51 Money Lessons They Don’t Teach You in School

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THINK

“If you are born poor it’s not your fault, but if you die poor, it’s your fault.”
Bill Gates

I hated school. The hostility grew the older I got.

I remember sitting at my desk in high school thinking, “When will I use this?”

What’s the capital city of Belarus?
What’s the French word for ‘butterfly’?
What ancient civilization built the Great Wall of China?

I couldn’t answer these questions with 100% certainty today without the help of Google. I think I know the answer to 1 and 2, but I’d be guessing at 3.

The education system is outdated, closed-minded and not built to develop wisdom.

You’re incentivised to memorise, not think.
It teaches compliance, not creativity.
And don’t you dare make a mistake!

I’m not confessing to having all the answers to fixing the education system. I don’t.

But if I was in charge, things would be different.

Huwniversity

I understand the importance of English, Maths and Science.

But do we really need to understand the nuances of Shakespearean verse, abstract algebra or the dimensional structures of molecules?

I’m not having a dig at any particular subject. It’s the level of depth covered when there is no mandatory curriculum for the pillars of society:

Virtue and Excellence – How to be a good human and fulfil your potential.
Wisdom and Philosophy – How to become wise.
Resilience – How to be mentally tough.
Emotional Intelligence – How to understand and handle emotions.
Relationships – How to cultivate, maintain and relationships.
Focus – How to focus attention (modern-day killer!).
Health and Fitness – Not PE (and I bloody loved PE) but the study of nutrition, sleep, movement, mobility, exercise, etc.
First Aid – How to save lives.
Self Defence and Martial Arts – How to defend yourself and experience discomfort (breeds confidence).
Financial Education – How to run a household, avoid debt, create a budget, save, invest, basic economics and business, etc.

It’s easy to throw stones when you’re not involved. I’m not hammering the education system as it’s a highly complex task.

If they delivered the Huwniversity curriculum, it would leave me little to offer you.

This week, I’m going to fill the void and share ‘51 Money Lessons They Don’t Teach You in School‘.

1. Money is 90% Psychology

You are your emotions. If you’re erratic and impulsive, your finances will follow.

Wealth is determined by your Emotional Intelligence, not who you know.

Spending is used to escape from life (like food and alcohol).

Its short-term consequence is not only ineffective long-term but counterproductive.

The Greatest Investment = Study the Mind

2. Meditate for More Money

I’ve been meditating for 15 years now and it’s one of the greatest habits I’ve formed.

Mindful Huw = Focused, clear thinking, rational, patient, resilient, calm and intuitive.

Mindless Huw = Distracted, confused, irrational, impatient, fragile, anxious and illogical.

Guess which version is happier, healthier and wealthier?

Start with 5-10 mins a day, do it every day and don’t seek an outcome.

If you don’t have time to meditate for 5-10 mins, you need 10-20 mins.

3. Be Impatiently Patient

Society trains instant gratification – One need, one click, one hour – but debt elimination, saving, investing and building a side hustle all take time.

The best things in life require effort, but they’re always worth it.

Most people are:

Too patient to start (”I’ll start next week”)
Too impatient to receive (”Where’s my money?”)

Be the opposite – Impatiently Patient.

Be impatient to start and patient to receive.

4. The Fastest Path to Wealth

The fastest way to change your behaviour is to change your environment.

Want wealth? How wealthy are the people you hang around with?

Your standards rise or fall to the level of your environment.

Leverage the power and influence of socialising.

You’ll raise your game just to be in the room with high performers out of fear of being isolated.

5. Avoid Toxic People

You don’t owe loyalty to friends, family members, partners or employers who make you feel bad.

Follow what successful and happy do, and walk away.

Spend time with people who give you energy and avoid people who suck it from you.

Life is short and millions of people will care for you and add value to your life.

Find them and look after them.

6. Comparison is a Killer

You can’t have the same life as someone else. We all have different experiences, knowledge, strengths and weaknesses.

If you want the wealth of Elon Musk, you must BE Elon Musk. That includes the 18-hour work days, health, relationships, and stress of running multiple massive businesses.

Do you really want to be Elon Musk?

If you don’t want the whole package, then you have no reason to be jealous.

Focus on comparing yourself to the previous you. Beat that person.

7. People Don’t Care

Don’t waste your time worrying about what people will think of you.

People spend their time thinking about themselves, not you.

‘The Spotlight Effect’ is where we think people are paying more attention to our lives than they are.

Take comfort in knowing nobody is thinking about you.

Becoming a person who acts independently is also far more attractive.

8. People Don’t Want You To Succeed

Reasonable people want you to win.

Insecure people want you to fail.

In their mind (key), your success shines a light on their shortcomings (the Spotlight Effect).

Remember #5 and read #9.

9. Don’t Apologise For Your Success and Happiness

I recommend reading Marianne Williamson’s quote on our “Deepest fear”.

In summary:

There’s nothing noble about being less to make others feel more comfortable.
Playing small doesn’t serve you.
We are all meant to shine. Not some of us. Everyone.
As we shine, we encourage others to do the same.
As we free ourselves from fear, our presence liberates others to do the same.

Become who you deserve to be.

Remember #5.

10. Mistakes Are Acceptable, Repeating Them is Not

We’ve all made bad decisions. Don’t beat yourself up for making a mistake.

Mistakes are acceptable. Repeating them is not.

If you gave it your best with the information you had, take comfort in that.

Just avoid making the same mistakes.

Take the learning, grow and move on.

11. It’s Never Too Late to Start

“Most people overestimate what they can achieve in a year and underestimate what they can achieve in ten years.” – Bill Gates

You likely have more than 10 years to transform your life.

It took me 5.

It won’t happen overnight but just get started and keep going.

Age is a number. Don’t attach meaning to it unless it serves you.

“Most of our regrets are acts of omission – the things we didn’t try, the paths untraveled. Those are the things that haunt us.” – Jeff Bezos

Don’t be left wishing you tried.

Could you be farther ahead if you started earlier? Of course!

Put the stick down and tell yourself “It’s better late than never.”

12. Perfection Will Keep You Poor

Seek progress, not perfection.

Perfection is the enemy of progress. Stop wasting your time.

Clarity comes from engagement not thought.

In the action, you’ll find the wisdom to carry on.

Less thinking, more action.

13. The Perfect Financial Model

It doesn’t exist. Everyone’s circumstances, goals and desires are unique.

There are Universal laws which will help everyone:

Spend less than you earn, build an Emergency Fund and invest disposable income into assets, leverage tax-efficient accounts, etc.

But we all have unique personalities and aims which differentiate us.

Expose yourself to multiple Financial Methods.

Take what you like, ditch what you don’t and move on.

14. Seek Asymmetric Returns

Asymmetric returns offer imbalanced risk and reward.

If you see an opportunity with a high reward and low risk, take it, all day long.

Avoid the opposite.

Books are a great example.

Pay £10 to earn £10,000s or save 100’s hours of mistakes (insurance against #10).

Asymmetric Returns are not limited to money.

15. Seek Discomfort

All the best things in life exist on the other side of discomfort.

What are you most proud of in life?
Were you uncomfortable leading up to or during that moment?

Your greatest moments involve fear and discomfort.

To experience greatness, get uncomfortable.

16. Learning is Unlimited

You can acquire any skill, any time, for free.

You are no longer allowed to use the excuse, “I don’t know how to X”.

YouTube, Google, and ChatGPT don’t cost a penny.

Learn how for free or be honest, “I can’t be bothered to learn how to X”.

17. Listen To Your Gut

If something sounds good but doesn’t feel right, walk away.

It could be a business idea, investment or a person.

Your brain might see the sense, but if your gut disagrees, listen.

Your body is picking up on nonverbal communication.

This can take time to cultivate but it’s crucial to listen to your intuition.

18. Plug the Holes Before Adding Water

Don’t pour water into a leaky bucket.

Plug the holes and then pour.

If you desire more money, look for holes before water.

Plug the gaps by controlling your spending, destroying debt and building a reserve (3-6 months of living expenses).

Now when you pour, more will stay with you.

19. 50:50 Budgeting

Should you spend for today or save for tomorrow?

You don’t have to decide. Do both.

After covering your essential living expenses, split what’s left in two.

Put half into enjoying life today (see #20)
Put half into overpaying debt, savings and investments for tomorrow

If you receive money as a gift, split it in half for today and tomorrow.

20. How to Spend Wisely

Buy things that make you more money, memories, time or healthier.

These products and services improve the quality of your life.

Avoid spending money for status.

It will decrease the quality of your life.

21. Automate to Eliminate

Set up automation for bills, spending, savings and investments as soon as you get paid.

It frees up wasted time and energy from decision-making which you can apply elsewhere.

22. Can You Afford it Twice?

Luxuries cost more than money.

If you can’t afford to lose the item, you don’t own it.

It owns you.

Luxuries take up vital mental space that could be used elsewhere.

Can you afford it twice?

When you no longer care what happens to the item, you can focus on the more important things in life.

23. The 1% Spending Rule

If an item is worth over 1% of your salary, wait 1 week and answer the following questions.

Do you need it?
Will make you more money, memories, time or healthier?
Can you get the same thing for less?

In most cases, the 7 days diminishes the desire.

But if it will materially improve your life (read #20) and/or you can get it for less, go for it.

24. Minimalist Materialism

If you desire a luxury, make a deal with yourself to sell, donate or throw away another.

Justify the non-essential by minimising your possessions.

25. Destroy Debt Fast

Don’t be tolerant of debt. Kill it as quickly as possible.

It’s compound interest working against you on steroids. (See #48)

If you need debt to buy what you want, you can’t afford it.

Sell stuff, earn more, save up and always pay in full (including cars).

26. Emergency Funds

If you’re in debt, save up £1k and put everything else into paying down consumer debt.

If you’re debt-free, save 3-6 months of living expenses.

If you’re risk-averse or in unreliable work, expand it to 12 months.

Put it in an easy-access savings account and don’t touch it.

Emergency Funds help you sleep at night.

27. What to Pursue?

If you don’t know what to do, pursue education.

If you know what to do, pursue action.

If you’re taking action, pursue consistency.

If you’re consistent, pursue patience.

28. Invert Problems

Consider a problem from a different perspective by inverting it.

Want to become a successful investor?

List all the ways to become a terrible investor.

Inversion highlights overlooked risks and challenges and creates more robust decision-making.

29. Success = Endurance

You can become successful at anything given enough time.

Don’t chase money, be led by your curiosity and passion.

If you’re curious about a topic you will:

Spend more time, energy and effort on it.
Be more focused, productive, optimistic, resilient and creative.

Success is inevitable.

Don’t waste your time chasing £10k-£50k.

Identify what you want to spend the next 10-50 years doing.

30. Where Motivation Comes From

Dan Pink (author of ‘Drive’), states the single biggest motivator by far is “Making progress in meaningful work.”

If you’re stuck in a rut, question your progress and meaning:

Are you making progress?
Are you working on a meaningful task?

If not, seek ways to make more meaningful progress.

31. Start a Side Hustle

Not just for the money, but for what it will make of you.

Work 1 hour a day in an area you’re curious and passionate about.

It’s never been easier to make money doing something you love. Even if it’s weird.

Autonomy increases drive and performance. Your day job will even benefit.

Turn passion into profit part-time.

32. Make ‘No’ Your Default

Saying ‘No’ to the trivial is saying ‘Yes’ to the meaningful.

Say ‘No’ to nearly everything, and it’ll free up your mind and time to say ‘Yes’ to what matters.

Saying ‘No’ is empowering not embarrassing.

33. Success is Simple

Decide exactly what you want.
Determine what you have to do to achieve it.
Decide if you’re willing to do it.
Do it or go back to 1.

34. Budgets Build Businesses

Once you know how to fix leaky buckets, find bigger buckets to fix.

The skills you acquire in building a personal finance budget will serve you in business.

35. Your Productive Window

Find your peak productivity state through experimentation (AM for most).

Box off 1-4 hours to work on your most important task, distraction-free, every day.

Leave admin, meetings, and low cognitive work until your low productivity time (After lunch for most).

36. True Wealth

A high-paying job for derogatory work is prostitution.

Investment income covering living expenses is freedom.

Getting paid to do what you love is True Wealth.

Use derogatory work to fund your freedom.

Use your freedom to pursue your purpose.

37. Be Respected Not Liked

It’s better to be respected than liked.

You can like people you don’t respect, but it’s hard not to like someone you respect.

Don’t people-please.

It’s a game you can never win and you won’t be respected.

Do the right thing, earn respect and people will like you.

38. The Main Cause of Failure

Giving in.

Showing up is half the battle.

Consistent action over time will get you anything in life.

Ensure failure by giving up too early.

Make doubly sure you fail by overthinking, procrastinating and taking out your phone.

39. Live by 80:20

The Pareto Principle states that for many outcomes, 80% of consequences come from 20% of causes.

Find what 20% of actions do 80% of the work.

This is the fastest way to a well-rounded life.

40. Circle of Competence

For business and investing, focus on areas and industries you understand.

Avoid speculation and trends.

Stick to what you know and understand.

This is not an excuse to ignore #41.

41. Learn For Life

Never stop learning.

Study multiple disciplines and expand your mental models.

Learning is like a pyramid. The wider the base, the higher the peak.

42. Reputation is Expensive

Warren Buffett famously said, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”

Avoid illegal action and ruin.

No amount of money is worth jail time.

43. Calculate Financial Freedom

Financially Independence = Annual Living Expenses x 25

£80k /year = £2,000,000
£40k /year = £1,000,000
£20k /year = £500,000
£10k /year = £250,000

When your stock portfolio is worth 25 times your annual living expenses, you can draw down 4% /year to live on.

Note how reducing your living expenses from £80k to £40k /year doesn’t just save you £40k, it means you need £1,000,000 less to retire.

44. Learn to Sell Well

Great salesmanship is not manipulating people to buy from you, it’s listening to a problem and providing a solution.

We all sell, all the time.

We sell to our loved ones what to eat, where to go, what to do and why they should listen to us.

There’s no shame in it.

Being sold to beautifully is like receiving a gift.

Learn how to give the gift.

45. Create Don’t Consume

The Internet has irreversibly transformed value creation.

In exchange for money, we can:

Supply products and services to the entire world – Creator
Buy solutions for any problem – Consumer

Most people are unaware of the former because they’re too busy with the latter.

46. Utilise Leverage

“Earn with your mind, not your time.” – Naval Ravikant

You’ll never get wealthy exchanging your time for money because you’ll always be limited by the hours you can work.

Wealth becomes limitless when you utilise leverage. Here’s how:

Labour – Pay people to work for you and leverage their time.
Money – Use other people’s money to grow faster.
Digital Content – Create digital content that makes money while you sleep.
Code – Create software that solves problems automatically.

You need permission to leverage ‘Labour’ and ‘Money’. Someone has to give it to you.

You don’t need permission to leverage ‘Digital Content’ and ‘Code’.

You can combine all forms of leverage to expand your wealth exponentially.

47. Get Off The Treadmill

When your life changes (good or bad) it will return to its baseline happiness level.

The Hedonic Treadmill implies that pursuing external markers of success and happiness will not lead to long-term fulfilment.

Your new car, watch, gadget or jacket will give you an initial spike of satisfaction but will eventually normalise.
Many businesses pray on this instinct and continue to release the ‘New Model’.
Your car, watch, gadget or jacket are no longer new. There’s a newer better version.
Your possession will not only stop providing you with positive emotions, but it will add negative emotions like sadness, envy or anger.

Get off the treadmill.

Pursue passions, gratitude, mindfulness and positive relationships instead.

48. Compound Interest

Earn interest on top of accumulated interest, for as long as possible.

Compound interest is earned not only on the original investment (principal) but also on the interest that has been added to the principal over time.

£100 invested at birth, providing 10% returns, will be worth:

£259 at 10
£1,745 at 30
£49,037 at 65

The exponential growth from compounding is why it’s referred to as “The 8th Wonder of the World”.

Start investing as early as possible, and let it grow.

49. Compound Life

Compound Interest is not limited to wealth creation.

Earn interest on top of accumulated interest in all walks of life – Relationships, Knowledge, Health and Fitness, Skill Development, and Personal Development.

Avoid negative compounding of all forms. In particular, Debt and Addiction.

50. Create Value

Offer simple solutions to challenging problems at scale.

Wealth and fulfilment will follow.

Don’t overthink it. You’ve encountered problems and navigated through them.

Explain how you did it and monetise it.

Research and ask what people struggle with and create a solution.

51. Enough

Two famous authors, Kurt Vonnegut and Joseph Heller were invited to a Billionaires party.

Vonnegut joked with Heller, “How does it make you feel that our host only yesterday may have made more money than your novel, Catch-22, earned in its entire history?”

Heller responds, “Yeah, but I have something that he doesn’t.”

Vonnegut says, “What’s that?”

Heller replies, “I have enough.”

If he had a mic, he’d drop it.

“Being poor is not having too little, it is wanting more.” – Seneca

There is no magic number to reach financial contentment. If you believe you’ll only be happy at £100k, £1M, £10M, you’ll keep moving the goalposts when you get there.

If you can get to “Enough”, life will be wonderful.

Reflect and share this with someone.

ASK

Class isn’t over…

Here are 3 follow-up questions to stimulate further reflection:

“Which lesson resonated with you the most, and why? How do you see yourself applying this lesson in your own life?”

“What one money-related concept or skill do you believe should be included in the school curriculum?”

“If you were to create a personal finance mantra based on one of the lessons, what would it be?”

Write down what comes to mind.

TRY

How was class today?

I hope you found some value in at least one of the Money Lessons.

Now it’s time for homework…

Learning hasn’t occurred until you’ve taken action on it.

Which lesson resonated with you the most, and why?
How do you see yourself applying this lesson in your own life?

Bonus grades are on offer for those who share a lesson with someone else. Recall and teaching others helps to compound the learning.

Reply to this email within 24 hours with your answers to avoid detention.

Don’t make me chase you.

Remember: Little by little, a little becomes a lot.

Reply to this email and share how it went for you. Let me know if you’d prefer to remain anonymous.