Be Financially Responsible Timpau George

Contents: Learn how to spend money Save money Investment 5/15/2018

Learn how to spend money “Even if money is not a goal for someone, it is a tool for everyone.” And therefore we should teach financial literacy. It is not a very important fact what is your monthly income. The most important thing is how you spend your money and how much money do you have at the end of the month. 5/15/2018

Learn how to spend money We must learn not to spend the money that we don’t have it. If you buy a bread for example with your credit card you will spend more money on it than if you buy the bread with debit card or cash because you will pay also the interest charge. This is a small tax that we will pay if we buy with credit card, but imagine that we want to buy a car with bank credit. We will pay more and more money. 5/15/2018

Learn how to spend money Another important thing is that we must learn to differentiate between what we want and what we need. If we want a car we don’t need to buy a very expensive car if we don’t have the money for it. If you continue to use your credit card irresponsible you will work all of your life for banks. 5/15/2018

Learn how to spend money ~Key ideas~ So do not use credit card if you have the money to buy the thing that you want. We must distinguish between what we want and what we need. We must learn that nowadays financialy literacy if very important. 5/15/2018

Save the money After we learn how important is to spend our money responsible we will be able to learn how to save our money. The most important concept is “Pay yourself first”. What is that? On the first day when we receive our income we will take some money and we will put them in another bank account. That account will be our savings account. 5/15/2018

Save the money We will use the savings account just for invest to create passive income. Passive income is when you get paid over and over again for work that you did once. 5/15/2018

Investment After save some money you can invest in sources of passive income that will generate money even if you sleep. Sources of investment: copyrights of books, rent of apartment, dividends of companies and so on. There are many types of sources of passive income. 5/15/2018

Conclusion Spend your money responsible. Save some money. Invest that money to create passive income. 5/15/2018

Thank you! 5/15/2018