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financial literacy : the missing school subject

They don't teach this at school.

Learning

What Rich Dads teach their Children that the Poor Dads Doesn't? 

The growing gap between the rich and the poor is rooted in the antiquated educational system, Calculus, Chemistry, Quantum Physics, Statistics and Probability, concealed "REAL" World History, and more. Do children use this subjects when they've grown up? To be employable and to have a job, Yes! But to prosper, be financial stable and free?...  

Henry Ford is not the smartest guy in his class, Bill Gates the richest man in the world drop out of Harvard, Li Ka-Shing the richest Chinese and ranked 10th richest person drop out of high-school to support his family when he was 15, Michael Dell after high school (with a lackluster record, "he’ll never go anywhere in life," said one of his teachers) started to custom-build and sell computers in his dorm at age 19 he dropped out of college. Virgin Record's Richard Branson is worth $2.8 billion and that’s not too shabby for a guy who didn’t even finish high school, So, next time you want to call him a high school dropout, remember that it’s "Sir" high school dropout to you. Branson was knighted in 1999 for "services to entrepreneurship." 

The School System trains people to be good employees, and not employers. The obsolete school system also fails to provide young people with basic financial skills rich people use to grow their wealth. 

Know your options and use this knowledge to build your financial fitness for you and your family's health, cost of living and education. In this information age where 20 year olds can be millionaires, it really isn’t about how much money you make, it’s about how much you keep, and how many generations you can keep it. 

Do they want us to stay poor?

Actually this is the problem of our society passed on by our Spanish colonizers that being Rich means you are greedy, opportunist or evil. That they always associate being wealthy with being evil.

Today most Filipinos are exposed thru television that the Rich is always the antagonist. Why? Was it to prevent us from being rich and stay salary slave poor. Is it necessary for informative television shows and documentaries to be shown late at night?

Tv

Do they deny knowledge to us. Was this to divert our TV viewing from the reality of our conditions to Fantasies instead? To persuade us that somehow those characters in the television were much more in worst condition than us..

Television shows nowadays are being bombarded with too much Fantasy and Dramas during prime-time with nothing much educational to watch. Television stations specially the two big channels (also the two widest reached in terms of TV signals) has a majority of primary time-slot dedicated to this "fanta-seryes" in-stored for us. having no choice, but to watch this fancy TV shows. entertaining yet uninformative.

 

Reason Why You Must Not be Poor Anymore

By the time everyone retire or stop working due to disability, government pensions, our insurance and even our kids will NOT be able to help us, millions of people have been brought up to believe they can rely on will be disappointed, As you see some insurance companies here in the Philippines has investments in US stocks, What if Stocks prices went down? can they still give what is promised in the contract? All those years of working relying on this so called protection instruments for your healthcare suddenly wont work anymore, because this companies or government use your money to earn interest in investments that THEY THINK would profit, what if not? Remember the case of insurance companies (I wont mention here) a couple or more year ago? It was even connected to a giant Insurance company in the US. Come to think of it, my sister's car wasn't even covered by the Insurance if its a natural disaster from the bagyong Ondoy. Hm. Its hard to grasp you wake up one morning an old age with no money will NOT be fun.

Now prices of every basic commodity Goes Up every year, If not every month. A Peso half a decade ago could buy you many things, you often hear that from old folks that a Peso is worth a present day hundred pesos. Inflation is when each unit of currency buys fewer goods. And that is whats happening, inevitable and unstoppable, That’s why the most important reason why you and I need to be rich is…To beat Inflation.

And Importantly is to have more Time. Cant have a quality time to your self or to your family if your stuck with an hourly wage. Because Nothing is More Important than the Family... It is very important to build a financial wall around your family that no one can breach. Money acts as protection. When we are poor or struggling financially, any little blow can be devastating. With enough money to cover emergencies and contingencies, we can breathe easier, sleep at night, and not lie awake worrying..

Now, how much is peace of mind or Financial Freedom worth to you?

My answer:

All It Takes.


 

Why You Need To Be Rich?

Well, Why Not?

Money Talks Let's face it - money begets money, and money can get you places, things and results that just cannot be achieved in any other way. A Poor guy who won the lottery recounts, everyone's answers change when they know you have money. Suddenly everyone wants to help you, and doors open that would not have otherwise. It's one of those strange ironies. In the wise words “money is simply the oil that makes life run smoothly".

Old Age. By the time you retire or stop working due to disability, the government, your insurance, pensions and even your kids will NOT be able to help you, millions of people have been brought up to believe they can rely on will be disappointed, All those years of working relying on this so called protection instruments for your healthcare suddenly wont work anymore, because this companies or government use your money to earn interest in investments that they think would profit, what if not? Remember the case of insurance companies a couple or more year ago? You wake up one morning an old age with no money will NOT be fun.

Now don’t you wonder why prices of every basic commodity Go Up every year? If not every month. A Peso half a decade ago could buy you many things, you often hear old folks that during their time that their Peso is worth a present day hundred pesos. When each unit of currency buys fewer goods and is also the eroding of the purchasing power of money, it is called inflation. Observed when prices of crude oil / energy goes up expect that prices of everything will go up as well. That’s why the most important reason why you need to be rich is…

To beat Inflation. Your life’s savings is worth only four-fifths (4/5) of its value once you accumulate all of it, that is when your keeping your money under your bed.  Now lets say you keep your money into a bank, the safest is Savings Account of 2% Annual interest, or a Time deposit account of a rarely given 5% annual interest to your money or if your adventurous a more high yield financial instrument like bonds, stocks or mutual funds. The question is, will it surpass the inflation rate?

Importantly is to have more Time you cant have a quality time to your self or to your family if your stuck with an hourly wage. But…

Nothing is More Important than the Family It is important to build a financial wall around your family that no one can breach. Money acts as protection. When we are poor or struggling financially, any little blow can be devastating. With enough money to cover emergencies and contingencies, we can breathe easier, sleep at night, and not lie awake worrying. How much is peace of mind worth to you?

What's Really Holding You Back from Being Rich.

Being Rich is a journey. And on your way you must first get out of your comfort zones. That's why you hear self-made billionaires who did quit their jobs or drop-out of school. Our jobs confines us from being Rich.

So here are some reasons Why Some People if Not stay Poor they just Don't Want To Be Rich.

People Always Associate Money with Evil

When you watch your Filipino movies or 'tele nobela', who always portray the evil role, the Rich or the Poor?

Actually this is the problem of our society passed on by our Spanish colonizers that being Rich means you are greedy, opportunist or evil. That they always associate being wealthy with being evil.

Today most Filipinos are exposed thru television that the Rich is always the antagonist. Why? Was it to prevent us from being rich and stay salary slave poor? Did you realize why important and educational documentary is always shown late at night. Was this a conspiracy. Why are we bombarded with Fantasy and Drama series during prime-time? Was this to divert our attention from the reality of our poor conditions, That somehow those characters in the television were much more in worst than us?

Being Rich is good and it depends on you use it and gained it.

Deng Xiao Ping of China said “To be Rich is to be Glorious. because it helps your family and your country.”

People Always Believe That They Can’t Do It

Most people think that if it is something that they haven't done before, it is already impossible for them to achieve it or if he knew that none from his family did that before therefore it is risky.

Being Rich requires us to have business but some will experience resistance along the way even our family will be cautious in our ventures but once they see our results, they will be convinced. 

How you handle Risk is one difference between being Poor or Rich.

Actually what the Poor is lacking of is action. They always let their current circumstances be an excuse to do anything in their situations.

Being a Spectator

Spectators are those people who just love to watch others to fail or succeed. If you fail you’ll hear criticisms and most of their ideas before you venture into business are more inclined into reasoning of being risky.

Let me give you some examples of the favorite lines of a Spectator:

"I have a friend, he ventured that business and he failed so don't pursue it."

"What they are doing is something fishy, they will just fool you."

"Why do it if you are already comfortable today? It will just give you more problems."

and the list go on.

These people will say anything yet did nothing for themselves or haven't tried anything different out of their comfort zones.

Life is like riding a train, there is a fast bullet train and a slow steam locomotive, so which train do you ride to? Are you the one riding in a fast bullet train or the one in the slow locomotive train staring at the window enjoying being passed-by fast bullet trains like life has pass you by.

They Think Rich People Has More Problems and Worries

A lot of people thought like this because most Rich people are involve in media, like issues, or scandals etc. What they don't know is that whether you are Rich or Poor you will have problems.

The difference between Rich and Poor is that how they handle problems, when your Rich solutions are very accessible.

Remember that Successful people find opportunities when there is a problem.

They Think Someone will Take Care of Them When Their Working Days are Over.

They Think that when their working days are over the government, their company, the insurance company, their kids or labor union will take care of them, well, their in to a very disappointing situation.

Your bosses job is to give you more work, not to make you Rich. Its everybody’s responsibility to make themselves financially sustainable once their working days are over. 

 

The Millionaire Next Door

The flashy millionaires glamorized by the media actually represent only a tiny minority of America's rich.


Most of the truly wealthy don't live in Beverly Hills or on Park Avenue.


They live next door.


The typical wealthy individual is a businessman who has lived in the same town for all of his adult life and owns a small factory, a chain of stores or a service company. He lives next door to people with a fraction of his wealth. Their survey indicated that while the paycheck-to-paycheck crowd drives new cars, most millionaires don't. They're not wearing expensive clothes and watches and their houses are relatively modest compared to their financial status.


You don't need to be a millionaire to lead a simple life, and indeed, no one said that money equals happiness. But you can learn from millionaires how to get off the treadmill and create a satisfying life.


Compulsive savers vs. the rest of us


The millionaires in the book "The Millionaire Next Door" were not born wealthy, nor do most of them have high-level, exotic jobs. What they do have are simple lifestyles.


It's the simple lifestyles, not the big paychecks, that turned these people into millionaires. According to the book, their wealth is the result of hard work, perseverance, planning and most of all, self-discipline.

So Why Aren't All Of Us Hard-Working Souls Rich?

Rich_guy_branson

The Answer


We regularly and continually give our money away to other people so they can become wealthy, while we live paycheck to paycheck. We buy the latest rides, purchase house with a monthly mortgage and invisible interest charges, morning starbucks coffee, latest wardrobes you’ve seen in a fashion magazine, eat at fast foods, the need for updated mobile phones and gadgets of all kinds. As a result, we're on treadmills, in debt, never allowing ourselves the time to create the kind of lifestyle we want.


On the other hand, the millionaires are described in the book as "compulsive savers and investors." After surveying 1,115 millionaires around the country, authors Stanley and Danko came up with seven common denominators among those who successfully build wealth:


They live well below their means.

They allocate their time, energy and money efficiently, in ways conducive to building wealth.

They believe that financial independence is more important than displaying high social status.

Their parents did not provide economic outpatient care.

Their adult children are economically self-sufficient.

They are proficient in targeting market opportunities.

They chose the right occupations.


This list represents simple living at its finest. Here's why. Simple living is about living consciously and with a purpose. This means being in control of your money and your life. When you save your money rather than continue spending, you buy yourself control. Then you have a say in how you'd like to spend your time.


With money saved and invested, you can live for years without earning money, or you can at least afford yourself the luxury of working part-time. This is vastly different from living paycheck to paycheck. These millionaires have created lifestyles and jobs that are meaningful to them because they took a look at the big picture and made choices accordingly.


Don’t Eat Your Marshmallow Yet.

The Secret to Sweet Success.

Mr. Eric is a chauffeur who is intellectually gifted. Benjie is no less than Mr. Eric, equally hard-working, and equally bright. So why is Benjie in the back seat of the limousine and Mr. Eric in the front?  What really is the difference between success and failure? And what does it mean to you and me?

Marshmallow_test
A research in Stanford University found that answer in a study of children in the form of ...marshmallow.

The children are seated in a closed room were they get a plate with one marshmallow, the adult that gave them the treat then leaves the room with the promise that they'd be rewarded with an additional marshmallow if the sweet is still there when he comes back.

Two out of three children eat the marshmallow immediately. The other one held out eating for about fifteen minutes, and got the reward.

Twenty years later.

The children who resisted had grown up to be significantly more successful than those who had eaten their marshmallow immediately.

This research saw that the key difference between success and failure is not merely hard work, or superior intelligence, but the ability to delay gratification.

"Marshmallow resisters" achieve high levels of success, while others eat all their marshmallows at once, so to speak- when they grew up they couldn't resist buying the latest rides, mortgaged big houses, signature clothes, daily coffee espressos, fine dining restaurants, high-tech gizmos and gadgets of all kinds. As a result, they were in treadmills. Living just to survive before another pay day comes, accumulating debt and dissatisfaction despite their occupations or big incomes.

As it were, just like many people immediately after getting their paycheck buys liabilities, acquire installment rides, eat at fastfood restaurants, latest cellphones, these "wants" or the interest rates from loans take money out of their pockets, yet this "wants" depreciates its price over time. On the other hand the few "Marshmallow resister" continuously saves and buys assets like real estate, gold, stocks, businesses, and its expansion, and other assets that puts money in their pockets even they're asleep.

Know your options. In this information age, it really isn't about how much money you make, it's about how much you keep and how you increase it for more generations to come. 

 

 

So how does an ordinary person with an ordinary income reach their seven-figure dreams?

First you must have a house.

A House is a liability unless you make it as an asset. 

“Nothing you will ever do in your lifetime is likely to make you as much money as buying a home and living in it."

I apologize up front if you’re a renter, because I know this may be brutal to hear, but you have to hear it if you’re going to change. So here goes.

You simply can’t get rich renting. We know this. It’s a timeless truth.

How to use your property to build wealth? You home is Liability unless you make it as an Asset!

Remember, when you purchase a home you’re doing more than just buying a place to live in. You’re creating an opportunity for true financial independence. If done properly, homeownership can be a foundation on which you can build real wealth—even if you never earn more than an ordinary income. Real estate has always been the leading tool people have used to build wealth. Whether you choose a strategically located commercial shop, an apartment or a small factory it still stands in a property, a property that you can live in at the same time.

Bahay_kubo

“As long as you’re alive, you have to live somewhere.” This is one of those facts of life that’s so obvious we don’t even think about it. Everybody has to live somewhere, and someone owns every place where someone lives. It may be your parents, or a landlord, or the government—but someone has owned every place where you and every one of your neighbors have lived. "Why shouldn’t that someone be you?

Click here to buy your first asset: http://abajay.multiply.com/