Ever heard the cliché advice: Go to school, get good grades, and get a job, work extra hours, and save money. Buy a house because your house is an asset; cut up your credit cards and get out of debt. Live below your means and invest for the long term in a well-diversified portfolio of stocks, bonds, and mutual funds!
Now that’s what a regular education will teach you. Teaches you to live a sad boring life and become a slave to the money.
While I’m reading this as history now; it didn’t pan out well for people who followed that advice; people with limited financial education, who blindly trusted the experts in suits at the stock exchange with their monies.
If the trends have taught anything, it’s repetition (there are always ups and downs), and those with the most financial education, come out smiling, like guardian angels buying out the losers.
At this point when hunting and gathering just won’t cut it, what is required is adequate financial education, to know just where to put your money.
This is not just another post out there complaining about the limitations of the educational system; rather a post born for the sake of survival.
A few of us are still lacking in financial education.
So, what is financial education?
Financial education covers all aspects of money that assists you as an individual or business to make well informed decisions about money.
The importance of financial literacy at this present time cannot be over stressed; because you see people working their asses off just to make ends meet, whereas other people can’t even tell you how much they really have.
Financial education teaches different ways to get money.
Active income: which you must work for; the harder you work the more money you get; here you see employees, and self-employed small business owners.
Passive income: which you don’t have to work for; you receive income whether you work or not because your money works for you; here you see big business owners and investors.
Financial Education teaches you the difference between assets and liabilities. Thus, you’d be well advised which ones to keep, and how best to acquire them.
Financial education teaches you how to read financial statements, how to analyze places you put your money and how best to maximize them.
Financial education gives you a better understanding of taxes, and how to legally pay less; teaches about debt, the good and bad debt, and how good debts can make you richer.
With financial education, you greatly minimize risk of investments.
My Story
So, I recently graduated with a bachelor of science in Biochemistry, with next to zero working experience, to face the reality that my BSc just won’t cut it to land me a good job. Heck I don’t even know what that job is.
All I know is I want to become free as fast as possible, so I end up searching on the best ways to make money.
Then I found my mentor; I’ve never been big with mentors before, I am this do it yourself, perfectionist kind of guy, but at that point in my life I really wasn’t sure what to do next.
I was on YouTube binging one day, then I came across some video with tips about millionaire’s habits;
Among them was healthy diets with regular work outs, and getting a mentor. And they recommended I read Rich Dad Poor Dad by Robert Kiyosaki and I was hooked.
I know what rock was I living under not having read the best book of all time in 2018. Well I read the book and got insights about financial education.
I registered at richdad.com and it has been an enlightening experience so far.
Financial Education is not really about accounting, it is equipping yourself with necessary skills for survival.
I oblige you to take hold of your finances today. It doesn’t matter how you make your money, with a good financial education, you can become financially free.
At any point in time, the best investments you can make are the ones you invest in yourself. Follow me, and every week I will post something new about financial education.
You can also download Rich Dad Poor Dad for free here and kick start your financial education.
Take a step today towards financial freedom.
This is Mrakpor.