seven steps to escape poverty and become a prosperous minded person with a pocket full of money does this sound interesting to you stay with me until the end and discover the seven steps to financial success I want to give you a heads up many people will remain poor for the rest of their lives by not following what I will say in Step number seven now without wasting time let's get started invest in your financial education and you will reap the economic benefits you desire many people underestimate the importance of financial education in Building Wealth and
achieving the life they want as a result they never bother to develop or improve it which condemns them to financial failure throughout their lives believing that poverty or wealth are matters of luck and circumstances they ignore that there is a simple process that would allow them to improve and Achieve true success and fortunately they end up living their lives without seeking to change their current situation to achieve financial success if you would like to know the steps to achieve financial success this video is for you today we will see the seven simple steps of financial
education to master your finances and Achieve Financial success the importance of financial education always amazes me when I see people buying stocks or real estate but never investing in the greatest asset they have their mind Robert kosaki said what would happen if you gave a vehicle to a person who doesn't know how to drive they would probably make many mistakes possibly putting their life at risk now I ask what do you think happens when people start making a lot of money and growing financially but have never developed their financial education as expected something similar happens
they will make mistakes or even quickly lose their money due to a lack of knowledge and management skills we've seen several examples especially with lottery winners unfortunately the knowledge I'm going to share with you now isn't taught in schools or our families that's why everyone needs to learn it on their own in a self-taught way or as most do by making mistakes with their own money or worse yet by never educating themselves financially as a result they pay the high price of financial ignorance throughout their lives suffering from a life full of economic disatisfaction what
do you prefer watch this video Until the End and learn great secrets about money that will greatly facilitate your financial life or learn from the mistakes you'll make along the way the choice is in your hands Financial education goes beyond just money it's about acquiring Knowledge and Skills that allow you to manage your resources efficiently and make better financial decisions Financial education has the power to drastically change people's economic situation to do this it is necessary to develop the ability to manage money control it save it and invest it personal finances are a crucial part
of our lives and how we manage them can become an obstacle or a support throughout our lives being determinant for personal and financial success so let's move on to the seven simple steps that will not only improve your financial education but also provide an easy guide to achieving financial success and conquering the life you desire step one understand the basic concepts of financial education don't let your learning only lead to knowledge let your learning lead to action Jim ran said when people hear about the importance of educating themselves financially the first thing they think is
that it's too complicated that it will take too long or that they don't know where to start all these thoughts discourage them from taking the first step to improve their financial situation postponing the Improvement of their relationship with money and finances Begin by mentally preparing for Success comment like this I learn to be rich just comment that I learn to be rich when I see your comment I'll give it a little heart now that you've commented let's continue in this first step the first thing to do is choose the main sources of information such as
books blogs YouTube channels or podcasts with which you will start your financial education through them you will begin to learn each of the concepts and tools necessary to improve your education and financial intelligence in this step you should learn to control your weekly and monthly expenses create a detailed budget manage debts and credit cards deal with taxes and insurance various saving techniques differentiate between assets and liabilities understand the concept of compound interest and know the different investment tools and instruments available in the Market at this stage many people make the mistake called analysis par is
because they educate themselves and acquire knowledge but constantly postpone the practical application of everything they have learned claiming that they still don't feel prepared or that they don't have enough money to start thus they spend their days accumulating knowledge and theories but they never put them into practice for this reason they never achieve the expected results because they don't dare to take the first step and act immediately remember the that your education and financial intelligence are an asset but what you do with them and how you use them is what will truly lead you to
financial success the necessary Concepts to improve your ability to manage your money are simple learn and apply them immediately to your finances only then will you achieve the economic results you seek step two evaluate your Current financial situation now that you have the necessary knowledge to improve your finances use that knowledge to evaluate and analyze your current economic and financial situation review how you are managing your money how you spend it how you control your expenses evaluate how much you save how much you invest and calculate your financial net worth and the assets you possess
this is the importance of the first step where you must learn all these Concepts beforehand so that you can make a more accurate assessment of your economic situation identify opportunities for improvement and determine the starting point to change your finances for example evaluate whether you comply with the rule of saving at least 10% of your income if you maintain an emergency fund of 3 to 6 months of expenses if your debts do not exceed 30% of your income and if you have multiple sources of income by evaluating this you will be able to identify the
real picture of your finances and propose the necessary improvements and corrections to master the management of your money many people who are in financial difficulties when asked about the cause of their situation will say it's because they don't earn enough money however in many cases the problem is not just the amount they earn but how they manage and administer the money they earn this is why we know people who have become rich overnight but their poverty habits and terrible Financial education and intelligence have inevitably LED them back to poverty in a worse situation than before
identifying and evaluating your Current financial situation your habits regarding money your psychology and everything that needs Improvement is a big step on the path to achieving your financial success step three manage and control your money you will gain control over your money or lack thereof forever David Ramsey said in this step it's time to roll up your sleeves and start managing and controlling your income your fixed and variable expenses your debts how much you save and how much you allocate for Investments all of this will give you an overview of how you are Distributing the
money you earn and will allow you to ensure that it is used to achieve the financial goals you have set the most important tool of personal Finance to manage your finances and money is the budget to create it simply list all your income and all your fixed and variable expenses classify them into categories and evaluate which of your expenses are building the financial life you want and which are affecting your finances and hindering your growth those that are negatively affecting your finances should be eliminated or reduced to create your budget you can use EX l
or any mobile app the important thing is that it is easy to use doesn't take much of your time isn't complicated or difficult to record and update look for something practical and that requires little time as a suggestion we recommend that you update this budget weekly evaluate its compliance and identify where adjustments will be necessary this entire process will allow you to become aware of how you use your money daily and if what you are doing will lead you to achieve your financial goals it is always recommended that in the budget the first item to
be established is 10% for your savings this way you will have money for your emergency fund and later to accumulate capital for investment only after that with the remaining 90% distribute it for your basic and variable expenses with this strategy you will manage to save enough money to build your your future Financial life without affecting your current standard of living before continuing if this knowledge is being useful to you I invite you to give a like And subscribe to the channel to receive more content like this now let's continue step four reduce your debts never
spend your money before you have it Thomas Jefferson said this is one of the main mistakes people make with their personal finances motivated by the environment or social pressure they acquire goods and adopt a lifestyle they cannot afford just to meet the standards of success set by Society they go into debt to maintain a level of living they cannot afford and that does not match their income every month when they receive their paycheck they realize it barely covers their expenses and debts and so they never have the opportunity to save and accumulate the capital needed
to invest after the previous step where you improveed the management of your money identify all your debts and pay them off as quickly as possible even before thinking about investing it is recommended that you first pay off your debts thereby avoiding losing money with the financial costs they generate you can use two well-known methods for debt repayment such as the snowball method where you need to order your debts from the smallest to the largest amount and start paying off the smallest ones after paying them off move on to the next one and so on until
all are paid the advantage of this method is that you will quickly pay off the smaller debts which will motivate you to continue paying the others on the other hand the Avalanche strategy involves ordering your debts from the highest to the lowest interest you should start by paying the debt that generates the highest Financial cost and interest and so on until they are paid off the advantage of this method is that you will reduce the interest payments on all your debts debts are not bad if they are managed properly unfortunately most people due to a
lack of financial education go into unnecessary debt on the other hand financially successful people know how to take advantage of debt and financial leverage to increase their profitability and accelerate the growth of their businesses step five increase your savings do not save what is left after spending spend what is left after saving Warren Buffett said in this step after managing and controlling your expenses identifying the necessary from the non-essential expenses and after paying off all your debts that were taking away your money due to financial costs you should already have enough money to start saving
it is suggested that you allocate at least 10% of your income to savings and Ure you save before making any other expenses if you are just starting with this habit adjust this savings percentage to your current situation as your income improves increase this percentage the important thing is to develop the Habit because remember this money is what will help you accumulate the capital needed to invest and build the financial future you desire as a First Savings goal start allocating this money for your emergency fund as we always recommend accumulate a minimum amount equivalent to 3
to 6 months of your expenses this will give you the Peace of Mind of having this money in case of any unforeseen events and will serve as a backup to face any crisis in your finances such as job loss an accident a health problem or any unplanned expense this money will allow you not to resort to your assets or investments in case Cas of need nor resort to bank credits that could further affect your economy with high interest once you have gathered the necessary amount for your emergency fund start allocating this savings to accumulate Capital
that will be invested later this money is what will allow you to build your wealth your Investments and your passive income that is achieve your Financial Freedom therefore it is important to accumulate this Capital as quickly as possible because the sooner you build your capital and invest it the faster you will achieve your financial success so that you finally won't depend on a job and never again have to sell your time to pay for the lifestyle you lead step six develop a skill and add value you are paid in direct proportion to the level of
difficulty of the problems you solve Elon Musk said when you ask people what the solution to their financial problems is or how they could achieve financial success most will probably say that having money is the answer however this is a very general and inaccurate answer because we know many people who after winning a lot of money in the lottery ended up in complete ruin it is no secret that to improve your financial situation besides efficiently managing your expenses you must seek to increase your income and the money you earn with your time if you have
a job you should seek to increase your salary if you have a business you need to increase your sales and profitability but how do you do that well the main way is by generating value for others and developing your skills to add more value for example if you have a business you should identify your customers's problems and offer Solutions with your products or Services adding value only then will you achieve more sales and revenue everyone out there is looking for products or services that solve their problems and will return only to those who fulfill this
goal if you have a skill whether it's programming design photography music video editing develop this skill and become an expert so that you can add as much value as possible in your services and products I guarantee that there will be no shortage of clients and soon you will need to hire more people to meet the high demand many people wonder how they can make money let me tell you that the answer lies more in you than in others because only you know your own skills your environment your abilities or what you like and are passionate
about doing there are many ways to make money but not all are suitable for everyone identify something you would do even without being paid perhaps there you will find the answer step seven in invest successful investing consists of managing risk not avoiding it Benjamin Graham said this step is the most important when we talk about financial success building solid wealth and achieving Financial Freedom because investing is what will allow you to live off your passive income and rents without the need to sell your time dedicating yourself to what you are passionate about or have always
wanted to do with your time and your life investment is the last step in building the financial life you desire here is where all the effort made to accumulate your Capital begins to bear fruit and your money starts working for you as we always recommend before investing educate yourself financially on the different investment options identify your risk profile the profitability you want to achieve and the risk you are willing to take you must learn basic concepts to evaluate a company and its financial situation understand financial statements business models margins profitability and taxes as well as
understand the various investment Alternatives such as stocks bonds real estate and Ventures all this knowledge will help you build solid wealth without putting your money at unnecessary risks or losing it by trying to achieve extraordinary gains in highly risky Investments remember Building Wealth is not a Sprint but a longdistance Marathon therefore build your wealth step by step thinking in the long term many people when asked about their assets and Investments mention their house or vehicle first but do these assets generate any economic benefit or income or on the contrary are they sources of more expenses
that's why it's important to correctly differentiate between assets and liabilities and seek to increase your assets because they are the ones that will generate income this is the main difference between the poor and the rich the poor do not have assets or wealth that generate income only a job which condemns them to always sell their time in exchange for a salary achieving financial success requires constant Financial education knowledge about the psychology of money debt management learning saving methods developing the ability to earn money and investing in assets that generate passive income only by learning and
applying this knowledge will you be able to improve your finances and build your wealth financial success more than a goal is a continuous process by following these seven steps you will be on the right path to achieving the solid and prosperous Financial life you desire if you watched until here it shows that you really want to change your life and you have a lot of dedication to it otherwise you would have already left the video so congratulations for me to know that you stayed until the end comment like this step number seven is the best
comment like this step number seven is the best when I see your comment I'll give it a little heart now I'll leave two video options on your screen for you to watch and learn even more about money click on one of them and go watch do it now
