School sets you up to be a good worker or academic, but what happens if you want to be an entrepreneur? To be an entrepreneur, you need financial education that school simply refuses to provide. If you want to be a business person or an investor, what you learn at school can hold you back! In a recent video on my YouTube channel, I reveal what school didn’t teach you about money. I highly recommend watching the full video (above) as it contains important information for anyone looking to get started in business, property or investing.
I wasn’t very good at learning in school. I thought that my only option was manual work. But in reality, I had an aptitude for business that simply wasn’t recognised. In this article, I will give you 3 lessons about money that the school system never taught you. You may find that you also have untapped talent!
1. Financial education on passive income
Many people think that passive income doesn’t exist. In school, you are only taught about active income, i.e. getting a job and getting paid a salary. But if you want to be financially free, you need sources of passive income. There are only so many hours in a day, so you need to disconnect the number of hours you work from the amount of money you make. That way, you can begin to build wealth.
When I am on holiday, my properties are still producing income for me. This is passive income. You don’t need to make millions to be financially free. Focus on earning £2000-3000 per month in passive income. This will secure time freedom that will allow you to focus on your business rather than a job!
2. Financial education on good debt
There is good debt and bad debt. We are never taught about good debt in school. Society tells us to clear our debts or to get into debt for a property to live in. Good debt is when you use the debt to buy an asset that brings in more than your repayments. When I buy a property to rent out, for example, I make sure that I will be bringing in more than the mortgage payments and other expenses. This means that having the debt is paying me!
Bad debt is when you use the money to buy something that doesn’t bring in an income. This includes holidays, clothes and home improvements for your own home. Banks are eager to get you into bad debt, but they will tell you it is ‘too risky’ to lend you good debt.
3. Financial education on asset vs. liability
An asset is something that brings in money and a liability is something that costs you money. That is a practical business definition. It's not what they will teach you in school. In school, you will be taught that the house that you live in can be an asset. However, this definition isn’t particularly helpful if you want to get ahead. Your house costs you money: mortgage payments; repairs; upkeep, etc.
On the other hand, owning properties that you rent out is an asset. Owning a good buy-to-let pays you profit each month after all expenses. That’s why it is much more important to buy an investment property before you even consider buying a house to live in! I didn’t buy my own home until I was a multimillionaire!
If you want financial education that the mainstream school system will never teach you, I can help. I am running a training event soon, and I would like to invite you to come along.
On the course, you will learn how to:
Become a property investor using other people’s money so that you can get started straight away
Utilise the 5 different types of raised finance so that you know exactly what to offer and when
Find the perfect properties for the BRR strategy
Recycle your money so that you can ‘rinse and repeat’
Build a power team you can trust, so that you can save time and money
And much more!
Tickets are only £1, and you can get yours here. If you care about your financial future, I hope to see you very soon!