Your financial education should focus on 4 areas and stey by stey

Your financial education should focus on 4 areas and stey by stey

1. Making more money. This is measured by how much money you earn. If you make $100,000 a year, you have a higher Financial IQ than someone earning $30,000 a year.

2. Budgeting your money. You will never able to move to financial freedom if you always spend more than what you earn. Live below your mean is cornerstone of financial freedom.

3. Protecting your money. Once you earn your money, you need to hold onto it. Protecting your money, especially from taxes.

4. Investing your money. Once you have achieved budget and tax planning, you will invest before you spend. That is major difference between rich and poor.

5. Leveraging your money. You will start to learn how to borrow to invest.

You need to go through all of them before reaching financial freedom? The million dollar question is how long?

Answer: 24 years!

WTF…

That is correct, I believe it will take 24 years if you don’t have mentor to guide you through the journey.

Why does it take so long?

First 8 years: you try and error so many different investment vehicles from share, traditional business to property…then you fail and find out which one suits for you.

Second 8 years: you get up and try again and focus on the one you are extremely passion about and build up the solid foundation.

Third 8 years: you simply repeat the process at the second 7 years and let time play this compound role in the investing journey.

By the age 54, you are about financial freedom if you start at 30.