When it comes to financial education and personal finance there are hundreds of mistakes we tend to make, although, as we always say, most money mistakes are not down to poor financial education but to issues that are more psychological.
Here I want to talk about what I consider the number one money mistake, and possibly the most common one, even though we warn people about it. In other words, we fall into it even when we have been warned.
Let’s suppose a young person gets their first job and starts earning money for the first time in their life. What does that young person do? If they were aware of how their decisions at that very moment could give them financial freedom, or financial health well above average, I’m sure many would think about doing things differently.
When I give that advice, I do so from my own life experience, as someone who paid the price for making that mistake at 19. It meant that at 24 I didn’t have a single euro to my name. Had I done things right, the money I wasted would be worth more than €300,000 today.
If we can get a young person to understand this, they will discover that achieving sound finances in a very short time is easier than they imagine.
More on financial education
Saving part of your income and having a long-term financial plan is an essential part of achieving financial freedom or wealth. See: How to get rich, according to Felix Dennis
See also: Joint or separate accounts when you get married?
Learning about financial education is essential: learning about personal finance and how to manage your money should be a priority for everyone. And what better way to do it than with the best financial education books (updated ranking).
And remember that wealth or financial freedom doesn’t happen overnight. You need to work hard, persevere and be patient to reach your long-term financial goals. Above all, keep in mind the four pillars of financial education.
See also: The traits you need to become a millionaire, according to the most robust study to date
Featured image: One Click Group UK, CC BY 2.0, via Flickr.
