After High School: Financial Education Lesson #3
Are you ready for Financial Education Lesson #3?
After high school financial education continued…
So now you know that the only way to create wealth is to generate a consistent income, make more money than you spend each month, and invest that money to make more money…
But where do you invest?
After High School: Financial Education # 3
It’s important to invest all of the money that you save in ASSETS. An asset is anything that will put more money back into your pocket. (the big ones include investing in your business, real estate, and a good example right now… gold and silver.) When you invest your money in these things, they’ll begin to pay you back… you’re money will start to work for you.
The opposite of an asset is a liability. A liability is anything that takes money out of your pocket ( food, gas, bills, buying cool stuff, etc.). You’re obviously going to have to spend SOME money on liabilities such as food and bills, but you want to keep this at a minimum in order to create wealth… especially in the beginning.
The one asset that you need to invest in ALWAYS and the best place to start to invest in is… YOURSELF.
You invest in yourself by reading books, learning new skills, educating yourself, and anything else that adds more value to YOU. As the value of YOU goes up, you will be able to translate your skills in to MONEY.
So if you buy a good book that teaches you something important in life, that’s an investment in an ASSET and a good decision on your part. What you learned in that book will end up PAYING YOU way more than it cost you to buy the book. (Don’t worry about how… it just will!)
Now that you understand the difference between and asset and a liability and you know where to invest your money, here’s what I want you to do:
Find a decent paying job, and stop worrying about how you’re going to create another income source for right now… shift your focus to developing skills that will improve YOUR quality of life. Hone in on these skills until you become an expert in them, and when you do, you’ll be in a position to share your knowledge with others. This is when you start making money… The more people you help, the more money you’ll make.
Here are some skills that you could INVEST in:
• Learn how to communicate effectively with others
• Learn how to start your own business
• Learn how to build a website
• Learn internet marketing
• Learn how to use Facebook as a business tool
The key word here is LEARN!
Those are just some random ideas, but if you take one of these skills, study it, and become and expert in it… you’ve created an amazing value in yourself that you can now offer to other people. You can take any area of your life and make it your strong point. You can even take your biggest weakness and make it into your STRENGTH… How powerful of a shift would that be for you?
What area of your life would you want to become an expert in if you could choose ANYTHING? That’s what you want to invest your time and money in!
You simply INVEST your time and money to learn your skill of choice, you continue to invest in this one area, and you will soon become an expert that can teach others how to do the same thing. People will be lining up to give you their money in exchange for your knowledge!
The cool thing is that you can pick whatever area you want to become an expert in and focus mainly on that. This means that you can choose to follow your passion, and when you do you’ll actually LOVE what you’re doing. Work won’t seem so much like work anymore when you learn how to make money while following your passion… It’s more like a hobby that pays!
In my next post, After High School: Financial Education Lesson #4, I’m going to give you an example of what I did to follow my passion and become an expert in one area. I think you will get a pretty good idea of how it works once I explain the story.
Yours in Financial FREEDOM,
P.S. – The key point to take away from this lesson today is to invest your money in assets ALWAYS, and the best asset to invest in for you right now is YOURSELF. Start doing this now to create the life of your dreams sooner rather than later!
Kyle,
More great advice here. The concept of assets and liabilities is a simple one, but one that is too often overlooked. It’s about minimizing liabilities and maximizing assets. It’s really about educating people about what an asset is and what a liability is.
Great Stuff!
Dewane Mutunga recently posted..Why Every Blogger Needs An Email List
It really is that simple!
Know the difference between an asset and a liability and buy assets… The only way to create wealth.
Kyle; After High School recently posted..After High School: Financial Education Lesson #1
That is absolutely right Dewane! I will always remember this from you “minimizing liabilities and maximizing assets”. Thanks for this one.
Candice Michelle recently posted..הכנה לכיתה א
Hi Kyle,
I wish I had stumbled upon a blog like this when I left school. Glad I have found a great path now just like yourself. It is very inspiring to look through your site.
Every Sunday me and my girlfriend play Cashflow 101 board game from Robert Kiyosaki. I highly recommend the game for clarifying how assets benefit your cashflow. Great fun!
Aidan
Aidan Gibson recently posted..How To Make An App
Thanks Aidan,
I heard about Cashflow 101 from Robert Kiyosaki… I think I’m going to buy that game also now that you bring it up. Sounds like a fun way to educate yourself in an area that is so important to success. Thanks for stopping by!
Kyle Quinlan recently posted..After High School: Financial Education Lesson #4
Hello this is amazing site! really cool and it will be a new inspirations for me
Hi Kyle,
I really liked this post and your tip about investing in your self and learning. This week we held a local innovation and creativity , enterprise week, it really struck me how much at a disadvantage some companies were due to not keeping up with the times. All the best Rosemary
Rosemary O’Shaughnessy recently posted..Penultimate – An iPad App That Replaces Pen and Paper !!! While Working On The Go
I agree that our biggest asset is our self. We cannot be successful on our other investment if we cannot invest well on our self.
Julie Hayes recently posted..pevonia skin care reviews
Good post Kyle.
I concur with you the best place to start investing is in oneself! I’ve commented on several post of your blog as you may remember but I do not thing I have mentioned how much I live the them.
I have just started working with Elegant Themes myself and I’m building a dual language eCommerce site for a clients using Boutique… it’s very pretty.
These days many young people are capable of building website which they could in turn sell to local businesses. There’s a neat idea for your student readers! Hope you have a great weekend Sadie
Sadie-Michaela Harris recently posted..By: Sadie-Michaela Harris
In addition, trust within ourselves is very essential most especially when it comes to eduction. It depends on us on how can we learn from the things that are happening to us everyday. All your tips are very helpful and inspiring.
Julie Hayes recently posted..tactical gear
It is sure a good thing if you invest your time and effort in learning Internet Marketing and website building. If you want to learn these things, you don’t really need to enroll in a university because you can learn them for free. There are lots of good resources online, which can help enhance your knowledge and skills about Internet Marketing and website building.
Candice Michelle recently posted..חנוכה
Great post. Learning, for many people, seems to stop when they leave school, with many thinking that they know it all. It is only when they are unable to find a job or lose the small amount of money they have in bad investments to they start to rethink their plans.
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