which of the following statements is usually true about individuals who are financially literate? This is a topic that many people are looking for. khurak.net is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, khurak.net would like to introduce to you Financial Education | The 4 Rules Of Being Financially Literate. Following along are instructions in the video below:
Education is the possession of the set of skills and knowledge that allows an individual individual to make informed and effective decisions with all of their financial resources. It is called financial literacy. And its extremely important in order for you to make progress and get ahead in life.
If youre 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 dont like for money. But there is another concept that id 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 heres 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. Im 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 youve never seen before as long as youre hungry and dedicated.
Im going to give you all this information for free. I dont 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. Lets me give you a quick example peter.
Just got his monthly paycheck after tax. Hes 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 dont 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 dont people learn more about finance. There are two main reasons.
Why people dont get the financial education. They need despite it being extremely cheap and in some cases completely and totally free. Reason.
Number. 1 conventional wisdom. Heres 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 doesnt 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 dont have the appropriate education.
So you have to stop listening to those that arent 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 dont 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 youll learn very fast. Reason number 2 comfort zone self esteem in order to generate money. Its 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 dont 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 dont 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 dont have the confidence to take action youll 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 dont get financially educated and the importance of it lets get started with the 4. Most important rules of being financially educated rule number 1 dont invest in what you dont understand investing is very important especially when you want to multiply your money. Heres 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 thats 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 whats 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. Its 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 youre getting into there are rules to follow. But equally theres 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 wont be able to pay off for example student loans. This is extremely painful and it destroys the financial life of many people we shouldnt 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 youre doing on the other hand good debt is the type of debt that youre absolutely sure youll 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 youre always paying off your dues rule. Number. 3.
Think rich thinking rich is seeing yourself. Rich and acting rich. Essentially youre 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 shouldnt 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 youre 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 youll 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. Thats it for todays video. I hope you enjoyed it and gained value from it if you did give it a big.
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