Some folks’ eyes start to glaze over when you say the words ‘financial literacy’. But we’re deadly serious when we say don’t skip this step in your financial freedom plan. Here, we’ve got everything you need to learn: financial literacy definition, tips, hacks and free resources to learn about the rules of money.
My mother was a wise woman famous for giving sage advice. She said something to me at age 27 that changed the course of my financial future.
‘No one is going to care as much about your money as you do. Get educated and make your own financial decisions.’
As you’re saving and budgeting, you should be learning about how to manage your money.
It just doesn’t make a lot of sense in our view to make investment decisions based on financial advice from so called ‘independent financial planners’. Especially if they are paid (in commissions) to have their own best interests at heart.
Building your financial knowledge will multiply your net worth in ways that will surprise you. It did for us. It will save you thousands in ‘independent financial planner’ fees and in stupid investment decisions over a lifetime.
That’s not to say you’re always going to get it right whatever decisions you make. You won’t. But at least your decisions will be informed ones and you’ll keep more of your own money to invest.
Learn about building wealth
- How to be financially successful in your 20sWant to start your 30s with a quarter million bucks net worth? Read this. 5 real steps to be financially successful in your 20s that anyone can do.
- How to be financially free by 30The only tried and tested step-by-step guide you’ll get about how to be financially free by 30. Your future self will thank you for reading this.
- A wealthy mindset: How we 10x-ed our net-worth by thinking differently about wealthHow to build a wealthy mindset and financial freedom from nothing. A step by step on how we 10xed our net worth by learning to think differently about money
- Financial freedom – 3 simple concepts to get started now!How to achieve financial freedom using three simple steps. What is financial independence? What is the financial independence retire early movement and why you need to know.
Financial literacy – definition
Financial literacy is the ability to make sense of financial information, knowledge about how money works and skills in managing personal finances. These are skills that everyone should have regardless of age, gender or social status.
To consider yourself financially literate, you need to know the about the rules of money – how to make money, invest it and keep it. Money concepts we suggest you wrap your head around include
- what is an asset
- what is a liability
- different types of income streams
- tax efficient structuring to keep more of your money
Where to start learning
I mean, of course we are going to say learn from this blog! Bookmark your favourite pages and check back weekly for new articles! You never know when we hit on a bit of learning that feels like it’s written just for you.
Read financial freedom books
Start off by reading a few financial freedom books.
We’ve read quite of few that opened our eyes to the big ol’ global game of money – how to make it without a 9 to 5 job, and how to keep it.
Ever heard of “The 4 hour Work Week”, or “Rich Dad Poor Dad”? “Cashflow Quadrant”? Start with these and you’ll never look at money the same way again.
Learn from the experts
We’re massive fans getting a financial education by learning from the experts – people that have gone before you and can walk the walk not just talk to the talk. I mean, you could opt to learn everything about making money and investing yourself but just think about how much time you’re going to waste. Instead, our approach is to save ourselves a bunch of failure and heartache by finding someone to model and just do what they did!
We’ve spent good money on applied financial education from actual wealthy people and EVERY SINGLE TIME we’ve been rewarded. Our investment in our financial education has paid back multiple times over.
Our wealth building really started with Robert Kiyosaki and I bet we’re not alone. His Rich Dad financial education tools and training are absolutely worth it because he teaches you to think differently about how to make money and be wealthy. It all starts with mindset. He also teaches some simple but mindblowing content about how the rich make money and structure their finances to keep it. Best of all? ALL of it is applicable to you!
We learned and applied it and watched our financial situation change before our very eyes. Like magic.
Kiyosaki’s ‘Rich Dad Poor Dad’ gives everyone the financial education we should have had in school.
Rich dad, poor dad
Kiyosaki’s core education suite is The Rich Dad Summit – its two days of online training that you can watch online anytime from anywhere and the best place to get start.
Since learning about making money and investing through the Rich Dad education we have more than 10xed our net worth. No kidding.
In fact, if it wasn’t for the Rich Dad education, we’d still be slogging away earning an hourly wage and losing most of it back to taxes.
The information you’ll get in this Summit is practical, actionable and really blew our minds. It changed everything about our finances. For a buck invested to watch it, what can you really lose?
Once you’ve got a solid knowledge base to start, the next stage of traditional FI is about planning and structuring your money and future investments. Structuring comes before investing, because it’s much harder and more expensive to untangle the wrong structure or put in place the right tax or legal instruments in retrospect.