19 Important Personal Finance Lessons

Pay yourself first

  • Don't spend or consume first
    • Payoff credit card dues
    • Invest for retirement
    • Add to your emergency fund
    • Add to your investment fund
    • Never live bigger than your paycheck
Learn Basic Financial Literacy
  • Earn
  • Save
  • Invest
  • Spend
  • Borrow
  • Protect
Avoid Lifestyle Creep
  • Don't allow lifestyle to eat away your wealth
  • When you earn more, save more don't increase your lifestyle spending
  • Do not allow your mind to trick you to spend more
  • Control your expenses before they control your spending
Build Your Network
  • Your success depends on the quality of your network
  • Reconnect your network to maintain relationship and improvise constantly
Create Multiple Streams of Income
  • Rental Income
  • Earned Income
  • Interest Income
  • Business Income
  • Dividend Income
Invest In Yourself
  • Read More
  • Take certified courses
  • Exercise regularly 
  • Listen more, speak less
  • Learn from your own mistakes
  • Learn from others mistakes
Eliminate Credit Card Debt 
  • drains budgets
  • drains savings
Build a Solid Credit Score
  • Better chance for home loans
  • Better insurance rates
  • Lower interest rates for loan
    • Pay on time to increase credit score
    • Pay off your debt
    • Keep low credit utilization ratio
Develop and Stick to a budget
  • Track your income and expenses
    • Know where your money is being earned
    • Know where your money is being spent
Invest 20% of your income on compounding 
  • Invest automatically
  • Invest on index funds
  • Avoid high risk investments
  • Choose low cost investments
Do not buy new cars
  • New cars lose 60% of its value in 5th year
  • 5 year old cars are very cheap
  • Never invest in anything which returns negative
Build an emergency fund
  • Never pay from credit cards for emergencies, they lower credit scores
Find high quality mentors
  • Find a financial guru
  • Find a personal life guru
  • Find a professional life guru

Prioritize Your health
  • Meditate daily
  • Exercise regularly
  • Drink lots of water
  • Consume healthy food
  • Block negativity / Toxicity
Start a business 
  • it offers Money
  • offers Freedom
  • provides Fulfillment 
Do not spend more than you make
  • Income does not equal wealth
  • Earn more money, save more money
  • Control your expenses 
Read Daily
  • Read 10 books an year, your chance to become a millionaire increases 100%
  • Warren Buffet reads 80% of the day
  • Bill Gates reads 50 books per year
  • Read History, Biographies and Personal Development books
Choose your partner carefully
  • Marry someone who is 
    • frugal
    • mindful about money 
    • supportive your money habits

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