Our kids are getting older and now is the perfect time for me to teach them what I have learned over the last year. It is never to early to learn about investing and life. Let’s hop right in:
Be a good person: Before you can even think about relationships and investing, you need to be an upstanding human being. Try to always do the right thing and live by a code. Take care of your mother and brother, always.
Find a good person: Who you choose to marry is the most important decision of your life. Find a good, wholesome family type woman.
The 3 types of income: Knowing the three types of income is the most important life knowledge, besides relationships, that I can bestow on you. The three types of income are earned income, business income, and investment income. We work for earned income (a job) in order to build businesses and build investment portfolios. If we are just earning income to pay bills, we will fail.
The three types of budgets: Once we are generating income, we need to know exactly where all our money is going (every last dollar). The three types of budgets are household, investment, and personal. All your money should be allocated to these three budgets. No money is “free-form”. Know exactly where your money is going and what it is doing for you.
The 4 parts of an investment portfolio: In order to have a balanced investment portfolio, in the long term, we need 4 different parts. They are High Yield Savings Account, Bonds, Stocks, and Real Estate. These 3 parts will help diversify you in case of a downturn in the economy.
If my children can truly grasp these concepts, they will be successful and happy, which is actually hard to accomplish in today’s world.
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