Financial education is an important part of life. It starts your journeytobillions and allows you to create a stronger future. With a focus on building money, you’re less likely to deal with crushing debt. But there are some things the public education system misses when it comes to money. With an eye on consistency, these three things can improve the fortune of any individual.
Saving money is always a good idea. Putting a little bit away on each paycheck can be life changing if you stick to a schedule. But this is not always a viable situation when your employee wages are underperforming.
Many workers make less than ideal wages for the task they are performing. And these same wages provide nothing more than a way to ‘catch up’ with bills. Without a raise, employees can spend years being behind on bills. And in some cases, the money you have left over after bills is barely enough for hobbies.
Employment is an interesting setback when it comes to managing money if you don’t have a plan. When financial education doesn’t cover employment, then it misses the mark on an important part of responsible money.
2. Credit Cards
Credit cards are always misunderstood when discussed in the public education system. Whenever someone talks about credit cards, it comes with a big warning about avoiding them. Credit cards have gained an unfair reputation as being credit destroyers for a lot of young men and women.
The truth is that credit cards are only bad for individuals that don’t know how to manage them. Just like money, badly managed credit cards will cause you problems. The big difference here is that a credit card debt can take away a decade of your life.
On the positive side, responsible credit card usage can improve your credit profile by several points. When used properly with a growing savings account, credit cards can leapfrog you into a different tax bracket. But this takes years of responsible spending while resisting spending temptation.
3. Medical Needs
Medical bills can destroy any savings account, even when you plan ahead. The discussion of medical insurance is vastly underrated when money is talked about in the public education system.
The right medical insurance can save you thousands of dollars. This is especially important if a medical issue will cost you days off of work. In a worst-case scenario, you’ll have to take an extended medical leave. The money saved from not having to pay out of pocket for medical bills will sustain you through this period.
There are different medical insurance tiers, and they all have multiple features. It’s important to balance your take home pay with a medical plan that doesn’t cripple you financially. Don’t wait until the last minute, or you’ll end up paying more than you have in the bank account.
It takes time to get the full picture when it comes to financial education. Mistakes will be made along the way, but the important thing is to never give up. Stick to your goals, and money will always reward your patience.