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February 08, 2017

Knowledge: Your First Investment towards Financial Freedom


“If you think education is expensive, try ignorance”. I think this is more related to academic education more than financial education but somehow related. It was a popular quote during the industrial age when being academically educated is a big deal and seen to be a prerequisite to secure well paid job. Today, we have all seen how being academically educated have disappointed many people who think immediately they have their first degree, their financial worry is over, their qualification is a ticket to financial freedom. Thinking if they are not rich, they will be able to afford basic necessity of life as a middle class citizen.

Benjamin Franklin says, “If a man empties his purse into his head, no man can take it away from him. An investment in knowledge always pays the best interest.” But there is a problem around the world. Could this be a conspiracy as proclaim by Robert T. Kiyosaki or as a result of limited human knowledge and acceptability of what people think to be the best. I mean why is everybody consider the academic education to be the basic education standard everyone must participate. Don’t get me wrong, no one will dispute the need to learn how to read and write, but we lay too much emphasis on academic education at the expense of the education on how to earn a living and how to manage our earnings.

If you are disputing my argument, let me ask you; of what relevant is what you learn in school to what you are today, or what you become financially? Maybe relevant in terms of mental alertness. But this might also be disputed if you come to realised that majority self made millionaires and billionaires around the world are either uneducated or dropout. The biographies of those among them who are academically qualified reveal that, their qualification has little or no emphasis on what they become.  Even within your community, you can conduct the research and see the answer.

Academic Education
The academic education as discuss above will give you mental alertness among other things. But not having academic education does not deny anyone mental alertness as well. Meanwhile the knowledge you will derive from it most is the ability to read, write and calculate. Since it has become a general norm, not having this will affect in so many ways. Most especially your ability to interact fluently and your reasoning with the modern trends that have a lot to do with the way business is carried out today. But laying emphasis on your educational qualification and earning using your qualification might not give you the level of financial freedom you are dreaming about.

Professional Education
Through the academic education, some go further to acquire their professional education towards the knowledge to earn money which is the knowledge you will derive from professional education towards financial freedom. When the issue of earning money come up, majority think in the easy way out is working for money. This might have being working in the industrial age but not in this information age. But all the same, the rich during the industrial age have different knowledge on earning money compare to the multitude. They have knowledge on how to put resources together employing more hand to get it done. The great industrialist J. Paul Getty says “one of my secrets of success was to utilise 1% of 100 people's time rather than 100% of my own time.” The part you choose depends to large extent on how fast and how well you become financially free.

It is no longer news that the information age makes it easier to clone the industrial age wealth creation. With the internet, the resources required to create value and find solution to problems is becoming cheap.

Financial Education
Where we all get it wrong in the struggle to financial freedom is as a result of no or inadequate financial knowledge. Robert T. Kiyosaki in his book “Conspiracy of the Rich” said that, the rule of money has change in this information age, he made mention of 8 new rules of money in which knowledge is number one (#Money is knowledge).

It is not what you have rather what you know that will make you rich. In other to be financially free, your ability to acquire knowledge on how to earn and how to manage you earnings is a must and the truth is they are interwoven. To clarify this, let me further quote Robert T. Kiyosaki in one of his article on this subject;

The reason Mark Zuckerberg, for instance, is such a success is because he has knowledge of what to do with information and knowledge of how to build technologies to leverage information.

Mark Zuckerberg's knowledge of Internet technology enabled him to build Facebook. He also knows how to build a team and find people smarter than him to make Facebook bigger and better. Finally, he has knowledge that information is valuable for selling. Facebook excels at collecting your information, processing it, and selling it to advertisers who target their ads to make money off of you.

It is not the information that makes Mark Zuckerberg rich, it's his ability to process and leverage it-again, that is knowledge, and knowledge comes from education.

We live in an age where wealth is abundant and accessible by everyone-including you. But you have to be financially educated to be able to process and leverage it.

Today, knowledge makes you rich and a lack of knowledge makes you poor. In this brave new world, it's your knowledge that is the new money.

We are having information at the tips of our fingers but our ability to filter the numerous information around us to determine the useful ones is the knowledge we are talking about.

Either intentional or by try and error, people always have a way out when it comes to earning money, although might be below their capacity. The major problem today is the financial knowledge requires to managing and multiplying it.

It is not the amount of money you have that matters. People have earn millions and lost it as a result of their financial ignorance. I have said it in many of my previous articles, history is filled with people who won millions of dollar in lottery and became broke in less than five years, the problem is, they lack the knowledge on how to manage and multiply the money. To truly experience financial independent, all you need to do is to commit some of your time to acquire financial education.

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