Hey, guys most of the people always talk about how to earn money or being rich overnight. They often dreamt of having big bungalow cars fancy facilities and amenities for them and always begging all of it from God and always being waiting rather of doing anything about it they always keeping their Destiney reason for it.

According to them, they don’t have good enough fortune to have to all that they want. But sadly they have misconceptions about getting rich. People usually reckon that being rich is the chance of luck like to born in a rich family is luck or getting huge returns on share market etc. Reality is far away from all the misconceptions and presents thinking What it should call it we should name as the box mentality, so let’s discuss the main assumptions which are we have that should be neglect from our life.

First thing is “to be rich you need to be lucky”, also thinking like “to have the huge income you need huge scale business”, And ”to have a huge business you need huge capital”.

Now lets jumping to the reality of being rich and wealthy and analyze the basic things regarding finance of the money, We call it financial literacy

So What is financial literacy and what are the benefits of it and why every person must have deep knowledge of it.


There are two types of income that is an active source of income and passive source of income First gets deep about the active source of income the typical active sources are like a 9 to 5 job a or doing something of your own like selling food on streets by making by your self. Source of income like this will give you benefits only till they are active .but they will not pay, once U stop working your payment will also stop

However, the passive source of income is completely out of this form it allows you to earn even when you having a bed rest surprisingly in spite of being a really good source or method to earn money this knowledge is confined to very fewer peoples

As being aware of the types of incomes lest get the very important terms that matter crucially in someone life and that is

  • Assets
  • Liabilities

Assets are something which gives you Money passively without requiring any expenses except time investment asset we something can bring money to your account without taking much of money expenses.

Liabilities are the things that consume your money until you have it throughout your life like its purchasing cost maintenance cost repairing and all the cost requirements regarding it, it does not give you any returning amount back to you .the most promising fact is 83.7 percent of our Indian population or people spend 80 percent of their salary which they have earned in their whole life career That’s shocking actually sad but true .

Now let’s talk about what they should do instead of wasting their hard-earned money to multiply it or to become rich or to have financial freedom.

So understanding these basic pillars of financial literacy is not enough one have to clarify more of the structure of the money flow of himself or how his money is going wasted.

So usually the peoples do this to their money.


According to great businessmen and investors the brilliant policy to have a great amount of money or to have to earn money fast is to save money before spending that means whenever you got your income in your hand the very next thing every smart person should do is to save the money almost 20 to 40 percent of the whole income you have means you should forget about that money on time of spending money that you have more money.

What it will do is its will is that you have the money as a backup for the future without being fear of expenditures.

The second thing is every person should invest their money to save it.. confused? how money can be saved by investing all of it to understand this lets get deep into this suppose the money t you usually put into the bank will never benefit you except some amount of the interest rate that all you will get but the money is there for a long time will never be double or even become 1.5 times of itself and in the end it will be spend whole at a stage .

So investment should be done with that money “you should invest 10 percent of your income said Benjamin Graham in his book “The Intelligent Investor” a really must book for every novice person to the field of investing and the

This is the whole overview of the investment which is a type of assets,  the financial literacy is .now let’s conclude what I want to convey through this article and what is the objective of financial literacy

Is spread awareness educate consumers about local products like assets like bonds, shares, debts, mutual funds, and real estates etc.

At last, live your life at its best work smartly invest more in your skills and knowledge also not only your money even your hard work.

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Categories: Finance


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