Follow by Email

December 30, 2016

Financial Dream without Financial Intelligent

We all see them around us, people who are financially free; I mean rich or super rich, but are not academically educated, not to talk of financial education. The problem is that we are equating such people with us. I mean, we so called educated with our academic qualification. The truth is that there is a lot of confusion on what is education. We so much believe at this age that someone who is not academically intelligent does not have what it takes to accumulate wealth, but unfortunately we are not seeing the big picture. 

The academic education has taken away from us the ancient financial education that is naturally deposited in us. Today we believe the only way to wealth creation is through academic education. Thinking that is the only way to get the qualification that will give us a job to earn enough money that will make us rich, even if the job is created by someone who is not lettered.


Haven’t you see someone working in a big organisation created by uneducated person and still have the audacity to call such person an illiterate. The question is, who is an illiterate between two of them? And what does your academic qualification earn you, nothing but a job.

Academic education has fail to let us know that, the best way to create a sustainable living is to create value out of talent, skills, idea and experience we have. It is believe we have one talent or another but not to the so called educated once. If you will like to confirm this, check the talent industries: sports, music, acting etc. But recently, the reality is coming back to us, we start believing in developing a talent, generating an idea and learning a skill that will create value.

The first thing well known to those who are wealthy even though they are academically qualify is to place a little emphasis on their academic education and start developing their talent, work on skill learned or generate an idea to create products or services that people are ready to pay for. This is the first financial intelligent well known to the so called uneducated ones that we so called educated ones are neglecting.

To fully convince you on the ancient financial education naturally deposited in us let me refer you to the seven financial intelligent found in the ancient city of Babylon in the popular book “The Richest Man in Babylon” by George Samuel Clason titled; 

Seven Cures for a Lean Purse
1.      Start thy purse to fattening
2.      Control thy expenditures
3.      Make thy gold multiply
4.      Guard thy treasures from loss
5.      Make of thy dwelling a profitable investment
6.      Insure a future income
7.      Increase thy ability to earn

These rules are still applicable in today’s financial world. And I will give brief explanation of each of them;

1.          Start thy purse to fattening:  This is simply talking about savings. You should discipline yourself to save at least 10% of what you earn no matter how small.
2.          Control thy expenditures: It is stated in the book that “what each of us calls our necessary expenses' will always grow to equal our incomes unless we protest to the contrary.” In other word, we should learn to budget on the 90% or less of our earnings without compromising savings. It is even advisable to add any additional income to the savings instead of spending it on necessities
3.          Make thy gold multiply: To become financially free, you have to learn how to put to use your savings to earn more money. Which may include investing in the stock market, buying landed properties (real estate), start a part time business if you have a regular job, buying commodities like gold etc.
4.          Guard thy treasures from loss: It is true that every profitable venture have risk attached to it, but still you still make sure you are taking calculating risk. Shun get-rich-quick activities. Think first the value the activities are creating that is bringing such returns before investing your money. Seek advice from expert where needed, don’t invest blindly.
5.          Make of thy dwelling a profitable investment: In Robert Kiyosaki word, are you buying an asset or liability. Your ability to differentiate between asset and liability matters a lot. Buying car vs. building a house, especially income generating house. Even if you have to entre into mortgage agreement, at the end after offsetting the mortgage the house become yours.
6.          Insure a future income: It is advisable to prepare for the future in case of accident that may jeopardise your ability to earn or better when you are unable to work again as a result of old age (retirement). You can decide to buy life assurance from insurance company or buying income generating asset that can earn you a passive income.
7.          Increase thy ability to earn: You have to keep learning on how to increase your earning, but most especially how to manage and multiply your earnings. Read books, attend seminars, get a mentor, be part of group or association that work together to become financially free e.g. investment club, and many more.

Being financially free require a consistent financial intelligent that disregard the get-rich-quick of future miracle; you have to start preparing for your financial dream if you have one. Even if you believe in getting rich through lottery, the only way to sustain such if at all it happen is to equip yourself with the knowledge on how to manage and multiply such money to be with you for as long as you live and beyond. If not you will be among the people who became broke after three years of winning million dollars in lottery.

No comments:

Post a Comment