Financial Literacy
FINANCIAL LITERACY
“Financial literacy is one of the most important investor basics, especially if you want to be a safe investor, an inside investor, and a rich investor. Anyone who is not financially literate cannot see into an investment. Just as a doctor uses X-rays to look at your skeletal system, a financial statement allows you to look into an investment and see the truth, the facts, the fiction, the opportunities, and the risk. Reading a financial statement of a business or individual is like reading a biography or an autobiography.”
“A business has a financial statement, a stock certificate is a reflection of a financial statement, each piece of real estate has a financial statement, and each of us as an individual human being has a financial statement attached to us…Everything – regardless of if it is a business, real estate, or human being – that transacts money has an income statement and balance sheet, whether or not they know it. People who are not aware of the POWER OF A FINANCIAL STATEMENT often have the LEAST MONEY and the BIGGEST FINANCIAL PROBLEMS.”
“While you were in school, you got a report card once a quarter. A financial statement is your report card once you leave school. The problem is that since most people have not been trained to read financial statements or how to keep a personal financial statement, they have no idea how they are doing once they leave school. Many people have failing marks on their personal financial statements but think they are doing well because they have a high-paying job and a nice home. Unfortunately, if I were handing out the grades, anyone who was not financially independent by age 45 would receive a failing grade. It’s not that I want to be cruel. I just want people to wake up and maybe do a few things differently…before they run out of their most important asset: TIME!”
“A person needs to get his or her own personal financial statement under control before investing.”
“This process I have been
“Financial literacy is one of the most important investor basics, especially if you want to be a safe investor, an inside investor, and a rich investor. Anyone who is not financially literate cannot see into an investment. Just as a doctor uses X-rays to look at your skeletal system, a financial statement allows you to look into an investment and see the truth, the facts, the fiction, the opportunities, and the risk. Reading a financial statement of a business or individual is like reading a biography or an autobiography.”
“A business has a financial statement, a stock certificate is a reflection of a financial statement, each piece of real estate has a financial statement, and each of us as an individual human being has a financial statement attached to us…Everything – regardless of if it is a business, real estate, or human being – that transacts money has an income statement and balance sheet, whether or not they know it. People who are not aware of the POWER OF A FINANCIAL STATEMENT often have the LEAST MONEY and the BIGGEST FINANCIAL PROBLEMS.”
“While you were in school, you got a report card once a quarter. A financial statement is your report card once you leave school. The problem is that since most people have not been trained to read financial statements or how to keep a personal financial statement, they have no idea how they are doing once they leave school. Many people have failing marks on their personal financial statements but think they are doing well because they have a high-paying job and a nice home. Unfortunately, if I were handing out the grades, anyone who was not financially independent by age 45 would receive a failing grade. It’s not that I want to be cruel. I just want people to wake up and maybe do a few things differently…before they run out of their most important asset: TIME!”
“A person needs to get his or her own personal financial statement under control before investing.”
“This process I have been