Financial education is the possession of the
set of skills and knowledge that allows an individual to make informed and effective
decisions with all of their financial resources. It is also called “financial literacy”
and it’s extremely important in order for you to make progress and get ahead in life. If you’re looking for improvement in your
personal and financial life, you might be looking for financial freedom and financial
independence. It means that you want to reach a point in
your life where you no longer have to depend on family, a job, or a company that you don’t
like, for money. But there is another concept that I’d like
you to understand, it is “financial confidence”. It is different from financial freedom. This is because freedom is based on the amount
of money that you have available, while financial confidence is based on your confidence and
acumen to generate money. Now here’s the thing: most people think
that there is a money scarcity. They think that there is no money and making
more money is impossible. But this is deeply untrue. The truth is, the world is littered with money,
but only those with the skills and knowledge can acquire it. Money is like a game, and it has a bunch of
rules that you just have to follow. Play according to the rules and you will become
the master of your financial life, guaranteed. In this video, I’m going to teach you the
4 most important rules of money which are the basics of being financially free, financially
confident, and financially literate. These simple rules that I will give you today
will elevate your money game and take you to a whole other level, you’ve never seen
before, as long as you’re hungry and dedicated. I’m going to give you all this information
for free, I don’t sell books, webinars, or online courses. All the knowledge on this channel is FREE,
so if you want to show your appreciation, click that like button and the subscribe button
right now. It is actually very fascinating how all this
information is becoming more and more available every day, for very cheap or even for free. And everything is easily accessible with a
couple of Google searches. So, even if everything is at their fingertips,
more than 90% of the population is still financially ignorant. Let’s me give you a quick example, Peter
just got his monthly paycheck. After tax, he’s left with $1700. Instead of using this money to invest, save,
or anything else that might be useful, he decides to waste it on a couple of barbecues
with friends and many other useless liabilities. Are you a Peter? Because there are unfortunately a lot of financially
ignorant people today, but the thing is, if they can change a few bad habits and develop
a rich mindset, just about anyone can become rich. There are no rich people that are financially
ignorant, except of course, for those that got lucky, for example, stumbling upon a large
inheritance or winning the lottery. However, statistics show that 70 percent of
lottery winners end up bankrupt after just a few years of being extremely rich? Why is that? Again, it all comes down to how financially
educated one is. If you have a lot of money, you will still
make bad decisions and lose it all, because you don’t know what to do with it. So, if you want to become rich long term,
and not just for a couple of years, you have to get financially educated. Unfortunately, this kind of education is NOT
taught in schools, so you need to do it by yourself. So, all the information is easily accessible,
and this raises the question: why don’t people learn more about finance? There are two main reasons why people don’t
get the financial education they need despite it being extremely cheap and, in some cases,
completely and totally free. Reason number 1: Conventional Wisdom
Here’s the truth: financial education is NOT conventionally ok. Most people will give you a mindset of scarcity,
and if your mindset is wrong, you will never attract money. For example, growing up, your parents might
have been telling you “money doesn’t grow on trees”, and, “money is the root of
all evil”. These lies that people tell their kids are
stopping people from taking the necessary steps to a better life financially. Another conventional concept that is widely
thought but is extremely wrong is the negative connotation towards debt. Debt is not that bad (if you know how to use
it), but still, people demonize it because they don’t have the appropriate education. So, you have to stop listening to those that
aren’t financially literate and financially confident. You should start listening to those that actually
know how to generate money because they are the ones that can give you tips on how to
become financially educated. Just like in a sport, for example, Skiing,
You don’t want to learn how to ski from someone that has never skied before, you want
to learn from somebody that already knows how to do it. Apply this to your financial education, and
you’ll learn very fast. Reason Number 2: Comfort Zone & Self-Esteem
In order to generate money, it’s believed among the rich that, you need to be confident
and have decent self-esteem. Self-image is important, and you have to first
of all, believe that you truly deserve to be wealthier and happier. If you don’t, you will never become rich. Think of like a self-fulfilling prophesy,
you have to see yourself rich first. This confident, charismatic, rich image, you
see yourself in your mind will give you the needed confidence to continuously act out
of your comfort zone, which is very important. A very successful person once said: “most
people are not successful because they are afraid of success”. This is true. In order to become successful, you have to
step out of your comfort zone and take risks. For example, if you want to start your first
business, but you don’t have any money, you might first of all have to take the risk
of getting a loan from your bank, and putting yourself in thousands of dollars in debt which
is out of a lot of peoples comfort zone. Charisma and confidence are some of the key
ingredients you need to become rich. If you don’t have the confidence to take
action, you’ll never become rich. So, before actually getting into financial
education, you have to first work on yourself and your mind when it comes to risk-taking
and failure. Confidence will give you the strength and
the courage to take risks and perform under pressure. So, now that you know all about why people
don’t get financially educated, and the importance of it, let’s get started with
the 4 most important rules of being financially educated. Rule Number 1: Don’t Invest In What You
Don’t Understand Investing is very important especially when
you want to multiply your money. Here’s the thing: you will never, ever,
get rich long-term by working for someone else. You have to start investing. There are many types of investments, such
as stocks, bonds, real estate, and forex, just to mention a few, but I want you to know
the single most important investment; and that’s in yourself. Invest In Yourself
Before investing in anything else you have to invest in the development of your money-making
machine: your brain. Getting the knowledge necessary to operate
a business (financial education included) is not optional. Your industry and your niche are going to
eat you alive unless you are always updated on what’s going on. Stay up to date on all information that matters
to you and to your success. Invest In Your Business
If you buy or create a business, you will probably at one point want to expand it. If you want to do so, you need to put some
money into your business in order for it to grow. It’s like a car: in order to make it run,
you have to put gas in it. And a business is no different, in order to
keep growing, it needs to be fed money. Investing in your business might be anything
from marketing to research or developing a new product. Invest In Real Estate
Real estate investing, like other investments, are basically “buy low and sell high”. A simple concept with very complicated steps. Most real estate investors start with regular
homes, then they move to commercial real estate, hotels, big commercial centers, offices, and
more. Basically, you find units (structures) with
potential that have been mistreated, you fix them up, you wait for the price to rise and
then you sell that unit in order to make a profit. Invest In Stocks
Stocks (or shares) are literally a part of a company that is for sale to the public. When buying stocks, you have the right to
a part of the profits of that business, which is the equivalent of your initial investment. Just like any other investment, the stock
market is pretty risky, and there are a lot of people that lose a lot of money with it. So, these 4 are the most important and well-known
types of investments. However, independently of the type of investment
that you choose, you have to know what you’re getting into. There are rules to follow but equally there’s
a lot of misleading information out there. A lot people are willing to scam you just
to take your money. So you have to be very - very careful who
you listen to, do heavy research before putting your money in something new, or seek advice
from a professional in that industry, preferably someone with skin in the game. Remember this rule: NEVER invest in something
that you do not understand. Rule Number 2: Debt Is A Powerful But Deadly
Weapon This one might be controversial, but the power
of debt is underrated. All those that know how to use it will thrive,
while those that are scared of it will miss a lot of opportunities. There is good and bad debt. Bad debt is anything that you know that you
won’t be able to pay off, for example, student loans. This is extremely painful and it destroys
the financial life of many people. We shouldn’t ask 18-year-olds to make financial
decisions of hundreds or thousands of dollars, without considering the consequences, so be
careful with that one and only get in debt if you know what you’re doing. On the other hand, good debt is the type of
debt that you’re absolutely sure you’ll pay off (or you have a plan to pay it off),
and it will also make you money. Getting in debt is a tool that you can use
to get rich. For example, you might want to get a loan
in order to start your business. If it all goes as planned, you will pay off
your debt and will be free to expand your business as long as you’re always paying
off your dues. Rule Number 3: Think Rich
Thinking rich is seeing yourself rich and acting rich. Essentially you’re playing the of a rich
person, and this might include living above your means. Living below your means is a defensive concept
invented by financial gurus that to the most part is solid wisdom, I mean we shouldn’t
live way beyond what we can afford, because this is how most people end up in serious
financial trouble. As long as you are disciplined and wise about
what you’re doing with your money, you have to also spend your money on things that give
you confidence, and make you feel good. Do you really think that depriving yourself
of a couple of coffees at Starbucks will make you a millionaire? Instead of living below your means and saving
a penny here and a penny there, start gaining new skills that will make you money in order
to support your desired lifestyle. This single trick will have a HUGE impact
on your mindset, you’ll start seeing opportunities and places where you can make money. Rule Number 4: Develop Skills To Acquire Assets
Assets are things that put money in your pocket, while liabilities are things that take money
out of your pocket. Your brain is your biggest asset, and you
can develop it in order to be even more valuable. There are skills that are very demanded in
the marketplace, and they all have two things in common:
1. They bring a lot of value to the market. 2. They make you a lot of money. So, instead of working for someone else, start
developing skills that will help you generate income from nothing, just by delivering results
to the market. Figure out what best fits your abilities,
and develop your first high-income skills in order to gain the resources necessary to
acquire more and more assets. Well, that’s it for today’s video, I hope
you enjoyed it and gained value from it, if you did give it a big thumbs up. Also, Leave your thoughts down below, I’d
love to hear them. With that said, don’t forget to subscribe
and enable notifications. Thanks for watching and I’ll see you in
the next one.
