The thing is we were born intelligent but education ruined us!’ This adage can very well be summed up when it comes to describing financial independence of most individuals. School taught us manners and behaviorism, and opened a vast world of subject knowledge but what it didn’t teach us was money matters.
It taught us calculations but didn’t teach us how to manage those calculations. Once in practical life, when you learn that, you will be a highly successful rich individual, but unfortunately most of us are unable to learn these skills later and end up living a mediocre life, and this is what differentiates us from the rich.The 16 Financial Education tips you must know will open your eyes.
The only difference between the rich and not so rich is finance management through financial education. Below, we will share the 16 Financial Education Tips you must know.
Once you learn the 16 Financial Education Tips you must know ( that are unfortunately not taught at school), you can count yourself in the same league as the rich.
16 Financial Education tips you must know – Tip number 1 – Build on assets
This is the number one skill that makes rich getting richer. They focus on assets. They build a vast range of assets and then continue living on that. The assets allow them to have a steady flow of income. Let me quickly share a recent experience about our family.
So we have a plot in a very prime area that was acquired by our parents. We have recently been in touch with a developer who is willing to develop the land and provide each one of us with a bungalow ( that we could choose to rent or live in), and the developer will use the other part to build their own set of bungalows.
The argument in the family is, if we let the developer ”develop” the land, we will loose half of our asset i.e. our prime plot. When you look at it differently you will find that the land has not been giving a steady flow income. Unless we either convert it into cash by selling it or develop it; it does not really work as an asset.
16 Financial Education tips you must know – Tip number 2 – Less Liabilities
Focusing on building assets means less liabilities. I own a home and for me, it is a liability. I am still servicing my loan and I use my tiny salary to pay off the debt. Had it been I took a loan to build low cost homes that I could rent, I would service my loan and yet have a flow of income. My houses would have been assets. Average people have so many liabilities that they continue paying off those and forget to build any assets. This makes them live a very mediocre life and never attain a rich way of living.
16 Financial Education tips you must know – Tip number 3 – Learn about investments
Investing does not mean to keep on buying assets. It means having a good knowledge about what, how and when to invest in. First learn about the rules of investment then start.
16 Financial Education tips you must know – Tip number 4 – Luxuries last, not first
Think of buying luxuries when you have enough to spend on them. Don’t keep on buying luxuries at the cost of your income. This way you will never be rich. You may increase the standards of living but will never be able to call yourself truly rich in terms of money.
16 Financial Education tips you must know – Tip number 5 – Gain expertise in a particular area
If you have in-depth knowledge about a certain area, you are bound to excel. If you are excellent in a field you will definitely make money. Once you earn well, learn to spend well. That’s the key.
16 Financial Education tips you must know – Tip number 6 – Don’t be afraid to lose
Rich people have a lot of failure stories to tell. Ever wondered why? That’s because they were not afraid to lose. They chose a risky life initially to make a successful one. Average people are scared to lose. They never risk money. Even if they lose once they stop trying. Rich people don’t stop trying.
16 Financial Education tips you must know – Tip number 7 – Don’t let emotions overpower you
Don’t let emotions ruin your task. Rich people are a bit selfish. Let me clarify this by an example. Saturdays are the best days to create my online courses but they are also packed with so many errands, and social meetings. At times I have to be selfish not to attend some social meetings/ gatherings because I know for the 4-5 hours I could create a course module. Once I have completed the module, I’d take a nap and rest, and will wake up feeling accomplished. By choosing to stay and complete the task, I kind of behave selfishly. I do not think about saving the world first or the blames that come with failure to attend social meetings.
16 Financial Education tips you must know – Tip number 8 – Have ‘I can’ attitude
Attitude plays a very important role in finance. Your attitude defines who you are. Imagine if you are currently broke and believe that you will never get money again. You choose to blame everybody for your lack of money ad decides that you will stay at home and let fate take over. What if you opted to think that being broke is a temporary situation and that things will get better, you just need to wok smarter. The truth is you will never be able to attain a task if you feel you cannot do it. A positive approach will make your brain work more efficiently and it come up with brilliant ideas.
16 Financial Education tips you must know – Tip number 9 – Network
Build up a strong network of people around you. Mind it, this should be a network of successful people. Try and emulate them. Discuss ideas with them. People are around you not for gossiping and whiling away time. Try and have a productive conversation. But don’t be mean or too selfish. Build a mutually cordial relationship.
16 Financial Education tips you must know – Tip number 10 – Know your bank
Another important thing people forget to learn about is their bank and bank accounts. Learn what benefits you can avail from your bank. Know what is a mutual fund, shares and other such things. Learn how to invest in these and grow money. Bank accounts are not just to deposit and withdraw money.
16 Financial Education tips you must know – Tip number 11 – Learn how to communicate well
Communication forms a major part of a building a good network. Also, communication helps you to negotiate well. A good negotiating skill is a must when you want to increase your money worth. It will help you to ask for what you deserve and sometimes even more.
16 Financial Education tips you must know – Tip number 12 – Learn your market
Don’t follow the crowd. Be a leader. Always remember it is only when you do things differently that you achieve success. Remember long-term profits are made only when you buy assets not when you sell.
16 Financial Education tips you must know – Tip number 13 – Talk less
Another major difference between the rich and the average is that they don’t keep on talking or thinking about something. They work hard to achieve it. They have a clear purpose in mine. It is execution of ideas that lead to a productive business not just talking about ideas.
16 Financial Education tips you must know – Tip number 14 – Keep thinking about new income sources
More investments and more assets, do not think of getting a second job just so you are able pay your expenses. Increase your income flow through investments and assets.
16 Financial Education tips you must know – Tip number 15 – Don’t just Save money, invest it
Yes, you have read it well, do not just save money, you need to find investment vehicles to invest your money to get higher returns. The key is to have control of your income and income streams, your investments and expenses. Imagine if rich people were to save money to receive interest income that is charged 10% withholding tax. I bet they are thinking more about where they can have their money yield more.
16 Financial Education tips you must know – Tip number 16 – Credit is a major hurdle
If you live off your credit card, just bear in mind the extra charges you pay every month. Credit cards come with their own share of surcharges and extra fees. For one month they may not sound too much but when you come to think of it collectively for a year or so thy will be worth few thousand dollars, which clearly are going waste.
Bearing all these key factors in mind, you kind of need to increase your financial intelligence. Financial education is real and is what differentiates the rich from the poor. Change the way you think by examining your life so far. Would you say you are rich, wealthy or poor?
If you were to stop working today, how much would you still be making from the income streams/ cash flows you have created? If you have none, you have not been thinking or operating like a rich person. You may have a good home, a nice car, latest phone but still you are poor. Get financially independent today and learn more on financial education to become successful.
