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7 Fundamental Lessons for Increasing Financial Literacy

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  • Reading is a fundamental step when attempting to improve your personal finances.
  • One of the most acclaimed books is Rich Dad, Poor Dad, which includes tips to help you save money.

There are some must-read books in personal finances that will help you develop good saving habits.

Undergoing training and taking the time to read can help you improve economic control so you can become more financially literate and, ultimately, increase your financial freedom.

While many manage perfectly well relying on their intuition to guide their spending habits, it can also be useful to expand your knowledge and set up a budget, an emergency fund, or ensure you have a financial contingency plan in the event of something unexpected.

One way to get on the right track with your money is by reading. 

There is a wide range of reading material that can help you apply a better philosophy to your finances. 

One of them is Rich Dad, Poor Dad, a must-read if you want to learn about personal finance. 

Laughing and getting in the sun are two ways to release endorphins.

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It offers smart ways to escape the vicious circle of working hard for others your whole life while failing to save anything.

Here are seven helpful lessons you can apply from the book to your own life.

1. The rich make their money work for them

You must have heard the phrase “live to work or work to live”. 

This is one of the basic concepts addressed in the book. 

Most work to survive. If they have money problems, they ride them out or ask for a raise. 

This is the vicious cycle most middle and working-class people fall into.

Generally, people with fewer financial resources study to get a good education to qualify for more relevant jobs so they can then earn more money. 

They tend to avoid taking risks for fear of not being able to pay their debts, being fired, or not having the money they need to survive.

On the other hand, rich people make money and don’t work to earn it. 

In other words, they buy assets that generate income. This is one of the book’s most important lessons.

2. Financial education is your greatest asset

According to this book, money isn’t your greatest asset. 

If people are prepared to be flexible, have an open mind, and learn, they will tend to get richer.

If a person thinks capital solves all their problems, they will usually have problems their whole lives. 

“Intelligence solves problems and produces money, and money without financial intelligence is quickly lost,” says Robert Kiyosaki, author of the book.

The book recommends having knowledge of accounting, investing, markets, law, bidding, marketing, leadership, writing, public speaking, and communication.

3. Don’t work to earn money; work to learn

Another of the book’s great teachings is that work is to be used as a platform to improve the skills you have. 

“Find a job where you can learn the above skills,” says Kiyosaki.

Use work as as a platform to improve the skills you have.

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He stresses that learning can make you much more knowledgeable and can provide you with unique skills to improve your professional situation.

4. Know the difference between assets and liabilities

“An asset is something that puts money in your pocket and a liability is something that takes money out of your pocket,” the book explains.

In this sense, rich…

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2021-07-26 10:47:27

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