Finance, like many other things these days, is a subject that people often make more complicated than it is. If you listen to the typical Wallstreet investor, they will use terms so technical that you'd think you were in a math class.

Those of us who even passively read about finance will often hear of terms such as CDOs, M3, inflation, fundamental analysis, hedge funds, compound interest, and a bunch of other terms which are alien to our common understanding.

In the end however, the fact of the matter is that having an advanced understanding of these things is irrelevant when it comes to the goal of saving money and building wealth.

I think it could be argued that we have more misconceptions about money than about any other concept in the world. Having read many books on business and finance, I'm often amazed by the things I hear people say when talking to them about money. Most people believe that becoming rich involves having skill, beauty, or some other talent, while others even think that becoming rich requires you to rip other people off.

Here in the U.S., because our public schools don't bother to teach students about the importance of finance, many of them grow up being ignorant of the subject. Of all the subjects you could be ignorant of in this world, money should definitely not be one of them.

Next Page: What is Wealth?