I want to share with an inspiration I got From Robert kiosaki's book, rich dad poor dad.
95% of the population of the world doesn't know how to manage money, as a result these people will never get out of the rat race, which means they will be stuck in a never ending cycle of going to work to pay mortgages for the things they are buying such as a new car or a new house.
These people believe that if they will work harder and earn more money they will be able to go out of this cycle, but they are wrong. As they get more income they are creating more expenses. The main two things a person can do to escape the cycle are those:
1. You need to understand the difference between an asset and a liability.
To go out of the rat race your assets, (which are the things that gives you money without working for it all the time, like an investment).
Should be higher than your expenses.
If you buy liabilities before you'll have enough assets, it will be very hard for you to make the money work for you in the future.
So before buying any liabilities you must have assets that will cover the expenses of your liabilities.
2. The second thing you will need to do, is to learn about money.
By learning accounting, investing and marketing you will have great advantage in the world of finance.
These days schools don't teach you how money works, you can have good grades and even be a doctor but it does not assure you success when it comes to money.
So you must learn things yourself in courses, books and so on, and pass these learning to your kids in order for them to be successful.
