Things about money you need to know but school don't teach you !

If you are from a poor family then congratulations, without this you will too be poor. No matter of your school education or how much grades you get, you won't be rich and happy without this knowledge. No one, absolutely noone in the school teaches you, because your teachers are a bunch of people who are seeking for job. Condition is even worse in my country because teacher is the profession which is choosen by those who can't do anything else in life or doctor or engineer dropout.

Your parents are also seeking for a job or a paycheck. They are the part of the crowd and don't exactly know where they are going. Except for a very few cases, you won't be able to learn anything from them. Make sure to read each and every line, not only the points.

What money really is ?

We work for it throught our life, we learn for it, we don't sleep for it but don't exactly know what it really is? To make it simple, money is a store of value. Let us dive right into the history. Previously people used to exchange goods for the exchange of value, you need an apple and you have oranges. You could find someone with apple who wants oranges and used to trade. Then come gold and then fiat money.

To be more clear, take money like a certificate of value. Suppose you have $10 then it is a certificate, which tells others that you have a value of $10. The more money you have the more value you have.

What can we learn from this?

Don't try to be rich, try to be valuable. Try to create something that will help someone else and they will give you some value. If you always try to be rich then you will be in a trap where you will be searching for a better job and get lost in the crowd.

How to make money?

Making a lot of money is not important for you to have a lot of money. The most important thing is how do you manage money. Without financial knowledge, no matter how much you earn you will be in debt. You won't be able to buy that thing you really wanted to buy or go to the place you really wanted to go.

How to manage money ?
This lesson is very important for all, specially for younger people this is very very important. For you to really know this you must know the difference between an asset and a liability.

Suppose you bought a house and a car for you to live and drive. Then that is your liability. If you buy a house to rent and a taxi then it is an asset. Your house is a liability because you need money to flow in the house. You need to pay tax and maintain the house. So it is an liability.

So you must first work to make yourself so much of asset that your life will ever sustain, without the presence of you.

Suppose you want to buy a luxury house. Then buy an stock which pays you the money to buy the car. This way you will have a car, ever coming money and your asset which you can sell.

Keep on following us for more knowledge to earn money. All the knowledge in this article is based on a lots of books like, "Rich dad poor dad", "Intelligent investor", "7 habits of highly effective people" and lot more.