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Why Didn’t They Teach Me This In School Financial Book (99 Principles)

Life Lessons

1. Marry someone who is financially stable
   • Be sure to ask about spending habits during dates
2. Friends can provide their own personal financial habits
3. Put effort into your job
4. Spend an hour a week learning about personal finance
   • Internet, library, mentor, friends and family
     • Author recommends MONEY magazine
5. Set financial goals
   • Monthly savings goals, purchases, vacations, etc
   • Long-term goals like repaying college loans, net worth
6. Pay attention to your net worth
   • Add up valuables and subtract what you owe
7. Maintain a monthly budget and be sure to revise it every month
   • Consider your salary and investments, as well as your necessary expenses
8. Have a self-review every year
   • You can use monthly reviews to speed up the process
9. Save/invest 50% of every salary increase
   • Ensures you’re financially safe
     • You were able to live prior to the raise, so keep it that way!
10. Save 90% of unplanned/bonus income
    • It’s not consistent, so you shouldn’t rely on it
11. Understand employee benefits
12. Have an emergency fund
    • You never know what’s gonna happen
13. Live frugally every january
    • Helps realize priorities, sets up the saving mindset for the rest of the year
14. Coupons, discounts, rebates

Spending Lessons

1. You don’t need to follow the latest trends of society/environment, especially if you can’t afford it
   • To combat this, use the 30 day rule, and think about the pros and cons
   • Not everything you own needs to be modern
2. Understand the various costs of adulthood
   • Mortgage, insurance, car, parking, internet, etc.
   • Don’t solely focus on the up-front cost
3. Prioritize your needs and wants
   • Don’t impulse buy unneeded discounts
   • Spend more money on daily-use items and stuffs
   • Stop spending excessive money on things that negatively impact your life
     • Smoking, drugs, etc
4. Don’t fall for fake deals
   • Only buy something on a discount if you know that the current price is lower than it’s usual price
5. Don’t get skimmed
   • Pay close attention and record the regular costs of bills, and contact providers if they suddenly increase
   • Also pay attention to what you are being billed for
6. Responsibility
   • Pay bills and the governent on time
7. Track receipts and credit card statements
   • Data to help you review, find warranties, etc
8. Negotiate everything
   • Helps you learn more about the item
   • Money is more important then slight irritation

Debt and Credit Cards

1. Try not to partake in debt
   • If you are in debt, get out of it ASAP to prevent any interest fees
2. Don’t get a credit card until you are financially stable
   • Credit cards in college enforce excessive spending
3. Have only one credit card
   • Makes debt management easier
   • Use debit cards more
4. Credit card advice
   • Maintain a good credit and FICO score
   • Only use 35%+ of available credit

Investing

1. Most financial investors don’t beat the market, so you could easily do it yourself
2. Work at it slowly
3. Diversify
4. View loaning money to others like you are giving it away

Housing

1. Rent stuff until you are financially stable
   • There are additional fees
   • 25% of your salary max should go to rent
2. Pay close attention to the location and price of a house
   • Neighborhood security, proximity to work, grocery stores, shopping, schools (and quality), traffic
   • Current price, resale value, negotiate
     • Find the house’s achilles heel, and always ask for a price 10% lower

General Tips

1. MLM schemes are not the play
2. Use your car until it stops working
3. No extended warranties
4. Be patient with product versions
   • Usually, costs drop as they find more efficient methods of manufacturing
5. Surge protectors
6. Fireproof safe
   • Birth certificate, social security card, stock and bond certificates, insurance policies, car title, home title, tax records, personal items
7. Filing system for financial records
   • Bank statements, credit card statements, taxes, medical bills, investment accounts, service and maintenance bills, insurance policies
8. Electric conservation
   • Fluorescent lightbulbs, raising/decreasing thermostat, fridge temp (38-40 degrees), freezer temp (0-5 degrees)
9. Learn to fix things
10. Opt for written contracts over oral agreements
11. Library books!
12. Split earnings into a checking and savings account
13. Be passionate, polite, and persistent in your job

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