Master Your Money: Financial Education For Beginners #Finance

financial literacy is a buzzword that’s keeping you in Debt if you’re not actually managing your Finances if you think financial literacy

alone will make you wealthy think again knowing money terms won’t help you if you’re still broke and reading about compound interest won’t make you rich so sorry financial literacy isn’t enough without action and most people are stuck in the loop of consuming Financial tips

and definitions but actually never acting on them so financial literacy tells you what’s possible but personal Finance tells you how to do it without action all the

knowledge in the world won’t improve your bank balance so let’s talk about what Will financial literacy and personal Finance are related topics but distinctly

different concepts each plays unique role in managing money effectively and what we’re going to talk about first is what does financial literacy actually mean my degree is in none;">Finance I have a minor economics I have a business degree and so we learned a lot about financial literacy and here’s what the definition is financial literacy refers to the knowledge and skills needed to understand Financial Concepts and make informed financial decisions

this might include understanding terms like Interest Rates Inflation compound interest diversification and some principles as simple as Budgeting Savings and investing we learn about all these things in college so you learn things

about Income statements and Balance Sheets and Cash Flow statements but they teach it to you much more in a big corporate world environment and in reality what we should be focusing on it’s about gaining a foundation of knowledge and

competencies that Empower someone to make smarter choices with their money so financial literacy can include knowing how Credit cards work or understanding different investment types or recognizing the basics of Debt management and if you go back to our early

CashNews.cos we talk about all this stuff in a personal financial world where people have to understand some financial literacy terms so they know where to get started but the actual doing of things is a whole another level so it’s great that if you look up these words and understand what

they mean and those kind of things but you actually have to do something with the information so here’s a couple of examples of just understanding things so maybe you understand how to calculate interest on a Loan and you can do that on an Excel spreadsheet an amortization

page maybe it’s knowing the difference between what a stock a bond a mutual fund or an ETF is or recognizing the impact of what Inflation actually does to your Savings account if you just leave it sitting there so in essence financial literacy provides the

why and the how of your personal financial choices so understand these terms as a starting point because if I try to have a conversation about implementing some of these things and you have no idea what I’m talking about it does make the game a little more challenging for me talking about it

in a personal financial world is a little bit different let’s jump over there so you understand what that the definition of personal Finance is the practical

application of financial knowledge to manage an individual or household’s Finance it’s about implementing the strategies and behaviors that help Achieve Financial goals and manage

day-to-day Money Matters so what you’re trying to focus on in personal Finance is more action oriented it focuses on the what of managing money creating a budget paying

off the Debt we did a bunch of CashNews.cos about all this stuff it’s about saving for retirement or planning for big purchases and personal Finance is

not just about knowing the concepts but putting them into practice so if you go back and watch some of our older CashNews.cos about creating a budget about paying off your Debt about trying to understand what and how let’s say a 401k or an IRA or a SEP IRA or there’s a

million other different retirement plans or even setting up Brokerage accounts that would be set up for non-retirement accounts I think people sometimes confuse that they need different Broker accounts for different things and then you have your retirement accounts

which is money you can’t get to for the Long Haul but you literally can turn around and invest in the exact same things in a non-retirement account and so you want to be able to have these accounts open for yourself but what people don’t understand is in your personal

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance world is you have to actually do something it’s great to talk about this and try to understand what’s going on but you act to actually do something I sat down with a

bunch of my son’s friends you know we did this years ago now and we talk about some of your financial literacy Concepts a lot of times they do understand the literacy what we’re talking about how they do it but when it came to setting up things like an actual budget for their mthly

expenses or creating a retirement Savings plan or figuring out you know where they were spending money that they shouldn’t be spending it was a whole different ball game because they had never really thought about that stuff so if you’re just getting started on your

financial Journey click the link in the description below or go to our website complet money playbook.com where you can download our list of the top 11 things you need to do to get your financial Journey started in a perfect world if you were a super Advanced Financial person that understood how

how money and Finance work and let’s say you created a list of a 100 things that you would be doing most people never need to get past the first 10 or 20 because if all

they ever did was the first 10 or 20 they would win at a level of financial you know benefits that they wouldn’t even believe if you literally just got to the point you had no no Debt owned your house and used our our CashNews.co about the 503020 rule where I just use round

numbers and if you basically made $100,000 and you took the 20% $20,000 off the top and did investing with that and took the other 80% and there’s you know spreading it apart in that 5030 Rule and you lived on that and never spent a dollar more than that $100,000 total let’s say you

were 25 years old you started making $100,000 40 Years Later by the time you were 65 I’m assuming there would have been some pay raises I’m assuming there would have been some ways that you made more money you’d be so far off financially in your situation you wouldn’t even

believe it when the game is long and the winning of the game is slow it doesn’t feel like winning so if you happen to be 27 years old and you have 20 $40,000 in a 401k plan through work it doesn’t feel like a lot of money when you see how many Financial gurus out there talking about a

million different complicated things it makes it really easy for them to feel inadequate like they’re not getting ahead financially you might want to try to figure out what a side hustle is or what another business is or do Bitcoin or bold; color: #1a73e8; text-decoration: none;">Crypto or do some of these other things if you want to do those things that’s great but I really do feel if all you did was the basic stuff I know for example people want to on 401ks all the time but I have yet to find another investment that

if you put in the dollar and you have some sort of company matching program and they will match you a dollar for dollar that’s 100% on your money I realize sometimes in a 401k the expenses might be a little bit higher the Investments that you can invest in might be a little

more limited where can you get 100% of your money from day one and then let that thing build up for years and years and years so I’m all about getting rid of your Debt owning a house doing your 401k and your SE IRA and living within your means and if you literally just did

those things and made sure your money was invested prop properly you would be so far ahead financially that it would be amazing to you so together financial literacy serves as the foundation while personal text-decoration: none;">Finance is the practical application with the knowledge you have gained so both are critical you need to know both and achieving Financial well-being for the Long Haul and making sound financial decisions from you know the very beginning all the way through

it’s not as hard as you think and you can do it so reach out if you have your specific questions and at some point if we’re getting enough interest from all of you guys we’ll create a course that explains you how this work and if you literally just did those first 10 or 12 things

on the list of 100 you can win financially so just believe you can know you can and of course you can if you’re someone started on your financial Journey check out this CashNews.co we did about how to manage your money like the 1% it’ll give you some great information as you get started

to your journey on Financial Freedom