| When I first started the journey of learning about | | | | estate investments for the assets to grow and |
| financial education, the terms in financial education | | | | resulting in the individual owning assets to become |
| was totally like a foreign language to me. I had heard | | | | richer. A growing tree with healthy green leaves |
| some of those words before but what does it really | | | | looks more appealing. An individual with rich in assets |
| mean. Those moments were poignant moments | | | | tends to look more confident and happy. |
| where I realized that I need a lot more to learn in | | | | With lack of sunlight, air and water, the tree will not |
| this area of study. Through this journey, I have | | | | grow much and the individuals with more liabilities will |
| grown as a learner and raring to learn more in | | | | become poorer and poorer. Individuals with more |
| financial education. | | | | liabilities tend to be unhappy and less confident when |
| My financial education begins with the understanding | | | | they realized that liabilities are mounting. |
| of personal financial statement. One of the first | | | | One way such problems can be eliminated is through |
| terms that I had learn in financial statement is Assets | | | | financial education, such as understanding a financial |
| and Liabilities. These are significant terms one must | | | | statement and playing educational board games such |
| learn and understand to accumulate wealth. | | | | as cashflow 101 and applying the lessons learn in real |
| Assets in simple terms are sources that produce and | | | | life. One has to realize that the financial education is |
| increase your income. For example, owning a part | | | | continual and the individual must be persistent and |
| time home based business, franchise, your own | | | | consistent in making the effort to increase the |
| company and various investment sources that | | | | assets column than the liabilities column in the financial |
| produce and increase your income are assets. Owning | | | | statement. I heard before that if one has money, |
| a rental property that produces a positive cash flow | | | | invest wisely. If one has time, invest in your |
| income can be considered an asset. Liabilities in simple | | | | education. |
| terms are sources that create output and reduce | | | | With this concept of focusing the increase in assets |
| your income. Loans, bad debts and expenditures that | | | | column, one has great potential to become richer. |
| create output to your income generated are liabilities. | | | | With dedication to self develop such as reading self |
| Owning a property that produces negative cash flow | | | | development books, networking and learning from |
| can be considered a liability too. | | | | others, playing financial educational board games and |
| A metaphor that I can use to describe assets and | | | | applying it in real life by starting small like home |
| liabilities is the factors involved in determining the | | | | business, one can slowly develop into better learner |
| growth of a tree. A tree needs sunlight, air and | | | | in financial education area. If one love learning, the |
| water to grow. With right amount, it will grow and | | | | individual will most certainly enjoy and grow well as a |
| bloom with green leaves. Similarly, assets need | | | | person through this learning experience. |
| income generating sources such as business and real | | | | |