The author of the bestselling book The Psychology of Money, Morgan Gausel, wrote a letter to his young daughter. In it, he gave 5 tips to help form the right attitude to money.
1. Don't underestimate the role of chance in life
It is easy to assume that wealth or poverty is our choice. But it is even easier to underestimate the role of chance in life. Families, values, countries and generations in which we were born, as well as people with whom we happen to be met on their way - all this plays a big role in our results, more than we are used to think.
While we must believe in the values and rewards of work, it is also important to understand that not all success is the result of hard work and that not all poverty is the result of laziness. Remember this when judging someone, including yourself.
2. The best dividend money gives is the ability to manage your time.
The ability to do what you want, when you want, where you want, with whom you want and for as much time, as long as you want, provides a lasting level of happiness that none of the trendy of things. The joy of shopping fades quickly. But working with flexible schedules and short commutes never gets old. The ability to retire whenever you want will always be relevant. Achieving independence is our ultimate goal in life. And every dollar saved is a piece of the future that could otherwise be managed by someone else based on their priorities.
Build frugality in your child from childhood / istockphoto.com
3. Don't count on us pampering you
No one can understand the value of the dollar without knowing its scarcity. So while Mom and I will always do our best to support you, we are not going to spoil you.
Finding out that you can't own everything you want is the only way to understand your needs and desires. This, in turn, will teach you about budgeting, economy and the ability to adequately evaluate what you have. Being lean is an essential life skill that comes in handy during any adversity in life.
4. Don't blindly follow any advice they give you
This is what most people realize too late. But don't be ashamed to drop advice. Your world will be different from mine, as mine was different from my parents' world. No one has absolutely correct answers. Never listen to advice out of alignment with your values, purpose, and circumstances.
5. Live within your means
The ability to live with less is one of the most powerful financial levers. A person who earns 50 thousand dollars a year, but at the same time he only needs 40 thousand dollars to be happy, richer than someone who makes 150 thousand dollars, but he needs 151 thousand to be happy.
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