FINANCIAL LITERACY

FINANCIAL LITERACY

It is very important to have the knowledge and skills to understand and manage your money effectively. This will help you to make better decisions, prevent debt problems, build financial security, support long-term goals and reduce stress.

ASSET: Anything that brings in money monthly.

LIABILITY: Anything that takes out money monthly.

CASH FLOW: The total amount of money that a business or individual has coming in (inflows) and going out (outflows) monthly. It is the most important word in the world of money.

Financial literacy is about being in control of your money instead of letting money problems control you;

1. Never live on one income source, invest money and make another source.
2. Don't invest all the money in one place.
3. The rich buy assets. The poor only have expenses. The middle class buy liabilities thinking they're assets.
4. Often, the more money you make the more money you spend; that's why more money doesn't make you rich - assets make you rich.
5. It's not how much money you make, but how much you keep, how hard it works for you, and how many generations you keep it for.
6. Money is what you spend now. Wealth is what you leave behind.
7. Financial wisdom is knowing that not everything you can afford that you should buy.
8. The point is to have assets that keep working after you stop working. Give your money a job to bring in more money.
9. If you don't build assets in your 20s and 30s, your 40s will be survival mode not freedom mode.
10. Don't just buy assets. Learn how to make them work for you. Money in your pocket is greater than expensive toys for show.
11. Make more money than you spend. Grow your net worth. Pursue assets and avoid liabilities.

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