3 Things Everyone Must Know About Personal Finance

3 Things Everyone Must Know About Personal Finance

3 Things Everyone Must Know About Personal Finance : If you have ever read Rich Dad Poor Dad by Robert Kiyosaki and Sharon Lechter you will know that the story revolves around understanding how to create your personal economy and that of course means you have to have a good financial education.  Even so many people find themselves at the mercy of the economy just as Chris and I did in 2008 and we thought we had good financial education!

The truth of the matter is that the school system, not just in the United Kingdom and the United States but worldwide, lacks good financial education. If you’re not convinced, look at how many people struggle with money.

Imagine how different the world would be if there were a mandatory class in the school system about how to save and balance your checkbook.

Did the school system teach you how to purchase your first home? No one is taught that, yet it’s the biggest investment most people will make….

Did anyone teach you how to prepare for your retirement?  No one is taught that, yet lack of retirement planning is the biggest problem facing people in their 50’s and 60’s today

In this video, filmed at a private mastermind in Jamica, Russell Whitney teaches you 3 lessons about finance you’ll wish you learned in school

WHAT IS AN INVESTMENT?

We all intuitively know what an investment is, but what is the formal definition?

An investment has three characteristics. One, it generates income. It will put money in your pocket on a weekly, monthly or yearly basis. Two, it’s something you expect to go up in value. Three, it helps your financial education.

In other words, actively making investments makes you a more educated investor and business person. The more you invest, the more knowledge you have to make more money.

REAL FINANCIAL EDUCATION COSTS MONEY

Maybe we shouldn’t regret the lack of financial education in the school system.

Think of it this way. If someone were truly qualified to teach investing and financial independence, do you think they’d be working in schools for $30K a year?

Real financial education is expensive for a reason. Those who are qualified to teach about investing and finance place a high value on their time. They have plenty of other ways to monetize their time instead of teaching.

There’s a reason you’re not going to get proper financial education for free within the public school system.

Russell Whitney spent $40K on financial education in one year alone. It’s expensive, but the good news is it’s the kind of education that will enable him to make an even greater sum of money.

Likewise we’ve spent at least $50K on our own financial education over the years and it’s been worth every last cent

BE CAREFUL WHO YOU TRUST

In business, the best investments are expensive, so don’t be afraid to spend your money. However, the worst investments are also expensive, so don’t be careless either.

Russell Whitney lost $50K from investing his money with the wrong people in the wrong deals. Particularly, he invested with an individual who repeatedly told him, “Russell, you can trust me.”

We lost a considerable amount of money investing in property which was to be our pension in retirement and had to begin again late in life.  We listened to the advice of financial advisors and whilst the advice was not wrong at the time it proved to be wrong later ….

We always recommend that people take the best education they can lay their hands on, create a wealthy mindset and seek out investing strategies that suit them personally.  It’s why we’re passionate about business and financial education.

We recently interviewed Sharon Lechter the Co-Author of Rich Dad Poor Dad. SHe’s a huge advocate of financial education as you will hear when you watch our interview with her

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