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're 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'd
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's 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 i'm going to teach you the
four 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're
hungry and dedicated
i'm going to give you all of this
information for free i don't 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 ninety percent 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 seventeen
hundred dollars
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 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
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 one 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
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 two comfort zone and
self-esteem
in order to generate money it's 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 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
thousands 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
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 four
most important rules of being
financially educated
rule number one
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
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
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 four 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're getting into
there are rules to follow but equally
there's 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
remember this rule never invest in
something that you do not understand
rule number two 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
hundreds or thousands 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'll 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 all goes as planned you will pay off
your debt and will be free to expand
your business as long as you're always
paying off your dues
rule number three 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
rule number four 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 one they bring a lot of
value to the market two 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
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thanks for watching and i'll see you in
the next one