Have you ever felt like you’re stuck in a loop of work and stress? That’s exactly what the rat race is—a constant loop of striving without truly living. This phenomenon is marked by the relentless pursuit of success, often at the cost of your well-being and happiness. Sadly, this is the reality for many Malaysians, and I can’t help but feel it stems from an early stage in our lives—school. What if I told you that there are things school failed to teach you? In this article, we’ll get into the 5 things school failed to teach you about money—but definitely should have!
1) You Don’t Need a Reason to Save Money
This may seem obvious to some but to others, not so much. People often save only when they have a goal in mind, be it a house, a car, or even a wedding. It makes sense to save for a predictable goal but the world we live in is unpredictable. Practicing the habit of always setting money aside even when it doesn’t have a specific purpose, can buy you protection, flexibility of time, and mental peace when life decides to throw you a curveball with unexpected expenses coming up.
2) Money Can’t Buy Happiness, But it Buys Choices
There’s a common myth that money buys happiness. But here’s the truth: money buys choices. The freedom to live where you want, to work how you want, and to spend time with the people you love. But if you’re just stacking cash for the sake of it, you might end up feeling empty. The fact is, money is a tool to help you achieve your goals and shape the life you want. Being in a financially secure position will allow you to use money as a tool to create a life that makes you happy, not just to fill up a bank account.
“True wealth is the ability to underwrite a meaningful life.” - Brian Portnoy
3) You are Your Most Valuable Asset
We’re often taught that money comes from a salary, an allowance, or maybe some smart investments. But here’s the real deal: money comes from you—your skills, your time, your ideas (you are likely exchanging these for money). Whether you’re working for a company or running your own gig, the more valuable your skills or time are, the more you can earn.
So, the best investment you can make is in yourself. Learn something new, get better at what you do, and watch how your value—and your income—grows.
4) Understand Inflation
Inflation is like a thief in the night, quietly stealing the value of your money. That million bucks today won’t be worth nearly as much 30 years from now. That’s why you need to invest. If you want to grow your wealth, you need to invest in assets that give you returns above the rate of inflation. If you’re more focused on preserving your wealth, aim to match or slightly beat inflation with safer investments. The key is to make your money work for you, not just sit there and lose value. It's basically a one-way ticket to a sure-fire way of losing the buying power of your wealth. Cash is king in the short term but a pauper in the long term.
5. The Power of Compounding
Sure, we may have learnt about compounding in Math class, but our teachers never taught us about how it applies to money. Especially when you invest early. Starting your investment early is more important than finishing strong. As Albert Einstein once said, “Compound interest is the eighth wonder of the world. He who understands it earns it; he who doesn’t pays it.”
The Bottom Line
So, there you have it. These are just a few things about money that school never taught us but are crucial for building a secure financial future. The reality is, escaping the rat race isn't just about working harder—it's about working smarter. It's never too late to start applying these principles. The sooner you take control of your finances, the sooner you can design the life you truly want.
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