20 Oct 2008

What you don't know..

'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.

9 comments:

Jaycee said...
This comment has been removed by the author.
Jaycee said...

This post really struck so many chords within me. This is the 'information age' like you rightly said, and having the right information is the same as finding a pot of gold. I love that philosophy...

Really liked this statement, "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 realize I've reached a certain age and I'm not really sure what I have to show for it! Ouch!"

Rita said...

I agree with you with "My bones have healed from many injuries but some words..." Words are everything.


Let me give some of my views to the questions:

1. What does financial freedom mean to me? It means being free from money ie not dependent on money, knowing my provision is from God and hence not being afraid of any changes in the economy.

2.What is the difference between an asset and a liability? Assets are things that can be used to bring more money or value while liabilities are things that take money or value.

3. Which of them (i.e assets/liabilities) am I acquiring? Both. Some times we cannot help acquire liabilities even though we know they are not good for us. For instance, a car that needs fixing every month is a liability.

4. Who will/ how will I support myself in retirement? Savings, pension funds, other investments I am currently working towards.

5. What is investment? Anything you put your money into with the hope of generating money/value from it.

6. What tools for investment are out there? Many. Savings, Stocks, Properties, Businesses, Self.

7. Is there a need for financial education? Yes.

8. What have I done in the past week, month or year to increase my financial education? Listen to/Watch programs on financial education.

Believer said...

My answers....

Financial freedom means when my total TRUE income exceeds my total TRUE expenses

An asset is something that puts money in my pocket while a liability takes money out of my pocket

Both assets and liabilites, i agree with rita, some liabilities are inevitable but i want to acquire assets that fund my liabilities.

Savings and cash from investments..maybe something from the kids!!

Investment is a form of financial leverage the end result being cash flow or capital gains

Real estate, shares and stocks, mutual funds, hedge funds, commodities, start up business

There is a BIG need for financial education

I'm reading books to get a transformed mind!

WOW power leveling said...

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deola said...

Lovely post. lovely blog

Uzezi said...

words are the greatest weapons people can use to harm us if we let them.

what you dont know wont kill you, like they say. rubbish.
what you dont know will kill you, leave you far behind when everyother is ahead.

love the books on your recommended list. Parable of Dollars, nice book too.

Believer said...

@all: Thank you so much for your comments,let's get to knowing..

Truth said...

Financial freedom means, if my assets are able to take care of my liabilities and have enough to give me certain comforts of life
The difference between assets and liabilities, assets are what is generating or is able to generate income at any given time. Liabilities are things that are depleting your generated icome or will deplete your income.By the grace of God i have learnt to acquire more of assets than liabilities.
Assets will and can sustain retirement which is why more infomation is being acquire in this area.
There are a lot of tools out there and one should be educated about them
Obviously, one should seriously acquire education in this area.
For some time now, i have been able to learn and i am even practicing some of the learned stuff about finance.
God bless you as you contnue to draw women especially to come to terms with their finances before its lane