If you’re looking for improvement in yourpersonal and financial life, you might be looking for financial freedom and financialindependence. It means that you want to reach a point inyour life where you no longer have to depend on family, a job, or a company that you don’tlike,
for money. But there is another concept that I’d likeyou to understand, it is “financial confidence”. It is different from financial freedom. This is because freedom is based on the amountof money that you have available, while financial confidence is based on your confidence andacumen to generate money. Now here’s the thing: most people thinkthat there is a money scarcity. They think that there is no money and makingmore 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 ofrules that you just have to follow. Play according to the rules and you will becomethe master of your financial life, guaranteed.
In this video, I’m going to teach you the4 most important rules of money which are the basics of being financially free, financiallyconfident, and financially literate. These simple rules that I will give you todaywill elevate your money game and take you to a whole other level, you’ve never seenbefore, as long as you’re hungry and dedicated.
I’m going to give you all this informationfor 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 buttonright now. It is actually very fascinating how all thisinformation is becoming more and more available every day, for very cheap or even for free. And everything is easily accessible with acouple of Google searches.
So, even if everything is at their fingertips,more than 90% of the population is still financially ignorant. Let’s me give you a quick example, Peterjust got his monthly paycheck. After tax, he’s left with $1700. Instead of using this money to invest, save,or anything else that might be useful, he decides to waste it on a couple of barbecueswith friends and many other useless liabilities.
Are you a Peter? Because there are unfortunately a lot of financiallyignorant people today, but the thing is, if they can change a few bad habits and developa rich mindset, just about anyone can become rich. There are no rich people that are financiallyignorant,
except of course, for those that got lucky, for example, stumbling upon a largeinheritance or winning the lottery. However, statistics show that 70 percent oflottery winners end up bankrupt after just a few years of being extremely rich?
Why is that? Again, it all comes down to how financiallyeducated one is. If you have a lot of money, you will stillmake 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 NOTtaught 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’tget the financial education they need despite it being extremely cheap and, in some cases,completely and totally free. Reason number 1:
Conventional WisdomHere’s the truth: financial education is NOT conventionally ok. 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 mighthave been telling you “money doesn’t grow on trees”, and, “money is the root ofall evil”. These lies that people tell their kids arestopping people from taking the necessary steps to a better life financially.
Another conventional concept that is widelythought but is extremely wrong is the negative connotation towards debt. Debt is not that bad (if you know how to useit), but still, people demonize it because they don’t have the appropriate education. So, you have to stop listening to those thataren’t financially literate and financially confident. You should start listening to those that actuallyknow how to generate money because they are the ones that can give you tips on how tobecome 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 wantto learn from somebody that already knows how to do it. Apply this to your financial education, andyou’ll learn very fast. Reason Number 2: Comfort Zone & Self-EsteemIn order to generate money, it’s believed among the rich that, you need to be confidentand have decent self-esteem. Self-image is important, and you have to firstof all, believe that you truly deserve to be wealthier and happier. If you don’t, you will never become rich.
Think of like a self-fulfilling prophesy,you have to see yourself rich first. This confident, charismatic, rich image, yousee yourself in your mind will give you the needed confidence to continuously act outof your comfort zone, which is very important. A very successful person once said: “mostpeople are not successful because they are afraid of success”.
This is true. In order to become successful, you have tostep out of your comfort zone and take risks. For example, if you want to start your firstbusiness, but you don’t have any money, you might first of all have to take the riskof getting a loan from your bank, and putting yourself in thousands of dollars in debt whichis out of a lot of peoples comfort zone. Charisma and confidence are some of the keyingredients you need to become rich. If you don’t have the confidence to takeaction, you’ll never become rich. So, before actually getting into financialeducation, you have to first work on yourself and your mind when it comes to risk-takingand failure. Confidence
will give you the strength andthe courage to take risks and perform under pressure. So, now that you know all about why peopledon’t get financially educated, and the importance of it, let’s get started withthe 4 most important rules of being financially educated. Rule Number 1: Don’t Invest In What YouDon’t Understand Investing is
very important especially whenyou 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, suchas stocks, bonds, real estate, and forex, just to mention a few, but I want you to knowthe single most important investment;
and that’s in yourself. Invest In YourselfBefore investing in anything else you have to invest in the development of your money-makingmachine: your brain. Getting the knowledge necessary to operatea business (financial education included) is not optional. Your industry and your niche are going toeat you alive unless you are always updated on what’s going on. Stay up to date on all information that mattersto you and to your success. Invest In Your BusinessIf 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 somemoney 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 tokeep growing, it needs to be fed money. Investing in your business might be anythingfrom marketing to research or developing a new product. Invest In Real EstateReal 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 regularhomes, then they move to commercial real estate, hotels, big commercial centers, offices, andmore. Basically, you find units (structures) withpotential that have been mistreated, you fix them up,
you wait for the price to rise andthen you sell that unit in order to make a profit. Invest In StocksStocks (or shares) are literally a part of a company that is for sale to the public. When buying stocks, you have the right toa part of the profits of that business, which is the equivalent of your initial investment. Just like any other investment, the stockmarket is pretty risky, and there are a lot of people that lose a lot of money with it. So, these 4 are the most important and well-knowntypes of investments. However, independently of the type of investmentthat you choose, you have to know what you’re getting into. There are rules to follow but equally there’sa lot of misleading information out there. A lot people are willing to scam you justto take your money.
So you have to be very - very careful whoyou listen to, do heavy research before putting your money in something new, or seek advicefrom a professional in that industry, preferably someone with skin in the game. Remember this rule: NEVER invest in somethingthat you do not understand. Rule Number 2: Debt Is A Powerful But DeadlyWeapon This one might be controversial, but the powerof 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 youwon’t be able to pay off, for example, student loans. This is extremely painful and it destroysthe financial life of many people. We shouldn’t ask 18-year-olds to make financialdecisions of hundreds or thousands of dollars, without considering the consequences, so becareful with that one and only get in debt if you know what you’re doing. On the other hand, good debt is the type ofdebt 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 useto get rich. For example, you might want to get a loanin order to start your business. If it all goes as planned, you will pay offyour debt and will be free to expand your business as long as you’re always payingoff your dues. Rule Number 3: Think RichThinking rich is seeing yourself rich and acting rich. Essentially you’re playing the of a richperson, and this might include
living above your means. Living below your means is a defensive conceptinvented by financial gurus that to the most part is solid wisdom, I mean we shouldn’tlive way beyond what we can afford, because this is how most people end up in seriousfinancial trouble. As long as you are disciplined and wise aboutwhat you’re doing with your money, you have to also spend your money on things that giveyou confidence, and make you feel good. Do you really think
that depriving yourselfof a couple of coffees at Starbucks will make you a millionaire? Instead of living below your means and savinga penny here and a penny there, start gaining new skills that will make you money in orderto support your desired lifestyle. This single trick will have a HUGE impacton your mindset, you’ll start seeing opportunities and places where you can make money. Rule Number 4: Develop Skills To Acquire AssetsAssets are things that put money in your pocket,
while liabilities are things that take moneyout of your pocket. Your brain is your biggest asset, and youcan develop it in order to be even more valuable. There are skills that are very demanded inthe marketplace, and they all have two things in common:1. They bring a lot of value to the market. 2. They make you a lot of money. So, instead of working for someone else,
startdeveloping skills that will help you generate income from nothing, just by delivering resultsto the market. Figure out what best fits your abilities,and develop your first high-income skills in order to gain the resources necessary toacquire more and more assets. Well, that’s it for today’s video, I hopeyou enjoyed it and gained value from it, if you did give it a big thumbs up. Also, Leave your thoughts down below, I’dlove to hear them. With that said, don’t forget to subscribeand enable notifications. Thanks for watching and I’ll see you inthe next one.