Skip to main content

Why teach financial literacy?

It's not how much money you make. It's how much money you keep.

Too many people are too focused on money and not on their greatest wealth, their education. If people are prepared to be flexible, keep an open mind and learn, they will grow richer and richer despite tough changes. If they think money will solve problems and produce money. Money without financial intelligence is money soon gone.

Most people fail to realize that in life, it's not how much money you make. It's how much money you keep.

Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.

Rule #1: You must know the difference between an asset and a liability, and buy assets.

Why would someone buy an asset that was really a liability? The answer is found in basic education/

We focus on the word "literacy" and not "financial literacy."
What defines something to be an asset of a liability are not words.

An asset puts money in my pocket. A liability takes money out of my pocket.

"The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn,unlearn, and return."

An asset is something that puts money in my pocket whether I work or not. A liability is something that takes money out of my pocket. This is really all you need to know.

If you want to be rich, simply spend your life buying or building assets. If you want to be poor or middle class, spend your life buying liabilities.

If people are having difficulties financially, there is something that they don't understand either in words or numbers.

Cash flow tells the story of how a person handles money.

Financial aptitude - What you do with the money once you make it; how to keep people from taking it from you, how to keep it longer, and how to make that money work hard for you.

As income goes up, their expenses go up as well.
The number one expenses for most people is taxes.

A person can be highly educated, professionally successful and financially illiterate.

Fear is the main reason that people say, "Play it safe."

"An intelligent person hires people who are more intelligent than he is."

Wealth is a person's abilitty to survive so many number of days forward or, if I stopped working today, how long would I survive?

Wealth measures how much money your money is making and, therefore, your financial survivability.

Wealth is the measure of the cash flow from my asset column compared with the expense column.

-The rich buy assets.
-The poor only have expenses.
-The middle class buy liabilities they think they are assets.

It's not how much you make but how much you keep and how many generations you keep it.

If you want to be rich, you need to be financially literate.

Comments

Popular posts from this blog

 All great leaders in every walk of life are highly sexed, but they follow the habit of controlling their sex desires, switching them into a driving force behind their occupation. The person who has self discipline understands the emotion of sex, respects it, and learns to control and transmute it into contructive activities. Q: Just what damage is there in over-indulgence of sex? A: The greatest damage is that it depletes the source of man's greatest driving force, and wastes, without adequate compensation, man's creative energy. Controlled sex supplies the magnetic force that attracts people to one another. It is the most important factor of a pleasing personality. It gives quality to the tone of voice and enables one to convey through the voice any feeling desired. It serves, as nothing else can serve, to give motive power to one's desires. It keeps the nervous system changed with the energy needed to carry on the work of maintaining the body. It sharpens the imagination...

Learning from adversity

 If they knew that every form of defeat, and all failures, bring them the seed of unborn opportunity, they would keep on fighting and win. Success usually is but one short step beyond the point where on quits fighting. Failure is a man made circumstance. It is never real until it has been accepted by man as permanent. Failure is a state of mind; Therefore, it is something an individual can control until he neglects to exercise this privilege. Failure brings a climax in which one has the privilege of clearing his mind of fear and making a new start in another direction. Failure proves conclusively that something is wrong with one's aims or the plans by which the object of these aims is sought. Failure is the dead end of the habit-path one has been following, and when it is reached it forces one to leave that path and take up another, Thereby creating a new rhythm. It gives an individual an opportunity to test himself wherein he may learn how much will power he possesses. Failure als...

The Secret to Self-Control

 If you’re overweight, a smoker, or an addict, you’ve been told your entire life that it is because you lack self-control—maybe even that you’re a bad person. The idea that a little bit of discipline would solve all our problems is deeply embedded in our culture. When scientists analyze people who appear to have tremendous self-control, it turns out those individuals aren’t all that different from those who are struggling. Instead, “disciplined” people are better at structuring their lives in a way that does not require heroic willpower and selfcontrol. In other words, they spend less time in tempting situations. The people with the best self-control are typically the ones who need to use it the least. It’s easier to practice self-restraint when you don’t have to use it very often. So, yes, perseverance, grit, and willpower are essential to success, but the way to improve these qualities is not by wishing you were a more disciplined person, but by creating a more disciplined enviro...