Financial Literacy: Master the Basics

---

Learning financial literacy is like learning a new language on your own since schools don’t teach it, but don’t despair, it’s not that hard... it is needed.

If you don’t understand the basics, money can feel intimidating, confusing, and often even out of reach. But once you know the essentials, you gain the power to make money work for you instead of against you.

This is not about becoming a financial expert overnight. It’s about learning the ABCs of money so you can read, write, and eventually create your own story of financial freedom.

Know Where Your Money Goes

Most people lose track of at least 20–30% of their income each month. Not because they’re careless, but because they’re not paying attention. Which is not super easy or intuitive to do in this crazy, busy, and loud world we live in, but…

…financial literacy begins with awareness.

When you track your income and expenses, you see patterns, where you overspend, where you undersave, and where small adjustments could make a big difference, just by paying attention and doing some basic math.

“What gets measured gets managed.” – Peter Drucker

Advanced tip: Start budgeting your money monthly, before the start of every month. This way, you don’t look for where you spend your money; You decide exactly where you are going to spend it in the future.

Spending, yes, but with intention, always.

And this budget should include everything: the expenses you know you have, investments you want to make, the money you want to save, and also some surprise and miscellaneous expenses or issues that may show up.

In my country, we have a saying: “A woman forewarned is worth two” and I live by that.

→ This week, write down every expense for 7 days. Even the coffee. Especially the coffee. You’ll be surprised by what you find.

Understand Assets vs. Liabilities

There are infinite ways to spend money, and all fall into these 2 categories.

An asset puts money in your pocket. A liability takes money out.

Your car? Liability.

Your Netflix subscription? Liability.

Your investment account? Asset.

Even an investment in a house, if you don’t profit from it, it’s still a liability…

Once you start seeing money through this lens, you stop asking “Can I afford this?” and start asking “Does this build or drain my wealth?”

And by this time, you are probably realizing that 90% of the ways you can spend your money are liabilities… True, and there’s nothing we can do about that.

Our power is in the choices we make, not in changing how the world works.

“The rich buy assets. The poor only have expenses. The middle class buys liabilities they think are assets.” – Robert Kiyosaki

→ Write down 3 things you own. Label each one as an asset or a liability. Be honest.

Good Debt vs. Bad Debt

Debt isn’t the enemy; Ignorance about debt is.

Bad debt: High-interest consumer spending (credit cards, payday loans, financing gadgets, etc). Good debt: Used to build wealth (education, property, business investments).

When you know the difference, you can use debt as a lever, not a trap.

To avoid bad debt, live below your means. Makes 0 sense to spend money you don’t have and don’t know how to make…

To avoid bad debt, live below your means. Makes 0 sense to spend money you don’t have and don’t know how to make…

Also, I know I said this before, but only a few people can properly and beneficially use debt in a good way; Most of us can’t. And don’t get me wrong, if you use credit cards, that’s fine, just don’t forget to pay what you need when you need to.

Here’s a tip: If you need to get into debt, you've already lost. Debt is a tool for people who don’t need that money; They just use it as extra cash, to keep developing and expanding their investments and assets.

“It’s not debt that’s dangerous. It’s debt without education.” – Dave Ramsey

→ List all your current debts. Circle the ones that are “bad debt” and create a plan to pay those off first.

The Power of Saving & Investing Early

Saving builds security. Investing builds wealth. Both are literacy cornerstones.

The earlier you start, the more compound interest works in your favor. Think of compound growth as “money having babies”, and those babies having more babies.

Time is the multiplier.

And if you did not start super young (I didn’t), you’re not gonna compound enough money when you're still super young, but it’s still worth it. Especially with crypto and bonds instead of safe bank investments.

Just for you to have an idea, 5k in 2 years in a safe back investment made me 200€, and I could not access that money during that time vs 3k in 1 year in several crypto investments made me 1k, and I can access the money anytime.

“Compound interest is the eighth wonder of the world. He who understands it, earns it… he who doesn’t, pays it.” – Albert Einstein

→ Open a savings or investment account (if you don’t already have one) and set up an automatic transfer of even €25/month.

Protect Yourself

Financial literacy isn’t just about growth; It’s also about protection.

Life will throw curveballs, that’s guaranteed. An emergency fund, proper insurance, and a plan for risk management create resilience.

Don’t ignore rainy days. They happen to everyone. Get informed and take action.

Even if you win the lottery, if you don’t know how to manage, save, and grow money, you will likely lose it all in a couple of years, as most lottery winners…

“An ounce of prevention is worth a pound of cure.” – Benjamin Franklin

→Start an emergency fund with a small amount — even €100. Commit to building it to cover 3 months of expenses over time.

---

Last Thoughts:

Financial literacy is the foundation of financial freedom. Without it, you’re guessing. With it, you’re in control.

“Education is the most powerful weapon which you can use to change the world.” – Nelson Mandela

The key isn’t to do everything perfectly right away. It’s to start small, build awareness, layer knowledge, and adjust action as you go.

Your financial education is the weapon that will change your world.

Do this, and you’re not just learning the language of money, you’re learning to write your own story of freedom.

→ Track your money. Learn assets vs. liabilities. Respect debt. Start saving. Protect yourself.

See you in a week.

Your Zine.