Unlocking Financial Freedom

Welcome to my blog where I teach you the basics to unlock your own financial freedom, enabling you to live a life uninhibited by debt and liabilities.  https://unlockingfinancial.wixsite.com/financialfreedom

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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. “In 80 percent of most families, the financial story is a story of working hard in an effort to get ahead. Not because they don’t make money. But because they spend their lives buying liabilities instead of assets.” 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

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Lesson 2: The Importance of Financial Literacy (Part 2) The diagram first pictured above demonstrates the cash flow pattern of an asset. The top section of the picture is a visual example of an “Income Statement.” The bottom section of the first picture is a visual example of a “Balance Sheet.” The key thing to comprehend here is that an asset produces income and a liability produces an expense. In more simplistic terms, an asset puts money in your pocket. A liability takes money from your pocket. If you want to be poor or middle class, spend your life buying liabilities such as a new car or a bigger house or those new shoes you wanted. If you want to be rich, spend your life accumulating assets such as stocks, bonds, notes, real estate or intellectual property. This goes back to the importance of financial literacy because the rich are rich because they financially literate in both words and numbers. The poor and middle class financially struggle due to their unwillingness to learn to be financially literate, leading them to a life of purchasing liabilities when they could be purchasing assets. This leads us to the end of lesson two, part one. In part two of The Importance of Financial Literacy, I will build upon our understanding of the illustration of cash flow. I will touch on the cash flow pattern of a poor vs middle class vs rich person. I will also discuss how the quest for a financial dream turns into a financial nightmare, where I will talk about income relative to expenses and liabilities, as well as the Japanese understanding of the sword, the jewel, and the mirror. I hope you found value from this second lesson of a six-part lesson series where I will cover the highlights of the book, Rich Dad Poor Dad. If you have enjoyed my content then consider supporting me by donating to my Patreon page: https://www.patreon.com/unlockingfinancialfreedom #Unlockingfinancialfreedom #finances #richdadpoordad #wealth #entrepreneur #knowledge #finance #explore #adventure #art #travel #photooftheday #instamood #iphonesia #tweegram #picoftheday #igers #instadaily #fall #instagramhub #iphoneonly #follow #igdaily #bestoftheday #happy #picstitch #sky #nofilter https://www.instagram.com/p/B81XVNiFXos/?igshid=1nh2tzzvfozui

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Lesson 2: The Importance of Financial Literacy (Part 1) 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 The second lesson is “The Importance of Financial Literacy.” Understanding basic finances will unlock doors like you could never imagine. According to Robert Kiyosaki, “Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.” There is a certain truth to this saying. You see stories of professional athletes who, by the age of 24, are earning millions of dollars a year, and by 34 they are broke and homeless. This highlights the importance of being financially literate. If you are going to build a skyscraper, you must first build a solid foundation. If you are going to build a home, you must first pour a 6-inch slab of concrete. Commonly today, you will see those who attempt to build a skyscraper on this same 6-inch slab of concrete. This illustrates the importance of having a strong financial foundation to build your empire upon. Those without a strong foundation will find that their empire, at any time, could all come crumbling down. The solution is simple. Begin understanding accounting as soon as possible. You will be introduced to two key topics, which all rich people know well. These two key topics are knowing the difference between assets and liabilities. “Rich people acquire assets. The poor and middle class acquire liabilities, but they think they are assets.” What differentiates an asset from a liability is the numbers. If you cannot begin to understand the numbers, then you sure as hell are not going to be able to tell the difference between “an asset and a hole in the ground.” End of part one. #Unlockingfinancialfreedom #finances #richdadpoordad #wealth #entrepreneur #knowledge #finance #explore #adventure #art #travel #photooftheday #instamood #iphonesia #tweegram #picoftheday #igers https://www.instagram.com/p/B8yxMM1lSoR/?igshid=19r1nzugnwlrf

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The Rich Don’t Work for Money (Part 2) Once you have understood and let go of these two emotions, then you can begin to think like the rich. The rich recognize that money is an illusion. It is like the carrot that drives the donkey that pulls the cart. You are the donkey. The carrot is the desire and fear. And the cart is the load you carry due to the desire and fear that you harbor. The key is to see the value of the stick that holds the carrot. As the rich man said, “The poor, the middle class and the ignorant will simply have their lives ruined simply because they will continue to believe that money is real and that the company they work for, or the government, will look after them.” This leads us to lesson two, where I will discuss the importance of being financially literate. I hope you found value from this first lesson of a six-part lesson series where I will cover the highlights of the book, Rich Dad Poor Dad. If you have enjoyed my content then consider supporting me by donating to my Patreon page: https://www.patreon.com/unlockingfinancialfreedom Donations from valued readers such as yourself help make more future content such as this available. #Unlockingfinancialfreedom #finances #richdadpoordad #wealth #entrepreneur #knowledge #finance #explore #adventure #art #travel #photooftheday #instamood #iphonesia #tweegram #picoftheday #igers #instadaily #fall #instagramhub #iphoneonly #follow #igdaily #bestoftheday #happy #picstitch #sky #nofilter #followme #fun https://www.instagram.com/p/B8wlimgl6Ax/?igshid=aurmi7fxgca7

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Lesson 1: The Rich Don’t Work for Money

For the first six lessons, I will be covering the basics of financial freedom 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

The first lesson is “The poor and the middle-class work for money. The rich have money work for them.” You may ask yourself, what does this mean? Well, first you must understand the concept of two emotions, fear and desire and how to use these emotions in your favor. Because if you don't handle the fear and desire, and you get rich, you’ll only be a high paid slave. To avoid this trap you must learn to let go of the fear of not having money. This fear clouds one's judgment and causes them to react instead of to think, usually in an irrational way based solely on emotions instead of thought. Fear traps you in an endless cycle of working, earning money and working, hoping the fear would go away, when in fact, it never will unless you let this first emotion go.

The second emotion is desire. People work for money because of desire. They desire money for the luxuries they believe it can bring. But the luxuries are often not enough and the vicious cycle of desire begins. Once the glamour of these luxuries has passed, people begin to desire more money, to purchase more luxuries to meet their never-ending greed. So people continue to work to make money to fulfill their desires and alleviate their fears, believing that money will soothe their emotions, but money cannot do that. To solve this, avoid giving in to your emotions. This gives you time to properly think and react to a situation. 

Once you have understood and let go of these two emotions, then you can begin to think like the rich. The rich recognize that money is an illusion. It is like the carrot that drives the donkey that pulls the cart. You are the donkey. The carrot is the desire and fear. And the cart is the load you carry due to the desire and fear that you harbor. The key is to see the value of the stick that holds the carrot. As the rich man said, “The poor, the middle class and the ignorant will simply have their lives ruined simply because they will continue to believe that money is real and that the company they work for, or the government, will look after them.” 

This leads us to lesson two, where I will discuss the importance of being financially literate. I hope you found value from this first lesson of a six-part lesson series where I will cover the highlights of the book, Rich Dad Poor Dad. If you have enjoyed my content then consider supporting me by donating to my Patreon page: https://www.patreon.com/unlockingfinancialfreedom 

Donations from valued readers such as yourself help make more future content such as this available.

[unlockingfinancialfreedom]

Lesson 1: The Rich Don’t Work for Money (Part 1) For the first six lessons, I will be covering the basics of financial freedom 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 The first lesson is “The poor and the middle-class work for money. The rich have money work for them.” You may ask yourself, what does this mean? Well, first you must understand the concept of two emotions, fear and desire and how to use these emotions in your favor. Because if you don't handle the fear and desire, and you get rich, you’ll only be a high paid slave. To avoid this trap you must learn to let go of the fear of not having money. This fear clouds one's judgment and causes them to react instead of to think, usually in an irrational way based solely on emotions instead of thought. Fear traps you in an endless cycle of working, earning money and working, hoping the fear would go away, when in fact, it never will unless you let this first emotion go. The second emotion is desire. People work for money because of desire. They desire money for the luxuries they believe it can bring. But the luxuries are often not enough and the vicious cycle of desire begins. Once the glamour of these luxuries has passed, people begin to desire more money, to purchase more luxuries to meet their never-ending greed. So people continue to work to make money to fulfill their desires and alleviate their fears, believing that money will soothe their emotions, but money cannot do that. To solve this, avoid giving in to your emotions. This gives you time to properly think and react to a situation. End to Part 1 #Finance #financexperto #RichDadPoorDad#financeisfashionforward #financeira #financeclub #financeeducatorstraining #FinanceGoals #financerecruitment #financenyc #financeissexy #financeright #financelfreedom #financeposition #financestudent #financewithiriny #financereading #financeseer #financehelp #financewithtope #financebox #financetherapy #financeagency #finances #financecontroller https://www.instagram.com/p/B8uvnbDlxK3/?igshid=1k5a5rekqb1l4