Financial education means learning about money so you can make smart choices with your finances often termed financial literacy it is crucial for achieving progress and success in life if you aim to enhance your personal and financial well-being you are likely seeking Financial Freedom and Independence it means aiming to be in a place where you don't need help from family or a job you don't like to manage your money anymore however there is another concept I'd like you to understand Financial confidence Financial Freedom is about having enough money while Financial confidence is about being sure of
your ability to make money on your own here's the thing most people believe in a scarcity of money thinking that there isn't enough to go around and that making more is impossible however this is far from the truth in reality money is abundant but only those with the necessary skills and knowledge can access it think of money as a game with specific rules if you learn and follow these rules you can master your financial life guaranteed in this video I'll tell you about the four most important Money Rules which are key to achieving Financial Freedom
confidence and literacy if you stick to these simple rules you can really boost your finances and reach new goals as long as you're dedicated and ready to learn before we begin please like the video and subscribe for more great content like this let's get started it's really interesting how accessible and affordable this information is becoming often available for free you can easily find it with just a few Google searches despite having information readily available over 90% of the population remains financially ignorant for example Jon receives his monthly paycheck of $2,000 after taxes instead of investing
saving or using it for something beneficial he spends it on barbecues With Friends and other unnecessary expenses do you relate to what's happening with JN unfortunately there are a lot of people today who don't know much about money the good news is with some adjustments to habits and the cultivation of a wealthy mindset almost anyone can become wealthy most of the time people who are successful with money aren't financially ignorant except for those who just got lucky like inheriting a lot of money or winning the lottery yet still statistics reveal that 70% of lottery winners
end up broke within a few years of getting a lot of money why does this happen once more it boils down to one's level of financial education even with a significant sum of money making uninformed decisions can lead to its loss to secure lasting wealth not just temporary riches one must prioritize Financial education unfortunately schools often don't teach this important kind of education so people have to learn about it on their own despite the abundance of easily accessible information why do some people still not bother to learn about money there are two primary reasons why
people don't get the financial education they need even though it's usually cheap or even free reason number one conventional wisdom here's the reality traditional Norms often don't Embrace Financial education lots of people teach a mindset of scarcity which can stop you from getting rich for instance when you grow up you might hear things like money doesn't grow on trees or money is the root of all evil such misconceptions passed down from parents can stop children from taking the steps they need to get better with money another big idea that lots of people believe but is
actually wrong is that debt is always bad debt when used wisely it's not always bad but many people think it is because they don't know much about it therefore it's essential to disregarded advice from those lacking financial literacy and confidence instead seek guidance from people who possess the Knowledge and Skills to generate wealth think about it like skiing you wouldn't take lessons from someone who's never skied you'd want someone who knows what they're doing right use the same idea when learning about money and you'll get better really fast reason number two comfort zone and self-esteem
according to the wealthy confidence and a healthy self-esteem are really important for wealth generation how you see yourself is super important and you must genuinely believe that you deserve greater wealth and happiness without this belief achieving wealth becomes unlikely it's like having a self-fulfilling prophecy you must Envision yourself as wealthy first The Confident and charismatic vision of wealth you hold in your mind will keep you going even when things get tough which is really important as quoted by a highly successful individual many individuals fail to achieve success because they fear it that's really true to
succeed you have to go past beyond your comfort zone and embrace risks for instance people who want to start their own business might have to borrow money from the bank which could mean getting into a lot of debt that's something that's scary for a lot of people Charisma and confidence are essential components for achieving wealth without the confidence to take decisive action getting rich will be really hard therefore before you start Financial education it's crucial to focus on personal growth and mindset regarding risk-taking and overcoming failure confidence provides the fortitude and courage needed to embrace
risks and Thrive Under Pressure now that you understand the reasons behind the lack of financial education and its significance let's proceed with learning the four most crucial principles of financial literacy rule number one don't invest in what you don't understand investing holds significant importance especially if you want to make your money grow here's the truth long-term wealth accumulation isn't achievable just by working a regular job to achieve lasting financial success investing is essential there are different ways to invest such as in stocks bonds real estate and Forex among others however I want to emphasize the
most crucial investment of all and that's in yourself before investing in anything else it's important to invest in improving your main money-making tool your brain learning how to run a business including understanding finances isn't just an option it's essential your field and Niche will be very challenging unless you keep up with the latest information keep yourself updated on all information important to your success invest in your business when you own or establish a business there will likely come a time when expansion becomes desirable to help your business grow you'll need to put money into it
think of it like a car to keep it moving you must fuel it with gas similarly a business requires ongoing Financial input to sustain its development investing in your business can include things like marketing research and product development invest in real estate real estate investing much like other investment strategies boils down to the principle of Buy low sell High while the concept is simple the execution involves complex steps typically Real Estate Investors begin with Residential Properties and progress to commercial real estate hotels large commercial centers offices and Beyond the strategy is to find properties with
hidden potential fix them up wait for their value to go up and then sell them for a profit invest in stocks stocks also known as shares represent ownership in a publicly traded company by purchasing stocks you acquire a stake in the company's profits proportional to your investment like any investment the stock market entails risks and many individuals experience significant losses thus these three investment types business real estate and stocks are among the most crucial and widely recognized regardless of the investment type you select it's crucial to understand what you're venturing in to while there are
rules to follow but there's also a lot of misleading information out there unfortunately many individuals are willing to deceive you to gain access to your funds so it's very important to be careful about Whose advice you follow before putting your money into a new project make sure to do thorough research or get advice from someone experienced in the field preferably someone who has their own investment in it always remember don't invest in something if you don't understand it rule number two debt is a powerful but deadly weapon this perspective May provoke debate but the potential
of debt often goes unrecognized those who understand how to leverage it effectively can flourish while those who fear it may Overlook numerous opportunities it's crucial to distinguish between good and bad debt bad debt includes debts that probably won't be paid back like student loans which can really hurt a person's finan it's unfair to expect 18-year-olds to make big financial decisions without really understanding what they mean so be careful when thinking about taking on debt only do it if you're sure you can handle it well on the other hand good debt is debt that you're sure
you can pay back or have a clear plan to do so and it can also help you make money utilizing debt strategically can be a means to achieve wealth for instance obtaining a loan to launch your business could enable growth growth and profitability if your business goes as planned you can pay back the debt and have the chance to grow more as long as you keep up with your financial responsibilities rule number three think Rich thinking of yourself as rich and acting that way is what having a wealthy mindset is all about basically you're living
like a rich person even if you don't have the money for it yet Financial experts usually advise living within your means which is good advice but it's also important not to stretch yourself too thin financially as this can cause big money problems however maintaining discipline and making wise financial decisions is key it's good to put money into things that make you feel more confident and happy as long as you're careful about how you spend do you really think that skipping a few Starbucks coffees will make you a millionaire instead of just trying to save small
amounts of money think about investing in learning new skills that could help you make more money that way you can afford the lifestyle you want this simple shift in approach can significantly influence your mindset allowing you to recognize opportunities and avenues for wealth creation rule number four develop skills to acquire assets assets bring in money while liabilities take it away your brain is your most valuable asset and you can make it even more valuable skills that are in demand usually have two important qualities one they deliver significant value to the market and two they yield
substantial Financial returns instead of working for someone else concentrate on developing skills that let you make money on your own just by offering something valuable to people find the skills that match what you're good at and start getting better at them to make more money then you can use that money to get more assets thanks for watching if you like this video give give it a thumbs up let me know what you think in the comments below hit that subscribe button and turn on notifications to catch all my future videos see you next time
