Transcription
Hello everyone. Let me tell you something.
When I was a young man, I failed my college entrance exam twice. I was rejected from 30 jobs. And people laughed at me when I said I wanted to start a business. And yet today, here I am speaking to you about money. Why? Because school never taught me the most important lessons about it.
Today, I want to share with you six rules of money they never taught in school. The rules I learned the hard way. These are not theories. They are lessons from real life failures and small victories.
When I was young and just starting out, I didn't understand the power of small investments. I thought that to succeed, I needed to make huge moves, take massive risks, and spend a lot of money at once. I believed that only big actions could create big results. But life and business taught me a very different lesson. Real growth doesn't always come from one giant leap. It comes from consistent small investments that compound over time.
I remember my early days at Alibaba when our resources were extremely limited. Every decision about money mattered and every small investment had to be carefully considered. We didn't have fancy offices or big marketing budgets. But we had determination and we knew that putting even a little money into the right places could yield surprising results.
One of the first things I learned was the importance of reinvesting in yourself and your business even in small ways. For example, I spent a little money on training our staff, teaching them the skills they needed to communicate with clients and improve their work. Some people thought I was wasting money, but I knew that even a small investment in people could have long-term benefits. Each improvement in their ability to serve clients or solve problems made a small difference every day. And over time, those small differences grew into significant advantages.
I also invested in small improvements to our technology and systems, sometimes with almost no budget, a better website, a more reliable server, a better workflow. These were small investments, but they made our business more efficient and trustworthy, and that attracted customers.
I also learned that small investments in knowledge are incredibly powerful. I spent hours reading about business models, marketing strategies, and even other entrepreneurs' failures and successes. I bought books, attended seminars, and learned from mentors, even when I couldn't afford it comfortably. Every piece of knowledge was a tiny investment, but over time, it added up to a strong foundation that allowed me to make smarter decisions and avoid costly mistakes.
In a way, small investments are like planting seeds. You water them consistently, nurture them, and eventually they grow into trees. The key is patience and persistence. The compounding effect of small investments is remarkable. In the early years, I would often look at our tiny gains and feel frustrated, thinking progress was too slow. But the truth is even a little improvement every day compounds into massive results over months and years.
Many young entrepreneurs make the mistake of chasing instant success. They want a quick win. But real wealth is built slowly with consistent effort and smart reinvestment. Even when Alibaba faced setbacks, I kept making small deliberate investments in the things that mattered most: people, technology, and knowledge. Each small decision added up and over time it created momentum that no single giant investment could have achieved. I realized that the secret is not to be afraid of small actions. Small investments done consistently become the foundation for huge success.
This lesson transformed the way I viewed money and business. It taught me patience, discipline, and the importance of thinking long term. Money is not just for spending or earning. It is for planting seeds, nurturing growth, and creating a foundation that can support incredible achievements in the future. Once I embraced this principle, I stopped chasing instant results and started focusing on smart, consistent actions that would pay off over time.
When I was young, I believed that once I finished school, my education was complete. I thought that earning a degree was enough to prepare me for life and business. But reality taught me something very different. Learning does not stop when school ends. In fact, school only gives you a foundation and the real world requires constant active learning, especially when it comes to money.
I learned this the hard way. In my early entrepreneurial days, I made countless mistakes because I lacked practical knowledge about finance, investment, and business strategy. If I had relied only on what I learned in school, Alibaba might never have survived its early years. I realized quickly that knowledge is the real currency.
I started reading books on economics, business, and the stories of entrepreneurs who had failed and succeeded. I read biographies of people who built companies from nothing. And I studied how they managed risk, dealt with challenges, and made decisions. Each book, article, or lesson I absorbed became a small investment in my own ability to handle money and opportunities wisely.
School never taught me about cash flow management, the importance of reinvesting profits, or how to assess risk in a business venture. These were lessons I had to discover on my own through reading, observing, and experimenting.
In addition to reading, I sought mentors and advisers. I learned from people who had experience in business, from investors who could see potential where I saw risk, and from colleagues who had skills I lacked. I asked questions, listened carefully, and tried to apply their advice in real situations. Each interaction was a lesson in how money works in the real world.
I discovered that learning about money is not just about numbers. It's about understanding human behavior, timing, negotiation, and strategy. Every business decision requires knowledge that goes far beyond the classroom. I also learned the importance of staying curious and adaptable. The world changes rapidly and what worked yesterday may not work tomorrow. Technology evolves, markets shift, and customer needs change. By committing to lifelong learning, I was able to anticipate trends, understand new opportunities, and avoid costly mistakes.
When Alibaba expanded globally, I had to learn about international business regulations and cross-cultural communication. Each new skill required study, patience, and the willingness to make mistakes and learn from them. Perhaps the most important lesson I learned is that learning about money never ends. Even after Alibaba became successful, I continued to study investment strategies, financial management, and leadership. I realized that the most financially successful people are those who never stop learning, who continuously seek knowledge, and who are willing to adapt their strategies based on new information.
Knowledge builds confidence, reduces risk, and allows you to make better decisions in both business and life. The lesson is simple but powerful. School gives you a foundation, but lifelong learning gives you freedom and opportunity. The more you know about money, the more effectively you can manage it, invest it, and grow it. Education is not a phase. It is a habit, a mindset, and a commitment. Those who embrace continuous learning will find that opportunities multiply, challenges become manageable, and wealth grows not only in numbers, but in wisdom, skills, and experience.
So, these are the six rules of money they never taught you in school. Lessons I learned through failures, struggles, and experiences that no classroom could have prepared me for. Remember, money is a tool, not a goal. Invest in yourself and others. Embrace smart risks, follow your passion, keep learning, and always give first. If you can live by these principles, wealth will follow. But more importantly, you will live a meaningful, impactful life.
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One of the most important lessons I learned about money is that giving comes before receiving. When I was young, I was obsessed with earning as much as I could, thinking that success meant accumulating wealth and keeping it for myself. I watched people around me focus solely on their own gain. And I even thought that was the only way to survive. But over time, I realized that this approach limits you, isolates you, and prevents real growth.
True financial success comes when you use money as a tool to create value for others, to help people, and to contribute to society. The more you give, the more doors open and the more wealth flows back to you in unexpected ways.
When we started Alibaba, our focus was not on making money for ourselves. We wanted to create a platform that helped small businesses in China sell online, reach global customers, and grow their companies. At first, there were no guarantees of profit. In fact, we faced skepticism from investors, technical challenges, and many failures along the way. Yet by focusing on giving, helping small businesses succeed, providing tools and support, and creating opportunities, we built trust and loyalty. This trust became the foundation of our growth, and eventually it led to financial success. I realized that when you prioritize helping others, the money naturally followed.
Giving also teaches humility, patience, and perspective. When you invest your time, resources, or knowledge in others, you learn that wealth is not just about numbers. It is about relationships, reputation, and impact. I spent countless hours mentoring young entrepreneurs, sharing my experiences, and helping people find their path. At the time, I received no monetary reward. But over the years, those connections, partnerships, and friendships created opportunities I could never have imagined. Giving builds networks, credibility, and goodwill, all of which are essential for long-term success.
I have also learned that giving encourages innovation and creativity. When your focus is on solving someone else's problems rather than just making money, you are forced to think differently, to experiment, and to improve constantly. At Alibaba, we continually refined our platform based on the needs of small businesses. We invested in training, technology, and services to help them thrive. Those investments seemed costly at first, but they created immense value, not just for our clients, but for the company itself. The act of giving became a strategic tool that multiplied returns in ways I could never have planned.
Another important aspect of this principle is mindset. If you approach money with a "give first" mentality, you reduce fear and greed. You stop obsessing over accumulation and start focusing on contribution. This mindset allows you to take smarter risks, build stronger teams, and make decisions aligned with long-term vision rather than short-term gain. I have found that generosity, whether with knowledge, resources, or opportunities, always comes back to you, often multiplied and in unexpected forms.
Giving also creates a sense of purpose. Money alone cannot motivate or inspire you to overcome challenges. But when you see the impact of your resources on others, you gain fulfillment, clarity, and motivation. It aligns your personal goals with a larger mission. And that alignment attracts support, partners, and eventually financial reward.
This lesson has shaped my entire approach to business and life. I have learned that money is not just for personal gain. It is a tool for creating impact, empowering others, and leaving a lasting legacy. When you give first, receive later, and focus on helping others, wealth flows naturally, and it becomes sustainable, meaningful, and powerful.
When I was starting out, I often met young people who were obsessed with chasing the highest paying jobs. I made the same mistake myself. I applied to dozens of positions from KFC to hotels, and I faced rejection after rejection. People would look at me and say, "Why do you keep trying? You will never succeed." I remember feeling frustrated and humiliated. But I didn't stop.
At that time, I didn't fully understand the most important lesson about money: it follows passion, not the other way around. If you chase money first, you may earn fast, but you will rarely grow in the ways that matter for long-term success.
I learned this lesson the hard way through small experiences. Before Alibaba, I tried selling my handmade bracelets in Hangzhou. It was tiny, almost insignificant, but I loved the process. I enjoyed meeting people, talking to customers, and figuring out what they wanted. At first, the sales were slow and the money was almost nothing. But the lessons I learned were invaluable. I discovered how to communicate, how to understand human needs, and how to solve problems creatively. Those skills later became the foundation of Alibaba. Money came later, but the experience and passion I put into those early efforts shaped my ability to create real value.
When I started Alibaba, I had no idea if we would make money. We didn't have a plan to become wealthy immediately. Our goal was to help small businesses in China succeed, to connect them to the world through the internet. Many people laughed at us and called us crazy. They asked, "How will you make money from this?" And my answer was always the same: "We are focused on helping others first. The money was secondary." Yet by following our passion and solving real problems, we attracted users, investors, and opportunities that eventually created financial success.
The moment I realized this was a turning point in my life. Passion creates value, value creates impact, and impact creates wealth. I also noticed that when people chase only money, they often burn out quickly. They make decisions based on immediate gain rather than long-term vision. They may achieve short-term wealth, but they rarely build skills, networks, or resilience. I have seen many young entrepreneurs give up because they were chasing money without enjoying the work itself.
In contrast, when you follow your passion, even failures feel meaningful. You learn, grow, and develop abilities that will serve you for a lifetime. Those abilities often turn into financial success, but more importantly, they turn into self-confidence, creativity, and satisfaction. The world changes rapidly and opportunities come and go. Money may appear and disappear, but the skills, knowledge, and experiences gained by following your passion are permanent.
I always tell young people, choose something that excites you, that keeps you awake at night thinking about solutions. The money will follow, but only if your heart is fully invested in the work. Passion fuels perseverance, creativity, and resilience. Those are the qualities that money alone cannot buy but are essential for long-term success.
This lesson transformed my approach to business and life. It taught me to focus on meaning and impact first. To see money as a natural result of dedication, not the primary aim. When you align your work with your passion, every challenge becomes an opportunity. Every failure becomes a teacher, and every small success compounds into larger achievements. In the end, wealth is not created by chasing it. It is created by doing what you love and doing it better than anyone else.
When I was 24, I took my first loan. And I remember feeling terrified. At that time, I didn't really understand debt. And like many young people, I assumed that all debt was bad. I had watched people around me struggle with loans, paying high interest, and living under the pressure of repayments. And I thought I never wanted to go through that.
But life and experience taught me that debt itself is not inherently bad. It depends entirely on how you use it. Many people think that debt is something to avoid at all costs and they try to save every penny without taking any risk. That approach might work in small ways, but it also limits opportunities for growth. I learned that smart, controlled debt can actually teach you discipline, responsibility, and how to manage money strategically.
The first loan I took was for renting an office for my small business. At that time, our company was fragile, and the decision felt huge. I remember signing the papers and feeling a wave of fear. What if I couldn't pay it back? That fear was intense, almost paralyzing. But it forced me to focus. I had to think harder about every business decision, every expense, every potential client. I had to become more disciplined, more organized, and more creative. Debt forced me to take responsibility for my actions and, in a way, it accelerated my learning. If I had relied only on what I had saved, I would have grown slowly, and I might have given up when the early struggles became too difficult.
Over time, I realized there is a difference between destructive debt and productive debt. Destructive debt is borrowing for luxury, ego, or consumption. Buying things you don't need and creating pressure without opportunity for growth. Productive debt, on the other hand, is borrowing to invest in your skills, business, or opportunities that can create value in the future. Productive debt can multiply your capacity to grow.
My first office loan was productive because it allowed me to establish a professional base, meet clients, and expand operations. The pressure to repay taught me responsibility, but it also created opportunities I wouldn't have had otherwise.
Debt also teaches humility and planning. When you owe someone money, you must prioritize carefully. You learn to focus on essentials and cut waste. I remember how every decision had to be strategic. I could not afford to make mistakes. I learned to negotiate better deals, manage cash flow efficiently, and plan ahead. These lessons became habits that guided me for years.
Later, when Alibaba started to expand, we used loans strategically to invest in technology, marketing, and international partnerships. Those small but calculated debts were essential to scaling the company. Without understanding how to handle debt responsibly, we could never have grown so quickly or managed risk effectively.
Most importantly, I learned that fear of debt should not stop you from pursuing opportunities. The key is discipline, careful calculation, and the willingness to learn from mistakes. Smart debt is a teacher. It teaches risk management, patience, and strategic thinking. It pushes you out of your comfort zone, but in the right way. Once I understood this, I approached financial decisions with clarity and confidence. I realized that avoiding debt entirely can be as dangerous as taking debt blindly. It is about balance and understanding how money works as a tool. Whether it comes from your own pocket or borrowed resources, this lesson shaped my attitude toward money and business. It taught me that controlled, purposeful debt is not something to fear, but something to respect. It becomes a guide, a challenge, and a teacher that prepares you for bigger opportunities and bigger responsibilities.
When I first started my journey in business, I thought that making money was the ultimate goal in life. I believed that the more money I earned, the more successful I would be and the more respected I would become. So, I chased deals, I counted every penny, and I obsessed over profits. I remember in the early days of my first business, an English translation company, I would sit late at night staring at spreadsheets, trying to calculate every possible way to increase revenue. I was stressed, anxious, and constantly worried about losing what little I had. At that time, I thought money would solve all my problems, but the reality was very different.
I soon realized that my obsession with money was creating fear and hesitation, and it was actually stopping me from growing. Slowly, I started to understand that money is not the goal. It is a tool, a resource to help you achieve something greater. Think of it like a knife. It can be used to prepare food to create something useful, or it can hurt you if you handle it carelessly. The key is understanding how to use it wisely.
In those early days, I was not using money effectively because I was afraid of losing it. So, I hoarded it and made small, cautious decisions. But business does not reward fear. It rewards action and creativity. When I shifted my focus from chasing profits to creating value, everything started to change. I stopped asking, "How much money can I make?" and started asking, "How can I solve problems for others?"
When I started Alibaba, our goal was never to get rich. Our goal was to create a platform that would help small businesses in China succeed. We wanted to provide them with tools, connections, and opportunities that they could not access otherwise. At first, it was not profitable at all. We faced countless challenges, from technical failures to skepticism from investors. People told us we were crazy to start an online business in China when hardly anyone had internet access. But I knew that if we focused on helping people, the money would eventually come. And it did. Slowly, Alibaba grew because we were solving real problems, not because we were chasing money.
I also learned that viewing money as a goal creates stress and fear. When you focus solely on accumulating wealth, you panic at every loss or setback. You make short-term decisions, and you become trapped in a cycle of anxiety. But if you see money as a tool, you make more rational choices. You invest in yourself, in your team, and in your ideas. You take calculated risks because you are focused on the bigger purpose. You understand that failures are part of the process, and losses are temporary lessons, not disasters.
Over time, I realized that true financial success comes not from greed, but from using money to create something meaningful. The more value you create for others, the more money naturally follows. I have always told young entrepreneurs, "If you want to be rich, don't start with the money. Start with the problem you want to solve, the value you want to bring, and the people you want to help. Money will find you, but only if you use it as a tool, not as the destination."
This lesson has guided me throughout my life and business. It transformed my approach, my decisions, and my mindset. Once you understand this, money becomes less scary, less stressful, and much more powerful. It becomes a way to build, to grow, and to create opportunities.