It is scary to think that anyone can begin a business without a single scrap of financial knowledge. That they can casually gamble their hard earned money without a true understanding of what they are doing.
Is that you, do you think that a P and L Report is for Pies and Lollies?
Maybe for you, cashflow signifies how quickly the money flows out of your account?
If the thought of a budget and a bank statement reconciliation baffle you, then it is time to get yourself educated!
Here is why…
Why Financial Education Is Vital For Your Business
A small amount of effort now can save you so much in the long run. How much is a life of financial security worth for you? Hundreds… thousands… millions? Could you bare to risk it all by not knowing how to manage your own money?
Thankfully with a basic financial understanding, you won’t have to risk a dollar of your money on poor cash or investment decisions. And here is how that education can really help you.
1: Dangerous Investment Advice
The investment field is a mish mash of conflicting advice. It is difficult to know whether to trust the expert who recommends shares, or the one that recommends property. If the experts can’t even agree, how are you supposed to know where to put your money? By getting educated, that’s how!
With an education, you can make weighty decisions about whether taking on certain debt will benefit you in the long-run, or when it makes the most sense to pay off debt.
2: Everyone Is Different
The best advice in the world is not going to help if it isn’t relevant to your circumstances. There are so many different ways to generate income, you just need to find the one that is most suitable for your individual situation.
Financial education helps you to learn about yourself as well as the various cash generating strategies. Knowing yourself helps you to select the right strategy that you can make work and earn from.
3: Accepting Responsibility
Do you want to go through your life sitting in the passenger seat? Without financial knowledge, you are taking yourself out of the driver’s seat and leaving your money responsibilities in someone else’s hands.
The only way to consistently make good decisions with your money is to know what works, what doesn’t work, any why that is. The only way to know those things is to learn.
4: More Money Smarts Makes More Money
Are you qualified to make a million dollar decision on $100 of knowledge? That’s a scary thought isn’t it?
You are not able to know how best to invest your money without an understanding of what you are doing with it. So that means continual education.
You might start out dabbling in the hundreds, but if you ever want to dabble in the millions, you better get some serious money smarts under your belt!
5: Intelligence Is The One Asset You Can’t Lose
Financial Education is a one time investment that you have for life. Money can be stolen, misplaced, or poorly invested; but intelligence cannot be taken from you. Once you learn something, you can’t un-learn it. And you can reap the benefits of knowledge again and again.
6: Freedom and Independence
If you aren’t able to make decisions by yourself, then you do not have true financial independence. If you are relying on someone else’s knowledge and experience to create a viable income then that is risky. Because, if something happens to your relationship with that person, then you lose your ability to generate income.
It is far safer to educate yourself so that you know you always have the freedom to generate your own income. You can seek advice from specialist professionals if you are unsure, but you will be able to quantify that advice with your own opinion if you have the understanding.
You can learn to be successful with money. But just remember that Rome wasn’t built in a day. The sooner you begin to build your financial knowledge, the sooner you start on your path to success and freedom.