Given how important financial skills are to navigating life, it’s surprising that most of us don't understand the most elementary basics of money and how money works.
Many people today are struggling financially because they do not educate themselves about finance. They have very little understanding of how to grow their money, how to generate wealth and the potential impact on their financial well-being.
All too often we put the responsibility for our wealth creation in the hands of other people and then blame them when things don't turn out the way we wish.
Most people misidentify that to be educated about money and finance they have to be a whiz at maths or be an expert in Financial Reporting Standards, or study debits and credits. This is a major misidentification, a massive disconnection between perception and reality. The resulting financial illiteracy is the major reason why so many people struggle financially.
Make no mistake–an ignorance of personal finance, while probably unintentional, has serious consequences. Unless you know the principles of creating your generative wealth, you will never stay wealthy.
According to the well-known quote “There are three types of people in this world: those who make things happen, those who watch things happen, and those who wonder what happened.” Taking responsibility to educate yourself about your finance means you, and you alone are willing to make it happen.
Once you make a choice to educate yourself about your finance, accept you must take 100% responsibility to do something about creating your wealth, then you have to take the next step and do it.
When we talk about educating yourself about money and finance we are actually talking about educating yourself about what having money is, what would it take to create more and what would it take to create the life you desire —not how to survive within the supply and demand of this reality, which is often based on scarcity and lack.
When you choose to educate yourself about your finance, you take on the job of understanding not only everything you do but you take on 100% responsibility for your own financial situation.
Ultimately, you must become your own financial adviser. But to become your own financial adviser, you need to acquire knowledge and you will only achieve this if you have a sincere desire to educate yourself about finance.
Questions You Should Be Asking Yourself About Your Finances
- How much money do you have, how much do you owe?
- How much do you spend?
- How much do you need to generate each month
- What is your current net worth?
- What are your assets worth?
- What are you doing with your money now?
- What are your priorities? Or, besides money, what else is important to you?
- Are you living from one pay to the next?
- How do you picture your life 1/3/5 years from now?
- What are your most pressing financial concerns?
Having financial awareness – an understanding of how money can work for you – has never been more important. Any improvement in financial awareness will have a profound impact on your ability to use money to generate wealth for your future while creating your life that is going to give you everything you desire.