Why do economies generally collapse? What’s debt? Who prints money? Why do they print money?You don’t have to be an economist. The point is that basic knowledge about how all this stuff works prevents panic. “Oh shit! The market is down! What now!!” Panicking will not help you.

We must be wise about taking on debt. Like investing, there are rules to it. One thing is sure: Never borrow money to buy a car, electronics, or anything else that goes down in value. But when it comes to more complex things like growing/starting a business, investing in real estate, or even your education, think carefully before you go into debt.

Can you generate value? If the answer is no, then make it your first priority turn that into a yes. Figure out how successful people are rewarded. Read books, study investors, try things out, talk to wealthy people, etc. You want to generate value—either by working for it or investing.