Money is financial literacy. Learning the basics of financial literacy. Robert Kiyosaki and his theory of financial literacy
Unfortunately, the financial literacy of the population of our country is at a very low level. Even more unfortunately, few people think how to improve your financial literacy... But this is precisely one of the reasons for the disastrous overwhelming majority of people who live according to the principles inspired by those who benefit from keeping them in poverty (the state, employers). Many do not even assume that it is possible to change something, to live according to some other principles that are more beneficial to a person.
Low financial literacy of the population has developed in most people a purely consumerist attitude towards money. They live from paycheck to paycheck, “walk” on the day they receive it, live in poverty and go into debt in the last days before the next paycheck. And this is how the whole life goes on: from Monday to Friday, from morning to evening work-home-work, and more and more frequent thoughts about that.
There is only one way to change this situation: to improve your financial literacy. It is necessary to change your approach to money, stop seeing in it only a means of satisfying your needs, move from the concept of "money" to the concept of "finance", meaning "money in motion", to realize that money can and should not only satisfy needs, but also bring other money. Moreover, not only to some millionaires there, but also to you - the most ordinary person with the same low salary as the majority.
I had to communicate a lot with residents of other countries, in particular - with Europeans, incl. and former residents of our country who moved to Europe for permanent residence. From this communication, I concluded that the financial literacy of the European population is at a much higher level! Europeans do not waste their salaries on stupidity, as we do, they always calculate their income and expenses, look for sources of passive income, and banks are their first friends!
I heard the expression “the bank is our first friend and helper” directly from a native of one of the developed European countries!
Compare this to ours and to the money. Quite the opposite is true. One of the reasons for this state of affairs, of course, lies in our state, its level of development and the principles of the people in power. But the second, undoubtedly, is in ourselves, in ordinary people, and this reason is called - a low level of financial literacy of the population.
You can improve your financial condition in the current situation only by increasing your financial literacy and changing your attitude towards money, which is the basis of the life of a capitalist society.
In the capitalist society into which we have moved, the communist and socialist principles in the spirit of “who does not work, he does not eat” no longer work, by which many continue to live, even though we have not had this system for more than 20 years. Here, in order to live with dignity, it is necessary to use new, capitalist laws, which are based on money: it is necessary to competently manage your money and make it bring you income.
In a capitalist society, the main income comes not from labor (work), but money (capital)! Labor should only be used as a way to create this capital.
I have very briefly described the modern foundations of financial literacy. This is clearly not enough to change your life for the better. You need to continue to strive to improve your financial literacy, which will take more than one day and even more than one month. But how to do that? How to improve your financial literacy if this is not taught either at school or at the institute. And even in economics (for example, I have a red diploma in finance, but no one taught me to manage my money at the institute! I had to learn this on my own!)
You can sign up for any financial literacy courses... There are many of them now, especially in large citiesbut they have one serious capitalist flaw: you have to pay for them! And in most cases, you pay a lot. As a rule, those who experience financial problems want to improve their financial literacy, and this is quite logical.
Buy or download books on financial literacy and study them. This will be very useful for general development and may make you look at money differently.
But it is far from a fact that from books or courses you will learn exactly what worries you specifically, get answers to your questions, find ways to improve your financial condition. Therefore, I offer you a simple and absolutely free (which is not unimportant!) Way to improve your financial literacy - an independent search, study and analysis of information about personal finances on the Internet... Undoubtedly, at the same time you will encounter a lot of absolutely unnecessary and useless garbage, but, on the other hand, you will be able to independently identify useful practical advice for yourself and start applying them in everyday life.
There are many sites and author blogs about personal finance on the Internet, one of which is mine website financial genius... Here I regularly publish copyright checked on personal experience and reflecting my vision of good governance personal finance... Undoubtedly, you can have other points of view that I would gladly discuss with you in the comments to the articles. In any case, I am sure that the Financial Genius contains a lot of really useful, practical and unique information that will improve your financial literacy and bring personal finance management to a new quality level.
Therefore, I recommend that you bookmark and join our communities in popular social networks to track new publications. I sincerely hope that my advice will help you improve your financial condition, because that is why I created this site. If, as you get to know the publications, you have any questions, do not hesitate to ask them in the comments: I will be happy to answer.
Now you know how to improve your financial literacy. Until next time on the Financial Genius!
Financial literacy is the ability of a person to dispose of his own and borrowed funds. At a higher level, it also includes interaction with banks and credit institutions, the use of effective monetary instruments, a sober assessment of the economic situation of their region and the entire country.
Possession the basics of financial literacy allows you to set realistic goals and confidently go towards achieving them. The current level of wealth requires updating your knowledge in the field of money management in order to simply save what you have earned. For increasing wealth it is necessary to constantly introduce new tools for generating income.
Money Management Components
Money management takes place on several levels. This is the disposal of actually available funds, planning of future income and expenses, the use of loans, the launch of new sources of income, investment. The more instruments are involved in circulation, the greater the chances of creating a powerful cash flow.
Disposal of own funds
- money saved \u003d earned
Do not treat earnings as a consumer, but from a managerial point of view. They can be turned into a flexible tool for generating additional income. An airbag in the form of an amount equal to half a year's expenditure gives confidence in the future and allows you to start a new business more boldly.
Financial planning and accounting
Planning takes into account your future income and expenses... It is important to plan a personal or family budget in order not to allow the funds earned to be wasted too quickly, and also to be able to accumulate them. Accounting allows you to correctly calculate your strength if you want to buy something expensive.
Use of borrowed funds
Learn the difference between bad debt and good debt.
Financial literacy considers relationship with banksas an important aspect of personal well-being. Banks offer a range of services for the accumulation and storage of funds, issuing loans. The better your credit history, the more convenient the terms of cooperation will be.
- borrow other people's money, give yours
- CREDIT (translated from English) - debt
It is worth borrowing money only if it is invested in more profitable enterprises... This is convenient when you need large funds at first, but the income from their use will cover the cost of servicing the debt. If you take a large amount under high interest rates for the purchase of a luxury item, financial literacy is not up to you.
Search for sources of income
For most people, their main source of income is their work - and it is the most ineffective. Modern realities offer a large number of alternative options. In addition to the salary, you can receive passive income, or build own business... Having multiple sources of income reduces the risk of money problems.
- own business is the door to a new world of endless possibilities
The skills of building a profitable business take away income boundaries. Properly configured processes make money at any time, whether you are resting or working. Moreover, the business is developing even without your direct participation.
Investment
Investing is the blood supply to the economy of any state. If residents and foreign citizens actively invest, the state develops rapidly and ensures the well-being of its citizens. It's financial literacy top level, often outside the borders of one country.
Investing skills give you an understanding of how to use your own and borrowed funds correctly in order to get significant profit in the future. A sophisticated investor achieves goals, practically without using personal funds, reducing possible risks to a minimum.
The world of business and investment
Learning the skills of building a business and investing helps to break the vicious circle of financial problems. This is a different reality, but you can get into it if you follow certain rules. By taking responsibility for your life and managing your risks, you can make significant progress in managing your money.
Staying in the reality of life on a salary and pension, you yourself set a ceiling for yourself personal financial literacy... The transformation of thinking towards entrepreneurship is painful but vital to improve the quality of life. The child does not stop learning to walk, even after a dozen falls. So why do we stop ourselves in development when we start working?
In the information age, knowledge of money management has become widely available. To improve your financial literacy, you can use different methods:
- independent education
- special courses
- personal consultant
Self-education
There are many resources on the Internet that publish articles on the topic of money management. Books are a good source of financial knowledge. Self-education requires a serious investment of effort and time. Personal experience has the highest value, so there is no need to be afraid of mistakes along the way. Correct conclusions will teach you to achieve new results with less losses.
Financial literacy courses
Paid seminars allow you to quickly master the skills of a narrow topic to achieve practical results... It is important to understand that you have to pay for good knowledge. Having paid once, you acquire a tool for generating income, which will subsequently pay off many times over.
You can find free courses, but the value of such training is questionable. Often, free courses offered by those organizations that aim to attract listeners to their ranks or make your clients... They also talk about the importance of financial independence, but they do not always mean your independence.
Infobusiness - many good and bad opinions are associated with this concept. We believe that in each case, the outcome will depend on your personal context. If you are not looking for manna from heaven or fields of miracles, then in any training you will find something useful for yourself. The best coach cannot be at the same time the best businessman in another field, because his business is teaching other people to make money. It takes most of the time to develop a coach's skills. When choosing a coach, look not at his business, but at the trained audience, at the success of his graduates.
Personal financial advisor
Private financial Consultant this is one of the most effective ways to improve your own literacy, as he will always answer the necessary questions and tell you what to do. A recognized specialist costs a lot of money, but the practical benefits of his services are always higher than the costs. All wealthy people have a staff of the best specialists in their field, including in the field of resource management. You do not need to hire such a person in the state; for a start, a monthly one-time consultation will be enough.
General recommendation for those wishing to financial literacy has grown - don't look for easy ways and free advice. This is the bait that most people fall for. View any learning through a lens personal growth and creating own systems receiving income.
Financial literacy of the population
In many developed countries, the financial literacy of the population is targeted public policy, for which considerable funds are allocated. As polls and studies show, even among the population of economically developed countries with long traditions, such as the USA, Japan, Great Britain, France, Germany, Switzerland and others, money management skills are at a rather low level. In developing countries, this level is even lower.
A striking proof is the report of the Global Center financial literacy research... Among people under the age of 35, only 38% of American men and 22% of American women were able to achieve the highest score on the relevant test. For people over 35, these numbers were even lower, among them only 26% of American men and 12% of American women received the highest score.
In Russia, the number relatively literate in terms of money management of the population is 38%. In the countries of the European Union and the United States, this figure is at the level of 50-60%.
What is the reason for such low rates? First of all, it is lack of financial literacy lessons at the school desk. There is not a single subject in school that deals with this important topic. Also note the weak performance government programs in this region. Third, it is common population reluctance deal with the order own funds... Talking about money makes people sad and wanting to quickly change the subject.
- Not taught at school
- Weak work of state programs
- Population reluctance
One can trace such an alarming trend as the disinterest of the state in such an education of its citizens. State corporations in conjunction with commercial structures are more focused on educating a generation of consumersthan the self-sufficient inhabitants of the country. talks about the introduction of so-called financial literacy lessons in Russian schools. In these lessons, among other things, children will be taught how to take loans correctly.
Nobody will make you rich except yourself. To take control of money into your own hands, you must first of all take full responsibility for your life and the lives of your family. The first step to a wealthy life is to compile personal financial plan .
This is an instruction that helps a person achieve their goals in money management. It takes into account all cash flows, actual and anticipated: increasing income, saving, spending and investing funds.
Such a plan is necessary for every person, regardless of income level. It is a mistake to think that only those who have money need it. On the contrary, money comes from those who have learned correctly plan income and expenses... Buying an apartment, a car, and other expensive items requires a thorough and thoughtful use of monetary instruments.
A personal financial plan includes the following components:
- step-by-step achievement of the task, taking into account real time costs;
- using investment products, calculation of probable risks, timing, and the amount of income received;
- plan for insurance investments, taking into account risks, timing and necessary funds;
- using borrowed money, taking into account their maturity and service cost
Allows you to choose the most suitable configuration of investment, insurance, pension and loan products, which will lead to the goal in deadlines or even faster than expected. Any planning is not ideal, on the way to the goal, new circumstances always arise that interfere with or accompany the achievement of the intended. Therefore, it is necessary to periodically adjust the goals set.
Basic rules of financial literacy
Finally, here are a few basic rules of financial literacy, who will tell you which direction to follow in order to understand your resources and establish effective money management.
Earn more than spend
One of the most important rules of any economy is that you need to earn more than spend... If you do not follow it, debts are quickly formed and life becomes much more difficult. Instead of investing free funds, the debtor is forced to spend the time of his life to cover the obligations and costs of servicing loans.
This basic rule seems obvious, but not everyone is able to follow it. It doesn't matter how much money a person makes if he systematically upsets the balance of income and expenses towards costs. This is a fundamental mental attitude from the area that distinguishes the wealthy from the poor. A financially literate person follows the attitude "to spend more, you must first increase your income."
Setting realistic goals
People need dreams, they emotionally encourage us to work on ourselves and earn more. Each dream can and should be specified for a finite number of realistically achievable goals. Correlation of your capabilities with specific actions within the established time frame allows you to subjugate almost any goal and make your dream a reality.
Real the goal sets the direction action. This is a guideline that allows you to weed out unnecessary things. What does not lead to the goal is not worth wasting time and money. Otherwise, at best, you will be marking time, at worst, you will move away from what was planned. Spontaneous spending, as a result of fuzzy aspirations, can nullify months and even years of life.
Safety bag
You must have the so-called money airbag, which can be used in case of loss of basic income. Set aside 10% of your monthly income in your personal savings fund until the figure reaches 6 monthly expenses. These funds can be kept in a closet or contributed to large bank, with the possibility of early withdrawal without loss of interest.
These funds should not be viewed as a source of investment and should not be expected to generate high returns. It will be enough that the interest on the deposit will partially offset inflation. With a pillow like this, you don't have to go into debt. There will be time to calmly establish a new source of income and survive a difficult time with minimal losses.
New sources of income
Try to have multiple sources of income, as this will diversify your risks. The best view income is passive - it makes money at any given time, even when you are not working. Types of income that are available to everyone: earned, passive and portfolio... Wealthy people tend to have all three types of income.
Building a personal financial plan
Have personal financial plan, calculated at least for the next 5-10 years. Do not forget to correct it if the situation changes, if the need arises. All wealthy people have such a plan. Accordingly, you simply cannot succeed by ignoring this need.
Reasonable savings
Whatever your level of income, it is always appropriate to save wisely when shopping. Of course, extremes should be avoided - you can spend a lot of time trying to buy all things at a discount. Wouldn't it be better to invest the same time in order to earn even more? Smart economy indicates that a person really knows the value of money.
Poor people and the middle class are held captive by marketers. It seems to them that the presence of expensive things somehow brings them closer to the Upper Light. In fact, finding a good thing at an affordable price is an important skill for becoming financially independent. Ability to bargain and get a discount does not humiliate a person at all, but indicates his high leadership qualities. Truly wealthy people are the last to buy luxury goods when their income levels more than cover the expense.
Increasing the value of time
Respect your own time. You can always calculate how much an hour of your work costs. Try to do so that this value is constantly growing. Keeping this parameter in mind, you no longer want to waste your life on empty activities. Earned income has its limits. Hiring employees can add value to your time indefinitely.
Changing the environment
Calculate the average income of 10 people with whom you communicate the most - this will be your financial ceiling. Without changing the environment, you have practically no chance of increasing this figure. You need to become that fresh cucumber that puts itself in a jar of pickles in order to become the same over time. If you continue to lie in clear water, you will certainly dry out.
Try to meet a wealthy person who has built a business. To do this, you will have to make an effort to make such a person interesting to talk to you. His advice, behavior, attitude towards money can significantly advance you on the path to financial independence... In this context, you can participate for free in one of his projects. The experience gained will be many times more expensive than the possible salary.
Development of financial intelligence
Never stop at development of financial intelligence... The more time you devote to mastering this issue, the higher your income and more free time for yourself and your family. Diligent wage earners are lazy people in the bad sense of the word. Instead of working with their heads, they prefer to spend all their energy repeating the same mistakes throughout their lives. Become lazy in a good way - make your income so that you don't have to work hard until retirement and then barely make ends meet.
Financial literacy is the ability to manage your own funds, realizing the degree of responsibility for the decisions you make. It is easy to master basic knowledge - it is enough to familiarize yourself with the thematic literature, attend lectures, seminars. Where to start learning?
Fundamentals of Financial Literacy
An economically literate person is able to control income and expenses, manage finances profitably, and increase the level of well-being. Successful is not the one who earns a lot, but the one who is able to consciously spend, invest.
For immersion in the world of financial management, an online course: economics and monetization.
The most accessible tool for gaining knowledge is, of course, books. The most popular book on financial literacy is Robert Kiyosaki's bestseller Rich Dad Poor Dad. Look at money with different eyes: through the eyes of a wealthy person. Robert compares the life of his own father (imagining him as "poor dad") and his friend's dad ("rich dad"). Its main idea is that financial well-being is not the result of deep financial knowledge, but rather a psychological aspect of c.
Business coach Robert Kiyosaki argued that the concept in question includes:
- A theoretical basic understanding of the tax code;
- Theoretical and practical knowledge of accounting;
- Ability to draw up an elementary plan for income and expenses;
- Know the definition of money and understand how to use it.
Training takes a little time even for “dummies” - only a few weeks. Successful people are distinguished by the desire to improve the skills they have acquired, to practically use them.
Differences of an economically literate person
| Differences of an illiterate person | Differences of a literate person |
| Making rash decisions that negatively affect well-being | Keeping in writing or using programs of accounting for income and expenses |
| Purchase of unprofitable credit products, participation in pyramids | Realization of one's own level, rejection of spontaneous imposed credit products |
| Acquisition of ineffective investments, pensions | Ability to find a source of information on economics |
| Failure to take advantage of market advantages | Careful investing of money - careful examination of all options |
| Reducing the amount of personal money earned | Setting aside money in case of serious illness, dismissal, and other circumstances |
Monetary illiteracy leads to disastrous consequences, so everyone, without exception, should have theoretical economic knowledge.
Acquisition methods
Pavel Bogryantsev's book "How to be always with money" contains such useful and practical advice that is not talked about at school. This is a modern approach to the topic of achieving financial well-being, developed from Paul's personal experience. His message is this: everyone can achieve financial well-being. How to do this and what horizons open up financial opportunities - read in the book.
Save monthly with wages not enough to be considered a literate person. Knowledge of macro- and microeconomic fundamentals, familiarization with credit institutions, setting and implementation of strategic goals - the basics economic development... Our time is the time of information, so there are many ways to learn. Helps answer how to level up:
- Study of economic works, books;
- Possession of information about the economic situation in Russia, legislative changes;
- Use special programs to control income and expenses;
- Study of books, video tutorials and courses, for example: 7 secrets of financial psychology;
- Listening to lectures, seminars to improve the level of financial literacy.
Changing attitudes to help improve financial literacy. The psychology of consumption does not lead to prosperity - funds do not earn for sudden unnecessary spending. Going beyond the instincts of the layman is a guarantee of success. Modern allows you to get useful knowledge and step-by-step instructions in the form of online courses at a psychological level from specialists, which leads to financial well-being.
Making a passive contribution
Passive investment is also called investing money for profit. This does not depend on direct activity - there are a lot of places where you can invest money. The main rule is the formation of several sources of contribution. It is important to observe this rule for. Economists recommend channeling funds in a variety of ways - you should not invest only in real estate or the purchase of shares.
Examples of creating passive income:
- Bank deposit - what more amount, the more profitable the rent;
- Acquisition of shares, playing on the stock exchange;
- Receiving funds from advertising placement on your website;
- Investing in real estate;
- Investments in an affiliate or your own business;
- Getting money after writing books, creating applications, programs of their own authorship.
Modern Internet technologies allow you to create other sources of passive income, for example: mining farms.
There are many publications devoted to this technology, since mining has become a very popular business model and is developing very quickly.
Practical use
The application of the foundations in practice does not imply a radical change in life - dismissal from work, the start of entrepreneurial activity. The main thing is to make money on assets, correctly distribute funds, while leaving the main source of income.
Economically illiterate people have created a myth that the purpose of the bank is to make people take an unprofitable loan product by deception. This is a misconception, since large organizations are quite interested in competent clients. It is beneficial for the bank that the client himself is served in the organization, recommending it to colleagues, friends, relatives.
To improve literacy, it is characteristic to discover the fact that a banking organization is a partner for savings.
A set for accounting for income with general principles:
- Control of income and expenses;
- Removing meaningless costs;
- Designation of the main expenses (utilities, food expenses, hygiene items, etc.);
- Distribution of money;
- Designation of a portion of funds that can be invested.
An example of programs - "Daily Expenses", "Wallet - Finance and Budget", "MoneyFy".
Useful books
The Internet and the shelves of bookstores are the source of many books to help teach financial literacy. Of course, the first of these books in popularity is considered "Rich Dad Poor Dad" by Robert Kiyosaki.
The author's father worked diligently as a civil servant all the time, having a small source of income. A friend's father was an entrepreneur, telling Robert about economic foundations... The author admits that thanks to his lessons he became a rich man.
Robert believes that the rich buy assets, the poor only spend, and the middle class acquires liabilities, thinking they are getting assets. Let's deal with these concepts.
An asset can be called something that brings money. Passive - what spends them. For example, an empty house is a liability. If he gives up, he becomes an asset. Writing your own book is a liability, published and profitable is an asset.
Also, a millionaire understands the concept of "investing", gives advice, recommendations, citing exact figures from personal experience.
This helpful and highly affordable online financial literacy course proves once again that everyone has the opportunity to improve their well-being.
The book "The Way to Financial Freedom" by Bodo Schaeffer has not lost its relevance until now. It tells in detail about starting a business, investing, the importance of repaying debts, the correct disposal in cash... The book is suitable as a financial literacy textbook for beginners. The author describes a possible path from the status of an ordinary worker to security, stable income.
The Richest Man in Babylon by George Clayson explains the basics of investing. He suggests developing certain habits, for example:
- Setting aside a tenth of your own income;
- Cost control;
- Increase in wealth, inadmissibility of senseless storage of savings;
- Assessment of risk, profitability of investments;
- The design of the house should embody personal desires, not neighbors;
- Improving the skills of earning money;
- Providing the pension yourself.
Thematic sites
It is easy to find almost any information on the Internet, and the topic of "economic literacy" is no exception. The best websites to help you learn money literacy:
- The online financial game Cashflow created by Robert Kiyosaki will expand your knowledge. The goal of the game is to make you a financially independent person.
- Finagram. The site has an answer to every question from the field of economics, and there is also a lot of information on the topic of financial literacy for beginners.
- Fingram TV was founded by the Association of Russian Banks. There is step-by-step instruction acquiring monetary literacy from scratch.
- The ABC of Finance is a project formed by the Visa payment system. It was made especially for the residents of Russia. The site contains detailed information about the payment system.
- "A course for people who earn less than they can" can turn your idea of \u200b\u200bmaterial well-being, earning options and take a fresh look at your relationship with finances.
ABC finance project payment system Visa
It is not money that controls the person, but the person that controls them - a law that every person must understand. Debt pits, the acquisition of goods “too expensive” for an imaginary status, senseless waste inhibits development, reducing the chances of gaining success and prosperity.
In 2015, the question "Do you consider yourself a financially literate person?" 34% of Russians answered negatively. But how do you know if this is about you?
Here are 5 signs of a financially literate person.
1. He has everything under control
A financially literate person keeps track of their own income and expenses. He builds short and long term financial planning.
It is best to draw up a financial plan. Drawing up a financial plan is a process that includes:
Accounting for the amount of available and spent funds;
Cost optimization;
Planning income and expenses.
2. This person spends less than he earns
A financially literate person does not take loans from banks and microfinance organizations. He lives on the money he earns and creates savings. He leaves at least 10% from each salary and does not spend it under any pretext. This money is not intended for needs, but for investment in assets in the future.
3. He navigates the world of finance
This means:
Monitors the situation in the financial markets;
Understands the features of various financial products and services
(credit, savings deposit, microloan, mortgage);
Checks reliability financial institutionsso as not to lose money;
Knows and uses his rights and how to protect them in the field of finance.
4. He has his own reserve fund
Every person needs a "safety cushion" in case of unforeseen circumstances. You may lose your job, get sick, or go on sick leave for a long time. You may urgently need to fix your car or make unscheduled repairs to your apartment. Every person constantly faces certain problems, and you need to be ready to solve them. For this, a reserve fund is needed.
5. This person makes retirement savings competently
The Russian pension system consists of three levels:
State pension provision based on the financing of pensions from the federal budget;
Mandatory pension insurancethat includes an old-age labor pension and a disability or survivor's labor pension and financed by the employer's insurance contributions;
Non-state (voluntary) pension provision. These are non-state pensions that are paid under agreements with non-state pension funds... They are financed by contributions from employers and workers to their own benefit, as well as income derived from their investment.
Start saving for retirement when basic life tasks are completed and large and relatively expensive loans are repaid. Do not forget that a financially literate person is a person with strategic thinking and a clear vision of his future.
Yes, most people won't be able to stick to these principles the first time. The main thing is not to despair, but to continue moving in the chosen direction and forget about old and unnecessary habits.
Daily work on yourself will soon bring positive results in the form of profit. Financial literacy will change your life for the better and make it more comfortable.
In the future, we will dwell on each point in more detail. Follow the publications on Rusbase.
Financial literacy makes it possible to competently and meaningfully manage your funds and increase capital.
How to start teaching financial literacy and how to avoid monetary bondage will be discussed further.
In our country, how they work financial marketsdon't tell at school. The basics of economics are taught only to students, future specialists in this field. Eventually the level of knowledge in the country is low.
What does this lead to? People constantly work, take loans, do not have the opportunity to travel and retire to live out their lives in a lack of money.
Financial literacy is the body of knowledge about finance and the ability to use these skills.
Control of income and expenses
The first step towards future well-being is to work to increase income and.
So, at the initial stage, you should accustom yourself to dividing cash receipts into several parts:
- operating costs, as well as a certain amount for entertainment;
- saving;
- investment.
Programs for computers and smartphones.Control your income and expenses, otherwise you will be surprised to exclaim: "Where did all my salary go?" To do this today is quite simple: you can write everything down in a diary, in an electronic document, but the best option will use special programs. 
Now on the Internet it is easy to find programs for recording income and expenses; they differ in their interface, functionality, price (free and paid options). A wide variety of such programs can also be found for smartphones. Among free software known such as: "Money is OK", "Wallet", "Where is the money", etc.
In some free applications there are paid functions, for example, drawing up reports of graphs and charts, maintaining several accounts at once.
Despite the variety of programs for smartphones, they have common features... Since they are for financial accounting, each program has income and expenses. In each of the sections there are items ("Salary", "Utility payments", "Products", etc.), in which the received / spent amounts are entered.
Keeping track of expenses optimizes costs and eliminates rash purchases.
In the programs, you can view the movement of money for a month, find out the balance, thereby objectively assessing your income and expenses. The totals for the period can be viewed in the form of graphs and diagrams. Also, the programs have the ability to record your accounts and deposits, which allows you to save money for your own purposes.
Maintaining such family budget important, because it makes it possible to evaluate your income and expenses from the outside, to understand what expenses are unnecessary and unreasonable.
Financial literacy is a step towards financial freedom. Today it is not a luxury but a necessity.
Equally important concepts in the field of finance are "asset" and "liability".
An asset is everything that makes money, and a liability is everything that spends it.
For example, you have an apartment, but it is empty. In this case, this property is a liability, because you spend money on utility bills. But if an apartment is rented, then it belongs to an asset, from real estate you receive monthly rent.
Assets also include: cash, deposits, property rented out, money you borrowed, etc. Liabilities: unused real estate, mortgages, loans, etc.
Equity is the difference between assets and liabilities.If it is positive, it is a good sign that you are on the way to a wealthy life. If it is less than zero, it means that the situation is unstable, you are mismanaging money.
The difference between financially secure people is that they tend to increase assets and reduce liabilities, reducing them or converting them into assets.
As a rule, middle-class people live beyond their means, they buy things they don't need, take out loans, thereby increasing their liability. They have a lot of unnecessary expenses, savings are decreasing, salaries are not enough, all this leads to a crisis.
You need to get rid of debt. You should not take a dacha on credit if it does not bring you profit. Better to buy a garage and rent it out, in which case you will buy real estate and make a profit.
But this does not mean that rich people deny themselves liabilities. They follow a simple rule - the asset must exceed the liability.
Passive income
Only a small proportion of people with knowledge in the field of economics and investment have the opportunity to be financially independent, travel, enjoy life, earning passive income.
Passive income is income that does not depend on daily activities, it is received even during rest.
It is rather difficult to live on a pension, even if you have worked honestly all your life, received a “white salary,” the pension will not allow you to live as you want. Passive income will provide an opportunity to provide for oneself not only in the present, but also in the future and even take care of your future offspring.
If you want to be successful in today's world, you can't do without financial literacy. To do this, you do not need to study additionally at a higher educational institution, necessary knowledge can be obtained by yourself. All you need is free time, Internet and, of course, desire.
Educational materials
Main advantage similar projects – you can study at any time and in a comfortable environment, you do not need to adjust to others and draw up any schedule. Learning takes place whenever you want, at your own pace.
Read this immediately! A rich selection of literature on financial literacy is presented on the Internet and in bookstores. The most famous and must-read the book is the work of Robert Kiyosaki “ Rich dad, poor dad».
In the book, a famous American businessman and investor talks about his life path. He had two people in his life who taught how to lead your life: own father ("poor dad") and the father of his friend ("rich dad"). Robert Kiyosaki's own father was a civil servant, he worked hard all his life, but could not get rich. A friend's father was a businessman who taught important lessons in financial literacy, they helped Robert to become rich later.
Kiyosaki believes that depending on the class, people have different attitudes towards money:
- rich people buy assets;
- the poor have only expenses;
- the middle class buys liabilities, which it considers to be assets.
As mentioned earlier, it is important to abandon liabilities and start building up assets, then you will provide yourself in the future.
Also Kiyosaki says:
Saving money monthly is a brilliant idea ... People are missing out on great opportunities to grow their money much more significantly.
American millionaire talks about investing, how and where to start. He gives specific numbers of his first successes and failures.
Forward to investment!
Having studied the basics of financial literacy, feel free to go to acquaintance with different ways investing. This activity allows you to provide yourself with the necessary passive income. There are the following ways of investing: currency, startups and ready-made businesses, real estate, and much more.
They can bring different income, but there is one thing general rule for all types of investment: have a direct relationship.
The higher the risk, the higher the return, and vice versa, the lower the risk, the lower the return.
It doesn't matter how old you are, what education you need to study. Financial knowledge will help you manage personal budget, raise income to a new level and ensure a dignified old age.
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