How to learn finance: the definitive guide to your financial freedomAre you in debt? You are not free. As simple as that. You are in the hands of the bank …
And it has happened to all of us. We acquire debts to pay for educational loans, loans to buy a home or even to pay for those beautiful vacations in the Caribbean.
How do we get out of that cycle?
You have to learn finance. Is the only way. It is your door to financial independence. Manage concepts such as financial education or financial intelligence .
For example, would you know what is the best investment to beat inflation 2018 without learning finance?
The Internet changed the world. It changed the way we communicate thanks to social media. It changed the way we listen to music by moving from cassette to Spotify . And even the way companies connect and strengthen their work over the phone.
But the most important thing is that the Internet opened our eyes, since it allowed someone with more experience to explain something to us. This is how tutorials have become basic to people’s lives. 76% of netizens are fans of manuals.And this is the most complete MANUAL you will find about your first steps to learn finance.
Learn finance on the Internet
That’s right: today you are going to learn finances through the Internet!What do we guarantee you throughout this guide? You take the following:
Learn to invest
- Your first steps in financial education
- Learn finance from scratch
- Personal finance : the best tips
- Investment course
- Finance course
- The best finance books
What are finances
We start at the most basic level. Think that if you want to learn finance you need to advance little by little.Well, finance is a branch of economics that studies the exchange of capital between individuals, companies or the State.
When you look for what finance is, you will learn that it is dedicated to the study of obtaining capital for investment in productive assets.When Bodie and Merton explained what finance is they devoted themselves to “studying the way scarce resources are allocated over time.”They indicate that the term finance comes from the French finance and refers to the obligation that a subject assumes to respond to the obligation of a third party.
What is a good definition saving ?
We know that saving is the action of separating part of your monthly income and saving it for the future.In economic theory, saving definition refers to the part of income or income that is not dedicated to consumption.
In Egypt and China harvest fruits were saved in order to save this material good in the future.And in 1462 the first savings organization was founded, a mount of piety, to take care of the members of the partial or total theft.
Do you understand the definition of savings better ?
It is like a walk. It cannot be done without taking a first step. Savings cannot be achieved with just one amount of money.The key to saving is the ability to collect money on a regular basis over a period of time.And, as in the case of the walk, it will be longer and will allow you to go further, the more steps you take.
In the case of definition savings, there will be more, if you save an amount of money for a longer time.And saving definition is just one of the key concepts on your way to financial education .
Risk and benefit
Investors act in the markets in order to obtain the highest return by trying to minimize the risk of their investment.For example, the investor obtains a higher expected return in exchange for enduring greater uncertainty.
Value of money over time
Faced with the same amount of money, an investor prefers to have it in the present than in the future.
It is defined as the price that is paid for the funds requested in loans, in a period of time.
Financial education: what you need to know
According to the Organization for Economic Cooperation and Development (OECD), financial education is defined as the process by which consumers or investors improve their understanding of financial products, concepts and risks.
Furthermore, they develop the skills and confidence to become more aware of financial risks and opportunities.
In short, financial education consists of developing initiatives aimed at familiarizing citizens with financial issues.In this way, the financial decisions of individuals are adopted from a sphere of greater knowledge of the products and services that best suit their needs.
And what is financial education for ?
Learning how to use money goes beyond saving. Financial education consists of an extensive framework of possibilities that allows the execution of actions for the benefit of various sectors associated with their needs and conditions.Banks view financial education as a central element of the consumer protection regime, as well as an engine for economic and social development.
And it is that financial education seems to be the Achilles heel since to date it has not been given the greatest relevance.But calm down. We help you learn finance through this guide in which you will go through all the essential concepts.