Lesson 2: The Importance of Financial Literacy (Part 3) For the second lesson of our six-part series, I will be covering the importance of being financially literate found in the book, Rich Dad Poor Dad by Robert Kiyosaki. I highly recommend reading this book as it completely changed my perspective on what it means to be rich and to make money. Find a copy for $5 by following this link: https://amzn.to/38AclTH In part 2 of lesson 2, I touched on some basic financial language and emphasized the importance of becoming financially literate. Now that you have a strong financial foundation and understand the difference between an asset and a liability, it will be easier for you to understand the next few concepts I will discuss. The first concept is understanding the cash flow of a poor vs middle-class vs rich person. âIn 80 percent of most families, the financial story is a story of working hard in an effort to get ahead. Not because they donât make money. But because they spend their lives buying liabilities instead of assets.â An example of this is illustrated in the first picture, which shows the cash flow of a poor person. A poor person has a job to meet their basic needs such as food and shelter, but the remainder of their hard-earned money goes to other unnecessary expenses such as a new pair of shoes, new clothes, fun, and transportation. The cash flow of a middle-class person is illustrated in the second picture. The middle-class person has a job, where they use their hard-earned money to purchase liabilities such as a mortgage, consumer loans, and credit cards, which in turn, become forms of expenses. With the new home, new car, and credit cards come expenses in the form of mortgages, car payments, fixed expenses and fun. The last picture demonstrates the cash flow of a rich person. The rich person uses their hard-earned money to purchase assets instead of luxuries. Some of these assets may include stocks, bonds, notes, real estate, and intellectual property. End of part 3. #Unlockingfinancialfreedom #finances #richdadpoordad #wealth #entrepreneur #knowledge #finance #explore #adventure #art #travel #photooftheday #instamood #iphonesia #tweegram https://www.instagram.com/p/B89CpEslvkg/?igshid=j7t9t0lxntxa












