Financial Education

 

In these troubled times people are looking for more and more ways to save money. The do it yourself culture is offering more and more ways to take things into your own hands. This site free-retirement-plan.com is a perfect example. Getting a financial education in concepts and ideas can be very helpful. First let’s look at 5 basic concepts about financial education that you need to understand.

Financial Education

Financial Education Concepts

What do you and are you able to earn? – This sounds very basic and it is. What you are able to earn from your career or business is the engine that is going to drive your finances. This is the fuel for the fire. You should know the difference between you gross and net earnings.

 

Financial Education Question #1: What are you spending most of your earnings on? Are they on needs or wants? – Take care of needs things like food, utilities, insurance etc. You can eliminate things like eating out, entertainment, buying more clothes than necessary etc. Learn to live within your needs.

Financial Education Question #2: Are you paying yourself first? – One of the most important concepts you can learn is to save money after you have taken care of basic needs. This will begin the foundation of investing for retirement and building real wealth.

Financial Education Question #3: Are there times to borrow and if when and how much? – Compound interest it something that can work for or against you. This means when you borrow money you will have to pay back more than you borrowed. It is better to save money and then pay cash for things using your contributions and interest earned. There are times when borrowing is warranted but it should be avoided when possible and examined in great detail.

Financial Education Question #4: Learn the concept of risk management. – You should learn to protect yourself from occurrences that you cannot recover from. Insurance creates a known and tolerable loss to avoid an unknown and possible catastrophic loss. Things like homeowners, auto, life, disability and long term care are things that are examples of this.

     

    These are some broad and basic concepts that you need to become familiar with. They are not the ultimate but they will help you get started. Understanding these concepts will help you in reaching your goal of financial education. You will still want to seek the advice of a professional.

    What To Understand About Financial Education

    What To Understand About Financial Education #1:What do you and are you able to earn? – This sounds very basic and it is. What you are able to earn from your career or business is the engine that is going to drive your finances. This is the fuel for the fire. You should know the difference between you gross and net earnings.

    What To Understand About Financial Education#2: What are you spending most of your earnings on? Are they on needs or wants? – Take care of needs things like food, utilities, insurance etc. You can eliminate things like eating out, entertainment, buying more clothes than necessary etc. Learn to live within your needs.

    What To Understand About Financial Education #3: Are you paying yourself first? – One of the most important concepts you can learn is to save money after you have taken care of basic needs. This will begin the foundation of investing for retirement and building real wealth.

    What To Understand About Financial Education #4: Are there times to borrow and if when and how much? – Compound interest it something that can work for or against you. This means when you borrow money you will have to pay back more than you borrowed. It is better to save money and then pay cash for things using your contributions and interest earned. There are times when borrowing is warranted but it should be avoided when possible and examined in great detail.

    What To Understand About Financial Education #5: Learn the concept of risk management. – You should learn to protect yourself from occurrences that you cannot recover from. Insurance creates a known and tolerable loss to avoid an unknown and possible catastrophic loss. Things like homeowners, auto, life, disability and long term care are things that are examples of this.

       

      These are some broad and basic concepts that you need to become familiar with. They are not the ultimate but they will help you get started. Understanding these concepts will help you in reaching your goal of financial education. You will still want to seek the advice of a professional.

      Financial Education