Develop Financial Literacy

Rich Dad Poor Dad, Robert T. Kiyosaki

Most people fail to realize that in life, it’s not how much money you make; it’s how much money you keep.” ~ Robert Kiyosaki

Would you consider yourself to be financially literate?

If so, what do you constitute as financial literacy?

Would you agree that a person can be highly educated, professionally successful, and financially illiterate?

I know firsthand what it feels like to be highly educated, professionally educated, and financially illiterate. Thankfully, so many great resources are available to help us better understand financial matters, build good habits for wealth building, understand taxes, and the like.

Here are five key takeaways I gathered:

Kiyosaki offers four parts of financial literacy:⠀⠀⠀⠀⠀⠀⠀⠀⠀
1.) Accounting: Know with basics of reading and understanding numbers for budgeting, personal banking, and annual reports
2.) Investing: Earn the three E’s – education, experience, and excess cashing
3.) The Market: Understanding the basics of the market (read Rich Dad’s Guide To Investing)
4.) Corporations: Understanding how corporations can legally protect you and allow you to earn, then spend money while paying taxes afterward

Many of us do not learn about assets and liabilities early in life, so we buy things we believe our assets are not.

Imagine if your schools taught you this during your formative years and offered experiential learning opportunities to practice these concepts.

If you didn’t, no worries. We are all capable of learning how to incorporate these simple but powerful concepts no matter our age.

I’d highly recommend it if you haven’t read or listened to this book. It’s well-written, humorous, and insightful.

You can listen to it here or get a copy of it here.