Greetings readers, the following is the first in a series of posts I plan to write about the topic of finance; I do not claim to be a financial guru, nor am I someone who got rich on the strength of his financial knowledge, indeed, I am not even someone who has built anything significant in terms of wealth, no that is not me, however, stay with me because I am going to write a couple of important things about the world of finance.
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In this publication as in the following ones, I will write from the point of view of an apprentice, I invite you to discover together the intricate secrets of financial education, applying on the fly what we have learned and if everything works as written, if we apply the financial rules that have worked for others, we will witness firsthand how wealth is made, and how it can change the life of a modest family.
I will start this journey from the most basic, knowing the terms, their definitions and applications, and as resources allow me I will try to apply and replicate investment formulas in this same Blockchain platform, so that together we can monitor the progress and growth of the resources invested here, in addition to the investments that are emerging in the real world.
Since we are talking about the most basic things in finance, I will start my journey by sharing what financial education is all about.
Definition of financial education.
If we enter the word financial education in Google, a series of definitions of the meaning of this terminology will appear, however, as we are talking about simplifying things I will share with you the one that seemed to me the simplest of all and from there, I will try to explain my understanding about the matter.
"Financial Education consists of your ability to understand the basic concepts of personal finance and money management".
When we talk about finances, the word PERSONAL sounds like something that everyone should know and manage or at least know basic aspects of finances, such as organizing a market budget, children's education, rents or even the most basic maintenance in a house, but to the surprise of many this is not the case.
There are homes where even if they are generating enough money to live, where there are at least two salaries, the mother's and the father's, even so, what they earn is never enough, they are always in debt and there is never growth.
The same happens with people who constantly try to start an enterprise but their idea never ends up taking flight, they fail to materialize their dream and fail again and again, until they end up giving up and end up thinking that investments and business are not for them.
In most cases, people in their homes, businesses and ventures do not have enough money or end up failing simply because they do not understand, do not manage and do not apply basic knowledge about finances and their chances of success are greatly diminished due to little or no financial education.
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My personal experience
Personally I must say that my life would be different if 10 years ago, I had managed the little knowledge I am acquiring today about personal finance, and if I had met the people I know today, who have contributed their knowledge so that I can just begin to see the light at the end of the tunnel and begin to understand the underlying power of financial education, an invaluable wealth of knowledge that helps you to enhance your personal finances.
In the last two years and as a result of my passage through this Blockchian I have learned terms that I had never heard mentioned in my life, and although I do not understand them perfectly, I am not applying them either, that is what I intend to do from now on, to be able to make this journey towards financial freedom in an enlightened way.
Speaking of financial terms and concepts, the next publication I will dedicate my study and my attention to a powerful concept that some call the eighth wonder of the world, yes friend, I am referring to compound interest a concept until recently unknown to me, and that I met through a good friend here in this Blockchain, and is something I am trying to understand in more depth and apply in this journey that will lead me to be financially free.
For the rest, educate yourselves financially, that for life, work and entrepreneurship we need at least to handle the basic concepts of financial education, and if we are able to apply them in a correct and disciplined way this will increase in a high percentage our probability of growing our resources and get to generate wealth.