FinIQ-Money Lingo

@FIN.IQ242 Apart from money, wealth is often associated with one thing. Can you guess what it is? *An eternity of silence as I imitate an interactive Q & A Dora scene* That's right! Luxury! Big fancy houses, foreign cars, exorbitant clothing lines, high end jewelry , exotic vacations etc., all of these luxury items and experiences are very often associated with being wealthy... And it should be. Living a life of luxury is something that only the mega wealthy can realistically afford. But here’s the problem: Perception becomes reality. Those of us aspiring to become wealthy can become blinded by the glitz & glam and luxury is no longer associated with wealth. We can actually start believing that luxury IS wealth. This common misconception causes a lot of us to not actually work to become wealthy  but just to purchase non-essentials, as to give off the impression that we are “well off”. Securing wealth is not just about looking good and living

                                        @FIN.IQ242 "Cash Rules Everything Around Me, C.R.E.A.M.! Get the money, Dolla dolla bill y'all!" Shout out to Wu-Tang for this bop but they have it backwards! You're going to need to learn how to rule all of the cash around you instead of the other way around. Cash flow management is the most effective skill that you can learn in your personal finances and is the key to financial  freedom. Income, Assets, Expenses  and  Liabilities  are the 4 major aspects of your cash flow.  Income Income is your cash inflow and it can be broken down into two categories; active income and passive income. Either way, you're getting paid, but they both have two completely different strategies.  Active income is where you use your time and energy to get paid (boooo!), but passive income is where you use your money to get paid (yayyyyy!). Working for money is a very common thing to do. Some persons develop lucrati