You are probably thinking “no way is money good for ONLY 3 things”. Partly because we have been conditioned to believe that to be good with money you need a PhD in finances and/or you just need a lot of it. And both are false!
I do think that personal finance needs to be taught in school. Simple things like having a spending plan, savings, living below your means, and giving to name a few. Not how to buy call options in the stock market. Keeping it simple goes a long way.
When you have a solid foundation from a young age money will not seem so scary and complex later in life. The good news is that you can always build the foundation at any age. Okay, lets the to the point. (assuming there is no debt and spending habits are under control)
SPENDING! Yup, really…money is for spending. That is the reason it exists. When money goes out faster than it can come in….it becomes a big problem. Being good with money is 80% behavior/habits. Only 20% is knowledge.
INVESTING! If you are going to spend…you gotta have an income! Compound interest will be your best friend over time. Albert Einstein once described compound interest as the “eighth wonder of the world”.
GIVING!!! This is probably the most fun one you can have with. Buying someone’s meal in the drive through behind you and watching their reaction when they get to the pay window is fun. Leaving a large tip for great service. Helping someone in a crisis. So many possibilities. I used to think receiving felt good. But nothing compares to giving!
