Money is a tool for converting your time and skill into options. The three questions that govern almost every financial situation are: what do I earn, what do I keep, and what is my money doing while I sleep?
Part 01
The lesson
Understand the difference between an asset (something that puts money in) and a liability (something that takes money out). Many things sold as investments are liabilities with good marketing.
Reflection
Questions to sit with
- 01Do you know exactly what you spent last month, or are you estimating?
- 02If your income stopped today, how long could your household continue?
- 03What are you actually building toward financially, and by when?
Put it into practice
Action points
- 01Track every expense for 30 days and categorise them at the end. Do not change your spending in week one — just observe.
- 02List every debt with its interest rate on a single page and choose a repayment order.