FINANCIAL FREEDOM

What is financial literacy or financial education?
Most people think money will solve their problems.Intelligence solves problems and generates money!In live it is not how much money you make,it is how much money you keep that is more important.

If you want to be rich and financially free,you need to be financially literate.Financial literacy is the cornerstone that financial freedom is build on.When you build a large building you need a strong foundation.The first stone you lay is called a cornerstone.

You need a strong cornerstone if you do not have a strong cornerstone the building will collapse.Most people want to be rich but they do not have a strong foundation or cornerstone to start from.The cornerstone to being rich is financial literacy.

The most important cornerstone is called a asset!!!The first and most important thing you must know is what is a asset and what is a liability.The difference between this two words make one man rich and the other man poor.

To be rich you must buy assets.Yes that is how easy it is.The problem is that most people buy liabilities that they think are assets.Rich people know the difference and spend tier lives buying assets.

Most people cannot read numbers!!!
The problem is that most people can not read numbers.Numbers tell a story when you know how to read it.When you put words in a certain order they a story,but if you put the same words in a different order they tell a different story.The same is true about numbers.

What is a asset ???
a Asset is anything that put money into you pocket without you physically having to work for it.A liability is any thing that take money out of your pocket.

That sound easy,but the reality could not be further from the truth.As we all know money moves from you income[salary] to your expenses[tax,food,fun,clothing,mortgage,est.Put in other words.Money flows from your income statement to you expenses statement.Money are also could cash so it is fear to say that cash flows from your income statement to your expense statement.That is the cashflow of a poor person.

The cashflow of a person in the middle class is as follows.Their cash flows threw their income statement to their liability statement[mortgage on own home,consumer loans,credit card,est.], then to their expense statement and out the door.

a Rich person's cash flow is from his assets{stocks,bonds,notes,rental income,est.} to his income statement.He does not work at a job for his money,his money works for him.

The cashflow tells the store!It is the cashflow that tells story.The story off how a person handles his money,what they buy or do with it after they get it in their hands.

If you give a poor person more money they will turn around and spend more.a Person in the middle class will turn around and buy liabilities that they think are assets.The rich person will buy more assets,assets that will put more money into his pockets and become richer.

The bottom line is that most poor and middle class people work hard for their money,but they do not get ahead in live,why?The reason being that they do not have any financial education or financial literacy.They do not know how to spend their money.How to buy assets or make their money work for them.They do not know the way their cash is flowing.

If you want a live of abundance you have to read this

NEXT ON RICHES TO YOU-Is your house a asset or a liability???