5 Money Lessons That You Should Learn While You’re Earning
By: Thakur Rahul Singh
Tags: Money Lessons, Money Mindset, Money, Money Management, Life

Spend Money — Don’t Be ‘That Cheap Guy.’

If you earn enough to cover your expenses and at the same time, you have your savings sorted out. Then you need to stop holding and counting your pennies every time.

If you’re not spending money on something that you really like. Then you’re just stocking up your money for nothing. Unless if you have a bigger saving goal.

I have seen selective people choosing their clothes, food depending on the price, and cheaper ways of living. A happy and healthy lifestyle is a sign of a good life. I do know that living such a life comes at a cost.

If you have the money and savings to live a decent lifestyle (Not Luxurious). Then choose what makes you happier, peaceful, and comfortable. Choosing cheaper options doesn’t make sense.

Stop counting numbers each time when you’re making simple life decisions.

Sometimes Steady Income is Greater Than Owning Assets

No matter how many assets you own in your life. If you’re not making monthly income either from your assets (or) from a job. Then you’re going to lose more money in the future by owning assets and not making money from it.

Assets such as unused land and high maintenance homes will cost you money. If you’re not making a steady income, it becomes challenging to maintain assets that don’t pay you.

For unused land, you have to pay taxes to your government to maintain it. Suppose the land isn’t being used by you (or) by someone else on a rent. Then the land is considered as a liability when you have no clash flow to maintain it.

Houses are a great asset to every individual. But if you’re buying a home for short-term purposes. In that case, you can’t expect much profit from your real estate margins in 1–3 years. Maintaining a house needs money, and if you don’t have a steady income. Then the responsibility of owning a home becomes unbearable on your shoulders.

Having a steady flow of income from multiple sources will always benefit you on spending and savings on monthly basis.

Discipline Leads To Freedom

No matter what stage you’re in your life. Discipline is a key to lead a stable financial and independent life. This correlates to earning, spending, and saving your money.

Lack of discipline is a sign of a lack of determination, and it can quickly impact your financial status.

In terms of money, you need to be disciplined about:-

Learning new skills and earning from them

Setting proper financial goals.

Determining what you want v/s what you need

Paying bills at the right time

Executing your saving goals to perfection

In general, a disciplined approach towards life will help you make proper life decisions, eat healthy, stay fit, and live a good lifestyle.

Money Is Not Your Final Goal

Money shouldn’t be the only factor that dictates all your life decisions. Most of the time, you don’t choose something just for the money. When money becomes your final goal in your life. You start to avoid and skip important things for money.

For example, Choosing a job depending on the high salary, irrespective of interest, and job satisfaction. Major career goals should depend upon your interests. Money is something to be considered while taking up a job, not to dictate.

You wouldn’t be happy working at a job that doesn’t satisfy you — rather than working at a job that does satisfy you. In such cases, money is just a tool in your life that you use to spend on something you need — not to lose something that you love.

Money can sometimes be misleading in making crucial life decisions. This only happens when you’ve adopted a mindset of prioritizing money above the all.

Save First and Pay First

This advice is mostly for business owners who are making money from their business and reinvesting everything into their business.

Many entrepreneurs would recommend you to do that. But at the end of the day, if you’re not saving a tiny portion from your earnings. Then one day, you may have to look at your bank accounts with all zeros in it.

This advice also applies to every other earning individual who doesn’t save any money. Small savings from each month of your salary will add upto a significant amount down the line.

At the same time, you don’t even need to save a large portion of your earnings. You can choose to save 10–20% of your income and invest your savings into something which has more potential than your current income source.

To make the savings process more comfortable — you can create an auto-withdrawal system from your salary account to your individual savings account. Setting up an auto-withdrawal monthly option — lets you save money subconsciously from your regular income.