04/04/2022
Recently I’ve been reading the book rRich Dad Poor Dad and it really open my mind on why financial literacy is so important!
This picture show me a clear financial statement of 2 different group of people.
Most people financial statement will fall on the left.
1) Expenses is equally same as their income or even higher!
2) Holding on to liabilities thinking it is an asset to them!
3) Pay for their liabilities before paying themselves (saving or investing)
Someone can earn $50k annually but only spend $40k and still left with $10k will still be enjoying their life.
Someone can earn $150k annually but spend $151k will face financial issue later in life.
Remember this as it is not how much you made but how much you are left after deducting your expenses!
If you do not have investment knowledge then you need to control your expenses first!
Start creating stable passive income to cover your expenses in order to achieve financial freedom!
