The school system, not just in the United States but worldwide, lacks good financial education. If you’re not convinced, look at how many people struggle with money.
Imagine how different the world would be if there were a mandatory class in the school system about how to save and balance your checkbook.
Did the school system teach you how to purchase your first home? No one is taught that, yet it’s the biggest investment most people will make.
In this video, filmed at the Titanium Mastermind in Jamica, Russell Whitney teaches you 3 lessons about finance you’ll wish you learned in school.
1. WHAT IS AN INVESTMENT?
We all intuitively know what an investment is, but what is the formal definition?
An investment has three characteristics. One, it generates income. It will put money in your pocket on a weekly, monthly or yearly basis. Two, it’s something you expect to go up in value. Three, it helps your financial education.
In other words, actively making investments makes you a more educated investor and business person. The more you invest, the more knowledge you have to make more money.
2. REAL FINANCIAL EDUCATION COSTS MONEY
Maybe we shouldn’t regret the lack of financial education in the school system.
Think of it this way. If someone were truly qualified to teach investing and financial independence, do you think they’d be working in schools for $30K a year?
Real financial education is expensive for a reason. Those who are qualified to teach about investing and finance place a high value on their time. They have plenty of other ways to monetize their time instead of teaching.
There’s a reason you’re not going to get proper financial education for free within the public school system.
Russell Whitney spent $40K on financial education in one year alone. It’s expensive, but the good news is it’s the kind of education that will enable him to make an even greater sum of money.
3. BE CAREFUL WHO YOU TRUST
In business, the best investments are expensive, so don’t be afraid to spend your money. However, the worst investments are also expensive, so don’t be careless either.
Russell Whitney lost $50K from investing his money with the wrong people in the wrong deals. Particularly, he invested with an individual who repeatedly told him, “Russell, you can trust me.”
If someone is always rushing to tell you they’re trustworthy, it’s a sign they’re probably anything but. Never invest without a contract in place, and be careful who you trust.