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| Financial Freedom |
Survey shows that 80% of the money have less than 10% people in this world.
Every people want to get rich and become financially free but only a few people can achieve their goal to financially free. This is because of the knowledge of money and its flow.
In our school we can learn how to work in particular field, hobby, interest but they don't teach how money works and its flow. The same mistake do almost every people who wants to become financially free in their life. They learn education and professional education but they never learn Financial Education.
Today we are going to discuss about Financial Education must need to Get rich or become Financially freedom:-
1. Money is only a Tool
People think money is a root of all the evil but in reality not having money is a problem.
People think money make a person bad and rude. There are some people who become bad when they get money or to get money but most of the people become successful and wealthy because they solve a problem.
Money is only a tool to amplify our emotions. If a person thinks negatively, he'll do negative things either he is rich or poor. Or if a person think positively he/she'll work for other people.
Money makes a person capable to do what he/she wants to do. It may be helping their family or friends, poor people, creating job for other and helping to make strong economic in their country.
2. Actually Debt is not bad
Almost no one wants to be in debt. But a person who has better knowledge about financial education doesn't afraid of debt because he/she knows how to use OPM- Other People's Money.
Let's divide debt in two category:-
- Bad Debt
Bad debt is the debt which is borrow to buy liabilities. Middle class people usually use this type of debt. They have limited income but they want to buy costly phones, bikes, cars and other luxury. This type of debt is actually bad. They spend more money to buy this type of liabilities which increases their daily/monthly expenses. That's why they never become financially free.
- Good Debt
This type of debt generate source of income to the person. People borrow money to buy assets like house which can generate rent, share, bond, land etc which increases source of income.
3. Income Statement
People make their income statement to control their expenses and save some money for future. They collect all the income and expenses they made last month or year and make a plan for future.
Normal people include only income and expenditure in statement and always focus on increasing income and lowering expenses to get rich. But this is not the way to get rich.
Financially educated people include Assets and Liabilities too in their Income Statement. And they always focus on how to increase assets instead of lowering expenses. That's why the become financially free.
5. Cashflow Quadrant
People can earn money from four types. They are ESBI. It depends on these ESBI how quickly you are going to be rich.
E- Employee
People who work for other and get limited amount of money. People in type E is very difficult to get rich because they work only for income. Generally which is constant and limited. This type of people use who has limited skill and afraid to take risk. You can be success but not wealthy by working for others.S- Self Employed
In this type of category, people who has their own skill and they work for themselves. Shopkeeper, Doctor who has their own clinic, Freelancer, salesman etc. They think they are businessman but they are self employed. They earn if they work. If they want to earn more money they must work more. So this stage has also very difficult to get rich.
B- Business
In this category, people know hot to use OPM- Other People's Money and OPT- Other People's Talent. In this category, the owner earn money with very little effort they use other people's talent and money to work for them. This is the best way to become financially free because money and other people work to make money for them.
I- Investment
In this stage, people invest their money to get profit. When people have or borrow money and invest them into house which can provide on rent, share, stock, bond, Machines etc. In this stage people buy assets which make money for them in the future. After paying all the instalment these assets generates huge amount for them.
To get rich and become financially free you must be in Business or Investment Quadrant. You can be more than one quadrant at the same time. The most important lesson you should learn to be rich is always focus on your assets.
Read Previous Post:-
Best Motivational Quotes For Students
Student life is the best part and beginning stage of our life. Basically students life never end for intelligent people because they always learn from different sources. School life is the most complicated, enjoyable and confusing life. We can't decide wisely while we are in lower level school but we must have that intelligent to decision to make our life better when we reach to Higher Level school. To make our decision wisely we can take help from very successful peoples. Therefore, I have mentioned few Best Motivation Quotes For Students given by very successful people in the world.
Motivational Quotes For Students
1. A journey of a thousand miles starts with a single step.
- Confucius
2. There's no elevator for success. You have to take the Stairs.
- Zig Ziglar
3. Anyone who has never made a mistake has never tried anything
new.
- Albert Einstein
4. Our greatest weakness lies in giving up. The most certain way to succeed is always try just one more time.
- Thomas A. Edison
5. The world is a university and everyone in it is a teacher. Make sure when you wake up in the morning you go to school.
- Bishop T.D. Jakes
6. The capacity to learn is a Gift; the ability to learn is a Skill; the willingness to learn is a Choice.
- Brain Herbert
