Finance 101

Atul
Technology , Web , Free software , The big o community , Financial education
March 11, 2025

Table of Contents

Finance 101: Your Guide to Financial Freedom 💰

Financial Education: The Foundation of Wealth 📚

The Basics

Financial education isn’t something most of us learn in school, but it’s one of the most important skills for building wealth! As Robert Kiyosaki explains in his groundbreaking book Rich Dad Poor Dad, the way we think about money often determines our financial future.

“The poor and middle-class work for money. The rich make money work for them.” - Robert Kiyosaki

Have a Bank Account 🏦

Your journey to financial independence starts with the basics:

Open accounts
Track your spending and saving

Start with Excel sheets Libre Office Calc

Use Nextcloud Money

Pro tip: Many online banks offer higher interest rates on savings accounts than traditional banks. Shop around for the best deal!

Income 💵

In Rich Dad Poor Dad, Kiyosaki introduces two types of income:

Active Income - Money you work for (your job/salary)
Passive Income - Money that works for you (investments, businesses)

The secret? Focus on building passive income streams that don’t require your constant time and effort!

Fun fact: The average millionaire has 7 different income streams. How many do you have? 🤔

Assets 📈

Assets put money IN your pocket! According to Rich Dad Poor Dad, this is the key difference between the rich and everyone else:

Real estate that generates rental income
Stocks that pay dividends
Businesses that don’t require your presence
Royalties from intellectual property
Digital products that sell automatically

Remember: The rich buy assets first, luxuries last!

Expenses 🧾

Track where your money goes! Kiyosaki recommends categorizing expenses:

Necessities (food, shelter, utilities)
Luxuries (entertainment, dining out)
Self-improvement (education, books, courses)

Money hack: Try the 30-day rule! When tempted to make a non-essential purchase, wait 30 days. If you still want it then, reconsider buying it. You’ll be surprised how many “must-haves” lose their appeal! 😉

Liabilities 📉

Liabilities take money OUT of your pocket. Many people think they’re buying assets when they’re actually acquiring liabilities:

Cars (depreciation + expenses)
Consumer debt (credit cards)
Mortgages on personal residences (unless you’re house hacking)
Gadgets and luxury items

The Rich Dad truth bomb: “Your house is not an asset unless it generates income!” 💣

Investing 🌱

Rich Dad Poor Dad emphasizes that investing is a skill anyone can learn:

Start small and learn as you go
Invest in your financial education first
Find mentors who are where you want to be
Take calculated risks (not wild gambles)
Focus on cash flow, not speculation

FIRE tip: Even small investments add up over time, thanks to compound interest - what Einstein called the “eighth wonder of the world!” ✨

Rich Dad’s Key Lessons 🗝️

The rich don’t work for money - they acquire assets that generate income
Financial literacy is your most valuable asset - learn the language of money
Mind your own business - start a side hustle, even while employed
Pay yourself first - save and invest before paying bills
Overcome fear and doubt - they keep most people financially trapped

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