In school, you learn everything from maths to reading comprehension and history. But ask about becoming a millionaire or investing money and you’re met with crickets.

That’s why most of us go through years of formal education without any lessons on saving, investing, or the bills waiting in the wings to ambush your paychecks. And while we can unpack the “why” another day, let’s focus on fixing the gap.

Earn your first million and gain financial freedom with these five money lessons you won’t learn in the confines of a classroom.

Lesson 1: How to become a millionaire

You don’t become a millionaire overnight, it requires intentional steps - disciplined savings, consistent investment, increasing income, and avoiding debt. Here’s what to do:

• Apply the 50-30-20 rule: The 50-30-20 rule ****involves spending 50% of your income on needs, 30% on wants, and 20% on savings and investments. Whether you’re a student on an allowance, a professional earning a salary, or entrepreneur running a profitable business, this principle works. You can adjust the percentages based on your unique situation, though. Just know that choice will either slow down or speed up your millionaire vision.
• Set up automatic, direct debit savings accounts: Automated savings ensure you don’t have to worry or forget to make manual deposits. It also builds a level of discipline as the money moves before you get a chance to overspend.
• Invest wisely: Healthy investment involves finding assets with good returns to commit some of your money to. We’ll cover more of this in step lesson 3, but you can get started now with stocks and ETFs on Emirates NBD X Wealth.
• Grow your income: Do this by getting a job, starting a business, exploring a side-hustle, or investing more. Remember: the higher your income, the more you can save and invest, and the less you need to depend on loans or credit lines.
• Avoid unhealthy debt: Well-planned debt like responsible credit card use, conservative mortgages, and car loans within your capacity are smart financial choices. The problem lies in borrowing to live above your means or cover expenses you don’t have the income to sustain.

Say you earn 18,000 AED monthly and assign 20% (3,600 AED) for savings and investment at a 15% annual return. You’ll record your first million in a little over 9 years. And that’s assuming your income stays the same. If your earnings increase—which they likely will over time—your timeline gets even shorter.

The real millionaire-status hack, though, is starting early. Time is what allows compounding to do the heavy lifting, long before it’s time to hang your boots.

Speak to a wealth advisor today or sign up on Daleel for more in-depth financial insights.

Lesson 2: Financial planning

Planning ahead helps you manage and grow money effectively while staying prepared for any financial emergency. These financial planning steps will help you take control of your money and make it work harder:

• Set realistic goals: E.g., education, travel, car, or retirement. Write each down and work towards them.
• Review your income: Sum up your monthly earnings, from salary to side hustle income, investment dividends, etc. These will form the basis of your overall spending.
• Outline your expenses so you can analyze and optimize them (spend smarter without disrupting your lifestyle).
• Create a budget and follow it as much as possible. The 50-30-20 rule is key here.
• Build an emergency fund (at least 3 months of living expenses) for unforeseen situations. It will help keep your goals on track and provide a buffer in case of zero or low income months.
• Pay off debt: Through consolidation (combining loans into one to reduce the financial strain), downsizing, and self-control.
• Plan your exact savings and investments: Banks to save in and investments to make (real estate, crypto, stocks, etc.).
• Track and refine: Review your plan regularly to measure progress and adjust for income changes or new priorities.

Now, it’s easy to tell a person to start investing or to invest more. But that advice is only actionable with clear, repeatable steps—which brings us to…

Lesson 3: Investing money

Investing is a skill to be learnt, but once you master it, your financial growth will be unstoppable.

The first thing to learn about investing is that different assets come with varying risks, returns, and liquidity. So, choose investments that align with your goals and risk tolerance, and give them time to grow.

Also, diversify across asset types to manage risk, and adjust your strategy if your goals or circumstances change. Remember: high risk, high reward; low risk, low reward but capital preservation.

• Lower-risk investments: Savings accounts, fixed deposits, government bonds, and capital-guaranteed products.
• Medium-risk investments: High-quality bond funds, diversified balanced funds, and some real estate investments.
• Higher-risk investments: Individual stocks, equity funds, cryptocurrencies, and speculative assets.

If you’re still a teenager or young adult, you have more time, confidence, and flexibility.

Imagine a 24 year old and a 42 year old fifteen years from now. The former would be in their late 30s while the other would be retired or close enough. If both currently earn $15k, the younger might decide to save and invest 40% of their income instead of 20%. Meanwhile, the older could opt for 10% due to more responsibilities and less flexibility.

P.S.: No matter how much investment knowledge and practice you have, it’s important to keep learning and staying up to date with financial trends and economic shifts. Talk to experts, read books, blogs, and newsletters.

For instance, many financially-sound people still see debt as a bad thing. But it can be good too, if you use it the right way. Credit cards are a prime example.

Lesson 4: Using credit cards responsibly

Credit cards are two-edged financial swords with the power to make or break your net worth.

On one hand, they give 30 free days of credit, let you buy stuff on credit to pay back in instalments, and enable instant gratification. But on the other hand, they can make you live beyond your means and sink into serious debt.

Here are our golden rules for responsible credit card usage:

• Spend only what you can pay back in full by the due date. Treat your credit cards like advanced debit cards and don’t buy things that cost more than you’ll make in a few weeks or months.
• Pay on time to avoid interest charges, late fees, or a damaged credit score. Set reminders or automate payments for discipline and consistency. And whenever you’re unable to repay in full, strive to at least pay more than the minimum payment.
• Use only 30 to 40% of your credit limit where possible. Low utilization equals less overspending and a protected credit score. You’re welcome!

While you can use credit cards without bank accounts, it’s best to have both, so you’re not spending without preparing for the future. Here’s everything you need to know about bank accounts (for starters).

Lesson 5: Bank account opening and management

The earlier you open a bank account, the better. And, the right banking partner makes it easy and rewarding.

If you’re a guardian/parent, open a minor account for your pre teens and teens to teach them about savings and build healthy financial habits. They’ll learn to manage money (planning and spending) effectively and understand the power of compounding wealth.

You can open the account online or in-person at the bank. And if you’re an adult opening an account for the first time or who hasn’t had to in a while, this step-by-step guide will help.

1. Choose the type of account you want - Most banks provide different options including savings, current, or deposit accounts. Consider your goals, plus the account’s minimum balance requirements and fees. Factor in its benefits and digital banking features as well.
2. Prepare your documents - Valid ID or passport, proof of residence, and income details. Having everything handy makes approval fast once you apply.
3. Apply for the account: Complete the application online through the bank’s website or app, or visit a branch to apply in person. Fill in accurate details to avoid delays or rejections.
4. Activate the account: Deposit the minimum required amount or more and set up online/mobile banking instantly (for convenience). Enable features like alerts and automatic savings for efficient money management.

Don’t want a typical bank account? Explore gold deposits—these let you enjoy the ROI of investing in gold without holding the actual asset.

Note: Save and be prudent, but don’t become tight-fisted and stingy to yourself. Balance is key!

The “easy money” myth

There’s no such thing as easy money. So, avoid get rich quick schemes and beware of scammers.

Healthy savings and investments are still the best and most dependable routes to sustainable wealth - except you win the lottery or inherit a huge sum (which most people don’t).

Still, with so many different financial institutions and platforms offering various savings and investment plans, it’s easy to get confused and seek a quick fix. Instead, do your research and find a reliable way of comparing options to find the best fit.

Daleel can help. From finding the best financial products (credit cards, loans, accounts, investments, etc.) to exploring personalised recommendations based on your goals, use our financial comparison platform to save and invest better.

Get started here.

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