Financial education is the possession of the set of skills and knowledge that allows an individual to make informed and effective decision with all of their financial resources. It is also called “financial literacy” and it’s extremely important in order for you to make progress and get ahead in life
If you’re looking for improvement in your personal and financial life, you might be looking for financial freedom and financial independence. It means that you want to reach a point in your life where you no longer have to depend on family, a job, or a company that you don’t like for money. But there is another concept that I’d like you to understand, it is “financial confidence”.
It a different from financial freedom. This is because freedom is based on the amount of money that you have available, while financial confidence is based on your confidence and acumen to generate money.
There are two main reason why people don’t get financial education they need despite it being extremely cheap .
Reason 1 :- conventional wisdom
Financial education is NOT a conventionally. Most people will give you a mindset of scarcity, and if your mindset is wrong, you will never attract money. For example: while growing up, your parents might have been telling you “money doesn’t grow on trees”, and ” money is the root of all envil “. These lies that people tell their kids are stopping people from taking the necessary steps to a better life in financially.
Another conventional concept that is widely through but is extremely wrong . It is the negative convocation towards debt.
Debt is not that bad (if you know how to use it), but still people demonise it because they don’t have the appropriate education.
Reason 2 :- comfort zone and self-esteem
In order to generate money it’s believed among the rich that, you need to be confident and have decent self-esteem, self image is important. You have to believe that you truly deserve to be wealthier and happier. Think of like a self fulfilling prophecy, you have to see yourself rich first. This confident, charismatic, rich image, you see yourself in your mind will give you the needed confidence to continuosly act out of your comfort zone, which is very important.
A very successful person once said: ” most people are not successful because they are afraid of success “.
In order to become successful, you have to step out of your comfort zone and take risks. for example, if you want to start your first business, but you don’t have any money, you might first of all have to take the risk of getting a loan from your bank, and putting yourself in thousands of dollars in debt which is out of a lot of peoples comfort zone.
Charisma and confidence are some of the key ingredients you need to become rich. Confidence will give you the strength and the courage to take risks and perform under pressure.
Four most important rules of being financial educated.
Rule 1 don’t invest in what you don’t understand
Rule 2 debt is a powerful but deadly weapon
Rule 3 Think rich
Rule 4 develop skills.
The truth is, the world is littered with money, but only those with the skill and knowledge that can acquire it.