Hard Truths About Finance You Should Know

4 Things About Finances That You Were Never Taught

Do you know what the worst thing about our education system is? Well, they don’t teach you about finances. Whether you are in Bangladesh or the United States, your school and college curriculum does not include teaching finances. You might argue that there is a while subject on Finance that you can learn at school or college, but just answer this question, do you need to learn finances only when you are enrolled for a course on Finance, don’t you have to learn about Finances even when you are doing engineering, medicine, arts, etc. Don’t the doctors, engineers, and teachers also need to know about finances to manage their cash flow?

Here are 4 things about finance that were never taught to you:

Don’t save money in the bank: When inflation rises, the value of your money goes down, and inflation is very common.

Compound interest: Every dollar you invest, brings you more money

Rule of 50/30/20: This is a rule of budgeting where you need to spend 50 percent of your income on necessities, 30 percent on wants, and 20 percent on investing.

If you don’t know about these 5 rules of finances, you will never become successful in your life no matter what you do or how much you are earning.

Truth About the Banking System That You Should Know

A lot of people believe that banks are the institutions for money management. You have money; you save in banks for security as well as earning some returns. You don’t have money; you borrow from banks to be used for personal causes or business.

But do you realize the entire banking system is fraud?

When you save money, banks do not provide security because when the banks become bankrupt, you will lose your money, banks also offer insurance to partial funds. Banks also do not offer a good rate on savings. Check the interest on savings and loans, they are charging 10 x when you want to borrow.

The banking system was actually created by rich and affluent people to collect money from the middle class and use it for their benefit.

Do you know how much cash Apple Inc has?

In February Apple reported having $202.5 billion in cash and investments. In October 2021, Apple said that it has a debt of $124.72 billion, of which $109.11 billion in long-term debt and $15.61 billion in current debt.  If Apple already has $202.5 billion in cash and investment, why doesn’t it pay $124.72 billion in debt?

Apple is just one example, a lot of big companies are doing the same thing. They are abusing money deposited by the middle class.

Lies You Have Been Told About Money

Formal education starts when a baby is 3 years old. The baby becomes a boy and then a young man and an adult. He spends many years in school, college, and university to acquire knowledge and skills. He does acquire skills and knowledge, gets a job, or starts a business but his life does not improve, he struggles with money and debt all his life. Do you know why?

That’s because school, college, and the university do not teach him to manage cash flow, he does not have money management skills.

One of the biggest lies you have been told about money is “get a college or university degree and you will become wealthy.” When you have a degree, you might be able to earn a livelihood, but it does not make you wealthy

Another lie about money is “Save your money in a bank.” The entire banking system was created to keep the normal middle-class people miserable. The banks take money from the middle class and give it to rich people so that they can make more money while you can remain satisfied with peanuts.

You also have been told, “Get a proper job, work for many years and get a retirement benefit. First of all your employer-sponsored retirement account will is enough for you, secondly, by doing a job you will pay a lot of taxes (because you make earned income, which has a higher tax rate).