Man, these lessons are really important.
This book is an amazing book with simple lessons that serve as an impeccable introduction into financial literacy and a solid foundation towards financial freedom.
The first is to live upon less that what is earned. This simply means to make sure that out of everything you earn, you spend less than what it is. If you earn 1,000 a month, live upon 900.
The book recommends saving at least 10% of one’s income - the bare minimum, and there’s a negligible difference in a life lived on 90% of one’s income and a life lived on 100%. The second is to seek advice from specialists and those with experience, those who are competent through their own experiences. A good example from the book is to not seek advice about jewels from the brick maker, because he would know nothing about jewels, but rather seek it from the jeweller.
In this day and age, people watch one video or read one book or overhear a conversation and consider themselves to be experts. How many of us lost money “investing” into something because we were advised by a friend or family member who, as we look back at it, had no competency with regards to the investment?
The third, is for one to make their money work for them. We should save, we should live on less than we earn, but we should make the money work for us.
This is done by seeking the advice of those who know what they’re talking about. A good way to figure this out, which I learned from Robert T. Kiyosaki’s “Rich Dad Poor Dad”, is to check that person’s investment portfolio. How much of what they’re advising you to invest in, have they invested themselves?
These three simple rules, although oversimplified in this excerpt, are broad outlines to a clear method of achieving financial freedom.
Financial literacy isn’t taught to us by schools, or most parents. Schools don’t teach it because being financially literate is a threat to governments and institutions and industries, and parents don’t teach it because most are financially illiterate themselves.
Acquire financial literacy.
Escape the rat race.
And in the words of the 🐐: Financial freedom my only hope.