Financial literacy

Due to ignorance of economics and money, people are often unable to provide for themselves.
a decent life even with a good salary. Moreover, our financial illiteracy
often used by other people, which leads to sad consequences. It is for these two
reasons 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 (musical,
medical education, etc.), this is not enough. 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 or even at university, and this is the biggest
an omission both for any state and for you and me personally. With money issues we
we encounter several times a day and at the same time we do not understand at all what money is and
how to become a financially wealthy person. Moreover, if you ask almost anyone
person, what is a financially wealthy person, the answer will be something like this: “The one who has
I have a car and a nice house.”
This is a misleading definition of a wealthy person for many reasons, as you will learn below.
what kind of thinking do you need to develop in yourself in order to achieve sustainable
financial situation or at least acquire some habits that will help you
Save wisely and don’t throw money away.

What is financial literacy?
This is not a very simple question, because different people understand it differently, and this itself
The concept is rather philosophical and purely subjective. But if you still try to give
direction of this, we can say that:
Financial literacy is a clear understanding of how money works, how to earn it and manage it. Eat
two main characteristics of a financially literate person. First: his expenses will never
exceed income. Second: any positive difference between monthly income and expenses
enters into investments of any form.
Surely you know many people who have been earning quite good money for several years now.
years and still barely make ends meet. They are great at what they do. This
could be programming, art, science, sports. However, some of them manage
even at the same time getting into debt. And it would be nice if they bought important things for themselves, with the help
which they develop. As a rule, these products are completely pointless and purchasing them
becomes burdensome.
This may seem strange, but, in fact, it doesn't matter how much you earn on
this moment. In the history of mankind there are thousands of stories about how a completely beggar
the person became a millionaire. There are also reverse stories: people who are on their heads
wealth fell, they managed to lose everything in a short time. Therefore, it is very important to understand
that your current income is not a death sentence. This is precisely why financial literacy is needed. She
shows how, by acquiring some financial habits, anyone can
get out of the financial hole and stand firmly on your feet.
Economics is a difficult tool to understand. Financial people talk about it
crises when even the best economists in the world were not able to predict the now
things that seem obvious. Economists now use the phrase "cycles" to remove the
responsibility: “There are cycles, there will always be world crises.” Predict the exact date
no one can handle crises, but everyone can prepare for them.

Can a millionaire be financially illiterate? Maybe. For example, such
is a Hollywood actor who can earn several million for one role. After some time, his fame fades, and with it his financial
state. Therefore, he is forced to play low-paying roles for the rest of his life,
selling off one's possessions to make ends meet. This is a wonderful illustration
the importance of financial literacy.
Application of financial literacy in life
Studying theory, cultivating a conscious attitude towards money and financial thinking
– these three things will help any person get settled in life.
The most important thing is financial thinking, but it is very important to constantly learn and
supplement knowledge with practical skills. Some people think that you need to work as hard as possible
more to become financially secure. On the one hand, this is true, but on the other hand, it is necessary
First of all, work smart. 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 intelligently you should approach your work.
Remember that 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
new opportunities are emerging. A simple thought begins to form in your mind - money should
make new money. Simply spending your income gives you momentary result and not at all, moves you forward.

Any book about financial independence will make you understand the importance of optimizing expenses in
life. Spending everything you earn is the worst strategy, the only worse
life is on credit.
You need to change your life and attitude towards money. You must learn to think
categories of decades. In any area of life, satisfying immediate desires is not
leads to nothing good. In finance, this can lead to the most
catastrophic consequences. You must change your thinking and help yourself become
a more mature and responsible person.
How to learn financial literacy?
No one is born financially literate. You can be born into a rich family, but this is not what
guarantees you a wonderful financial future.
To develop a financial mindset, you need to spend many months on it. However,
You can develop many positive changes in yourself within just a few days. Theory
money can be learned fairly quickly, and it is also relatively easy to understand how it works
stock market or bank. And only after understanding how finance works, you will begin to move forward.

In past times, financial literacy was even worse. The man was forced
work from morning to night to at least survive. Financial culture existed in its infancy
condition. To become a wealthy person, you had to use force. In our time
a lot has changed, and this is a great chance for each of us to succeed in life. There are a lot
freely available materials: books, courses and videos. Any information is already available here and
Now. However, as we know, the availability of information at the same time depreciates it. You
must clearly understand that you already have everything you need for financial prosperity, all that remains is
just 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 no one
none of them will become wealthy people. Nobody guarantees anything for the remaining 10%,
however, they still have more chances. Developing financial discipline
habits, you increase your chances a thousand times that in ten years you will move away from
affairs, have passive sources of income and do whatever you want.

Quotes from famous people on the topic of money

In conclusion, we suggest reading some inspiring quotes from famous people about money:
A wise man keeps money in his head, but not in his heart.
Jonathan Swift

Too many people spend money they've worked hard to earn on things they don't care about.
needed to impress people they don't like.
Will Rogers

Moderation is already wealth.
Cicero

I'll tell you how to get rich on Wall Street: Be careful when others are greedy.
Be greedy when others are cautious.
Warren Buffett

An annual income of 20 pounds with expenses of 19 pounds 96 pence is happiness. Annual income 20
pounds with an expenditure of 20 pounds and 6 pence - this is poverty.
Charles Dickens

Wealth is not an accumulation of material values. This is the ability to spend less than
earn money, the ability to save and invest. You won't get rich until you learn this.
Dave Ramsey

What our generation lacks is the financial education needed to
financial security.
Robert Kiyosaki

How many millionaires do you know who built their fortune on interest from a deposit?
That's what I'm talking about.
Robert Allen

Money is a good servant, but a bad master.
Phineas Barnum

Investing is like watching paint dry or grass grow. And if you
If you want to get everything quickly, take 800 dollars and go to Las Vegas.
Paul Samuelson

Rich people have small TVs and big libraries, and poor people have big TVs and
small libraries.
Zig Ziglar

Never spend money before you earn it.
Thomas Jefferson