Video Transcript: Why is Financial Education Necessary?

Video Transcript Why is Financial Education Necessary

Okay, well, welcome back. This is Alex Barron with Financial Freedom and Success Institute. And we're teaching the financial freedom seminar. So, our next module is Why is financial education necessary? If I were to ask you guys the phrase financial success, what would you say that means to you?

Any, what would what does that phrase mean to you? Either one of that things? Can you grab that? 

What a phrase financial success is be able  to be free to do make a choice of purpose

The frame make choices are the purpose okay? What else. 

I will say to be accountable, responsible for your family. 

Accountable, responsible for your familyOkay. Any other comments? What does financial success mean to you? All right.  Well, I would say for most people, follow me along what you said, is to have the freedom to have for money not to be an issue right. 

Now, most people, why do they go to work? Why do you guys go to work? Why do I go to work? I think there's one answer, right? What do we get from work? Money? Right, we've changed our world worth our time, our knowledge, for what? For money? 

Now? Why do we need money? Most people need money for what? To buy food to eat, to pay for their home, to pay for their kids college for basically, retirement right. 

Now, let's think about the worst case scenario. If suddenly, one day we woke up and we said, hey, you know what, I don't want to go to work anymore. So what's the worst that could happen? Ok goes, if you skip work for a day, maybe nothing happens. If you skip work for a week, maybe the wonder where what happened to you, when you skip work for a month, most likely to lay you off, right? After they lay you off, then what happens? And you get no money.  And if you don't have any money, maybe you have a savings account, you can live off of that for a few weeks. 

Once you run out of money there, then what's going to happen? And your farms are really going to start right. At some point. If you still owe your car your house, guess who's going to come knocking on the door? Some guy to repossess, right? Suddenly, you could lose everything. 

All right, let me ask you a different question. What do you see yourself a year from now? Let's say even by year end, do you have a pretty good idea where you're going to live? What you'll be doing, who you'll be hanging out with? You know how you're going to spend your time. 

Most people probably do have a pretty decent idea between now and your end where they're going to be, right. But do you have a plan in place or an idea where you're going to be in three years? In five years? And 10 years? Is that pretty clear? In your mind? Have you already written it out? With goals and timeframes where you'll be in 25 years and 50 years? 

Most people are what I call drifting through life. Right? Not a very good artist. But if we think about the United States as a map, and I'm going to try to draw Mexico while I'm at it. This is kind of Mexico and Florida. United States, right. So Texas is here somewhere and I didn’t do such a good job. Something like that. Right? All right. Well, I live here in a place called El Paso, Texas.

Do you guys know where Hawaii is? Always out here to a series of Islands. somewhere out here in the Pacific Ocean, Right? So if let's say you live here, and right now we're up here in Michigan. Right. And if I ever asked you the question Have you guys ever been to Hawaii? Now? Have you ever been on a cruise to Hawaii? Have you ever wanted? Would you like to go on a cruise to Hawaii? Have you ever thought of going on a cruise to Hawaii? 

Okay, let's just pretend that if I said to you, hey, you know, I'd like to invite you to come with me on a cruise to Hawaii by year end? What are some of the ways you could get yourself there? 

Fly

Flying is ahother way? Okay, that's one way. What's another way? You could board on a plane? And fly? Right? What elso

Boat

On a boat? Okay. Where would you take the boat from? 

Califonia

From California somewhere, maybe LA or San Diego, right? What's another way you could get there? Maybe you could try swimming there. Right? Or you could try in most people's favorite way is to jump on a life craft.

And just basically sit there, here is your legs and just hope that somehow the waves will eventually get you there. Now, is that possible that you might get there on the left? It's possible, but not very likely. Right? What are the chances that you're going to make it there? 0.0001% Maybe. 

Now, if you went the first way? What are the chances you're gonna get there? I think guaranteed. But it's probably 99.999% likely. Right? So what am I getting at? What I'm basically saying is when most people sit in their comfort zone, without a plan and the goal for their life, achieving the things they want to say this is your goal. To go to Hawaii, most likely, it's not going to happen. But if you want something, if you know what you want, and you want it really bad. And you set a plan in place that has a high likelihood of working out. What are the chances that you're going to achieve it might not be guaranteed, but it's pretty darn high. Right? Okay. 

So when I asked you guys, what does financial success mean to you? For most people, it has something to do with having money. It has something to do from what I heard of the answers with feelings, right? It has something to do with experiences, and has something to do with properties. For many people, it has many different meanings. But it has to do with all these things. Right? It's not just about money. 

And it's not just about the fulfillment that you feel inside have the freedom to do what, whatever you want with your time. It has everything to do with all these things. So the question is, how do you get there? For most people, the answer would be work. Right? They would say, Well, I got to work. And that's true. That's part of it. Other people might say, Well, I have to have some more knowledge or information. That's also part of it. 

For some people, they think it's a question of relationships. Well, if you're born into the right family, if you marry into the right family, if you network, if you schmooze, if you kiss up to somebody, you know, might help along. Some people believe in luck. They think well, if you're just happen to have good looks, if you happen to win the lottery, then you could achieve your dreams. 

I'd like to tell you that there's actually a better way how to get there. What's the basic message? What I'm trying to share with you today is that financial success is not a question of randomness, and it's not a question of luck. It really is a science that anybody can learn. And I can teach and that you can teach once you learn it to your kids and to other people around you. 

All it takes is a desire to learn it. Invest in the time to learn it, meditating on what you learn, and most importantly, you Have to what? Apply it? Right? You have to put it into practice in your own life, having had knowledge doesn't do anything for you until you start to put it into practice in your own life. So in this seminar, the first thing that we have to think about is, what is it that you want, right? In this case, I kind of set the goal out for you. 

But if you apply it in your own life, the first question you have to ask yourself is what? What does success mean to you? What do you want is going to Hawaii, your dream? Maybe it's going to feed him? Maybe it's not even going anywhere? Maybe it's starting your own business? Maybe it's becoming debt free? Maybe it's, I don't know, starting an orphanage, I don't know what success means to you. But you have to take some time out of your schedule, to think about what it means for you. Right? 

Most people when they hear about some seminar related to money, the main question they ask themselves is they want to learn what? How do I get rich? How do I make more money? How do I get out of debt? Right? People are preoccupied with the house? How do I get them? Right? Now I could come and tell you do it this way, this way or this way. But these are less important than first knowing what, the what if you don't even know what you're aiming at? How do you know these are really the best ways to get there. So you have to first decide the what? 

The second question you have to ask yourself before the how is why. Why is this important for you? Why does this even matter? Why should you spend a dime a day of your life or $1 of your money? Trying to do this? What? Right? Why does this matter? If you don't know the what, and you haven't answered the why, then talking about the how is kind of a waste of time. But once you're very clear on what you want out of life, and why you want it, the how is all of a sudden gonna start to become revealed to you. Because your brain is going to start to think about, okay, I know what I want. I know why I want it. I'm very clear about these two things. Right? This is your goal, this is your purpose. 

To how all of a sudden, you'll start thinking about okay, well, I should do step one, step two, step three, step four, before you know it, the road of 1000 steps, every step you take to get there is going to get you a little closer, Right?. So the first thing that we're going to be discussing here in the next lesson or two is making, having a very clear picture in your mind of what you want. Unless you know what you want. It's not what I want. It's what you want, Right? I can't make choices for you. You have to make them up for yourself. 

Just think about here, our country, United States of America. 200 Somewhat years ago, our forefathers fought for what? Freedom, freedom from freedom from the British, Right? They gave us independence. In George Washington, and all those guys, they fought for our independence. But 100 years later, we had another war. What do we fight for? Again, freedom, freedom for who? For everybody. 

So everybody could have equal rights. Right? Regardless of our skin color, or race or anything. Today, we would all say, Well, we're all free men. Well, yes, we are in terms of our legal status. But once again, we've become slaves. This time we're slaves, financial slaves of the banks, most people through their own, not even realizing it. We've put ourselves in a situation where we can't stop working. 

We talked about it a couple minutes ago, when somebody has to do something. Are they really free? No, if you have to go to work, because you have to pay your debts. Doesn't sound to me like you're being very free at all Right? Now, unfortunately, just as you're the one who brought yourself into debt, guess was the only one who can take you out of that view, Right? It has to be important for you and it has to have such a high priority in your life. 

That you have to fight for your own freedom. As much as I want to help you and I'm willing to help you. There's only so much I can Do you have to also kind of do part of the work yourself? Kind of like losing weight? A lot of people know the formula, how to get other how to how to lose weight? What's the formula? Tell you guys know it, eat healthy, Right? Eat less calories and go do one exercise. Right? 

Now, despite the fact that most people know it, how many people actually do it? Very few people do it, Right? Now, could you pay somebody to go to the gym for you, and work out for you to pay somebody to lose weight for you know, who's the only one who can pay that price? You yourself, Right? Who's the only one who can care about your own health? You yourself. It's the same thing with financial freedom. 

The only one who can basically get you out of that situation that you're in is you yourself. If you get yourself in it, I can help you get out of it. But at the end of the day, I can only lead you, I can't say, you know, you have to basically do it for yourself. And the most important thing and the first thing that you have to do is you have to acquire what's called financial literacy. What's missing from people, even people who have PhDs in economics and finance is financial literacy. 

So what do we mean by that? There's a guy you might have heard of called Robert Kiyosaki who wrote a book Rich Dad, Poor Dad, he's the one that I first heard this concept from. And he said, a lot of people, you know, they might make a lot of money, but they don't know how to spend it. They don't know how to keep it. Right. And he says, there could be a lot of people who are highly educated according to the world standards. But they are financially illiterate. A person who is financially illiterate as somebody who doesn't know how to read, and doesn't understand how money works, Right?.

So what I'm here to do over the next few sessions, is to educate you and help you understand how money works. So that basically you demystify all of that. And you can basically start putting money to work for you, instead of you being the one who works really hard for money. 

So let me ask you, on this picture here, what do you guys see on the left hand side? A fruit, okay. Now, where did that fruit come from? From some tree. Right? So then the question is, where did the tree come from? Well, the tree came from some seeds. And those seeds eventually created roots, and then that created the tree, and then that's where the food came from. 

So why are we talking about this? Most people, when they see something in life, they just basically, don't even think of why that where that came from, for example, I have a Lamborghini back home. In fact, I have two of them. But whenever I drive one, eventually I run out of gas, and I have to go to a gas station. Right? Now I pull in. And guess what most people do when they see me pull in? Well, some people just stare at the car, and they just keep on driving. A few others stopped. And they say, Oh, pretty car, and they wave and they leave, a few others. They approach me and they say, Hey, can I take a picture of the car? And they say, sure and go for it? A few others say Hey, can I take a picture in front of the car? I say, turn so they give me their phone, I take a picture of them in front of their car. A few more? Very few. They say Hey, can I take a picture inside the car? And I say Sure. So I open the door and let the man and take a picture of them inside the car. 

How many of those people over all those 10 years I've had those cards? Do you think I've ever asked me how I got the car? Some money? This money. And if they had asked me what do you think I would have told them? I would have said come to financial freedom seminar and I'd be happy to explain to you how I got that car. Right? That car is my fruit. That car is in effect. 

Now where did that car come from that had come out of nowhere? Was it by luck that I bought it. There's a story behind it right? There's some seeds behind that truth. Same thing with everything. We're in this beautiful room here today that this room just show up. Miraculously. No, Somebody conceived that in their mind. Right? All of the things that we have in this world, our clothing, this computer, right? Even the time that we're here, it was all conceived in someone's mind at some point in the past. 

And basically what we're living today is the effect of those thoughts. So what happens in the world when we see riches, or when we see poverty? Basically, it's a result of what the way people think. Right? For good or for bad. Those what we're observing are the fruits. 

So what we have to think about is, what are the seeds that Cain gave about those fruits? We work backwards. And if we know what we want, Right?, and if I say I want an apple, then what do I have to so I have to also apple seeds, right, I have to start with the goal in mind. So that I can work backwards so I can get that result. So I first have to find apple seeds, then I have to find good ground, then I have to sow those seeds, then I have to do what with those seeds, water those seeds, fertilize those seeds. 

And that if I keep doing my thing and keep waiting one day, I'm going to suddenly see a little plant and if I keep growing that little watering that little plant what's going to happen eventually eventually that plant is going to grow and someday it's going to bear fruit right. So we call this a laws of seedtime and harvest, can you guys read that? Pretty small. Let’s see if you can read it great and if not, I can read it for you anybody want to read it. 

The seeds is thirsty then the harvest [inadable from 00:21:15 to  00:21:26]. 

Next.

To grow the seed ts the right environment, thee seed cannot grow unles you planted it, watered it, fertilize it, led the sun warming it, and given the proper environment to grow, for it to grow.

OK next

Sed needs to stay planted to grow. I'm gonna plug it up every day to see if it is growing need to trust that even we are not seeing the results. They're happening in the invisible world. 

Okay, I'll read the next part. It says a seed will produce fruit after it's unkind. In other words, an apple seed will result in an apple tree that gives apples a wall that will result in a walnut tree that yields walnuts, you cannot plant an apple seed and expect walnut life does not work that way. Plus the time…

Ok the process take time and patience exceedingly will not turn into a tree overnight. And the tree will not bear fruit overnight either. This require patience, persistence, perseverance, and faith that the result will 

come to pass.

Okay

So what do we see here? We see that every seed eventually turns into a fruit or vice versa. Every fruit was first a seed, right? Every cause has an effect. dreams become reality. And every input has an output. And the things that are visible today. Were first what? Invisible, Right at some point in the past. So basically, what I'm trying to tell you is that thoughts become reality, for better or for worse, Right? 

A lot of the things that we want that beautiful car, that beautiful home that great business, you know, the bank accounts being full, all of that stuff starts with the way we think we have to start changing the way we approach the subject of money if we want to have different results. If we keep thinking the same way we saw before, we're going to have the same results that we've had up until this point. 

So in the next lesson, we're going to start to understand what I call the foundations, which are basically the beliefs, the values, the attitudes, the habits, the thought patterns that we have around money, as well as our understanding of financial statements. If you guys haven't studied financial statements in the past, don't worry about it. In the next hour or so you'll be a master at financial statements. 

And you'll understand why some people get ahead in life, and why some people don't get ahead in life. At the end of your life, you're gonna look back and realize you've either wasted time, and your life simply was a weed that was here today is gone tomorrow, or you will become a fruitful tree that yields fruit for many generations to come.

What I'm saying is you have the potential to set up your family for life, not just for this life, but for many generations to come so that they never ever have to be in debt. Through a process we call becoming your own bank. Imagine if that were your own bank. And essentially, your family didn't have to ever borrow money from a commercial banking, you'd be setting them up for success for the rest of your life. 

At the end of the day, you can either continue to drift through life, wondering what the rest of your friends want to do every weekend. Or you can be the captain of your own ship. And basically, decide the destination that you want to hit in life. At the end of the day, you can either build a shack, or you can build a skyscraper out of your life, the choice at the end of the day is up to up to you right up to each and every one of you. 

So in the next lesson, we're going to be talking about the foundations, as I said, that lead to the financial success that we all want. If we want to achieve our dreams and our goals and our visions in life, we have to start by analyzing the beliefs that drive what we do every day.

Our motives or attitudes or values depend the kind of character that we have our thought process, our emotions, and our habits. The prosperity of everybody depends on you. How's that? So essentially, the prosperity of a country depends on the prosperity of each state. The prosperity of each state depends on the prosperity of each city. The prosperity of the city depends upon the prosperity, very business and church and other organization within that society. 

That in turn depends on the people who go there on each family. And each family's prosperity depends upon each individual. So what this means is that if you change, you can change your family, you can change your church, your business, you can change your city, you can change your state, you can change your country, and ultimately together, we can change the world. A lot of times, we want people, other people to change, Right? 

What most people say in the elections, hope and change, right? Vote for me, and I'll change this. And most people think that change comes through politicians. But what I'm here to tell you is that no change starts with you. Right? Change starts with me. We have to become the change that we want to see in the world. 

So what we need to develop is a new mindset, a new mentality, a new perspective, we have to have a new dream. And we have to build new habits and new motivations. The question I have for you is, are you ready for change? Are you ready to change? in order to change Tony Robbins, which great motivational speaker says that 

First, we have to raise our standards. 

Second, we have to change our limiting beliefs. 

And third, we have to change our strategy. 

Peter, Daniel says permanent changes are possible. You just have to have discipline in order to overcome your own bias. Right?. Change takes time. Things don't just happen overnight. Success doesn't happen overnight, just as much as a seed doesn't give fruit overnight. ButIf you're willing to be put in the effort, it's worth it's worth the investment. 

So I believe that in life, we're either moving forwards or moving backwards, right? We're never staying the same. At the end of the day, the purpose of the seminar is not just to give people a handout, or to give them a fish. There's a saying Steve Hovey said if you give a man a fish for you feed him for a day. Teach a man to fish. You feed them for a lifetime. 

So that's my goal. My goal is to teach people how money works, so that the rest of their life will never be the same. 

So there Any questions up until this point? 

Hi

Yes, 

We have a student watching from India.

Okay. 

And he wants to know whether or not a lot of the principles that you're talking about would actually even help him where he's at? 

Yes, of course. I mean, principles are just that the universal laws, doesn't matter, as long as you're a human being doesn't matter if you're a woman or a man, if you're from India, or from America, or from Africa or from Europe, Right? We're all the same human beings. God gave us basically three gifts when we were born. 

What are those three gifts? We think about it. Every human being give us more than three gifts, but the ones I'm thinking about is? he gave us what? 

A mind? To what? To think. Right? 

He gave us a heart to have wht? desires. And to have feelings. Right?. 

And the other thing he gave us is a spirit. Which I'll just put it like this, which allows us to have a will. And with which we can make what decisions, commitments.

He also gave us a body, Right? with arms and legs. With a mouth with eyes. With the eyes we can see seen with a mouse, we can speak, with our feet, we can go, with their hands. We can do. Right?. 

So does it really matter where you live? Or what color you are? Know. We're all the same. Right? Steve Jobs wasn't any smarter than any of us. What he had and the reason he became a millionaire and a billionaire and inventor is because what did he get rid of? limits you remember? 

The phrase that Apple came up with? Think what? thing different? Right? That's what he used to say. Do you really think that somebody in India has less opportunity to think, than somebody in America? Do you think that somehow Americans hearts or have bigger better desires and somebody in India? No. 

The point is, if we learn how to master all of these things, which are all invisible in the sense, and we learn how to put them together into work for us, then we can achieve great things. I told you the story at the beginning of Peter Daniels from Australia, he had been poor for generations. 

And within 12 years, he turned himself into a multimillionaire going from delivered bricklayer to a multimillionaire. What are the chances of that happening? Right? And yet, what did he set out to do? He had a desire to get ahead in life. And he started to use his mind his brain, to think differently and to start getting ahead. So I hope that that answers that question. Anything else? Okay, great. Let's move on to the next lesson.