What does it take to truly bid farewell to financial lack? How can you secure complete freedom from debts? Save more money in the bank? Relocate to a less luxurious house? Start up your own company? Sell off some of your liabilities? Nope!
As good as these options may seem like, they are not the ultimate solution to the problem of financial slavery.
Every problem you face in life has a root cause as well as ‘auxiliary causes’ that may also contribute to the increasing the problem.
Auxiliary factors only tend to aggravate the problem when it’s already set in. It doesn’t solve it at all. All the options above can only be considered ‘auxiliary factors’ since they do not cause the problem of financial lack directly, neither can by removing them remedy the situation.
To fix this problem, you have to follow Suze Orman who said: “The only way you will ever permanently take control of your financial life is to dig deep and fix the root problem”.
So, you need to address the problem from the root if you’re determined to take a safety flight to financial freedom in career, business and in life.
Hope you got it? Good! Let’s go on.
What you need most at this time is not money. Like seriously? Yes, I’m very serious. Money won’t make you rich. Applying for a higher paying job won’t make you rich either. Let this sink deep into you.
Financial freedom is not a function of how much you earn or how much you can save. It’s a different ball game altogether.
The root cause of financial slavery is ignorance of financial principles. The opposite is what most of us usually relegate to the background because no school does teach it. It’s not contained in any college or university curriculum. As Vince Shorb said:
“College graduates spent 16 years gaining skills that will help them command a higher salary; yet little or no time is spent helping them save, invest and grow their money.”
Hence, what you now need is an anti-treatment drug that will squarely deal this ailment (ignorance). You need adequate insight into the governing principles of money and wealth creation.
Read also: The secret code to a colorful future
This is what is technically known as financial education, financial literacy or financial intelligence.
What’s Financial Literacy All About?
Financial literacy is quite ambiguous to define in few words because of the divergent opinions of experts. However, I prefer the below definition to others.
According to Wikipedia online Encyclopedia, “Financial literacy is the possession of the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources”.
It borders around the knowledge and skills required to help you stay financially safe and sound.
Financial literacy is a fundamental skill you must deliberately acquire if you must live above financial limitations. Remember that every man is a slave to his ignorance. You are not an exception if you fail in this area.
Financial insight is your greatest asset in the pursuit of happiness and all-round freedom. If you’re not yet financially free, then you’re still held back by the strongest force of life. You shouldn’t boast of freedom at all.
Why Financial Literacy?
The benefits of becoming a financial literate quite are inexhaustible. The major part is that you will become financially free like the air. Wow! That’s a great deliverance. Right?
Becoming literate in the area of finance not only will teach you the principles of making money but also how to convert your money to a machine – making other money for you.
Today, most families live in debt even when they are receiving a huge sum of money as monthly salary from their jobs. Thus, making it impossible for them to escape the burden of living from paycheck to paycheck.
Research conducted by Futurpreneur Canada revealed that most people (entrepreneurs inclusive) do not understand the concept of compound interest and some consumers don’t actively seek out financial information before making financial decisions. Also, most financial consumers lack the ability to choose and manage a credit card efficiently, and that lack of financial literacy education is responsible for lack of money management skills and financial planning for business and retirement.”
You need financial literacy in order not to fall prey of the above problem. There can’t be an overemphasis on the place of financial intelligence in this 21st century.
The pain of financial ignorance is inexplicable and very excruciating.
Getting Committed to Financial Literacy
Growth in any area of life according to John C. Maxwell is intentional. Nothing happens until you make it happen.
To improve in your quest for financial freedom through financial literacy, you need to get committed to learning, studying and research on the laws that govern money and the principles that create wealth.
You could take personal finance courses, attend seminars or workshops where you can be taught basic things about financial management and lots more.
I want you to start doing the following:
1. Start Learning to Earn
2. Stop Failing to Save – open a bank account to monitor your savings
3. Seek out where to Invest (make money work for you) – real estate, stocks, mutual bonds, etc.
4. Set goals on how to Spend – budgeting
5. Get committed to giving – that’s the sure way to profitable living.
Focus your learning studies on those five areas above and watch your growth in financial literacy go up and financial slavery turn to the tale.
One More Thing to Remember
To be rich, you must understand the meaning of money and its governing laws. Dedicate to following it and become delivered from its chain.
I will like to hear your responses in the comment box below and possibly your contributions. I will start a series very soon to help you become entirely free financially and live a happy life.
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