Why didn’t they teach me this in School?

The education in schools and colleges is highly overrated. Life lessons are not being taught in schools and colleges which are required to grow in life. Nowadays Schools are designed to get good marks in the board examinations and reputation of colleges is measured by their placements.

Here I am mentioning some of key lessons related to ‘Money Management’ which I have taken away from the book ‘Why Didn’t They Teach Me This in School?: 99 Personal Money Management Principles to Live’ written by Cary Siegel. If You want to read full book, you can buy it from the link below.

Why Didn't They Teach Me This in School?: 99 Personal Money Management Principles to Live By

Life Lessons (Who can be your partner)

1. One should marry with the person who is very good with money management.
2. Ask question to your partner related to salary, loans, views on money borrowing etc.
3. Choose your partner wisely, divorce can be frustrating in the terms of money as well as mentally.

First Job (Learn as much as possible)

1. Try to learn new things as company invests in learnings because most the employee are new to the professional environment. Do more and more work at first job.
2. Take out at least one hour every week to think about investing. Search mentor who is expert in finance.
3. Get rich slowly — enjoy the process, you will have more than money I.e. happiness. Make short term financial goals which can be achieved. Ex — save 300$ in next month. Be consistent.
4. Set long term goals like yearly budgets, but target should be realistic. Track your money every month (Assets and Liabilities).

Budgets and Savings*

1. Make budget every month and track it regularly. Always make sure Income should be > Expenditure. Better to use any application to track. It is useful to enter details of any expenditure at 
2. Analyse previous month’s budget and based on that, make next budget with necessary changes.
3. If you get increment in your career, invest 50% of it and rest can be used in betterment of your life.

Spending Lesson (Spending < Income)

1. One should avoid spending too much only to show off. Do not buy anything which are not required even if they are cheap.
2. Take actions immediately when your expenditure increases in your budget.
3. Pay every bills/taxes on time to avoid late fees.

Loans and Credit Cards (Looks facilitating but it is not)

1. Companies are promoting loans in such a way that after taking one loan, you tend to take another loan. Avoid it if you can.
2. If you have any loans, try to close it as soon as possible.
3. Stop using credit cards every now and then, use debit card to make payments every time. Hold only one credit card in your wallet in case of emergency.
4. Better to not increase your number of credit cards.
5. Make credit card payment on time if you use, which makes your credit score better, helps you in future for ex — while taking home loan.

Investing Lessons (Do it wisely)

1. Save yourself from Pyramid/Ponzi schemes. Maintain distance from schemes which make you rich over night.
2. Don't invest in stocks without any knowledge, mostly people do it on advice of friends/relatives.
3. Better to invest in different mutual funds, if you don’t have proper knowledge.

Housing Lessons (Buy only if…)

1. Live in a rented house till you are not established in your carrier. Don’t take burden of home loan in early carrier.
2. Think about buying home if you are sure about your job at one place for at least 4–5 years.
3. If you are the person who loves freedom in your life, don’t buy home.
4. Don’t spend large amount in buying house, spend in your capacity. Remember the EMI should not be more than 25% of your salary. Make more and more downpayment to save extra interest paid.

These are the key lessons which I have learnt from this book. Hope you find it helpful. Thanks for reading.

Action is the real measure of intelligence.” says Napoleon Hill.