In today’s scenario, each and every one of us is in the race for a good life, and for that, we all are working hard. Someone is working hard to start his/her own business while some are focusing on their studies to get a good job but the question is,
Is it enough to work hard in today’s scenario??
A good business or a good job can give high payments/returns, but even that is not sufficient until and unless one does not know how to utilize that hard-earned money in a blooming nature, and that’s where financial literacy plays a major role in guiding us for the proper utilization of our earned money.
The basic principle of financial literacy is that ‘Our money should earn money
for us’, and in today’s scenario only some people are working on this principle, others are following the rat-race of working hard and then fulfilling their needs. To make our money earn for us one should be focus on building the assets (such as stocks, bonds, or investments) rather than liabilities (such as mortgages, loans, or credit card debts).
A financially literate person buys assets from his/her earned money and then covers their expenses from the returns of the money he/she has invested. We should always be focusing on how can we grow our investments rather than waiting for the hike in our salaries. As our investment grows our return grows which automatically helps in covering our expenses easily.
An asset is something that puts money in my pocket.
A liability is something that takes money out of my pocket.
-Robert Kiyosaki
As the title itself suggests, that financial literacy is a topic for all as it just not aids in making the person financially sound but also provides him the confidence in his/her decision making which in turn helps in achieving success in life. Financial literacy also covers the common concepts of daily life such as debt, interest, credit scores, etc. which we all come across at some point in life but only with proper knowledge we can understand them and use them wisely.
Each and every person deals with the issues of finance whether Rich or Poor but the difference lies in the fact that a financially literate person easily comes out of the issues but the others suffer from the issue.
The below given statement by Robert Kiyosaki, best summarizes today’s scenarios which is something to ponder upon.
“Academic qualifications are important and so is financial education.
They both are important and schools are forgetting one of them.”
