How to Become Financially Literate

Becoming financially literate means what to you? If you ask the average person, being financially literate means that you KNOW about money. Let's break that down. What do you know about money? We're taught in school that money is about paying your bills, balancing your checkbook and saving only if and when you have some money left over.

Whatever that means to you, you still have to start somewhere. Remember the old saying, "You have to crawl before you walk" - well, you can begin by getting the best book written on financial literacy - Rich Dad, Poor Dad. Say whatever you want good or bad about Robert Kiyosaki, he has written a book simple enough for a nine year old to understand so this would be the best place to start your financial education. The book is written in plain, simple and easy to understand language - just what anyone can used to get started.

The Price of Being Financially Illiterate

This mother and daughter did everything they way they thought they should. The daughter has her degree but is now in over $90k of debt that she may not be able to pay off anytime soon and until she does this will stop her from building wealth because she is paying off debt. This unfortunately is the price of financial illteracy
http://finance.yahoo.com/college-education/article/109701/placing-the-blame-as-students-are-buried-in-debt?mod=edu-collegehttp://finance.yahoo.com/college-education/article/109701/placing-the-blame-as-students-are-buried-in-debt?mod=edu-collegeprepprep

I'd like to share with you a quick video from a brilliant businessman, Russell Brunson. http://university.dotcomsecrets.com/

I think this video says it in a nut shell. You can learn how to build a business and learn lifetime business skills that you are obviously not learning in college for a portion of the price of coming out of college $90k in debt and no prospects. Which education would you rather have?

Financial Literacy - Is it Time to Change the Model?

The money model that our grandparents used is outdated- It is Time to Change the Model
http://www.bankrate.com/brm/news/financial-literacy/whos-literate-home.asp

The above article was written in 2003 and posted on bankrate.com. I think it's safe to say that it represents the model used by our parents and grandparents. However, I think it's also safe to say that it didn't work for the larger majority of us. Most Americans don't save money like it has been suggested. According to the article older Americans saved but younger Americans considered themselves spenders.  For example, Asians save 20% of their income on a regular basis. They have made it a habit. This is not a habit that Americans have adopted. Therefore, it's time to come up with a new model. 

I suggest checking out Loral Langemeier of http://www.liveoutloud.com/. She suggests that it is time for a new money model that would fit right in with the larger majority of Americans -- Make More Money.

There would still be some changes in mindset, attitude and behavior that would be needed to make the transition a smoother one and Loral and her team can help you with that.

Robert Kiyosaki of Rich Dad fame suggests that savers are losers. Read this article to have a better understanding. http://finance.yahoo.com/expert/article/richricher/1224.

Because you need to understand what happened in order to grasp what is going on now and what you need to know and do to become financially literate because the rules of money have changed.