Financial literacy is step one when it comes to building wealth. And believe it or not,

it's simpler than most people think. So today I'm giving you the crash course in all

things personal finance. Make sure like, subscribe, and show this episode with a friend.

All right, first and foremost, you have to start

budgeting. So what a budget is is a plan for your money. You can budget annually, you can budget

weekly. I recommend budgeting once a month. So you're going to look at the amount of money

that you're going to make in the following month. You're going to list out all the categories in which you spend money, put dollar amounts next to each of those

categories, and that includes giving and saving. And their goal is for your income minus all of

those expenses should equal zero. And so that is called a zero-based budget where your income,

every dollar of your income, has a category that they, it knows what

it's doing. Now, some people have budgeting where it's like percentage wise and all these

different formulas and stuff, a zero-based budget is the best. So doing a budget, though,

in general, you guys, this is the first step of getting control of your money. Knowing where

your income is going is so important because you're going to use your income to pay off debt and to invest and to save and to give. But if your income doesn't know what it's doing because there's no plan, it's not going to do any of those things. So that is one of the basic things. It is, I don't know, fifth grade math, fourth grade math, income minus expenses. And if you need help with this, every dollar, it's my favorite budgeting

app. It's great because you carry your phone with you everywhere, so your budget is always with you.

So budgeting is number one. Number two, live without debt. Listen, debt is the norm. It is so

common for people to carry credit card debt and student loans and car loans and personal

loans and all this stuff.

But what you don't realize is how much your debt is costing you.

Because your income coming in, instead of you using it to build your own wealth,

you are getting other people and other industries really rich.

Because when you are in debt, you are paying interest and you are paying that,

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