Financial literacy - free course from 4brain, training 30 days, Date: December 1, 2023.

Due to ignorance in the field of economics and money, people are often unable to provide themselves with a decent life, even with a good salary. In addition, other people often take advantage of our financial illiteracy, which leads to dire consequences. It is for these two reasons that it is worth learning the basics of financial literacy.

As you will see later, the ability to earn a lot does not mean a comfortable life. If a person earns money only with the help of certain skills (music, medical education), then this is not enough. The ability to manage the money you earn requires completely new skills and knowledge - and this is what can lead you to financial independence.

We are not taught how to manage personal money at school or even at university - and this is the biggest omission both for any state and for you and me. We come across money issues several times a day and at the same time we do not understand at all what money is and how to become a financially wealthy person. Moreover, if you ask almost any person what a financially wealthy person is, the answer will be the same: “The one who has a car and a good house.”

In our course, you will understand that this is an incorrect definition of a wealthy person for many reasons and you will learn what kind of thinking you need to develop in yourself so that later achieve a stable financial position for several years, or at least acquire some habits that will help you save wisely and not throw money away on wind.

What is financial literacy?

This is not a very simple question, because different people understand it differently, and this concept itself is rather philosophical and purely subjective. But if we still try to give direction to our course, then we can say that:

Financial literacy is a clear understanding of how money works, how to earn it and manage it. There are two main characteristics of a financially literate person. First: his expenses never exceed his income. Second: any positive difference between monthly income and expenses is used in investments of any form.

Surely you know many people who have been earning quite good money for several years and yet are barely making ends meet. They are great at what they do - it could be programming, art, science, sports. However, some of them even manage to get into debt. And it would be nice if they bought themselves important things with the help of which they develop. Typically, these products are completely pointless and purchasing them becomes burdensome.

This may seem strange, but in fact it doesn't matter how much you earn at the moment. In the history of mankind there are thousands of stories about how a completely poor person became a millionaire. There are also reverse stories - people who were hit with wealth managed to lose everything in a short time. Therefore, it is very important to understand that your current income is not a death sentence. This is precisely why financial literacy is needed. It shows how, by acquiring some financial habits, anyone can climb out of a financial hole and get back on their feet.

Economics is a difficult tool to understand. This is evidenced by financial crises, when even the best economists in the world were not able to predict things that now seem obvious. Now economists use the phrase about cycles, abdicating responsibility: “There are cycles, there will always be world crises.” No one can predict the exact date of the crisis, but everyone can prepare for them.

Can a millionaire be financially illiterate? Maybe. For example, this is a Hollywood actor who can receive several million dollars for one role. After some time, his fame fades, and along with it his financial fortune disappears. Therefore, he is forced to spend the rest of his life playing low-paying roles, selling off his property in order to make ends meet. This is a perfect illustration of the importance of financial literacy.

Application of financial literacy in life

Studying the theory, cultivating a conscious attitude towards money and financial thinking - these three things will help any person get settled in life.

Financial thinking is most important, but it is very important to constantly learn and supplement knowledge with practical skills. Some people believe that you need to work as hard as possible to become financially secure. On the one hand, this is true, but on the other hand, you must first of all work wisely. Once you start your financial journey, you are forced to work as hard as possible. But there is one important point: the more money you have, the more intelligently you should approach your work.

Remember that you can apply financial knowledge now. Everything you do with your finances today affects your future. When you stop buying things you don't need, you have new opportunities. A simple thought begins to form in your mind: money should make new money. Simply spending your income gives immediate results and does not move you forward in any way.

Any book about financial independence will first of all make you understand the importance of optimizing expenses in your life. Spending everything you earn is the worst strategy, worse than living on credit.

Our course will help you change your life and attitude towards money. You will learn to think in terms of decades. In any area of ​​life, satisfying immediate desires does not lead to anything good. In the financial sphere, this can lead to the most catastrophic consequences. The financial literacy course is designed to change your thinking and help you become a more mature and responsible person.

How to learn financial literacy?

No one is born financially literate. You can be born into a rich family, but this does not guarantee you a wonderful financial future.

To develop financial thinking in yourself, you need to devote many months to this. However, you can develop many positive changes in yourself within a few days. The theory of money can be learned fairly quickly, and you can also understand how the stock market or bank works. And only by understanding how finance works will you begin to move forward little by little.

In past times, financial literacy was even worse. Man was forced to work from morning to night in order to at least survive. Financial culture existed in its infancy. To become a wealthy person, you had to use force. Nowadays, a lot has changed and this is a great chance for each of us to succeed in life. There is a lot of freely available materials: books, courses and videos. Any information is available here and now. However, as we know, the availability of information at the same time depreciates it. You must clearly understand that you already have everything you need for financial prosperity, you just need to find the right materials.

Perhaps the most important skill for developing financial literacy is discipline. More than 90% of people in the world spend money completely thoughtlessly and it is for this reason that none of them will become a wealthy person. Nobody guarantees anything to the remaining 10%, but they still have more chances. By developing discipline around your financial habits, you increase your chances a thousandfold of being retired in ten years, having passive sources of income, and doing whatever you want.

How to take classes?

At times this course may not seem very easy, but we tried to mix simple and difficult things. Economics is somewhat complex, but once you get to know it better, you will understand that it has its own quite logical and understandable laws. There are also completely illogical things in it, but you will understand this and do everything to be prepared for the unexpected.

The first, third and fifth lessons are more related to theory than practice. You can choose this order of study. The theory will require the least amount of time. The second, fourth and sixth lessons are mostly practice and require more time to study and implement.

However, you can study the lessons in order. The symbiosis of theory and practice is the right approach and any professional knows about this. You can think a lot and not act, or you can act thoughtlessly and make a lot of mistakes. When you think and act, you get the best results.

You can complete our course in two ways, related to time periods. For example, if you have time, a week may well be enough for you. However, we recommend that you take the course more thoughtfully and return to it from time to time. Once you've completed the course, come back and reinforce your skills, review the recommended reading list, and move on. However, our course is self-sufficient in itself and will help open your eyes to many things. We tried to make it fun and easy to understand.