Lesson Two:Why Teach Financial Literacy?
- We can work or not work, and our wealth grows automatically, staying way ahead of inflation. I guess it means freedom. The assets are large enough to grow by themselves. It’s like planting a tree. You water it for years and then one day it doesn’t need you anymore. It’s roots have gone down deep enough. Then, the tree provides shade for your enjoyment.
- Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.
- Rule One. Buy assets. Rich people acquire assets.
- What is missing from their education is not how to make money, but how to spend money-what to do after you make it.
- More money seldom solves someone’s money problems. Intelligence solves problems
- When I want a bigger house, I first buy assets that will generate the cash flow to pay for the house.
- Why the Rich Get Richer Income -> Assets -> More Income Expenses are low, Liabilities are low
- Why the Middle Class Struggle Income goes up, Expenses go up Assets do not increase, Liabilities do increase
- Concentrate your efforts on only buying income-generating assets.