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2024-04-11 06:41:21

Financial Education _ The 4 Rules Of Being Financially Literate

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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 are 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 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 .

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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 are hungry and dedicated .

I'm going to give you all of this information for free .

I don't sell books , webinars , or online courses .

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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 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 ?

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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% 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 .

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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 okay .

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 .

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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 and self esteem .

In order to generate money , it is 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 it like a self fulfilling prophecy .

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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 continually 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 1,000 of dollars in debt which is out of a lot of people's 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 .

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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 .

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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 .

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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 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 are getting into .

There are rules to follow , but equally , there is a lot of misleading information out there .

A lot of 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 .

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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 100 or 1,000 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 will 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 .

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If all goes as planned , you will pay off your debt and will be free to expand your business as long as you are always paying off your dues .

Rule number 3 , think rich .

Thinking rich is seeing yourself rich and acting rich .

Essentially , you are playing the role 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 that is how people end up in serious financial trouble .

As long as you're 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 in places where you can make money .

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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 2 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 would love to hear them .

With that said , don't forget to subscribe and enable notifications .

Thanks for watching and I will see you in the next one .

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