FINANCIAL LITERACY: THE ROAD MAP TO FINANCIAL FREEDOM


  
                                                                           


It is the desire of every individual to experience financial abundance. Nevertheless, very few can proudly boast of it. It has come to my notice that people dedicate their time and resources chasing after money, doing five to six jobs, saving and not minding the stress all in the bid to attain financial freedom. Financial freedom cannot be attained by hard work alone, to attain financial freedom you must understand “The Cashflow system” , that is how money works, how it comes, how it goes out, how to manage it, how to generate it and more. This is to say that you must acquire financial education. There is no school in the world where people are taught how to make money, however, you can acquire all the financial knowledge needed to break free from poverty. Here are steps to access limitless financial freedom.


KNOW THE DIFFERENCE BETWEEN ASSETS AND LIABILITIES

The inability to differentiate between assets and liability has kept the poor, average and middle class where they are today. While the rich invest their resources on assets, the poor and middle class invest their money on liabilities like expensive jewelries, luxurious cars and style of living. The rich understands more income equals more investment while poor and middle class spend more on liabilities when their income increases.

 HOW TO DIFFERENCIATE BETWEEN AN ASSET AND A LIABILITY Assets are factors that bring in income while liabilities are those factors that do not add in terms of income rather they subtract resources from you. The first step to financial freedom is to understand and differentiate between these two.

 Action Point 
Write down your entire properties then group them in terms of assets and liabilities, try to cut down or drop them and use the recovered resources to invest.


 ASK THE EXPERTS

Why dive into the unknown when you can ask questions? you may not be privileged to come in direct contact with successful people in a particular field but you can relate to their thoughts, know their takes and learn from their mistakes by reading their books, CD’s, Videos and attending seminars where they speak. 

Action Point
Connect your success to successful people and work hard to study that individual and know him/ her in-depth.


 PURSUE KNOWLEGDE

The world is evolving from the industrial to the information age where knowledge, diligence and smart work rules the finance. Successful people know this that is why they invest so much in study, information and growth.
 Hosea 4 verse 6 highlights that fact that most people perish or suffer in poverty because they lack knowledge and at such they have no mind of their own. This is one big difference between the rich, poor and middle class. While the rich depends on information and knowledge to excel, the middle class and poor depends on rumors and gossip, this is why the middle class and poor are easily affected by discouragement that comes their way.

Action Point
Invest your resource in information and knowledge.Finally, the quest to attain financial freedom requires your concentration in buying income generating asset as no man can get rich via savings. Your focus must shift from luxury and comfort to income generation as this assures your financial buoyancy of not just now but years after. ‘’the map has been made available to you, the first step depends on you’’


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Great post! Thanks for sharing! The whole education system gears people up to work hard and get a job! What if you don't want to take the path? What if you want to be an entrepreneur? They don't teach that kinda stuff do they! The fact is that you have to go and learn this yourself. It is good to find a mentor, someone who has achieved that and follow them. That's what I am trying to do. Thanks again.

That's a very good article. As in any field, knowledge is power! And the best you can do for yourself is stay informed! Thanks for sharing!

The rich have excess income to be able to put their money towards assets while the mid and lower income levels are spending money attempting to look the part to be able to get to a certain income kevel. We live in a society where you often must look the part to even get a job. The difficult part is finding a balance of buying material goods and investing in assets. Interesting perspective...

What about being in business? Is that considered an investment? If not can it lead to financial freedom? Truth is most people want to achieve financial stability but do not always know how. But I agree with you that the information is out there and its up to people to utilize them like the rich folks do.

true Neil, self Education seems to be the remedy.

Thanks for dropping by, its what we know in terms of knowledge that makes us valuable.

Even in the world of business it is the know you posses that helps you navigate through to success.

Thanks am glad you see it this way.

We are all in pursuit of financial freedom. There are other ways to obtain that than just the regular 9-5 route. I'm so happy to be going the entrepreneur route. There's so much to learn but knowledge is indeed power. Great post :)

Thank you for writing this post. You are right knowledge is power. To attain financial freedom, we have to go learn and educate ourselves. Thanks again!

Fantastic post. Thanks so much for sharing.
In a way it's an exciting time as our human qualities will need to be preserved as computers get smarter. This hopefully means we really will have more chance to utilise our assets such as creativity, spontaneity and art.
Thanks again, I'll be subscribing

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