Why Financial Education Is Important ?

Why some people work day’s night but still barely manage to arrange basic necessities of life while others work smartly and become rich and enjoy the financial freedom? The reason behind it is the factor of financial education which plays a huge role in determining the direction of life.

What is Financial Education?

The ability of identify the difference between an Asset (something that puts money in your pocket) and Liability (something that takes money out of your pocket) is known as Financial Education and having the courage to make decision based on facts/logic over emotions.

Why learn Financial Literacy?

It will help you to achieve Financial Freedom in your life and gives you the Freedom of time. Being Financially intelligent helps you to control your financial future and live your life without worrying about money. It will teach you how to make money work for you rather than working for it.

It doesn’t matter how much you make, It’s about how much you keep.

RICH DAD POOR DAD

Why are we lacking Financial IQ?

Most people lack Financial IQ because of one major reason, It is not taught in Schools, In schools we learn about numbers but don’t learn how to figure out the story behind the numbers and don’t know where to learn about it.

How to develop your Financial IQ?

The best way to develop our Financial IQ is learning by doing and building the four pillars of Financial IQ which are :-

1. Accounting – It is the ability to read numbers and the know the strengths and weaknesses of any business
2. Investing – It is known as the science of “MONEY MAKING MONEY” .
3. Understanding Markets – It is science of supply and demand. Does an investment makes sense on current market conditions.
4. The Law – Understanding the tax advantages and protection from lawsuits offered by the Government can be used for growing your wealth faster than someone who doesn’t understand taxes.

If you work for money, you give the power to your employer. If money works for you, you the keep the power and control it.

RICH DAD POOR DAD

Do you want to be RICH or POOR?

The choice to be Rich or Poor is in our hands, If you want to be Rich the you’ve to learn to Invest in yourself everyday and have the courage to take risks and learn from your mistakes. Remember the following quote.

Giants often trip and fall, But worms don’t, because all they do is Dig and Crawl.

RICH DAD CASHFLOW QUADRANT

Thanks for reading! Start taking baby steps from today.