6 Importance of financial literacy

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Financial education is incredibly different from every other vocation. It is a specific skill that helps you manage and send your funds in the right direction. You might have been in business schools for years, understand its definition, but never know how to take advantage of financial literacy. The reality behind this topic is that it is a self-transformation tool which means it is a habit that you must learn to apply every day. And this habit requires discipline

You don’t need to go to school to become financially educated because it is an investment strategy that requires and depends a lot on common sense and practical experience. Robert Kiyosaki the author of “rich dad poor dad” attends this logic by saying <Looking good going nowhere>. Either you’re an entrepreneur or employee, you still need to about money. To gain financial education you must first get into business, make mistakes, and learn where exactly to send your money to for a reasonable return. You can study in business schools without having financial education so it refers to making money, keeping it, and investing it the way that it brings more. As we’ve all understand the meaning of financial education, let’s fetch into the 6 importance of financial literacy:

It Helps Us Maintain The Difference Between Asset And Liabilities

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Assets are whatever brings money to our accounts and liabilities are whatever takes it from us. Assets are just like our job and any other things we do to get money but there is a difference between making money and getting paid. We make money independently or even passively but get paid for leveraging our time and efforts. Assets are also your skills, properties that earn you income, services you can render, business, and sales. Liabilities are What we spend our money on mostly like cars, stocks, phones, watches, and other things that consume our money. If you invest foolishness, your money is gone. Gone forever!!

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It Helps Us Fulfil Long-term Investments

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Investment is not just about money but about creating something that can change your entire life just like a company, a business, software, and so on. Big dreams take time. There is no doubt that financial literacy helps you survive in the present by helpings us maintain the difference between assets and liabilities.

Looking into the clarity of this perspective, we must be willing to lose money for a long period to create wealth for ourselves like the example of Warren Buffet who reduced the price of oil because he wants to influence the oil company and people bought a lot from him while others businesses destroyed to the approval of his wealth because loosed money to invest for your long-term victory.

It Helps Us Figure Out The Right Plan For Our Businesses

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Thinking is very good to help us figure out the right plan for our business. Investors spend a lot of time thinking about how and why they should invest in a business, but when thinking, most of them never figure out what to do if the business doesn’t work out. A financially educated person knows when and not to start a business. They know when to invest and when not to. You can be rich everywhere if you know about the secrets and investment rules. Be careful leaving your job for a business you will be starting for the first time. It is extremely risky.

It Helps Us Overcome Emotions

When you start a business, you might be taking it easy until you fail the first, second, and third before your eyes will fully open. Business is not a game of love, care, or even anger. It’s a game of knowledge and common sense. After getting upset by people who promised to pay you but never do, you will become someone who doesn’t care if someone loves them or not, what people say about them, and most who never pity anyone. You will lose charity to become a man of rules. That’s what it takes to build a better business.

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It Gives Us Manage Risks

It is important to have the courage to take risks and manage them. Life is risk and as we all know that we also can’t get rid of them. We have to try many things to figure out the best that works perfectly for us. After taking a risk or borrowing some money to start a business, you must be flexible enough to figure out how to pay your debts back on time. You can also choose to pay it little by little, daily or monthly.

Yearly might be a bad decision because we can’t just figure out what will happen in the future. We just have to think well if the deal is worth it or not. We need to have a critical reason to take risks for a better purpose. If it works congratulations but if it doesn’t try again.

It Helps Us See Solutions And Opportunities

In most societies, there is always a problem and complaints about something. A financially educated person can make money in every country they are in and are ready to face any situation. They are so flexible in such a way that they can travel anywhere at any time. We should think and find out solutions on how to solve any problems anywhere. We might not have enough money but we just need to start with whatever we have.

Finding big problems and figuring out how to solve them is a wonderful way to get wealth and success. There are many problems in the world just like jobs, money, health, and so on. By just figuring out a solution to a worthwhile problem, you can be saved. Invest and invest in what you believe in and what you don’t but think it might

It Helps Us Take Reasonable Action

We’ve all heard about ”dreams without goals are just dreams” in this world waiters are losers. Don’t wait for tomorrow to give you a better result start with whatever you have and take responsibility, feel pain and try to figure out how to get to your achievement. Do something about your problems with whatever God has given you wherever you are.

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