How To Make Your Money Work For You! | Sherique Dill | Skillshare

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How To Make Your Money Work For You!

teacher avatar Sherique Dill, Prosperity Success Coach

Watch this class and thousands more

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

10 Lessons (54m)
    • 1. Introduction to Class

      3:01
    • 2. Inflation Explained

      3:21
    • 3. How Inflation Affects Your Savings

      4:05
    • 4. Spending Tracker and Budgeting

      5:12
    • 5. Ways To Beating Inflation: Commodities

      5:33
    • 6. Ways To Beating Inflation: High Yield Bonds & Stocks

      8:23
    • 7. The benefits of inflation/Mutual Funds

      8:14
    • 8. The Affects Of Inflation on Employees

      6:29
    • 9. Reduce Debt Before Investing

      5:30
    • 10. Bonus Video: Insurance and Write A Will

      4:03
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About This Class

Would you like to have money in abundance? Is your money working for you or are you working for your money?  The truth is most people won't be able to live the lifestyle that they want because they don't understand how money works. 

Many people believe that the way to become successful in their financial life is to save more money. This is why they work at their jobs so hard.  They believe that working one hour and being paid one hour is the key.

This class gives financial strategies that will allow your money to work for you so that you can build generational wealth and have an abundance of money flowing into your life.  This is very achievable if you follow the system that I have put together here in this class. 

Success is not luck.  Success is a calculated formula, which means that once you have a plan, and act consistently, you can have what you want.

Why should I take this class:

  • To increase your financial skills
  • To find out how to make your money work for you
  • To learn money management skills
  • To learn the truth about the rising cost of living
  • To activate the abundance of money in your life

After taking this class:

  • You'll understand the different areas you could invest in
  • You'll be able to implement better money management skills
  • You'll know ways that you can beat inflation
  • You'll be able to track your spending and budget
  • You'll understand why you shouldn't be obsessed with saving money 

CLICK THE ENROLL BUTTON AND LEARN MORE ABOUT MONEY TODAY!

Meet Your Teacher

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Sherique Dill

Prosperity Success Coach

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Transcripts

1. Introduction to Class: Dreams and goals that you have right now pending on the inside of you. But you are not able to achieve an accompanist stem because you don't have the financial means to do so. You don't have any money. You spend on splurged your money on things that would not necessarily on day one, not even valuable on meaningful to you on so now there are some things that you wanted to eat. You can't do them because I don't want you to do so. You don't have the proper strategies, don't worry, management skills and strategies needed to be successful when achieving accomplishing abroad. Are you willing to learn those strategies? If this is you, you can learn these strategies right here, right now in this class today. For those of you who don't know who I am, my name is she retail and I am a personal finance coach. I teach people money management skills. I am an author of three published books, and I am a proud owner of SD belt building Academy, where I also teach money management skills. I inspire, motivate individuals to be their best self, to grow and develop and to always go after success. And because it is achievable once you, the system and the structure that is necessary to do so. And so I am so glad that you are here checking out my class. I promised not to base your time. I promised that after taking this class, that you will have grown and increase when it comes to your financial knowledge and literacy. And so feel free to further check out the class to see what it is about. And after taking this class, your financial abilities would have increased iron. You can step on competent in a room, knowing and achieve your financial goals and know treats. And so I am glad that you appear and ion so much, so much looking forward to seeing you on the inside of this class. So don't hesitate and don't procrastinate. Go ahead and collect data robot. And so I will see you on the inside of this life-changing and amazing class, blessings, and have a great and a wonderful day and see you in the dataset. 2. Inflation Explained: It's your money working for you or you continuously working for money? I you sing the benefits of your money in your everyday life, or are you left frustrated and discouraged because you just don't know where your hard work is going. Like you're not seeing the benefits of you actually getting a salary because as soon as the money hits your hand, it leaves your hands. Well, in this class we will discuss why that is a possible reason why this is happening. And it's because of the rising cost of living. You will learn about that here in this class and I'll give you practical ways of how it is affecting you in your every day life. So what is inflation? Do you know? Have you ever heard of the term, when you hear the word inflation, what runs on in your mind, do you have a clear understanding of what it is? Because if you watch them money to work for you, you must understand this very important term and how your money can be eaten away by it. So inflation is simply the rising cost of living, the high cost of living, okay, that causes your money to decrease in value, overturned. And it is a decline of purchasing power. So what that means is what you have done with a $1000 last year, you won't be able to do this year exactly because the value of that $1000 would have decrease. So this is what inflation is. Okay? So the rising cost of living causes now this $100 that you had last year to actually weren't more last year than it works for today or that it is worth to day. And so every year your money is losing power. It is losing power. And would you cut up done, you won't be able to do so every year. The rate of inflation is around two to 3%. It is a general mock. It could be more, it could be for percents. Here is an example of inflation. Let's look at the price of milk. So in 1913, a gallon of milk cause about thirty-six cents per gallon. 100 years later, in 2013, a gallon of milk costs $3 on 53 cents, nearly 10 times higher. The increase in the price of milk is not because it is scares or more expensive to make. Instead, this price reflects the gradual decrease in the value of money as a result of in inflation. 3. How Inflation Affects Your Savings: So let's look at savings. Are you saving? Because when you speak about earning more money, it is very vital that you have a saving strategy and you have a spending strategy so that you are responsible when it comes to your savings because you're not able to invest If you don't have the money and the capital available to in vans. And so the proper thing to do is to pay attention to your savings. Pay attention to how you are spending your money so that you are able to achieve your financial goals. And so let's look at some ways how inflation affects your saving. So what you'll want to do is create an emergency fund. Now, financial experts suggest that you should have at least six to nine months of savings in an account for emergencies. What are emergencies? Well, just say you have some house repairs that you need to do or your car's broken down and you need to buy some parts for your car. Medical expenses. If you lose your job, you need to have funds available for these type of things. So what is a cash cushion for the rainy days? And so even if this is a stretch, because some people are not able to save six to nine months worth of savings because they just are not making enough. And so what you can do is start off with a thousand dollars. You can put this $1000 in an account on save it for rainy days and Azure money increases, then you can go ahead and increase that. So once you have enough money and your emergency fund that is able to cushion you and take care of the emergencies and the unexpected things that may happen in your life. Then what do you do? Can you think of anything that you should do next? You should not just take your money and continuously put it into a vine because you're buying as not paying you any money. It only pays you about two to 3% of interest on your savings. And so you are losing money because if the inflation for that year is two to 3% or even 4%, that means that the two to 3% of interests that you would have receive on your money by taking it and putting it into the bike was eaten up by inflation. That means that you would have lost money. Because if you've got 3% of interests from your buying on your savings, but the inflation rate for that year was 4%. You would lose 1% of your money because of inflation. And so taking your money and putting it into a buying is risk-free, okay? It doesn't have any risk. And this is what the situation is and why people are not able to increase their money, earn more money, and build generational well because they are looking for easy ways to save. And so if you are a saver, you are losing money, which you should do is make sure that you have enough money in your emergency fund so that if you have challenges and obstacles, you are able to supply those needs. You're able to meet those needs without frustrations and disappointments. But you should not just keep taking your money on dumping it into. 4. Spending Tracker and Budgeting: So I know many people look at the title of this course and they figured that they are going to meet some Janie that is going to come out of the bottle and bring Welter them all that there is some magic button that they can progress and success and wealth and riches, but magically appear. So sad to say that it doesn't work like this. Success does not happen overnight and you will only get what you deserve. So if you want your money to work for you, that you must take care of your money. You must show the universe that you deserve money. And you deserve to get more money because you know how to take care of the little that you have now. And so you need to learn some spending strategies, okay, to protect your money, are not waste your money so that you can invest it and get a good potential return on your money. So he was spending strategy that I teach my clients and personal finances. So what you want to do is create our spending tracker. This means that you must be very disciplined because every time you spend your money, you are going to write it down. The reason why you are writing down all of your transactions is because you'll want to create a budget. You don't want to spend money as you want to know. All of your money should have something attached to it. Okay. It's at how about purpose? If it doesn't have a purpose, then it's not meaningful and valuable and you are going to spend it on anything that you want to spend it on. So the first thing you need to do is create a spending tracker, track your money. If you buy a cup of coffee, you want to write that down. Now you can use a ledger which is all school, or you can use an app where you can interject the transactions every day so you are seeing what you are spending your money on. What this does is it creates financial awareness and financial consciousness. This is a very good habit. So after you would've tract you're spending, now you are fully aware of how much money you're spending on certain things. For example, you'll be able to see now that okay, every month I spent $250 on groceries. Every month. I see that I have been spending a $150 on gas. Every month. I am spending a $150 on takeout food, or I'm spending $50 on coffee. You will be able to see this formula tracker. And you will be able to analyze your spending and make some adjustments in your life so that you can have the money that is required to achieve your financial goals. This is what it is about. You have the desires and your heart, and you want to attain them. In order to do this, you must maintain self discipline, okay? Many people are afraid of budgeting because they believe that budgeting is for Paul. People know budgeting is not for poor people. This is a skill on a strategy that the rich people use. They have a budget. They are not waking up every morning because they have a million dollars or $2 million believing that they can just spend their money on anything. No. They have a plan. They understand the power of budgeting and you should too. And the less money you have, the mall budgeting you need to do. And so this is a very good strategy and it will take you far and believe it or not, after you were, would have accepted this strategy in your life, you will see how your financial life is just flourishing. And so many things are working together for you because you are doing the work and you will see that you will have more money and abundance that you can use now to do something that is more valuable and meaningful in your life. And guess what, you will be able to live, the lifestyle that you desire and being able to do the things that brings joy and creates fulfillment in your life. 5. Ways To Beating Inflation: Commodities: So I'm sure you're asking yourself by now. So what are some ways awesome things that I can do to beat inflation? So let me ask you, can you think of a way that you can double your money and you can beat inflation. If you said Investing, You are correct. And vesting is the tool that the Welty and the rich use to beat the rising cost of living, the high cost of living. Because not only is it rising every year, it is very high, and many people are finding it very difficult to just basically live to just get our purchase the necessities or do the necessities of life. And so if you want to do with the rich do and live like how the relative, you have to understand what investing is. And you must understand the tools that you can use in able to invest and to allow your money to grow. So can you think of some ways to beat inflation? I have some AZO on the screen. But if there are some ways that you can think of, or if there are some things that you do now in your life, you can go ahead and write them down and work on them, study each one to see how they work. And so the first thing on my list is commodities, okay, gold and silver. These are two commodities that I have chosen to list here. But of course there are different commodities that you can use. Some people invest in oil on, on other things like that. But goal is very precious because every time the dollar value decreases or there is a problem or a challenge with the dollar value. Investors and the Welty and the rich run to purchase more goal. So that means the stock of gold is increasing. Gold and silver is real money. It is not fake money. Okay? We hold the dollar in our hand every day and we feel powerful when we hold the dollar. But if you were to take that same $1 that you are holding and take fire I light fire onto that dollar would will happen. Right? Thank you. It will burn. So it is not true, money is made by man. Anything that is created by man, when it comes to money and currency is not true. And so gold and silver is not created by man. It can never be destroyed by month. It is true and real. It is precious from the earth, from mother, nature everywhere to take fire and lighter to go. And we're only Peru or PHI it. Okay, it will never destroy a goal and it won't destroy silver. And these are assets because mine uses gold and silver more than just as currency or money, but they also use it to do other things. Okay? When you look at just cell phone, there are silver inside of that. And then of course you have gold. There are so many things that you can use goal for, you know, jewelry and all kinds of other things with it is true wealth. And so now that you know this, it is good to take your money on TBI physical goal on silver. The reason why you want to do this is because it's more valuable than the dollar. If you buy goal. Now to date, on the market, it is roughly or approximately about one hundred, seven hundred and eighty dollars. A few years ago it was only $1300. Now it has risen because of the pandemic on all else going on, it has risen now to about 17, almost $1800 for one ounce of gold. Let's look at silver. If you were to look at the stock market now, silver straightening out about $30.04 or roughly between 25.30. Okay. Baghdad, a few years ago, it was only $15. So you can see how the cost of gold and silver is rising. And so if you purchase it today, can you imagine how much it will be worth in a few years? This is what investing is. It is not fun now, it is for the future, because what you want is for your money to grow over time, that is the key. And so you would have taken a small amount of your money and visited and something that has the ability to create a, a higher return. That is the key word when it comes to earn in an abundance of money, it is your return on the money that you are in vesting. 6. Ways To Beating Inflation: High Yield Bonds & Stocks: So another great way of beating inflation is investing in high yield bonds. So firstly, what is a bond? A bond is an I, O, U, okay? There are small businesses and organizations that sell bonds because they don't want to go the traditional route of going to bind, to borrow money. So they are looking for investors who are willing to, to give them the money that they need. And they will pay them in exchange. A coupon payment, which is an interest on the money that they have led them for a period of time. So the buyer of a bond is a lender. The seller of a bond is a borrower. The bond buyers pay now in exchange for a promises of future repayment. The bond sellers receive money now in exchange for their promises of future repayment. That is, that they don't always. So bond offers fairly reliable returns through coupon payments. They are less volatile and less risky. So it is less riskier than a stock, okay? Because of bonds guarantee or reliable return. Okay? So basically it is alone. So if you buy a bond, okay, the company that gets the bond from you, other money from you. They are bonded to repay you because that is an I O, U and works the same as if you were to borrow money from bike. So N general stocks are riskier than bonds due to the fact that they are offering no guaranteed returns to the investor, like bonds, which offer reliable returns through coupon payments. And so when you take your money and you learned to accompany who was the borrower, then? That is the face value. Let's say it's $20 thousand is the face value of the bond. So you will lend them $20 thousand for ten years and they will pay you, for example, 5% every year on that $20 thousand. When that $20 thousand bond has MA chart after the 10 years, then you will get your fall $20 thousand back, I knew would have injuries during the 10. Yes. So this is a great way to gain a good return on your money. Okay, So when companies want to raise capital, they can issue stocks or bonds. Bond finances. Is often less expensive than equity, and it does not entail giving up any control of the company. A company can obtain debt financing from a buying in form of a loan or else issue bonds to investors. Now, like I said, some companies, they don't want to go to bikes and so they look for persons who are willing to go into the I O, U with them. So a coupon payment is an annuity. Interest payment to the bond holder, receives the money until the bond has mature. So this is a good way to double up on your money. Most bonds pay interest semi-annually, which means you receive two payment each year. For example, if you lend someone a thousand dollars, okay, at $1000 born that has a 10 percent semi-annual coupon, you will receive $50. That is 5% of the 1, 0, 0, 0, 0, 0 is, you would receive that twice per year for 10 years. So what does a high yield bond? High yield bonds are bonds that pay higher interest rates because they have lower credit ratings than investment grade bonds. High yield bonds are more likely to default, so they must pay a higher yield than investment grade bonds to compensate investors. Invest is often invest in high yield bond to generate better returns. However, because of the lower credit quality securities, they are inherently riskier. Okay? So that is the, the explanation of what a bond is null when we're dealing with stocks, or stock is more risky because the money return on your money on, on your investment is not guaranteed, okay? It is a high risk and vest that you are only paid based on how well the company does, okay? And they can only pay you if they are getting a good profit. Okay? And so if they're getting a good profit and they accompany, then they are able to pay investors dividends. Okay? And that dividend or that investment once you find a company that is doing well, okay, you can make a fortune. For example, let's look at Google. When Google first chemo they offered stocks. Persons who would have invested in Google, millionaires, multi-millionaires, They seem as Bitcoin, okay, Those who would have invested in Bitcoin when it first came out, the stocks have blown up and persons have made a fortune off of Bitcoin. And so it is a great place to grow your money and get a good return on your money. But it is also risky. It carries a high risk. So you have to know what you're doing. You have to do your investigations and study the companies before you go ahead and invest in those companies. So both of them, both of them, the bonds and stocks are good ways to invest money. Why buffer does this? Okay, this is how he became wealthy and a multimillionaire jazz from trading in stocks. But I would suggest that you diversify your investing, okay, so diversifying investments across both stocks and bonds, maurice dot relative safety of the bonds with the higher return tension of the stocks. And so you want to have stocks and bonds in your portfolio. These are great ways to beat inflation because you have the ability to get a higher return, okay, a higher value of your initial investing. It happens for bonds because when you put your $20 thousand up as an IOU, the person who borrows money from us paying you interest on that money. And so you are doubling your money, you're getting more value for your money. The same width, stocks, you're getting more value for your money. Hence, these types of moves will keep you ahead of inflation. This is making good money moves instead of just taking your money, putting it into a bike. And it is not, it is not developing, it is not bringing you any money. It stays the same and it is decreasing every year. This is a nightmare. 7. The benefits of inflation/Mutual Funds: Inflation has a great disadvantage for people who save money in banks and don't invest. So this is what you have been seeing throughout the duration of this class. I don't want you to look at inflation as a great, big monster. Know, we needed to drive the economy. But if you are a saver, you are going to be affected greatly by inflation because you will be losing money if you are taking it and putting it in a bank or worse, you take your money and you put it under the mattress, or you keep it in a piggy bank, or you keep it at home. If you have $5 thousand to a day and you're saving that to use two years from now, you are losing money because that $5 thousand will decrease in value due to inflation. You are going to lose at least 6% off of that money. So it is not smile to just take money and just keep it at normal, put it into the bank if you do not need it. Now, if you are saving for a particular reason, yes. You need to be able to save if you want to buy a cod and you can go ahead and save your money to buy a car. But if you just have money sitting around doing nothing, you are a loser. So inflation is a heaven or haven, I call it heaven because they are living in heaven. They are getting their heaven. Now, while many people are waiting to die to go to heaven, these investors are getting their heaven right here, right now on, okay? So inflation is a haven for investors because it allows them to get a higher return on the money they have invested. And so you can do this with your money. If you want to live the lifestyle of the rich and famous Do you can't do it by making good money. Moves, allowing inflation to work for you and not eat up your money. But it is working for you. It's causing you to build generational wealth. And this is why this course. So mutual funds is another way that you can beat inflation. What is a mutual fund? In case you haven't heard or you don't know the definition. A mutual fund is when you pull your money with other investors and using that money to buy other securities, usually stocks and bonds. This means you'll be able to invest and portfolios that you wouldn't be able to afford alone because you are investing alongside other investors. So what you are doing is you are taking just say you have a $100. Well, a $100 is small, but you can do some investing with a $100, but let's take it to a $1000. Let's say you have a $1000 that you want to invest. You take that money to accompany a financial institution that deals with trading, okay? So you take your money to them, they will take that money from you. And they will take that money from someone else, a $1000 from someone else, and someone else on someone else. And they will take all of those thousands of dollars that they would have gathered from individuals or companies and they would put it into a mutual fund. And so what they will do is now purchases different stocks and bonds, that money. And as it is time for you to be paid, you will receive a portion from that investment that all of you who are pulled your resources in. So Susie, John, and David who would have put there $1000. It is now split up, okay, into this dots and the bonds. And then you will get a check from all of the different things that the company would have done. So instead of you just take an a $1000 and putting it into one company, this investment company that you would have given you a $1000 to, would spread out at $1000. But to me in various places they will diversify that. Then you will benefit from different things, different companies, whether it be stocks or bonds, okay, from Jess your 10000. So that's what a mutual fund is. But today, investing in stocks and bond is so easy. And one thing I didn't get to mention was the forex market, where you are investing in foreign currencies, that it moves so quickly. And so FASB, you know, a few years ago, good, much years ago, you were not even able to invest in the stock market like how it is today, you would have had to send agent stop marketplace. Okay. Wall Street where you are investing and that is how it is done. Now you can invest from Jess via telephone or your laptop with just a $100. So investing is so much easier today. And so we must take advantage of technology of these beautiful ways that we can invest. And the foreign exchange market allows you to open up a trade and close it as soon as you see that you are losing money, so you are in better control when you are trading in the Forex market, you can open up a trade for Bitcoin or Netflix. And if you see that the stock is dropping and you're, you're losing money. You can go right on your phone and you can close all that trade if you wish, is not traditional, where you take your money and put it into a company and you have no control over it. No, in the foreign exchange market, you can enter traits. You can get out of trades as you wish. So you are all power to do as you want. There forex market is brilliant. You must have the information, you must understand how foreign exchange market works, is very volatile, is very risky. But once you have the proper information and education on how the bone mock and works and how the market works. You can make a fortune from a days, you can make money and above market, and you can make money in a bear market. It is beautiful and it is wonderful. There is no reason that we should be losing money today based on inflation due to all of these investment opportunities. Another great way to beat inflation is to open up a business. When you open up a business, you are also gaining money from your initial capital that you would have put up to start the business. For example, if you have a product business, you sell that product and you raise the price of it so you are gaining more money on the initial thing. If you spend $10 for the product and you sell it for twenty-five dollars, you are getting a good return off of that product. And so open up a business is also a great way to stay one step ahead of in relation. 8. The Affects Of Inflation on Employees: The group that is most disadvantaged from inflation and the high cost of living is in ploys, they will feel the brunt of inflation. Why? Well, because they are, salary is limited. When you work for a company, you have no ability to determine what your salary is going to be. And so it doesn't matter what type of lifestyle you want or you desire. You are going to be paid based on which your employer, things you should be paid. And many times, the salary is not enough to invest. It is only enough to satisfy your necessities. You are needs to be able to put a roof over your head or pay your rent, get groceries, pay the water bill, and the electricity. Sometimes it's not even enough to save for an emergency, to even create an emergency fund. So many people are living from paycheck to paycheck. And sadly, many people are not even living from paycheck to paycheck. Nowadays, the paycheck is not even a lasting until the next paycheck. They find themselves having to borrow money from friends or family members. Because the money, the salary, The income is just not enough. And most employees, because they don't have the mindset. A lot of them, not all. A lot of them don't have the mindset of investing, So most of their money goes out on expenses. They are taking them money and spending it leaves their hands. They're not creating cashflow. They're not purchasing assets really, because they really just want to survive. And this is what's happening. And so if you are an employee that have the mindset of taking the money that you get from your job and investing it, then you will be one step ahead of the game. Infection wouldn't be so devastating to you. But the way most employees work, they don't have enough money. And the middle-class ones, they take the money even though they are getting a good salary, a lot of them still take their money and spin it on liabilities. They go and they get the big mortgage and get the big house and expensive car, and get the nice TVs and a nice cell phones and all of these things that take money from them, but a lot of them still do not in the US. Another thing is if you are an employee, you are going to be tax more by the government because the government loves small business owners and big business owners because less headache for them, the more people create businesses. The last day have to worry about how they're going to find jobs for people. And so they give incentives to people who are creating avenues to employ other people. And so they get all of these top tax breaks. As an employee, you are not getting a tax break because you are not creating any avenues to help the government or to help the country as a whole. And so they are going to take from you take, take, take. This is what they are doing. And so this is why the rich people stay rich, because they understand how governments work. They understand that they give more or provide more avenues for other people to be employed, the government will give them breaks, okay? And they won't be having to go through with employees, go through it so sad and Warren Buffett actually said that his secretary pays more taxes than him. Would you believe that? And so this is how the money game works. You have the tiger money and put it into investments. Investments are less tax than any other avenues. For example, here in the Bahamas, I live in the Bahamas where we have to pay a 12 percent VAT on everything we spent money on BOB in taxed. Okay. So I have already lose out of a $100.12 percent of my money because 12% of that is automatically going to the government in taxes. What if I take my money and I put it into the foreign exchange market, I don't have to pay the government 12 percent on that. Okay? So you have to find smart ways on how you Kim keep your money and allow it to work for you. This is the only way to become wealthy. It is the only way to build generational wealth. And then you have to take the strategy now and you have the teacher to your children so that they can do the same thing. I'm not telling you not to have a job, but I'm telling you that you have to be able to find some aspect of the income that you have and be able to invest it and build your money so that one day you can walk away from your job and you are not working for other people for the rest of your life. The truth is that you will never become wealthy on job. I will say that again. The truth is that you can now become Welty on job. A job is just over broke. They pay you just enough money so that you can survive. The only way to become wealthy is to invest their money and get a better return on that money. Return on your money. That is the only way that you can ever even approach the possibilities of wealth and riches. 9. Reduce Debt Before Investing: One of the ways that you can allow your money to work for you is to reduce your debt if you have any. This is very important to understand because you should only be investing with money that you do not need. So if you are embedded in depth than your depth should be your priority. It is your first priority because of the compound interests, okay? It is compounding every month or you want to pay this off as soon as you can to avoid being trapped. In. Many people can invest because they have too much debt. Now, there are two types of depth. You have good depth and you have bad debt. What is good debt? Good debt is when you go to the bank or you borrow money from someone to purchase assets, what is an asset? It is anything that allows money to flow into your pocket. It puts money into your pocket. What is BAD depth? By depth, the consumer loans, the things that take money out of your pocket. So they are liabilities, things such as credit cards and personal loans and car loans, and a bunch of expenses that take your money away from you. This is bad debt. And so if you want to make your money work for you before you can even do that, you need to pay off your obligations. You have financial obligations on your responsibilities. So try to reduce your DHAP before going into investing. Because remember, investing is very risky. There is no guarantee that if you take a $1000 and put it into an investment fund, that it is going to double. So investing is the route to building wealth, but it is risky, it carries some risk. So what you want to do is to make sure that your depth is Claire and that the money that you are using to invest in is money that is in your savings account that you do not need, okay? Because remember now you are using money to invest with because you don't need that money and you are putting it there too. Ghetto potential return over the future. It is not something that you are expecting or you should expect to get right now? No, you are putting it there into that investment fund or that stock in that bond. And over time, you are expecting to get a return. So you cannot take your emergency fund money and put it into investment. Because if you have an emergency and you need it, you are not going to have access to that money. Okay? You might even lose the money. And so now you are in trouble, so you must be wise and Claire or ya. It is important to understand also that you want to Claire off your dip because your depth is not going any, where no one is going to write off your dip. If it is your depth, it is there until you pay it all. So the sooner the better. Now, if you find something that you are good at and you hover good strategy when it comes to investment. And you realize that you can win big on an investment, you can go ahead and do that. If you have a good Austin, a good high chance of doubling or getting a good return on your investment, and then you can take that money and put it onto your Deb. So if that's the strategy that you have and you know that it's going to work, then you can do that. So I'm not telling you that you should not invest at all because you have debt, but you should approach investment very wisely, okay, try to tackle your depth-first, allowed to be of first responsibility or your priority no obligation. And then you can go ahead and tackle investment would fall for us after you would have cleared all the things you needed to do. So be very careful with the type of loans that you get and the things that you are spending your money on that is taking money away from you, splurging and spending on clothes and shoes, and bags, and luxurious vacations that you really don't need. Okay? Recreational entertainment all the time is eaten up your money and you don't have anything to invest in. So make sure you take care of your future and not only your future, but your children and your family. 10. Bonus Video: Insurance and Write A Will: And this bonus section, I will be discussing life insurance. Now, you might ask the question, what is the importance of having a life insurance? Because it doesn't really benefit me. It is a fund or sum of money that exist after I die or expire. So I don't get to enjoy this muddy. So what's the point of having life insurance? Life insurance is extremely important. If you have the mindset of generational wealth, you want your family to maintain their high standard of living. And one of the ways of doing this to ensure this after you die is to make sure that you have a good life insurance that would pay them a good, substantial amount of money so that they are able to maintain their high standard of living. So, so lack a good life insurance that has a good face value that is able to maintain your family's standard of living. After you die. Make sure that this amount is enough to pay off your expenses on enough so that they can enjoy life and have a good standard and quality of life. So choose also uninsurance that can benefit you while you are living. So make sure that if you choose a life insurance, you are able to get dividends or it has cash value attached to it so that you can borrow from insurance on another good example is annuities. So we wanted to support generational wealth. So make sure you take note of your insurance policies, make sure that it is up-to-date, keep track of it. And to ensure that after you expire, that your loved ones will be paid. And the welter generational and it passes down through generations. Also, write a will protect your assets. Very important. And one of the greatest ways of protecting your assets is to leave your assets to a loved one that you want. To manage your state. People that are responsible and trustworthy. You are working too hard to manage your finances and get the knowledge that you need. You don't want to just take your assets and all that you have worked for and put it in the hands of a farming member or an executor that don't know what they're doing and they are going to squander Yoga. Many people believe that writing a bill should be done when they, and they, the days when the approaching their older days or some people have the mindset that if you write avail, you are anticipating to die soon or something like that. That is absolute rubbish. You do not know where debt will appear. So you want to know and feel secure that when it does appear that your wealth is left in the hands of someone who can allow it to last and take it through generations. You don't want people to squander your money. You don't want you to squander your wealth and your riches and row resources may shot SRI, and these individuals may show that the person that you choose, your executor knows about money and understands how it works. This ensures or makes you feel confident in knowing that they're going to do a good job and that geotag, your money, your resources are going to be well spent. So this is important. Right away, we'll get a lawyer, take it to the lawyer and make sure that your assets are protected and secured.