photo by: Aaron Paterson

Tagged as: financial planning, lists