FIRE - Financial Freedom

FIRE - Financial Freedom

Review + Reading

Open Ended

What do the top 10% do differently with their savings, compared with the bottom 50%?

They invest their savings into Assets

instead of keeping their savings in the bank

Open Ended

What is the problem with keeping cash?

Cash loses its value over time because inflation makes everything more expensive.

Look at the prices of coffee over time ->>>

Multiple Choice

What is an asset?

• a bank account

• anything of value that can be converted into cash

• anything of value that can't be converted into cash

• things that you care about

Multiple Select

What can you do to be rich and stay rich? (more choices possible)

• don't keep cash

• invest in assets like businesses, gold, real estate

• buy a car

• keep cash

• save cash in the bank

Invest in smart assets, reduce liabilities.

What are stocks?

• A stock is a thing that shows you own a little bit of a company

• Everybody can invest in stocks very easily BUT!

You can lose all your money

(if you don't know what you are doing)

Stock prices

• Each stock has a price that changes all the time, depending on how many people want to buy or sell and how much they would like to pay.

TESLA

• Do you think TESLA is a valuable company?

• Do you think people would like to buy TESLA stocks?

Very risky!

If you don't know the company, how well it is doing, its finances, and all the news about it, you WILL lose your money.

So what to do instead?

How can you invest in the stock market with little risk?

Open Ended

How can you invest in the stock market with little to no risk?