What is financial literacy?

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I was recently on a podcast to discuss financial literacy.  This is a huge buzz word that has been floating around.  It is often used by people who get paid to teach “financial literacy” (think Robert Kiyosaki).  I don’t get paid to teach financial literacy so I never gave the idea much thought, although I consider myself financially literate.  Nevertheless, I was able to spit off a pretty solid definition when I was put on the spot.

To me, financial literacy is knowing that there are other things to do with your money other than spend it, that will create money that you can actually spend, and then knowing how to utilize those vehicles.  This is real estate, stocks, bonds, notes, going concern businesses etc.  Most people live as though working forever is the only option.  If they knew that financial freedom were possible it is likely that they would be focused on heading there as opposed to just living for the now and getting while the getting is good.

Many of our peers are living in some golden years.  I say some because these days aren’t your best days. At least they shouldn’t be your best days.  If your best days are behind you that is a pretty miserable way to live life.  The problem is that most of us are living as though we have to squeeze every ounce of every bit of life into these years before we have kids.  That just isn’t so.

I believe that you can enjoy life without going full retard so you can take large amounts of cash and put it to work so you can live your entire life in full retard not just this short stint of the single or dual income, no kids, phase of life .  I give up my weekends so that the rest of my life can be a weekend.  I give up my free cash now so I can life free later.

This is a quick blog to encourage folks to continue to prepare for hard times during good times.  Its like the story of Joseph and the Pharaoh.  You stack during the good years so you can sustain yourself during the bad times. Most people who got slammed during the crash didn’t do that.  That is why I laugh at the people who say they are waiting for a recession.  If you aren’t prepared for the recession the recession will eat you alive.  Have fun, live life, yolo, treat yourself but make sure you aren’t just spending and you aren’t just saving.  Put your money to work and get it working as hard or harder than you currently work.

Be great,

Todd Millionaire

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