7 Money Truths School Didn't Teach You

In our journey through the education system, we absorb a plethora of knowledge about history, mathematics, literature, and science. However, one crucial aspect of life often overlooked in traditional schooling is financial literacy. While we may learn basic arithmetic and economic principles, the practicalities of managing money, investing wisely, and creating wealth are often left unexplored.

Here are seven money truths that school didn't teach you, along with concrete examples to illustrate their importance:

• Money is tied to value:

Contrary to the notion that money is solely earned through employment, it is intricately linked to the value you provide. Creating value for others can lead to financial success, whether through entrepreneurship, freelancing, or innovative problem-solving. For instance, consider the rise of influencers on social media platforms who monetize their content by providing value to their audience through entertainment, education, or inspiration.

• Create your own viewpoint:

School often fosters conformity rather than encouraging individual thinking, especially in matters of finance. Taking control of your financial destiny requires breaking away from conventional wisdom and forging your own path. Take, for example, the rise of self-directed investors who rely on personal research and analysis to make informed decisions, rather than blindly following the advice of others.

• Budgeting is freedom:

Understanding where your money comes from and where it goes is essential for financial stability and growth. Budgeting empowers you to make conscious choices about your spending, saving, and investing, leading to greater financial freedom. Just as a business needs to track its finances to thrive, individuals benefit from budgeting to achieve their financial goals.

• Invest in assets first:

Distinguishing between assets and liabilities is crucial for building wealth. Assets generate income or appreciate in value over time, while liabilities drain your financial resources. For example, investing in rental properties or stocks can provide passive income streams, whereas excessive spending on depreciating assets like luxury cars can hinder financial progress.

• Find your passion-driven career:

Your career is not just a means to earn a paycheck but an opportunity to pursue your passions and find fulfillment. Rather than settling for a job that merely pays the bills, seek a career that aligns with your interests and values. Whether it's starting a business based on your hobbies or transitioning into a more fulfilling role, prioritizing passion can lead to long-term financial satisfaction.

• How to save money on taxes:

Understanding the intricacies of tax laws can significantly impact your financial situation. By strategically optimizing your income streams and taking advantage of tax deductions and incentives, you can minimize your tax burden and maximize your wealth accumulation. For instance, structuring your income through a combination of salary, business profits, and investment returns can lead to substantial tax savings over time.

• Why investing money is important:

Investing is the key to building long-term wealth and achieving financial independence. Through the power of compound interest, your money can grow exponentially over time, providing you with greater financial security and opportunities for wealth creation. Starting early and staying consistent with your investment strategy can lead to significant returns, allowing you to enjoy the benefits of your money working for you.

In conclusion, while traditional schooling may provide a foundation of knowledge, it often falls short when it comes to practical financial education. By embracing these seven money truths and taking proactive steps to apply them in your life, you can take control of your financial future and unlock greater prosperity and freedom.

Book recommendation:

Catching F.I.R.E.: Weekly Money Suggestions to Get You on the Journey to Financial Independence and Early Retirement by  Jane Mazimba.

The Smart Money Woman: An African girl's journey to financial freedom by Arese Ugwu.

The Smart Money Tribe: An African Woman's Guide to Making Bank by Arese Ugwu.

The Millionaire Fastlane: Crack the Code to Wealth and Live Rich for a Lifetime by MJ DeMarco.

We Should All Be Millionaires: A Woman’s Guide to Earning More, Building Wealth, and Gaining Economic Power by Rachel Rodgers.

Truly Yours,

The Queen Of Africa