Due to ignorance in the field of economics and money, people are often unable to provide themselves with a decent life even with a good salary. In addition, other people often use our financial illiteracy, which leads to sad consequences. It is for these two reasons that it is worth learning the basics of financial literacy.
As you will see later, the ability to earn a lot does not mean a comfortable life. If a person earns money only with the help of certain skills (music, medical education), then this is not enough. The ability to manage earned money requires completely new skills and knowledge - and it is this that can lead you to financial independence.
We are not taught how to manage personal money at school and even at the university - and this is the biggest omission both for any state and for you and me. We face money issues several times a day and at the same time do not understand at all what money is and how to become a financially wealthy person. Moreover, if you ask almost any person what a financially wealthy person is, the answer will be the same: "The one who has a car and a good home."
On our course, you will understand that this is an incorrect definition of a wealthy person for many reasons and you will learn what kind of thinking you need to develop in yourself in order to achieve a stable financial position after a few years, or at least acquire some habits that will help you save wisely and not waste money. ...
Content:
Financial literacy is a clear understanding of how money works, how to make and manage it. There are two main characteristics of a financially literate person. First, his expenses never exceed his income. Second, any positive difference between monthly income and expenditure goes into investment of any form.
You are probably familiar with many people who have been making very good money for several years and at the same time barely making ends meet. They are great at doing what they do - it can be programming, art, science, sports. However, some of them even manage to get into debt. And it would be fine if they bought themselves important things with the help of which they develop. As a rule, these products are completely meaningless and their purchase becomes burdensome.
It may sound strange, but it doesn't really matter how much you make at the moment. In the history of mankind, there are thousands of stories about how a completely poor man became a millionaire. There are also reverse stories - people who fell on their heads with wealth, managed to lose everything in a short time. Therefore, it is very important to understand that your current income is not a sentence. This is where financial literacy is needed. It shows how, by acquiring some financial habits, anyone can get out of the financial hole and stand firmly on their feet.
Economics is a complex tool to understand. This is evidenced by financial crises, when even the best economists in the world were not able to predict the now seemingly obvious things. Now economists use the phrase about cycles, disclaiming responsibility: "There are cycles, there will always be world crises." No one can predict the exact date of the crisis, but everyone can prepare for them.
Can a millionaire be financially illiterate? Maybe. For example, such is a Hollywood actor who can get several million dollars for one role. After some time, his fame passes, and with him his financial condition disappears. Therefore, he is forced the rest of his life to play low-paid roles, to sell off his property in order to make ends meet. This is a great illustration of the importance of financial literacy.
The most important is financial thinking, but it is very important to constantly learn and supplement knowledge with practical skills. Someone believes that you need to work as much as possible in order to become financially secure. On the one hand, this is so, but on the other hand, you must first of all work rationally. Once you start your financial journey, you are forced to work as much as possible. But there is one important point: the more money you have, the more sensibly you should approach your work.
It makes no sense to get rich and work hard. A financially literate person, as capital increases, works less and at the same time does more. For example, when you succeed in becoming an investor, you may work less. Money will work for you. Of course, in this case, no one forbids you to do what you love and continue to work, but now you yourself will decide how much and where.
Remember, you can apply financial knowledge now. Everything you do with finances today affects your future. When you stop buying things you don't need, you have new opportunities. A simple thought begins to form in your mind - money should make new money. The mere waste of your income gives instant results and does not move you forward in any way.
Any book about financial independence will first of all give you an understanding of the importance of cost optimization in your life. Spending everything you earn is the worst strategy, only life on credit is worse than it.
Our course will help you change your life and attitude towards money. You will learn to think in terms of decades. In any area of life, the satisfaction of momentary desires does not lead to anything good. In the field of finance, this can lead to the most disastrous consequences. The Financial Literacy course is designed to change your thinking and help you become a more mature and responsible person.
It takes many months to develop a financial mindset. However, you can develop many positive changes in yourself within a few days. The theory of money can be learned quite quickly, you can also understand how the stock market or the bank works. And only after understanding how finance works, you will begin to move forward little by little.
In times past, financial literacy was even worse. The man was forced to work from morning till night in order to at least survive. Financial culture was in its infancy. To become a wealthy person, one had to use force. Much has changed in our time and this is a great chance for each of us to succeed in life. There are tons of materials in the public domain: books, courses and videos. Any information is available here and now. However, as we know, the availability of information at the same time devalues it. You must make it clear that you already have everything you need to prosper financially, all that remains is to find the right materials.
Perhaps the most important skill for developing financial literacy is discipline. More than 90% of people in the world spend money completely thoughtlessly and it is for this reason that none of them will become a wealthy person. Nobody guarantees anything to the remaining 10%, but they still have more chances. By developing the discipline of your financial habits, you have a thousandfold increase in your chances of retiring in ten years from business, having passive sources of income, and doing whatever you want to do.
Purpose of the course: to acquaint our reader with planning, financial analysis and investing.
The objective of the course is to develop a financial mindset in the reader, which is not taught at school and university.
We present you with a small overview of each of the lessons:
In this lesson, we will educate financial thinking and philosophy. You will begin to instill financial habits, understand how successful people think and think. It won't make you a copy because you will find your own path anyway. This last lesson is the most important because it invokes a sixth sense - the very intuition on which Richard Branson and many other successful people built his financial empire .
Lessons 1, 3 and 5 are more about theory than practice. You can choose this order of study. The theory will take the least amount of time. Lessons two, four and six are mostly practice and take more time to learn and practice.
However, you can study the lessons in order. The symbiosis of theory and practice is the right approach and any professional in his field knows about it. You can think a lot and not act, or you can act thoughtlessly and make a lot of mistakes. When you think and act, you get the best results.
You can take our course in two ways, related to time periods. For example, if you have time, a week may well be enough for you. However, we recommend that you take the course more thoughtfully and come back to it from time to time. When you complete the course, return to it and consolidate your skills, go through the list of recommended reading and move on. Nevertheless, our course is self-sufficient in itself and will help open your eyes to many things. We tried to make it fun and easy to understand.
We also recommend you an excellent animation entitled “How the Economy Works. Cartoon. Financial literacy ". You can find it on YouTube, it is 31 minutes long and can be a great starting point for our course. The economy is interesting.
We also recommend the following collections of additional materials on finance and financial literacy:
And then a little parting word in the end.
And now we propose to start classes.
We wish you success in mastering the skill!
As you will see later, the ability to earn a lot does not mean a comfortable life. If a person earns money only with the help of certain skills (music, medical education), then this is not enough. The ability to manage earned money requires completely new skills and knowledge - and it is this that can lead you to financial independence.
We are not taught how to manage personal money at school and even at the university - and this is the biggest omission both for any state and for you and me. We face money issues several times a day and at the same time do not understand at all what money is and how to become a financially wealthy person. Moreover, if you ask almost any person what a financially wealthy person is, the answer will be the same: "The one who has a car and a good home."
On our course, you will understand that this is an incorrect definition of a wealthy person for many reasons and you will learn what kind of thinking you need to develop in yourself in order to achieve a stable financial position after a few years, or at least acquire some habits that will help you save wisely and not waste money. ...
Content:
What is financial literacy?
This is not a very simple question, because different people understand it differently, and the concept itself is rather philosophical and purely subjective. But if we still try to give direction to our course, then we can say that:Financial literacy is a clear understanding of how money works, how to make and manage it. There are two main characteristics of a financially literate person. First, his expenses never exceed his income. Second, any positive difference between monthly income and expenditure goes into investment of any form.
You are probably familiar with many people who have been making very good money for several years and at the same time barely making ends meet. They are great at doing what they do - it can be programming, art, science, sports. However, some of them even manage to get into debt. And it would be fine if they bought themselves important things with the help of which they develop. As a rule, these products are completely meaningless and their purchase becomes burdensome.
It may sound strange, but it doesn't really matter how much you make at the moment. In the history of mankind, there are thousands of stories about how a completely poor man became a millionaire. There are also reverse stories - people who fell on their heads with wealth, managed to lose everything in a short time. Therefore, it is very important to understand that your current income is not a sentence. This is where financial literacy is needed. It shows how, by acquiring some financial habits, anyone can get out of the financial hole and stand firmly on their feet.
Economics is a complex tool to understand. This is evidenced by financial crises, when even the best economists in the world were not able to predict the now seemingly obvious things. Now economists use the phrase about cycles, disclaiming responsibility: "There are cycles, there will always be world crises." No one can predict the exact date of the crisis, but everyone can prepare for them.
Can a millionaire be financially illiterate? Maybe. For example, such is a Hollywood actor who can get several million dollars for one role. After some time, his fame passes, and with him his financial condition disappears. Therefore, he is forced the rest of his life to play low-paid roles, to sell off his property in order to make ends meet. This is a great illustration of the importance of financial literacy.
Applying financial literacy in life
Studying theory, cultivating a conscious attitude towards money and thinking financially - these three things will help any person to settle in life.The most important is financial thinking, but it is very important to constantly learn and supplement knowledge with practical skills. Someone believes that you need to work as much as possible in order to become financially secure. On the one hand, this is so, but on the other hand, you must first of all work rationally. Once you start your financial journey, you are forced to work as much as possible. But there is one important point: the more money you have, the more sensibly you should approach your work.
It makes no sense to get rich and work hard. A financially literate person, as capital increases, works less and at the same time does more. For example, when you succeed in becoming an investor, you may work less. Money will work for you. Of course, in this case, no one forbids you to do what you love and continue to work, but now you yourself will decide how much and where.
Remember, you can apply financial knowledge now. Everything you do with finances today affects your future. When you stop buying things you don't need, you have new opportunities. A simple thought begins to form in your mind - money should make new money. The mere waste of your income gives instant results and does not move you forward in any way.
Any book about financial independence will first of all give you an understanding of the importance of cost optimization in your life. Spending everything you earn is the worst strategy, only life on credit is worse than it.
Our course will help you change your life and attitude towards money. You will learn to think in terms of decades. In any area of life, the satisfaction of momentary desires does not lead to anything good. In the field of finance, this can lead to the most disastrous consequences. The Financial Literacy course is designed to change your thinking and help you become a more mature and responsible person.
How do you learn financial literacy?
Nobody is born financially literate. You can be born into a wealthy family, but this does not guarantee you a great financial future.It takes many months to develop a financial mindset. However, you can develop many positive changes in yourself within a few days. The theory of money can be learned quite quickly, you can also understand how the stock market or the bank works. And only after understanding how finance works, you will begin to move forward little by little.
In times past, financial literacy was even worse. The man was forced to work from morning till night in order to at least survive. Financial culture was in its infancy. To become a wealthy person, one had to use force. Much has changed in our time and this is a great chance for each of us to succeed in life. There are tons of materials in the public domain: books, courses and videos. Any information is available here and now. However, as we know, the availability of information at the same time devalues it. You must make it clear that you already have everything you need to prosper financially, all that remains is to find the right materials.
Perhaps the most important skill for developing financial literacy is discipline. More than 90% of people in the world spend money completely thoughtlessly and it is for this reason that none of them will become a wealthy person. Nobody guarantees anything to the remaining 10%, but they still have more chances. By developing the discipline of your financial habits, you have a thousandfold increase in your chances of retiring in ten years from business, having passive sources of income, and doing whatever you want to do.
Do you want to test your knowledge?
If you want to test your theoretical knowledge on the topic of the course and understand how it suits you, you can take our test. In each question, there can be only one correct answer. After you have selected one of the options, the system automatically proceeds to the next question.Financial literacy lessons
Having studied a large amount of literature and biographies of rich and successful people, we have come to the conclusion that financial literacy is a skill. Any skill can be learned. We've designed six lessons for you, each of which will touch on a specific aspect of financial literacy. The good news is that we didn't have to target different types of people, as financial literacy is not unique to every financially successful person. This is a certain set of knowledge and simple skills that everyone is able to acquire. All great businessmen had approximately the same philosophy, only the ways of achieving the goal differed.Purpose of the course: to acquaint our reader with planning, financial analysis and investing.
The objective of the course is to develop a financial mindset in the reader, which is not taught at school and university.
We present you with a small overview of each of the lessons:
Lesson 1. The essence of money. Money and their properties
In order to start developing your financial thinking, you cannot do without the history of the origin of money, as well as without understanding their properties and distinctive features. You must understand why and why money was invented. They evolved over time and you can see that this evolution was logical. Most likely, money will continue to evolve, and if you understand why it has changed over the centuries, you may be able to predict some financial collisions in the future. In the first lesson, we will tell you a lot of what every financially literate person should know about money. Of course, you can continue your education further, however, this information is enough for you to understand the essence of money.Lesson 2. Planning and accounting of finances
Planning is an essential part of any area of life. When it comes to financial planning, the stakes go up. If you want to become a businessman or run a large enterprise, first of all, you should learn how to manage your personal finances. In this lesson, you will understand how the leaders of large enterprises create their financial plans and how they are guided by this. After that, we'll show you five simple steps to create your own financial plan. Already at this stage, you will look at money as an opportunity, and at your expenses as obstacles. Also, learn how to optimize your spending, which will help you with smartphone apps or a simple sheet of paper.Lesson 3. Financial system and financial institutions
In order to look at money not like a piece of paper, but to understand cash flows, you need to understand the essence of financial systems and how exactly money moves in financial institutions. Everything in the world is permeated with money, so you must understand at least where your money is going after you have bought a product. In this lesson, we will look at the four subsystems of the financial system, and also see what kind of financial institutions exist. After all, it is quite possible that someday you will work there. Explore all the features of financial institutions and you will begin to understand a lot more about the world around you.Lesson 4. Investing and Savings
Accumulation followed by investment is the final step towards gaining financial independence. Along with this, this is the most difficult and risky stage. But the risk is always justified by a large return. In this tutorial, we are going to show you some simple and difficult ways to build capital. The essence of any investment is in residual (passive) income. That is, one that works without your participation. If you succeed, you can quit your job or find something you like.Lesson 5. Financial Analysis
The ability to analyze anything, allows any person to become more reasonable and thinking. When it comes to financial analysis, it makes sense to talk about an important skill. It will allow assessing the development prospects of any company and predicting the value of shares. In this lesson we will get acquainted with the very essence of financial analysis, as well as with its tasks and types. We will look at the financial world with completely different eyes. In just a couple of hours, you will learn important fundamentals and be able to understand economic and financial news. You will finally learn about the Dow Jones index, what it means and how simple it is.Lesson 6. Financial Thinking
In order for your financial success to be stable, you need not only to do the right financial actions occasionally, but to acquire financial thinking and philosophy. In this case, your dependence on the opinions of other people completely disappears. You just know and feel what to do and how to act in your financial life. Although this of course does not exclude further education.In this lesson, we will educate financial thinking and philosophy. You will begin to instill financial habits, understand how successful people think and think. It won't make you a copy because you will find your own path anyway. This last lesson is the most important because it invokes a sixth sense - the very intuition on which Richard Branson and many other successful people built his financial empire .
How to take classes?
At times this course may not seem very easy, but we have tried to mix simple and complex things. The economy is partly complex, but it is worth getting to know it better and you will understand that it has its own completely logical and understandable laws. There are also completely illogical things in it, but you will understand this and do everything to be prepared for the unexpected.Lessons 1, 3 and 5 are more about theory than practice. You can choose this order of study. The theory will take the least amount of time. Lessons two, four and six are mostly practice and take more time to learn and practice.
However, you can study the lessons in order. The symbiosis of theory and practice is the right approach and any professional in his field knows about it. You can think a lot and not act, or you can act thoughtlessly and make a lot of mistakes. When you think and act, you get the best results.
You can take our course in two ways, related to time periods. For example, if you have time, a week may well be enough for you. However, we recommend that you take the course more thoughtfully and come back to it from time to time. When you complete the course, return to it and consolidate your skills, go through the list of recommended reading and move on. Nevertheless, our course is self-sufficient in itself and will help open your eyes to many things. We tried to make it fun and easy to understand.
Additional materials
In the section on additional materials, you will find a list of recommended books. They cover different aspects of financial literacy - from theory to practice, motivation and shaping financial thinking. The authors of some books are real millionaires and people who are mentors of other people. In short, this is a great starting list of books with which you can enrich your knowledge.We also recommend you an excellent animation entitled “How the Economy Works. Cartoon. Financial literacy ". You can find it on YouTube, it is 31 minutes long and can be a great starting point for our course. The economy is interesting.
We also recommend the following collections of additional materials on finance and financial literacy:
And then a little parting word in the end.
Quotes of famous people on the topic of money
To conclude this introductory lesson, we suggest reading some inspirational quotes from famous people about money:And now we propose to start classes.
We wish you success in mastering the skill!
