📒 Summary + Notes

💪🏻 Lesson 1: The rich don't work for money, money works for them

Risk is needed to gain any sort of reward so cannot let fear guide financial decision
- ex) Fear of getting fired cannot influence investing habits
Complacency or giving up on your position in life with lead you to live a stagnant life without opportunities
Don’t let fear and desire dictate how you view money ⇒ Think with head not heart
Ignorance about money intensifies fear and desire for money so be more knowledgeable and the best way to do that is to think rationally about money
Make money work for you ⇒ Have multiple revenue streams so don’t only need to rely on income from job you don’t need to actually work for loeny to grow so more assets you create platforms to create money

Be your own financial negotiator
- Build asset revenue streams
  - Invest in stocks
    - create a brokerage account (Vanguard or Fidelity are usually great for beginners) → add affiliate link here
- Look into passive sources of income
Don't be emotionally charged
- Try dollar cost averaging index funds

Assets put money in your pockets and liabilities take them out
If something takes away education opportunities, capital or time ⇒ liability
- Ex) Owning a house sometimes results with cash flow going out so owning house could be seen as a liability
Cash flow is what differentiates the rich from the poor
- Need to have a net positive cash flow from income producing assets to develop wealth
  - Net positive cash flow: expenses should not keep up with income
- Cash Flow all about how you choose to spend money after you earn it
More cash flow should go into income and assets and have less cash flow going to liabilities and expenses

Become financially literate
- Need to know difference between assets and liabilities
- Learn basic accounting skills
  - Ex) Watch accounting Youtube videos
Track finances
- Differentiate cash flow from assets and cash flow from liabilities
  - See how long cash flow from assets can last you