Financial Literacy

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Come along with Savings4Freedom and let’s take a journey to financial independence with the help of great videos!

This is a page that will be continuously improved based on the best available contents. It showcases examples and learnings that can help you improve your financial literacy and achieve financial independence and retiring early (FIRE).

What is Financial Independence?
Financial Literacy

What is Financial Independence?

By September 19, 2020 0
Have you already defined your financial goals? What motivates you to save and invest? Let’s explore the concept of Financial Independence!
5 Investment Biases to Avoid in P2P Investments
Financial Literacy

5 Investment Biases to Avoid in P2P Investments

By July 12, 2020 1
Lending, get interest and principle on time is the dream of any P2P investor. However, you need to be aware of the blindness that comes from expecting things to happen according to plan.
Start Investing by Building an Emergency Fund
Financial Literacy

Start Investing by Building an Emergency Fund

By June 28, 2020 2
Common sense investing starts by building an emergency fund. It brings you true peace of mind to navigate stressful situations. How big? Where? You decide!

Principles: Life & Work | Ray Dalio

What if you knew what your coworkers really thought about you and what they were really like? This was my first contact with Ray Dalio. On this TED Talk, he makes the business case for using radical transparency and algorithmic decision-making to create an idea meritocracy where people can speak up and say what they really think — even calling out the boss is fair game.

When I started researching more, I found his masterpiece of “Idea Meritocracy”, Principles: Life and Work

In Life Principles, Ray Dalio explains how solving a problem gives him a token which he calls a principle that enables him to avoid the same problem in the future. In fact, he calls himself a professional mistake maker.

In Work Principles, Ray Dalio believes that the power of an organization is so much higher than that of the individual.

“Work Principles” are essentially the “Life Principles” applied to organizations.

One of the most influential books in my life.

Financial Literacy

Think And Grow Rich | Napoleon Hill

Think And Grow Rich is a curation of the 13 most common habits of wealthy and successful people, distilled from studying over 500 individuals over the course of 20 years.

If The Intelligent Investor is the bible for investing, then Think And Grow Rich is the bible for successful people in general. It’ll also make you rich, but not necessarily by picking stocks.

Here are the 3 that will get you the furthest:

  1. Use autosuggestion to build an unshakable belief in yourself.
  2. Be stubborn and always stick to your decisions.
  3. Join a Mastermind group to cut the learning curve.

The Richest Man in Babylon | George S. Clason

Key lessons from the book about money:

  1. Start thy purse to fattening: save money.
  2. Control thy expenditures: don’t spend more than you need.
  3. Make thy gold multiply: invest wisely.
  4. Guard thy treasures from loss: avoid investments that sound too good to be true.
  5. Make of thy dwelling a profitable investment: own your home.
  6. Ensure a future income: protect yourself with life insurance.
  7. Improve thy ability to earn: strive to become wiser and more knowledgable.

The Barefoot Investor | Scott Pape

The Barefoot Investor is an Australian farm boy’s no-BS guide to taking charge of your personal finances with a simple system focused on eliminating debt, living in the now, and still retiring in peace.

Here are the 3 lessons I see as most important:

  1. Simplify your money management by using different bank accounts.
  2. Shred your credit cards first, then start paying off your debt.
  3. Automate some of your retirement planning with index funds.

Let’s see what practical steps you can take to improve your finances…today!

Money: Master The Game | Tony Robbins

Money: Master The Game holds 7 simple steps to financial freedom, based on the advice of the world’s best billionaire investors, interviewed by Tony Robbins.

Here are the 3 biggest things you should remember to get started:

  1. Never underestimate the exponential power of compounding interest.
  2. Pick one of five financial goals to show yourself that financial freedom is within reach.
  3. Diversify your investments by using a 3-bucket system.

Ready to get the financial education no one gave you in school? Let’s roll!

Rich Dad, Poor Dad | Robert Kiyosaki

Rich Dad Poor Dad tells the story of a boy with two fathers, one rich, one poor, to help you develop the mindset and financial knowledge you need to build a life of wealth and freedom.

  1. For most people, their profession is their income. For rich people, their assets are their income.
  2. If I want to buy something, I must first generate enough cash flow from my assets to cover these expenses. Buy luxuries last, not first.
  3. Excess cash flow generated by my assets should be reinvested into other assets.
  4. Do not simply aim for more income, aim for more assets.
  5. Keep your expenses low and reduce your liabilities.
  6. Create a corporation to protect your assets and reduce tax expenses. An employee earns, gets taxed, and then spends what is left. A corporation earns, spends everything it can, and then gets taxed on what is left. This is the biggest legal loophole that the rich use!
  7. Know a little about a lot. Learn something about accounting, investing, markets, the law, sales, marketing, leadership, writing, speaking, and negotiating. An investment in knowledge pays the best interest.
  8. Work to learn, don’t work to earn. Find a job where you can learn one or more of the above-mentioned skills.
  9. Do not simply buy investments. First, invest in learning about investing.
  10. You will become what you study, so choose your study materials carefully. Find people who are the best in their field. Then study and emulate them.
  11. Every rich person has lost money at some point, but many poor people have never lost a dime. Playing not to lose money means you will never make money. “Winning means being unafraid to lose.”
  12. Failure inspires winners and defeats losers. When something does not work out the way you planned, let it inspire you to try a different approach. Learn and move on.
  13. Be in control over your emotions. Do not let fear or opinions of the general public dictate your actions. When stock prices decline, people run away. However, when the local supermarket has a sale, people buy as much as they can.
  14. Most sellers ask too much. It is rare that the asking price is lower than something is worth.
  15. Surround yourself with people who are smarter than you, and pay them well!
  16. Saying “I can’t afford it” shuts down your brain. Asking “How can I afford it?” opens up your brain and triggers your financial genius to come up with a creative solution.
  17. Pay yourself first. Each month, first invest a certain amount of money into income-generating assets before you pay your bills.
  18. Have a clear purpose in mind. Why do you want to earn more passive income? Write down yours, because it will keep you motivated.
  19. Listening is more important than talking. Do not constantly argue and think with your mouth, but instead ask questions and absorb new ideas.
  20. On the market: do not follow the crowd, and do not try to time the market. Profits are made when you buy, not when you sell.

The Millionaire Next Door | Thomas Stanley

With The Millionaire Next Door, Thomas Stanley explains how becoming a millionaire is not rocket science, just a matter of planning well, living below your means and avoiding a few stupid mistakes. Want to know how?

Use these 3 rules to improve your chances of ending up with a million dollars in the bank:

  1. Save responsibly from the moment you first start earning more than you need to live.
  2. Use this simple formula to calculate if you’re falling short of your financial potential.
  3. Avoid economic outpatient care to reach your goal.

Committed to making your dream of financial independence come true? Let’s see if you can keep these rules!

Why didn’t they teach me this in School? | Carly Siegel

Being able to take small learning steps and make impactful plans to our personal financial lives is an exciting learning process, and this book covers most personal finance basics that invite readers to cherry-pick advice that applies to your life stage and personal values.

Here is the overview of the book:

  • Life Lessons
  • Budget & Saving Lessons
  • Spending Lessons
  • Debt & Credit Card Lessons
  • Investing Lessons
  • Housing Lessons
  • Insurance Lessons

The Science of Getting Rich | Wallace Wattles

In The Science of Getting Rich, Wallace Wattles teaches that, contrary to popular belief, there is plenty of wealth and happiness to go around. This book also reveals the way of thinking that will get you all the riches and joy that you desire. Additionally, it was the inspiration for Rhonda Byrne’s The Secret.

Here are 3 lessons from this book that will help you become rich:

  1. Temporal riches are required to nurture your body, mind, and soul and live a truly fulfilling life.
  2. When you combine your faith and purpose with action towards your goals, you begin to see them becoming a reality. 
  3. Utilizing your talents will lead to greater growth towards making your dreams happen. 

Are you ready to reach a new level of prosperity?

You Are a Badass at Making Money: Master the Mindset of Wealth| Jen Sincero

You Are A Badass helps you become self-aware, figure out what you want in life and then summon the guts to not worry about how to kick others’ opinions to the curb and focus your life on the thing that will make you happy.

Here are 3 lessons from this book that will help you become rich:

  1. Decide you’ll stop caring what other people think. Right. now.
  2. Figure out what you want but don’t obsess about how you’ll get there.
  3. If your habits, surroundings, and friends don’t support you, it’s time to change them.

Ready to discover your inner badass and put him or her in charge? Let’s go!

Rich Dad’s Cashflow Quadrant: Guide to Financial Freedom | Robert Kiyosaki

One of the key concepts of Kiyosaki’s book is the cash flow quadrant, which breaks all people into one of four categories based on their financial intelligence. The four types are employee, self-employed, business owner and investor.

Here is the conclusion for the working class distribution in different quadrants:

  • If you have a job, then you are an Employee (E).
  • If you own a job, then you’re Self-Employed (S).
  • If you own a system/process where others work for you, then you’re a Business owner (B).
  • If your money works for you, then you’re an Investor (I).

It’s possible to become rich in all four quadrants or remain poor in any.

However, it’s comparatively easy and fast to become rich when you’re working on the right-hand side of the quadrant i.e. business owner and investor side.

Real Estate

Design Your Dream Life Through Passive Income | Alex Szepietowski

Alex describes his experiences as a young entrepreneur and the steps many others could take to follow in his footsteps. After interning in every industry he possibly could, Alex realized that, more than any job in the world, he wanted to be his own boss.

In 2012, without money or experience and in his 3rd year of PPE at York (Derwent College), Alex read ‘Rich Dad, Poor Dad’ and decided to start investing in property. He spent his student loan on learning how it was done, and 2 years later owned 24 houses and won a few national awards. Alex is incredibly passionate about inspiring others to believe in themselves and forge their own path, irrespective of their circumstances, or what ‘the norm’ dictates!

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