'Sticks and stones may break my bones but words can never hurt me', I remember singing along to this a zillion times as a little girl but as I've grown older I've come to realise this statement not to be true. My bones have healed from many injuries but some words..hmm! Another saying which is quite popular is "what I don't know, won't hurt me!" True or false?
I've found that as well to be false, sometimes catastrophically so! What I don't know about myself will make me struggle with insecurity and self esteem issues. What I don't know about my friends may make me hurt them, what I don't know about my purpose in life will make me wander aimlessly, just marking time but not really making any progress as minutes turn to hours, hours turn to days, days to weeks and so on until I realise I've reached a certain age and I'm not really sure what I have to show for it! Ouch!
What we don't know about money and finance will keep us from achieving financial freedom. This blog is about financial education. I am a firm believer that the solution to poverty is not more money but more education. This is why majority of lottery winners find themselves back in debt or even in deeper debt within a short time. See here. The Bible says "of what use is money in the hand of a fool since he has no desire to get wisdom?" (Proverbs 17:16 NIV).
So what do I know about money, investments and finance? Unfortunately, not a lot but at least I am aware that I do not know a lot and am seeking out ways to get myself a financial education. I agree with Robert Kiyosaki when he says that our educational systems that we have in place now do not prepare us for financial freedom, what they really do is prepare us for a job which my pastor jokingly refers to as being Just Over Broke!
I am painfully becoming aware of the cost of ignorance in quite a number of areas (more on this later), especially in the age that we are now; the 'Information Age', he who has the information and walks with the information gets the gold. A definition of insanity is to repeatedly carry out the same actions and except a different product so for me to move from where I am to where I want to be I know there need to be a few changes. Like every field, finance has it's own vocabulary and depending on what investment vehicle you choose you will need to learn to speak the language.
The Bible says to remember the Lord our God for He gives us the power to get wealth (Deut 8:18), He says that we should call unto Him and He will show us great and mighty things that WE DO NOT KNOW (Jer 33:3).
Questions to ponder on, feel free to leave the answers as comments (anon if you wish). Remember no google or wikipedia answers, this is for personal reflection in your own words
What does financial freedom mean to me?
What is the difference between an asset and a liability?
Which of them (i.e assets/liabilities) am I acquiring?
Who will/ how will I support myself in retirement?
What is investment?
What tools for investment are out there?
Is there a need for financial education?
What have I done in the past week, month or year to increase my financial education?
Sorry I know there are a lot of questions but please take the time to reflect on them. I will be putting up my own answers shortly!
Remain blessed and highly favoured. 2008 continues to remain our year of uncommon testimony because we have been empowered to PROSPER.