Money Basics

So, what is MONEY BASICS?

  • Do you know what Financial Freedom is?
  • Do you know the Cashflow Quadrant?
  • Do you have a Personal Financial Statement?
    • Do you know what your monthly Cash Flow is?
    • Do you know what your Net Worth is?
    • Do you know exactly how much you need to be financially free?
    • Do you set financial goals?
  • Do you have an effective Money Management System?

Have you ever noticed that going to school and even completing a university-level education doesn't give you what you need to answer those questions? Did you ever think that you’re either born with basic money knowledge or not, and if you don’t have it now, you never will?

Nothing could be further from the truth. I’m happy to be able to reassure you that through this website, I will provide you with the answers you need to the above questions.

Where Does Money Knowledge Come From?

So, where did I learn all of this?

I’ve learned to treat Money as a subject just like History, Physics or Rocket Science.

But luckily, I can promise you that studying Money is actually a lot easier than studying for Rocket Science!

But you have to invest time and effort to learn it like anything else you want to master. And over the past 10 years, I have invested more than $50,000 in countless books that I’ve read, audios that I’ve listen to, videos that I have watched and seminars that I have attended.

Many people ask me, “Kai Hock, what is one easy-to-read book that you would recommend for beginners learning about MONEY?”

The book I most often recommend to beginners learning about money is Robert Kiyosaki’s “Cashflow Quadrant”.

Do you know what Financial Freedom is?

Most textbooks define Financial Freedom as

To help you remember, say the following 10 times, “FF is PI greater than E.”

Expenses are items such as food, utilities, mobile phone subscriptions, transportation, home insurance, home mortgage, fuel for your car, pets and their care, internet, medical expenses, taxes, charity, vacations, allowance, gifts, newspaper, clothes, parties, car repair, life insurance, home helpers and many more things.

Passive income is an income received on a regular basis with little effort required to maintain. Some examples are

  • Earnings from a systematized business
  • Rent from property
  • Royalties from publishing a book or song or licensing a patent
  • Earnings from internet advertisements
  • Earnings from franchising your business model to other people
  • Dividends from stocks
  • Earnings from Systemised Network Marketing business

This equation (FF: PI > E) is one of the most important pieces of money knowledge you must have. And from this equation, you should also be able to see that you DO NOT need to have $1,000,000 to be financially free!

The other two important pieces of knowledge that you must have for MONEY BASICS is knowing how to create your Personal Financial Statement and knowing how to manage your money effectively.

To learn more about the Cashflow Quadrant, the Personal Financial Statement and the Money Management System, download the ebook The Smart Money Formula here.

MORE MONEY BASICS EDUCATION


 

Note: These are topics that I am planning to write. If you are interested in any of these topics, contact me so that I will write that topic first.

 

Books for Money Basics


 

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