To fully understand how to build your net worth and be able to retire comfortably, you have to appreciate the value of compound interest. This is when you invest your money and it earns interest over time, but then you let that interest also receives interest.
Inflation refers to the consistent increase in the cost of goods and services. As prices of goods or services rise due to inflation, it means you’ll able to afford less and less. Essentially, when inflation rises your money has less power.
Liquidity is about how accessible your money is currently if you needed it. For example, the cash you have in a savings account is very liquid. Meaning you can go to your bank and get the cash out that you need quickly.
When you work on your mindset it helps shape your views towards money. But it also can help you master things like delayed gratification, impulse spending, practicing gratitude for what you have, evaluating what is important to you, and much more.