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Whether your parents were good with money or they struggled to keep a roof over your head, chances are there are some money lessons they didn’t teach you. Even worse, you might have been taught all the wrong things to do with money. No matter what money lessons you were taught, you can learn (or unlearn) how to handle money. 

The truth is, so many things people believe about personal finances are just plain wrong. Once you recognize that what you thought you knew is inaccurate, you’ll be ready to take control of your financial future. Read on for 7 money lessons you didn’t learn growing up:

1. Bills Are Good

Yes, you read that right. Bills are good. That’s a complete turnaround from all the grumbling about bills you likely heard growing up. But it’s true. You want a home, air conditioning, and food, right? You don’t work to pay bills. You work so that you can have bills to pay. 

When people joke about “adulting,” paying bills is one of the first things that tops the list. Paying bills makes you an adult. As an adult, you get to choose how to spend your money. This includes what bills you will take on. So, instead of grumbling about bills, appreciate the stuff you choose to buy.

2. Live on 80% of Your Income

A Career Builder study found that 78% of U.S. workers live paycheck to paycheck, and more than 1 in 4 workers fail to save money each month. When you surround yourself with people who live paycheck to paycheck — or if you grew up this way — you may think this is just how it is. 

Living this way is a huge mistake. Not only is it stressful, but it also doesn’t allow you to become financially independent. Instead, make it your goal to live on 80% of your income. Maybe you can’t afford to live on 80%. In that case live on 90% or 95%. Do your best to get your income over your expenses every month and start growing your wealth.

“Help me stop being poor!”

Here are the facts. The *only* way to save money is to spend less than you earn. There’s no way around it.

So what does this mean for you? It means you need to either decrease your expenses or increase your income.

We want to help you do both. Join our 6-day Savings-Account Accelerator Workshop. We’ll send you expense-lowering tools and techniques (and even a few tips on how to boost your income). These frugal-living hacks will help you accomplish the cardinal rule of personal finance: keep your income over your expenses.

When you can spend less than you earn, your money will grow. You will build your savings, pay down debt, and save for retirement.

Join our free 6-day Savings-Account Accelerator Workshop, and start growing your wealth today.

3. Give Yourself an Allowance

Allowances are not just for kids with wealthy parents. You can (and should) give yourself an allowance. When you set aside part of your budget for an allowance, you know you have a little bit of “fun money” to spend however you see fit. This is the money you get to spend on things that are not budgeted for, such as video games, new shoes, or accessories. 

A perk of being an adult is being able to buy what you want when you want. But, it’s a problem when “treat yo’ self” becomes a lifestyle rather than an occasional splurge. When you give yourself an allowance, you know how much money you have each month to use however you want. This will prevent you from treating yourself every time something catches your eye.

4. Credit Cards Aren’t Bad

Once upon a time, credit card companies would visit college campuses and give students free goods in exchange for signing up for credit cards. It didn’t end well for most students who hadn’t been taught how to use credit cards wisely. That’s why the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 was put in place.

Unfortunately, the CARD Act and the fear of making the same credit card mistakes their parents made have taught many people that credit cards are bad. 

One of the most important money lessons you can learn is how to use a credit card wisely. When you pay your credit card off each month, there is no debt, no interest, and no late fees. Plus, your credit score grows.

A smart money move is using a rewards credit card to make your essential purchases, as well as your big purchases. This may seem like radically different advice from what you were taught growing up. But, with a rewards credit card, you can actually save money in the end. For instance, with the purchase, you accrue points that you can redeem. If you pay off your credit card each month, then you are earning free money just by using it.

Find the Best Rewards Credit Card for You with Credit Land

Here’s the thing – if you do a random Google search for rewards credit cards, you are going to get an overwhelming number of hits. But, if you use Credit Land, you can compare rewards credit cards and find the credit card that will give the highest rebate and save you more money in the long run. 

Use Credit Land to compare the best rewards credit cards to find the best solution for you.

5. Buy Things That Make Your Life Better

You may have been taught that shopping equals happiness. When you see someone walk out of a store carrying armfuls of shopping bags, you think they have it made. But, if the items in those bags don’t make the shopper’s life better, all they really do is add clutter. And clutter does not equal happiness.

Instead, spend your hard-earned money on things that will improve your life. Don’t spend money just because you can. This is how you wind up with closets full of unused items from the Target clearance aisle.

6. Budget Strategically

Don’t budget to live on the bare minimum. Budget to spend your money strategically and get the most enjoyment out of every dollar you spend. For example, when you create your budget, make sure you plan to keep income over expenses. If you find that your expenses add up to more than your income, you need to make some changes. 

Be realistic when it comes to budgeting. If you know you enjoy eating out with your friends, then make sure you include that in your budget. Look for other areas in your budget where you can make cuts to fit in the things that bring you enjoyment. For instance, cut your daily coffee shop habit, and use the money you save for a monthly girls’ night. 

Budget Wisely with Empower

Would you like something that makes it easy to track all of your spending, including the coffee shop habit and the monthly girls’ nights? Then check out Empower, an award-winning app. With Empower, you can set budgetary limits for each category of your budget (which is fully customizable). If you make an impulse purchase that isn’t wise and threatens to push you into the danger zone, you’ll get a notification from the intelligent app. Empower makes it easy to take control of your budget so you can enjoy spending money.

Download Empower to start spending money on what you love.

7. Enjoy Spending Your Money

Everything you buy should make your life better. Before you make a purchase, ask yourself if it will improve your life. If the answer is yes, then be proud that you can buy it with the money you’ve earned. 

Save 20% of your money, and live on the remaining 80%. When you live this way, you won’t feel stressed or guilty. Instead, you’ll feel free to enjoy what you buy.

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