In school or college we were taught to be a good student and learn what’s there in our course books, get good grades, get to universities and get a high paying job at the end. And the lesson about money was all about getting a high paying job to earn money. It like you work and then money comes in, we were never taught how money can work for us. A good job allows you to earn a good salary and also comes with an obligation to heavy taxes which is fine but we were not taught to manage our money, nothing that can be considered as a Financial education.
One financial advice that many of us have received is to keep our money in a savings account and earn interest on it, like systematically putting some funds aside each month to earn interest on it every month. It ensures that your money is safe and you earn up to 1% interest on it every year. However, if you consider the inflation rate it may cause your savings to lose value at the end of the year.
At the same time, we do see rich people around us who are not doing what was taught to us in school. They don’t save and live paycheck to paycheck. Instead, they pretty much break all the norms that society has set. You may feel that it’s a game in which you are stuck and working hard, struggling every day, seeing rich getting richer and you may feel like fighting a lost battle. You will be surprised to know that if we change few things in our life, we can not only get back into the game but can also achieve success.
In this article, I am trying to touch upon an important game-changer aspect of money making-and it’s called Investing in Yourself. That’s right before you can take any financial decision, say trading stocks or forex, any type of investment, or start any business, the first and foremost thing is to Invest in your financial education.
If you are not living the life you dreamed of then chances are that no one ever told you the importance of Financial education, no one ever told you how many opportunities will unravel themselves just by getting financially educated. We all have heard the story of “The Ugly Duckling”. Where the little duckling looked different from its siblings, and therefore was constantly teased and ridiculed for being “ugly”. The little duckling faced a lot of hardship & rejection while searching for a place where it belonged. During its journey, all the animals and birds rejected and mistreated it, and the duckling felt so isolated and hopeless. Many people may feel like the ugly duckling (financially). However, eventually, the ugly duckling grew into a beautiful swan and realized that it was never ugly, but a swan in the making. Just the way the swan found its true identity, I want you to realize your true identity which is to become financially free, living the life you always dreamed of.
Improve your financial knowledge to access the below:
FINANCIAL INDEPENDENCE
The power to handle you money smartly is no less than a super power. When you know how to manage your money well, it opens up a new universe of exciting possibilities. Those who have this knowledge always value it like treasures. The treasures that can help you make money and generate wealth, its like a dimensional jump to a parallel universe where you can achieve an amazing life style.
Having money and learning how to manage it gives you a wonderful feeling of freedom and independence. Many of us are currently following a routine where, you wake up early so that you can reach you office on time, finish your designated work, earn your salary and then leave on time, so that you can reach home on time, which sounds like very robotic. I have heard a great man say this – “A Salary is the Drug They Give You to Forget Your Dreams“
Gaining financial independence can give you power to take charge of your own life and make decision that are best for you and your family. You can become free one day and do whatever you like.
IMPROVED DECISION-MAKING
We are making decisions all the time in our life in an auto-pilot mode, we may not observe ourselves doing that but that’s the truth. While doing grocery, or deciding what to watch on Netflix, which book to read or taking a different route when stuck in traffic or wait for the traffic to clear and so on. Now, imagine this, if you already know that taking a detour will make you wait longer and you decide to wait in traffic, this decision can save you time in comparison to taking that detour that you avoided or if you know that grocery on sale is old and probably wont last a day if you will buy that, you will prefer not to buy that.
The point is if you enhance your financial education and make yourself well-informed about various financial opportunities, you can manifold your decision making capabilities. You will be able to make informed decision. For example – if you study past years’ balance sheet of a company XXX and also read that this company is about to diversify into different product line using some AI technology, then your decision to buy/sell the shares of this company will be an informed decision. Or if you know a new subway station will be operation in an area in next two that can impact the prices of the real estate around that area, you may choose to invest there.
When your decision making is improved, you automatically start making better choices regarding money. Whether its budgeting or comparing prices and products. Researching about a product you want to buy, or comparing prices, features and customer reviews is usually you do that helps you choose the best value for your money.
Effective decision making positively influence your Short-term financial well being and long-term financial financial security, it not only optimized your financial outcomes but also contributes to a more stable future.
So, if you aim at empowering yourself to explore different financial opportunities, or living a more fulfilling and prosperous life, attain a more stable future and making improved money decisions then investing in your financial education is a must.
LONG-TERM WEALTH CREATION
We always hear financial gurus advising that we should diversify our portfolio and invest in different securities, but one cannot invest in multiple securities unless they are aware of them. If you have good knowledge about shares, debentures, mutual funds, forex, GICs, bonds, ETFs, etc., only then can you compare their interest rates or fees to choose the one that will help your money grow the most. Wealth creation is a process, and being well-informed about financial opportunities makes it an easy process and allows you to achieve it faster.
Only those who are looking for financial opportunities can find them, and only those who are aware of them can look for them. Financial opportunities are like different games with their own rules and strategies. Just like in Chess sometimes you plan many moves ahead, and in Monopoly you buy properties, collect rent and aim to grow your real estate. Some see an opportunity in real estate, others see it in cryptocurrencies or forex. Some keep money in high-yielding savings accounts, while others invest in stocks. Each has different rules, payouts, fees, and requires a different acumen.
The more informed you are about financial opportunities, the better you become at making effective investment decisions. And in the long term, it helps you create wealth. It helps you understand the risks and rewards of investing in various financial assets. It’s like in basketball, where you take a risk by attempting a difficult shot to score more points. Similarly, investing in stocks also involves taking risks to gain higher returns, but an informed investor can take calculated risks.
In a nutshell, being well-informed about financial opportunities allows you to invest efficiently, evaluate the risks and rewards, and eventually build long-term wealth.
FINANCIAL SECURITY
Having financial knowledge is like having a toolbox with various tools to manage your money efficiently. Its like looking at the world full of choices, where some could harm your finances and other can make you wealthy, and with financial knowledge, you can make smarter choices and pick up the best opportunities. Knowing how money works reveals numerous possibilities to increase your financial security and gives you a sense of stability.
You know that differentiating between needs and wants can help you to make an informed decision instead of impulsive buying. Also, if you learn about different savings accounts, like high-interest savings account or certificates of deposits (CDS), GICs, etc., it enhances your horizon and lets you choose from different option to maximize interest on your savings. Similarly, when you understand the concept of compounding and compound Interest, you can utilize it and take advantage of it to grow your money faster.
When you gain financial knowledge, by default you start protecting your financial future. You don’t realize that you are already ahead in this game of money and always have a roadmap with you that tells you how much money you can spend on different things, like food, clothes, entertainment, how much to save & invest, where to keep your money. Following this road map will always keep your financial secure.
BETTER FINANCIAL WELLBEING
Our minds can work wonders if we start observing ourselves. Everyone behaves differently when making decisions about money. Some people spend money as soon as they get it without thinking about the future or any unexpected contingency they may face, or when they might really need money for something important. Also, some people successfully develop a habit of saving a part of their money before they start spending it. This way, they can better prepare themselves for any future unexpected expenses.
When you are aware of your financial decisions and choose to make good choices, you automatically decrease the worries that come with money for most people, and can be a key a stress-free life.
For example, you save money for a trip to your favorite destination. You save a some money every week, and suddenly the prices for hotels have gone up. If you had considered the possibility of such unexpected price rise when you started saving, you can be stress-free now regardless of whether the prices go up or not. By keeping in mind some future scenarios will ensure that you will never have to worry about not having enough money to handle an increase in hotel or flight prices.
Practicing money management skills will boost your confidence in handling your finances and give you a sense of achievement. Lets say if you save money every month for a down payment for your next rental property, you will feel proud of yourself when you will gather that in the time period you decided initially. You will feel more confident in your ability to handle money efficiently. You will feel that you are in control of your finances and capable of making good financial decisions.
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