 7 Lessons People Learn Too Late About Money Tiharv Eka, the author of Secrets of the Millionaire Mind, said rich people focus on their net worth, poor people focus on their working income. Also, rich people believe, I create my life, poor people believe, life happens to me, says the author. Because so many people do not understand the concept of creating wealth, neither do they develop the mindset of building their net worth from a pretty early age in their lives, they eventually leave to regret certain money decisions they took or did not take. According to the Consumer Financial Literacy Survey conducted by the National Foundation for Credit Counseling, 80% of adults agree they could benefit from advice and answers to everyday financial questions from a professional. Unfortunately, these money lessons are not taught in schools, leaving us to discover them ourselves. The good news, however, is that there are a lot of valuable materials you can lay your hands on to acquire knowledge of these things. For instance, there are a thousand and one books about financial freedom, creating wealth and the likes. There are also a good number of articles and videos such as this on the internet that provides a handful of information. After all, knowledge they say is wealth. Anyway, in this video, I'll share with you 7 lessons people learn too late about money. This, I believe, will help you become a successful person. If you're new here, consider subscribing so that you won't miss other interesting videos like this. 1. The Importance of Saving Early I guess I'll be right to assume that everyone had heard about saving. However, I'll be wrong to assume that everyone who has heard about saving knows the importance. If we all did, then a good number of people would have attained financial freedom from an early age of their lives. Remember, T-harve echoes words. Reach people focus on their net worth. Poor people focus on their working income. We can only begin to build our net worth when we realize the importance of savings. Believe it or not, nothing gives you happiness like a financial buffer, which is why you should start saving from an early age, your 20s. Wait until you are much older, a wealthy is a wrong approach. As a matter of fact, the perfect opportunity to begin might never show up, because you'll keep creating excuses until you are so close to retirement that you'll only have but a few dollars saved up. So, start now and be consistent, even if it is one penny a day. Mokokoma Mokohuana, a philosopher, a social critic, and a writer of thought-provoking aphorisms, said, even a trillion dollars is made up of cents. Number 2. The Power of Compound Interest Investopedia defines compound interest as the interest calculated on the initial principle, which also includes all of the accumulated interest of previous periods of a deposit or loan. In other words, it is the addition of interest to the principal sum of a loan or deposit. Depending on our knowledge of this subject, compound interest can either be a friend or an enemy. It could be a trap or freedom as far as your finance is concerned. Matt Renkel, a certified financial planner, once told USA Today, I think every high school student should graduate with the knowledge that compound interest could be your best friend or best enemy. If you're borrowing money, especially on a credit card, most young adults, or even the older ones, don't realize just how much it really costs. Although, when it comes to paying off loans, compound interest can double or even triple your debt. In the case of depositing a huge amount of money, however, compound interest can be of so many benefits working in your favor. Number 3. The Importance of a Monthly Budget A monthly budget allows you to plan properly and limits you from overspending your money. When you create a budget, you're basically putting yourself in control of your finances and help you manage it properly. Money talks. It says goodbye. So if you don't plan your finances for later in life, you'll wish you had. However, in setting a monthly budget, ensure that you plan a realistic budget which you can easily sustain. Do not go cut enough your expenses without proper evaluation. Otherwise, you'll soon realize you cannot keep up with this new habit you are trying to develop. Number 4. The Importance of Negotiation When it comes to self-marketing, most people either shy away from the subject or perform a really bad job at it. Poor self-marketing is one mistake quite a number of people wish they had realized earlier on in their lives. T. Harve Ecker said rich people are willing to promote themselves and their value. Poor people think negatively about selling and promotion. For instance, during a job interview, many people are usually unprepared to ask the right questions, speak about themselves and the value they have to offer, which is why they eventually get underpaid. According to PayScale, women and millennials are least likely to ask for pay raises throughout their professional careers. In the end, they end up being stuck to their financial crisis not because they are not experts in their fields but because they have poor negotiation skills. Number 5. The Importance of Health Insurance You may never know or understand the need for health insurance until a case of an emergency, either minor or major. If you are in perfect shape, health insurance is a must because you can rest assured that you are covered and your financial goals won't be derailed if a problem arises. Number 6. The Importance of Investment Most people simply earn money and spend money, nothing in between. Yes, putting away some cash into a savings account at the end of the month is totally a wise thing to do but guess what is even better? That's right, making more money with money. Investment. It is one of the easiest ways to build and grow wealth. Manage Aurora, the author of the Rat Race to Financial Freedom said that money has the power to buy you things but a much bigger power of money is in generating more money for you. Those who are able to manifest the latter are never short of it. For example, you can make a $5,000 investment in your 20s. With a 10% annual return in the stock market, your investment would have accrued to over $200,000 in the space of 40 years. Pretty good, right? Number 7. To buy a house or rent a house? Shelter is one of our basic amenities as humans, right? Little wonder, so many people spend tons of money getting one, either to rent or to buy. Depending on your country, while renting might feel cheaper, buying may save you a lot of expenses in the near future because you only have to do it once and for all. You do not need to keep renewing it as in the case of renting, which is why a majority wish they knew earlier in their lives how to save up to buy a house of veers. Again, when you focus on gaining financial freedom and building for yourself net worth that will leave you smiling every time, then you should also avoid making some of these money mistakes. Rather, heed to the money lessons you have learned today. Thank you very much for watching our videos. We'll like to give you another interesting video for you to enjoy next, but before then, our team will be very happy if you can like this video and share it with your friends on social media. 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