Financial Literacy

This page provides knowledge of financial education, or what Robert Kiyosaki, the author of best selling book 'Rich Dad, Poor Dad' calls financial literacy or financial aptitude. Basically, if you want to learn how to make your money work for you, rather than trading your time for money, or being paid by the hour, then this page is for you. I can also show you how to receive free money to get you started in investing at the bottom of the page. Nothing on this website is legal or financial advice btw and there is always a risk involved with investing, whether in gold, silver, stocks and shares or anything, although if you got that money for free, you obviously can only gain. Whether you gain profit or experience, so make sure to be informed before starting. (Be sure to bookmark this page as I will be adding to it later)

In his same very informative, best selling book, Robert Kiyosaki tells us a new rule that the rich live by, in each chapter, starting with, as I paraphrase here, 'the rich don't work for money they make their money work for them'.

He also says that many poor or middle class people often say, "I'm in debt, so need to make more money." and that getting money isn't a problem. It's the lack of financial literacy that's the problem. So if they get more money, the problem might get worse.

What they actually need to know before how to make more money is how to manage money, aka financial aptitude. Most people learn how to work hard instead of how to make money work hard for them.

So that's what this page will be about.

Following on from what I already said on the 'Bitcoin' page and to recap, and to hopefully add more understanding, fiat currencies, like the USD, GBP etc devalue every day. This is because of inflation. The meaning of inflation is that the government inflates the money supply, (putting more money in circulation) making our money be worth less and have less purchasing power, because the total value is determined (divided) by how much of it is in circulation. (It is what causes depression bubbles etc) and the only reason they inflate the money supply is because they not only borrow money at interest from the banks, but also because the interest on the national debt is so high. More than £5120 per second in the UK! Yes that's right, per second.

Bitcoin is decentralised, so may fluctuate in price/value, just like gold, silver and other commodities, but in the long run they generally at least hold their value, but mostly increase in value over time.

Whereas fiat currencies like USD and GBP always devalue, due to the constant accruing (increasing) interest on the national debt.

Conclusion. Saving money is a sure way to have less money over time (in the long run) than to what you started with. Whereas, on the contrary, investing money, in gold, silver, ETFs, bitcoin, properties/real estate, art etc, just as the rich do, are sure ways for your money to at least hold its value, once you know what you're doing, and then most likely to increase in value.

This is why the poor "save" their money, while the rich invest theirs.

ISAs and ETFs 

ISA meaning, from Oxford Dictionaries online:

ISA

/ˈʌɪsə/

noun

1.(in the UK) an individual savings account, a scheme allowing individuals to hold cash, shares, and unit trusts free of tax on dividends, interest, and capital gains. In 1999 it replaced both personal equity plans (PEPs) and tax-exempt special savings accounts (TESSAs).

Here is some info about ISAs from gov.uk, click link to view more:

https://www.gov.uk/individual-savings-accounts

There are 4 types of ISA:

cash ISAs

stocks and shares ISAs

innovative finance ISAs

Lifetime ISAs

You can put money into one of each kind of ISA each tax year.

Who can open an ISA

You must be:

16 or over for a cash ISA

18 or over for a stocks and shares or innovative finance ISA

18 or over but under 40 for a Lifetime ISA

You must also be either:

resident in the UK

a Crown servant (for example diplomatic or overseas civil service) or their spouse or civil partner if you do not live in the UK

You cannot hold an ISA with or on behalf of someone else.

You can get a Junior ISA for children under 18

ETF Meaning: 

noun
Short for exchange-traded fund

Powered by Oxford Dictionaries

Benefits of Using an ISA Account for Stocks and Shares (ETFs)

The main thing to know about ISAs is that they earn you high interest, this is why you can't take the money out for the whole of the tax year that you put it in. But there is no capital gains tax, no income tax, nor dividend tax, on savings of £20,000 in total. Any more than that per financial year, whether in one account, or spread over mulitiple accounts, will incur tax. You're also only allowed to open one stocks and shares ISA account, which is for ETFs in other words, per financial year. And if you open another account the following year, you can not invest in the previous account, unless they are different types of ISAs, for example one stocks and shares ISA and one cash ISA, otherwise you will have to pay the tax that is normally waived. So when it comes to investing, just focus on one account per year and invest less than £20,000 into that account. If we compare this to standard ISA accounts you have to pay taxes on over £2000. The only taxes you have to pay are the following 3:1. Stamp duty tax, which is paid at point of sale.2. US withholding tax if you own US stocks, normally you pay 30%, or 15% on all US dividends if you fill out the form they pdovide, you'll only pay 15%. 3. There is also a tax on certain stocks from certain European countries, plus a small transaction fee per trade. An important point is, that unless you have someone managing your account, you'll also have to reinvest any money you have sitting in your account each year, for it to earn interest or dividends. Most stock and share ISAs are not flexible, meaning if you have invested £18,000 into an ISA, and you take some out, or move some money from other accounts you may use up your £20,000 tax exempt allowance or go over it and be charged tax at a later date. So it's important to not treat it like a standard bank account.

There are ways to invest more than £20,000 into an ISA each year without paying taxes. For instance, if you have a spouse, or other family member who doesn't have an ISA or doesn't want to use one, they can open one in their name and hold yiur money there perfectly legally. £9000 a year for a junior account, for someone 16 or over (until they turn 18 and the money can't be withdrawn until they do)There are online platforms that manage your funds for you and different types of investments other than just stocks and shares accounts, for instance index funds, FTSE 500, FTSE 250, SMP 500, Vanguard, commodities and other types, again up to £20,000 per account, per year, in case you'd rather spread or diversify your investments, but make sure to check what extra fees you have to pay for investing in this more diversified way and for it being automatic once you choose from the options provided.

FREE £10 - £50 

To get you started, InvestEngine are offering to give you up to £50 to invest on their website. When you use my referral link below, we both get rewarded with some money to invest on their online platform:

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More Reseources

Money Saving Expert have lots of great ideas in how to make money withoit getting a job, as does Money Nerd. Then there are websites like 'upwork' which allows people to offer their services direct online. Look them up.

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