17 Money Skills We Don’t Need to Learn Too Late in Life
7 — Ability to analyze a company on the stock market
I remember reading my first book about money about 15 years ago when I was only 8 years old.
Many people say that all those financial education books don’t teach much. They are just stories, lucky case studies that don’t happen in reality.
Unfortunately, these people started from the beginning with negative thinking and very little will help them. You also need to apply what you read, work hard and follow your goals.
But the straightforward things learned in books are the skills needed for better collaboration with money.
These are the skills that we apply in our lives and are slowly changing our lives. Money is about your life, whether you agree with it or not.
There are several categories of skills that we need to better control our money:
Money-saving skills
Investment skills
Money spending skills
Debt-building skills
Money earning skills
Below I will list the most important skills I think we should have that come from the above categories.
1 — Focus on increasing net worth and give less importance to saving
Saving is very important, but let’s not fall into the trap of being too thrifty on the one hand and spending on the other.
It is important to understand that the net worth of your property is the most important thing. (stock, house, business after deducting all your expenses). And most importantly, understand how long you can live if you receive no salary income.
2 — Ability to say NO.
You have to learn to say NO sometimes.
Maybe it is not the time to go out and spend 100–200 dollars in one night. Maybe it’s not the time to get another shirt if you have 10 at home, or to trade in your cell phone for the latest generation. Just be careful not to be the kind of person who says NO too often.
3 — Ability to invest for retirement.
Many people don’t even think about the time when they will reach old age and we won’t be able to do as many things as in our youth.
We will need more money and, without a retirement plan, we will have a hard time dealing with it. Who knows what your retirement will be like in 10–20–30 years. Personally, I no longer rely on the state pension when I reach old age and have to act now.
4 — Ability to understand what an emergency fund means.
Less than 5% of the people I know have an emergency fund for less pleasant times. This fund can save lives and we should always have it and keep it active for any unpleasant occasion.
5 — Ability to know how the economy is doing, what inflation means, etc.
These are extremely important terms in economics and we need to know them. They can affect you in all sorts of ways — bank fees, investments, cards, vacations, etc.
Read a book and learn the terms. Then try to meditate when watching economic news.
6-Ability to understand what types of instruments you can invest in and their risks.
You need to invest, but you don’t need to start with the riskiest methods. Start with the lighter, low-risk ones and grow as your knowledge grows.
7- Ability to analyze a company on the stock market.
If you want to invest in the stock market, this skill can help you not to lose money.
8 — Ability to open a trading account and trade.
Very few look at broker commissions and platform performance. It’s time to dump it and move on.
9 — Ability to understand what taxes you pay to the state and understand how the tax system works.
You need to know how your cooperation with the state works in terms of taxes. You need to know how a law that must be enforced can affect your profit. You need to know how to fill out your financial statements so that you don’t pay someone else.
10 — Possibility of deducting the amount of taxes to the state.
If you need to know what taxes you pay above, you now need to know how to reduce them. This ability will help you know what expenses you need to reduce your taxes and save more money.
11- The ability to avoid credit cards or the ability to spend less than you earn.
Many fall into the trap of credit cards and end up spending more than they produce.
Consumerism makes us want more and we get into debt. There are also some credit cards that, if you use them with your head, can help you. There are somewhere you pay no interest if you return the money in 30 days, but be very careful not to learn from them.
12 — Ability to educate yourself.
Very few do it by their own choice. We are driven by work or school and less by self-control. Make sure you read a book a month, if not a week, and go to several classes 2–3 times a year. All of these will help you to be a better person.
13 — Ability to give thanks and donations.
I am not just talking about giving money to the needy. It is good to be grateful and to offer money, even if it is not direct money. After all, your work for free is a way to donate money/clothes/products to children who really need it. Don’t forget: small gestures change the world.
14 — The ability to better manage your time.
Yes, the time that many (including me) consider the most important thing we have.
Money is just a tool (important for us), but time cannot go back. We need to know how to manage our time efficiently and not waste it.
Efficiency is an extremely important term for me and I always try to make things as efficient as possible. My time is precious and I want to make the most of it.
15 — Ability to take risks.
One of the differences between successful people and people who give up is their ability to take risks and try. If we are fearful and negative, we will certainly stay that way.
Successful people are where they are coming from because they take risks when they need to. You need to start taking risks, but make sure they are calculated risks. In entrepreneurship, you have to take risks to win. Nothing is certain, especially when you are just starting out.
16 — The ability to differentiate between “I want” and “I need”.
A skill that applies to everything we do and in all areas. It is a skill that makes us more efficient and pragmatic, and when it comes to money, it helps us to spend our money on things we want, but don’t help us much.
An example: I want a car to go to work in. This car will need money for maintenance, money for gas, insurance, and all it does is make your work. If you use the bus/metro, the expenses would decrease a lot. Always think “I want” vs. “I need”.
17 — The ability to enjoy everything you’ve accomplished so far.
This is the most important skill I can give you.
No matter how much money we make, we must enjoy it. In vain we end up with a lot of money if we can’t enjoy them and be relaxed and happy. We must learn to enjoy the money and not always run after it.
The list goes on and on.
Which skills do you lack or do you think are the most important?