How to be rich at young age?

Financial independence at young age? how much money i need to be Financially free? , The most practice definition of these question is , when you have so much money in your hand or have source of income that is sufficient to support yourself and you are not dependent on anyone to meet your daily needs.

The pandemic leads to a huge reduction in working hours, reverses job growth, and pushes millions into working poverty

According to Asia-Pacific Employment and Social Outlook 2020: Navigating the crisis towards a people-centered future of work, the economic reaction to the COVID-19 pandemic wiped out some 81 million jobs in 2020. In almost all economies with Quarterly data available for 2020, employment levels contracted compared to 2019.

https://www.ilo.org/wcmsp5/groups/public/@dgreports/@dcomm/documents/briefingnote/wcms_767028.pdf

Now this is the learning for our future generation that financial knowledge must start from the beginning age. Why a Children you Should Know About Basic Financial Education? because one of the biggest problems in our educational system is that they did’t taught us financial education, university school only taught how to earn money but not how to manage it. In addition, all people, regardless of age, If you are Teenager than you should know that “Teenager can become Financially free” these basic steps of financial education.

Why is Financial education important?

Your child will become financially independent if he gets financially educated early in life, but it wouldn’t have happened since no one told us about financial education. what we see around us job seekers whatever they earn, spend, and rest in a savings account. This became our goal, to get a better job and earn more and spend more, I am now giving my children financial education so that they become something and that is why I write this article so that all parents start giving financial education to their children from the initial stage

10 steps to become rich at young age:

1) Learn Asset & liability

Learn the difference between assets and liability, assets are the things that put money in their pocket, like the rented house, precious metals, stocks, etc., so we need to grow our assets so much as we can and on the other hand, liability is the things that taken out money from your pocket such as car, furniture, so we must spend as little as possible on these things.

Method:

For example your school spending is assets as they give you knowledge in return & video games are liability that is taking your money & time


2) Habit of Saving first & then Spending

You can’t save if you follow the old process of spending and the remaining money was being saved, The right method is to save first and then spend with rest of the money.

Methods to follow:

Take pocket money only once a month, With this, you will learn the habit of conscious spending


3) Do Mistake at an early stage

Let’s do mistakes with money so that you will understand the consequences of wasting money at the initial stage of their life & when you come to the real world, you are prepared for everything & will survive & grow.

Method:

Buy your stuff, it you will to take the decision.


4) Involve in Budgeting

Involve in the budgeting of household expenses. you will learn the importance of spending on essential things & not spend on unnecessary things. So that you will differentiate necessary and unnecessary things.

Method:

Make next month household budget by yourself.


5) Part-time job

Do part-time jobs, I know it is a little bit tough a child, but it is very important for your development, with this you will understand the value of each penny before spending

Method:

Start with small and easy jobs for related to household work


6) Don’t put all eggs in the single bucket

Never depend on a single source of income, This is most important lesson, never depend upon a single source or investing your money in a single source, with this you will develop the habit of always learning & developing new ways of earning.

Method:

Learn if the whole family will survive on a single source of income then how risky it is to survive


7) Take control of your life

You are the only person responsible for your life, your parent’s money is not yours this is again a very harsh statement, but as a child you should know that you will not survive if you are financially dependent on anybody, money can come & go but if you have skills than you will again earn it.

Method:

Learn freedom of spending your own money and spending your parents money


8) Long-term planning

Made a long-term financial goals, not small benefits, this concept will teach you the value of delayed gratification that is the act of resisting an impulse to take an immediate reward in the hope of getting a reward of greater value in the future. The ability to delay gratification is essential to self-regulation, or self-control

Method :

Don’t buy one chocolate but save to buy big stuff that help you to be independent.


9) Nothing is impossible

In this world, there is enough money you need to know certain skills earn it, Rich doesn’t come from another planet they learn certain skill & grow, with this you will understand that nothing is impossible in this world.

Method:

Learn the importance of skill learning, with a skill you can earn everything you want in your life.


10) Help others to earn more

The best way to make money is to help others, helping others will make you more responsible & you will learn as much as your help others you will grow & also find the purpose in life.

Method

On some occasion or monthly do some charity either with money or helping someone in another way without thinking any return from them

Conclusion

As soon we start our financial education journey as early we become financially independents. These are the checklist help you to become financially independent from you parents:
1) Difference between Assets & liability
2) Saving first than do other expenses
3) Do mistake with money at initial stage
4) Know the value of budgeting
5) Do part time job
6) Find multiple way to earn money
7) You are only responsible for your life
8) Importance of long-term planning
9) Nothing is impossible
10) Help others to earn more


Books to become Financially free in your 20’s


1) Rich Dad Poor Dad
2) Rich dad poor dad for teens
3) If you made a million
4) How to turn $100 into $1000000: Earn! Save!
5) More money, Please
6) Finance 101 for Kids: Money Lessons Children Cannot Afford to Miss
7) Rich Kid Smart Kid: Giving Your Child a Financial Head Start
8) Smart Money Smart Kids: Raising the Next Generation to Win with Money
9) Why Didn’t They Teach Me This in School 99 Personal Money Management Principles to Live By
10) Investing for Kids: How to Save, Invest and Grow Money.

Referances

https://www.ilo.org/wcmsp5/groups/public/@dgreports/@dcomm/documents/briefingnote/wcms_767028.pdf

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