Financial Literacy💵👨‍🏫📚

"The poor and the middle class work for money. The rich have money work for them."

"Life pushes us around. Some people give up and others fight. A few learn the lessons and move on. They welcome life pushing them around."

"If you think I'm the problem, then you have to change me. If you realise that you're the problem, then you can change yourself, learn something, and grow wiser."

"When it comes to money, most people want to play it safe and feel secure." So passion does not direct them. Fear does."

"Most people, given more money, only get into more debt."

"Most people do not know that it's their emotions that are doing the thinking."

"A job is really a short-term solution to a long-term problem."

Rule #1: You must know the difference between an asset and a liability, and buy assets.

"It's not how much money you make. It's how much money you keep."

"Intelligence solves problems and produces money. Money without financial intelligence is money soon gone."

"If you are going to build the Empire State Building, the first thing you need to do is dig a deep hole and pour a strong foundation. If you are going to build a home in the suburbs, all you need to do is pour a six-inch slab of concrete. Most people, in their drive to get rich, are trying to build an Empire State Building on a six-inch slab."

"Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets."

"If your pattern is to spend everything you get, most likely an increase in cash will just result in an increase in spending."

"In 80 percent of families, the financial story paints a picture of hard work to get ahead. However, this effort is for naught because they spend their lives buying liabilities instead of assets."

"By not fully understanding money, the vast majority of people allow its awesome power to control them."

"The rich focus on their asset column while everyone else focuses on their income statements."

"To become financially secure, a person needs to mind their own business."

"Financial struggle is often directly the result of people working all their lives for someone else. Many people will simply have nothing at the end of their working days to show for their efforts."

"One of the main reasons net worth is not accurate is simply because, the moment you begin selling your assets, you are taxed for any gains."

"Once a dollar goes into it, never let it come out. Think of it this way: Once a dollar goes into your asset column, it becomes your employee. The best thing about money is that it works 24 hours a day and can work for generations."

"An important distinction is that rich people buy luxuries last, while the poor and middle class tend to buy luxuries first."

"The poor and middle class buy luxuries with their own sweat, blood, and children's inheritance."

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401(k): A U.S. retirement plan developed by the ERISA Act of 1974 when companies realised they could not provide for retirees' health care.

ASSET: Something that puts money "in your pocket" with minimum labour.

BALANCE SHEET: The lower part of an income-statement diagram, so called because it's supposed to balance assets against liabilities.

BOND: A debt security in which the authorised issuer owes the holders a debt and is obliged to repay the principal and interest at a later date, termed maturity. 

CASH FLOW: Cash coming in (as income) and cash going out (as expenses). It is the direction of cash flow that determines whether something is income, expense, asset, or liability. Cash flow tells the story.

ENTREPRENEUR: Someone who creates a system to offer a product or service in order to obtain a profit. Entrepreneurs are willing to accept a level of risk to pursue opportunity and are viewed as fundamentally important in the capitalistic society. 

FINANCIAL APTITUDE: What you do with the money once you make it, how to keep people from taking it from you, how to keep it longer, and how to make that money work hard for you.

FINANCIAL STATEMENT: A statement of your income, expenses, assets, and liabilities. Your "report card" when you leave school and what your banker wants to see before lending you money. 

GOLDEN RULE: He who has the gold makes the rules.

INCOME: The money that is received as a result of normal business activities of an individual or business.

INCOME STATEMENT, or PROFIT-AND-LOSS STATEMENT: It measures income and expenses: money in and money out.

LIABILITY: Something that takes money "out of your pocket".

MUTUAL FUND: A variety of stocks, bonds, or securities grouped together, managed by a professional investment company and purchased by individual investors through shares. The shares possess no direct ownership value in various companies.

SOCIAL SECURITY: A social welfare or social insurance program commonly funded through automatic payroll deductions to subsidise persons in their old age and with disabilities.  

STOCK: The capital raised by a corporation through the distribution of shares.