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40 Life Lessons About Money

40 Vital Finance Lessons I've Learned in 40 Years of Living

Managing Your Finances Is One of the Most Important Aspects of Living a Wholesome Life. It's Time Consuming and Challenging, but It's Worth It When You Reach Your Goals. Here Are 40 Finance Life Lessons Learned Over My 40 Years of Living.

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40 finance life lessons ive learned in 40 years of living
In this Article

There are tons of articles about money-saving tips. These aren’t just any ordinary tips. These are the 40 financial lessons that I’ve learned through experience. I’ve faced many financial challenges I’ve also managed to achieved financial success. 

How I got there is a long story. It includes all my bad decisions in my 20s and counterbalancing those until my 40s. Here are some of the most important lessons that I’ve learned so that you don’t have to learn the hard way. 

About Saving

Lesson #1: Start Saving Early and You’ll Be Glad You Did

Save as much of your income as possible. Keep your expenses low. Avoid debt like the plague. Make more money, save more money and spend less money every year that you work from age 21 to retirement at 65.

Saving Early

Lesson #2: Set Aside Money Automatically

If you want to save enough for retirement, make savings automatic. When money is taken out of each paycheck before it goes into your checking account, saving becomes a habit that’s hard to break.

Set Aside Money Automatically

Lesson #3: A Higher Salary Doesn’t Always Lead to More Security

Having a higher salary doesn’t always mean more security. If you’re not careful, what should be your safety net could turn into the thing that leaves you in financial ruin if an emergency strikes.

A Higher Salary Doesn’t Always Lead to More Security

Lesson #4: Capitalise on the Best Asset You Have

The best asset you have is YOU! Don’t be afraid to use your human capital as leverage for a better deal in life, work, and finance.

capitalize

Lesson #5: Some Financial Advisors Are Just Trying to Make a Buck & Don’t Know What They’re Doing

Be sure to do your research, and find out if the person is truly qualified for the job before you entrust them with your money or future financial security.

Some Financial Advisors Are Just Trying to Make a Buck and Don’t Know What They’re Doing

Lesson #6: The Best Way to Solve Your Money Problems Is by Managing Your Money Better

It doesn’t matter how much money you have, if it’s managed poorly, as a result of your bad decision-making; you will still end up with the same problems.

The Best Way to Solve Your Money Problems Is by Managing Your Money Better

Lesson #7: Money Management Is at the Centre of Your Financial Success

It’s important to know where your money goes and how it gets spent. Once you figure it out, allocate the funds accordingly in order to get the most benefits for what you are spending.

Money Management Is at the Centre of Your Financial Success

Lesson #8: You Don’t Need to Have a Lot of Money in Order for Your Assets to Become Significant

Having more money doesn’t mean you will have higher assets. You could actually end up with a negative net worth if your expenses are greater than your income.

Finance Life Lessons

Lesson #9: Passive Income Is Something That Takes Some Time to Make

Passive income is a great way to make more money on the side, but it usually takes time, money (or both) to create.

Passive Income Is Something That Takes Some Time to Make or More Likely Money

Lesson #10: Credit Cards Are Great – Use Them Wisely

In the right hands, credit cards can be a great thing. However, they are dangerous in the wrong ones. If you have debt or financial troubles, please talk to your bank for help.

credit cards

Lesson #11: Things Can Change in a Heartbeat so Be Prepared

You may have it all figured out and be on the right track but then life happens. It’s important to stay flexible and adaptable to your surroundings.

Things Can Change in a Heartbeat so Be Prepared

Lesson #12: Never Spend More Than 100% of Your Salary

You always want to save money when times are good because you never know what will happen in the future. You may not need to save 50% of your income, but you should never spend more than 100%. If there’s something you want but can’t afford, put it on hold and buy it when the time is right.

You Always Want to Save Money When Times Are Good You Never Know What Will Happen Next

Lesson #13: Every Penny Spent Is Just as Important As Every Penny Earned

If you focus solely on cutting expenses, but fail to also increase your income, then you’ll not be able to make the progress that’s necessary.

Every Penny Spent Is Just as Important As Every Penny Earned

Lesson #14: Prioritize – It’s the Only Way to Get Things Done

Make sure to prioritize your personal financial needs first. Money should be spent on the things you love in life, but it’s always important that you have enough of it first to feel secure and successful!

Prioritize - It’s the Only Way to Get Things Done

About Investing

Lesson #15: Your Net Worth Is What Really Matters

Income is important, of course. But if you want to be financially secure for the long haul, focus on building your net worth.

Your Net Worth Is What Really Matters

Lesson #16: Invest in Yourself Because You’re Worth It

The easiest way to make more money is to invest in yourself. Your education, your skills and your attitude are the most valuable assets you can have at work. Investing in them will pay off big time over a lifetime of good jobs and promotions.

invest in yourself

Lesson #17: Investment Fees Can Have a Huge Impact in the Long Run

Just a few percentage points in fees can cost you tens of thousands over the years. Pay attention to what’s happening with your investments, and make sure that you’re getting the best deal possible.

Investment Fees Can Have a Huge Impact in the Long Run

Lesson #18: Making Money Is Hard but Investing Doesn’t Have to Be

The best way to get started is by putting away a little bit of money at regular intervals. You’ll thank yourself later.

Making Money Is Hard but Investing Doesn’t Have to Be

Lesson #19: Instead of Working to Make Money You Should Start Making Your Money Work for You

If you want to have more money, start working on growing the value of what you already have.

Instead of Working to Make Money You Should Start Making Your Money Work for You

Lesson #20: A Good Accountant Is Worth the Expense Because a Bad One Will Cost You a Lot More

Whether you’re starting a business, looking for ways to grow your assets or reduce taxes, an accountant can help. The cost is worth the benefits.

good accountant

Lesson #21: What’s Best on Paper Isn’t Always What’s Right in Reality

We all want to be successful, but the best measure of success isn’t always what’s on paper. Every person has their own definition.

What’s Best on Paper Isn’t Always What’s Right in Reality

About Life

Lesson #22: Time Is More Valuable Than Money You Can Always Earn More Cash but You’ll Never Get Back Your Time

There are lots of things that money can buy – time is one thing it can’t. Time is limited. Make sure to use your time wisely and spend it on the things you really care about.

Time Is More Valuable Than Money You Can Always Earn More Cash but You’ll Never Get Back Your Time

Lesson #23: Life’s a Journey Make It Yours

It’s up to you to decide what’s worth your time. Remember, you can’t buy it back so be sure to use it wisely.

life is a journey

Lesson #24: Money Isn’t Worth Your Life

It’s important to find what you love and choose a career that’ll make time fly by so you can enjoy the things money can’t buy.

Money Isn’t Worth Your Life

Lesson #25: If You Want to Build Wealth, Don’t Trade Your Time for Money

There are a lot of ways to make money, but trading your time for it is not the best way. You need to find out how you can leverage your life and other resources in order to create wealth.

Build Wealth

Lesson #26: If You Do What Everyone Else Does, You End Up in the Same Place as Everyone Else

There are a lot of different strategies when it comes to finance and investing, but don’t be afraid to make your own decisions.

If You Do What Everyone Else Does, You End Up in the Same Place as Everyone Else

Lesson #27: Knowing Is the First Step; Doing Is the Second

Knowledge is power, but knowledge isn’t worth anything if you don’t put it into action.

knowing is the first step

Lesson #28: Scaling up Doesn’t Always Mean Less Stress

Too often, people believe that more money will lead to less stress. But the truth is when you have more of anything, it usually leads to greater problems.

Scaling up Doesn’t Always Mean Less Stress

Lesson #29: Listen to Your Gut & Believe in Yourself

We all get this nagging feeling when something is wrong or feels off in a situation. You should always go ahead and trust that feeling.

Finance Life Lessons

Lesson #30: Your Strengths Are What Make You Unique So Use Them

We all have different strengths and weaknesses. Rather than focusing on what you’re not good at, focus instead on developing your strengths. This is where the real growth happens in most people’s lives.

Your Strengths Are What Make You Unique So Use Them

Lesson #31: It’s Ok to Enjoy Your Money You’ve Worked Hard, You Deserve It

It’s OK to enjoy your money, but don’t neglect the future. Remember that enjoying your life now is fine because you’ll never be able to go back and do it all over again.

enjoy your money

Lesson #32: One-Size-Fits-All Doesn’t Fit Everyone

The best financial decisions are often tailored specifically for each individual. Regardless of what you decide on, it’s always a good idea to discuss your decision with a trusted advisor or friend.

Lesson #33: Don’t Spend to Impress Rather Live Within Your Means

It’s not worth it to buy things you can’t afford or incur debt just for the sake of impressing someone. It will only cause more problems in the long run.

Do Not Spend to Impress but Rather Live Within Your Means

Lesson #34: There’s an Opportunity for Everybody to Succeed

No matter who you are or where you come from, it’s possible to make the right decisions and end up in a good place. All it takes is one positive step at a time.

 One-Size-Fits-All Doesn’t Fit Everyone

Lesson #35: A Goal Without a Plan Is Just a Wish

It’s important to have a plan for your money, even if you don’t know exactly what that is. It’s always better than having no idea at all.

goal without a plan

Lesson #36: The Best Way to Achieve Something Is Through Small Steps

If you want to be rich someday, start by saving just a little bit of your money each day. You don’t need the whole thing right now or all at once.

The Best Way to Achieve Something Is Through Small Steps

Lesson #37: It’s Not Enough to Have Good Intentions You Need to Act on Them if You Want to Achieve Your Goals

It’s important to have good intentions when you start a plan, but intention alone isn’t enough. You need to execute your plan and follow through on it.

 It’s Not Enough to Have Good Intentions You Need to Act on Them if You Want to Achieve Your Goals

Lesson #38: Finance Is All About Knowledge. The More You Know the Better off You’ll Be

The more you know about financial matters, the better. Financial literacy is a huge advantage in life and can be one of your greatest assets if mastered.

knowledge

Lesson #39: There’s Always a New Lesson to Learn

It’s never too late to learn more about personal finance, and it doesn’t have to be overwhelming.

There’s Always a New Lesson to Learn

Lesson #40: Forget Everything You’ve Been Told About Money

There are plenty of misconceptions about money, and you should keep an open mind.

Forget Everything You’ve Been Told About Money

Common Question

How Important Is Investing?

What Is the Best Way to Save My Money?

In Conclusion

This is a list of 40 finance-related life lessons that I’ve learned in my forty years on this earth. These are not just financial tips, but rather they are ways to make your life better and more fulfilling. Some of these may be common sense, while others will likely stretch you out of your comfort zone.

References

  • www.businessinsider.com/money-lessons-ive-learned-in-40-years-2019-3
  • www.reddit.com/r/FinancialPlanning/comments/azhidc/40_money_lessons_ive_learned_in_40_years/
  • www.nomadnumbers.com/40-years-life-lessons/
  • www.medium.com/the-post-grad-survival-guide/8-life-lessons-ive-learned-at-40-something-that-i-wish-i-d-known-at-20-something-d7d1b0617eff
  • www.medium.com/live-your-life-on-purpose/6-money-lessons-i-have-learned-before-turning-40-4113c9a98a0b

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