11 Money laws children should learn from a young age

And adults too!

Today I will be going through 11 money rules I, unfortunately, wasn´t thought at school or at home.

I come from a normal family. My parents grew up with very little and worked very hard to give me a very good childhood. But since they weren´t thought a lot of those rules they only thought me some. Those they knew about. The other I learned very fast through my own business, books and other sources.

Of course, there are way more. But I would like to break down the 12 most important once I wish schools would teach so children with parents that may also not know those rules have the same knowledge as the others.

A lot of people have the thought of money being the evil of everything that is happening in this work. Same as my grandfather. Every time we see each other he talks about how money is destroying people lives and everything. Yes, money can build a lot of stress. But it is still a tool. You don´t see a hammer as a weapon only because someone killed someone with a hammer. It depends on how you use it. You can use it to build things or to harm others. Same goes with the money. I like to see money as coupons.

Building yourself a buffer for bad times makes you sleep at nights like a baby. Knowing that you have a cash reserve somewhere in the bank or in the save takes soo much stress from your shoulders. People so ofter invest all of their savings or live paycheck to paycheck. So when an unexpected bill comes to their house or they lose their job it breaks their neck. The general rule is that you should have at least 2–3 months of your monthly living cost saved somewhere. So if something happens you can either use the money for that one-time payment or if you lose your job you can pay yourself for 2–3 months. Of course, more is always better but remember also that you don´t take money into the grave. Use it wisely enjoy life but first build a solid buffer.

So this a controversial point. There are big names in the game that say all depth is bad and you should never borrow money and then there are people saying that there is a difference. I will follow the second opinion. Let´s start with that there is a fine line between good and bad depth. There is also a lot of personal preferences involved in it. But let´s say you want to buy an apartment to generate money from the monthly incoming rent. I see no problem borrowing money for such a spent because it is an investment. The depth will if you do it right pay of by its self and generate you additional monthly income. Borrowing money to buy let's say the new PS5 or a holiday trip is a bad depth. My rule is: If you can´t afford it don´t buy it unless it generates money.

I think taxes are one of the most hated topics of all time but one of the most important as well. It definitely should be thought at school! I mean everyone hates them and almost no one educates themselves about this topic. And I honestly don´t know why. I mean this is the easiest way to save and get more money. An accountant I talked once to told me:

And he is so god damn right. Even if you don´t want to learn more about it. Go and invest in a professional accountant (makes only sense if you earn already okay money). Often the money they can bring you back pays already them and leave you with more.

There are two types of capital. One is the physical money in your safe or bank account. The second and sometimes the even more important one to make even more or keep what you already have is the human capital. Cash capital can be used to buy investments. Human capital is everything that involves learning. You can invest money into books, seminars or online courses to learn new things or become better at your skills. You should never stop learning.

The reason why most of the lottery winners or athletes go broke. Not only their bank account grows but their expenses too. And most of the time the expenses overgrown the income. So if you come to the time where your income grows. Don´t go straight away and get a better car and a bigger apartment. Maybe reward yourself a little but try not to spend everything you gained. Build a bigger buffer invest so you have more money that workes for you and generates you more money. What I don´t say is to be cheap. If you have a lot of money and still live at your parent's house or drive a car that constantly breaks maybe think of getting a new one. But I think we get the point here right?

This a point I struggled a lot within at the beginning and I still catch myself sometimes. These days everything has to go fast with results that come right away. But that is not how money works. You will have to put a lot of time and work for free or almost for free at the beginning. Money comes with the loudness. The more people know of your personal brand or product the more money you will earn but it just takes time. So never give up and stick to your dreams! IT IS WORTH IT.

This rule might safe you a lot of money. If you have the desire to buy something that you think you need and like. Don´t go and buy it. Rather wait a day. Sleep over it and if you still think on the next day that you need this thing then go and buy it. Trust me. 80% of the time you will wake up see the thing again and think that you actually don´t need it that much as you first thought.

Again a rule. Personally I really like this rule to kind of get an idea on how long it will take to double my investment. So if you know the interstate you can divide 72 by x and you will get the number of years it will take to double your money.

It is terrifying to see how much and how fast certain things depreciate. If you buy a new car and drive out the salon you already lost 20% of the value. Same goes with electronics and many other stuff. Start questioning your purchases. Do you need it? Is it the depreciation worth it? Can I buy it used?

I think it is very important to also keep in mind that there are things that money can´t solve. No matter how much you earn, safe or have in your bank account. It is very important to know that otherwise, money will take control of you.

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