If you want to become the first millionaire in your family, here are 10 tips everyone should know
Teaching children about money should be part of parenting because most schools won’t do it
If you want to become the first millionaire in your family, here are 10 tips everyone should know:
1) Your time is more valuable than money:
If you make $20/ hour, a new car doesn’t cost $50,000, it costs 2,500 hours of your time (or 357 days of work).
By framing purchases in time instead of dollars, you will make better-informed decisions with your hard-earned money.
2) The best way to become financially free is to become financially literate.
Educate yourself on finance and your wealth will grow in abundance. The wealthy invest in these 4 assets:
• Stocks
• Real estate
• Businesses
• Self-education/Self-improvement
Use money as a tool.
3) Who you choose to marry will have significant financial implications on your wealth.
Making the right choice will be incredibly beneficial, but choosing the wrong partner will cost you money, legal fees, time and peace of mind.
Choose a partner who will support & uplift you.
4) The Car Payment Trap:
A car is a depreciating asset that loses value over time, and purchasing an expensive car can be a poor financial decision.
Choosing an affordable or less expensive car will save money, allow you to invest more in a Roth IRA and build you more wealth.
5) The reality of 9 to 5 jobs:
A 9 to 5 job can provide reliable income but it’s unlikely to make you very wealthy.
Those who create significant wealth have multiple streams of income, such as investments in real estate, stocks or businesses.
Money is a tool for the wealthy.
6) Penny pinching won’t help you:
Saving $5 on coffee won’t help you retire much earlier, overspending on big-ticket lifestyle decisions matters more.
Choosing an affordable home, downsizing to a smaller space or a less expensive car will allow you to invest more & grow wealth.
7) Health is wealth:
Medical bills can be an expensive financial burden, so focus on healthy habits to prevent future health issues that lead to high medical bills.
Prioritize your health with proper nutrition & exercise which can save you thousands later on in life.
8) Compound interest is the best money hack:
By reinvesting your returns, your money grows at an exponential rate, rather than just a linear rate.
Compounding interest is the process of earning interest on both the original investment and the accumulated interest over time.
9) Teach your child about money:
Warren Buffet has a children’s cartoon where he teaches:
• Wealth
• Money
• Investing
• Business
• Personal Finance
There are 26 episodes!
4 Board Games to teach kids about money:
• Payday
• Monopoly
• Cashflow 101
• The Game of Life
10) Generational wealth must be protected:
~70% of families lose their wealth by the 2nd generation
~90% of families lose their wealth by the 3rd generation
Teaching yourself & your children personal finance are a must because many schools don’t teach it.
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