ARE YOU FINANCIALLY LITERATE?

 

This is not for the people, who were born with a silver spoon in their mouths. It is for people, who had to struggle and had to make their own money to prosper.

No one taught you how to invest you money nor how to increase your income.

happiness
Photo by: andihigherstill

You know why? Because no one wants you to know how to deal with cash. You get your salary, but then you have to give it back. People are not interested in teaching you how to use your income wisely, because that could lead you to financial literacy. Moreover, everyone is busy while making a living.

Therefore, no one really taught you how to spend money right. They don’t teach that in school and in university neither.

So why is money so important? It shapes our lives.

Money gives you power. A person who owns money, owns information. Who owns information, has the power to manipulate. Who can manipulate, owns money. So it is like never-ending story.

3-Ways-To-Survive-In-Campus-When-Broke
Photo by: http://www.whiteoakswealth.com/financial-independence/

So what is money?

Money is an asset, which enables you to exchange your cash for service or product. Money is neutral, it is not bad nor good. The only thing that matters is how you use it.

First, let’s go through some basic tips.

  • If you want to grow financially, you have to know how to use your money. You could either read books on that topic, attend seminars or find people, who are willing to help you with their philosophy.
  • How much cash do you have in your wallet right now? Why don’t you have more? [1] Bodo Schäfer, German entrepreneur advices us, that each individual should always have 500€ in wallet, therefore a person feels richer and learns to feel good while having money.
  • What do you think about money and wealth?  Most of the people have negative beliefs, which are stronger than the positive attitude, which would lead to financial freedom. [2] Break free of all the negative and harmful thoughts and build a new perspective about wealth and finances.

If you want to get rich, while you don’t understand or you don’t want to change your thoughts, is like squeezing blood from a turnip.

  • Financial distress could be a poison or a remedy. It is up to you.
  • You income consists of quality, energy, enlargement and valuation/selling your products or service and ideas.
Financial-Independence-2-700x454
Picture by: http://www.whiteoakswealth.com/financial-independence/

How to be financial literate?

How to be financially independent?

  • SAVE MONEY

You should be the first who gets your income. By that I mean, that you should first transfer money to yourself. Take 10% of your income and save it for your bright future. Piggy bank is also a good idea to start with. 

Start saving your money.

  • INVEST IN STOCKS

Start with small companies who are new on the marketplace. When you buy stocks, you are buying a small part of company. Twenty years ago, stocks were primarily bought with the advice of a stockbroker. Nowadays, anyone with a computer can buy or sell stocks with brokerage firm. If you are new to buying stocks, you may feel overwhelmed. But, with a little knowledge, you can buy your own stocks and make money from your investments. ( Wikihow)

  • INVEST IN FUNDS

1st rule: Find investments which are safe, but still profitable and bring you 12%. [3]

Contrary to stocks, you should  invest in well-known and large funds. However, you can still experiment when you’ve achieved financial security. [4]

  • BUY, REARRANGE/TRANSFORM AND SELL

The easiest way to earn some money is to sell. If you want to sell you must have a product or a service. So if you want to sell a service, you must have a good knowledge and skills about a specific fields or provide a good , if you want to sell a product.

For example, you could buy a piece of furniture, redecorate it and sell it etc.

Check the video below for more.

There are few questions everyone should ask himself. I am so excited to share them with you guys. I picked 10 from the Schafer’s book: The Road To Financial Freedom. I recommend the book to everyone who wants to learn how to start managing his/her money.

QUESTIONNAIRE FOR YOU: How are your finances? [5]

  1. HOW IS YOUR INCOME?
  2. HOW IS YOUR FORTUNE?
  3. DO YOU OFTEN DONATE MONEY?
  4. DO YOU THINK YOU DESERVE A LOT OF MONEY?
  5. DO YOU HAVE A FINANCIAL ADVISOR?
  6. HOW WELL YOU UNDERSTAND FUNDS?
  7. WHAT NAME WOULD YOU GET REGARDING TO YOU FINANCIAL IDENTITY?
  8. DO YOU THINK MONEY IS IMPORTANT?
  9. DO YOU KNOW WHAT YOU REALLY THINK ABOUT MONEY?
  10. DO YOU KNOW BASIC RULES ABOUT ABOUT INVESTING?

What do you think about money and investing?

How do you cope with money problems and how do you overcome financial stress?

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