Financial Education - A Vital Requirement To Achieve Your Financial Target

A few months back, a particular financial investment was presented to me, which looked too good peripherally, but I knew almost nothing about the investment. However, because of the relationship I had with the person that brought the investment, I did not bother to research about it, and I trusted their judgement totally. Well, I put in some money into the investment and that was it. Before my very own eyes, the money went south, and I quickly understood that the problem was because I lacked the basic knowledge about that particular investment. This goes to prove that a better financial decision and the attainment of financial freedom are possible through financial education.

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There is a reason why people do go for financial seminars, workshops, teachings, etc, so as to gain financial knowledge. Obviously, in this highly competitive world, it is what you know that will give you the required edge. The truth is that, no matter what you are doing now and the investment you are in, there will always be a better way to go about it, but you may not know about it until you have gone for more knowledge. For example; you may be into fish business and using only the plastic ponds to raise your fish, but someone else may have devised other ways like the earthen pond, tarpaulin pond, together with the plastic pond, and even employed other cutting-edge technologies into their fish business. You will not expect the yields to be the same.

Many of the wrong financial decisions that a lot of people make are basically because of their lack of financial education. When you invest in acquiring financial education, you will discover that you will make more informed and better financial decisions. The good thing is that in this era, the internet, coupled with the multimedia technologies, have presented to us ready access to information even from the comfort of our homes from our devices. You can attend a financial seminar from your house with your Zoom app or connect with YouTube, etc.

It is worthy to note that in this era, if you lack financial education, then it is your fault. Believe me, there is no amount of resources that you spend on getting financial education that is ever wasted. As a matter of fact, it is either you take the responsibility to pay for the price of acquiring financial education or you may stand the risk of paying the price of regret later. If I had invested a little time and maybe resources before I made that particular investment, I may not have made a wrong financial decision that caused it to go south.

One should know that financial education is not a "once and for all" event, neither is it a "one cap fits all" thing, but something you keep updating on. The financial education you had when the world was in analog era may not provide much of a help now that the world is going digital. When you "know," also endeavour to keep knowing. Knowledge and education should be continuous, so that you will keep thriving in this world that is ladened with insane competition. The knowledge you get today and the education you acquire in the present, may be what will provide you with the foundation needed tomorrow to build your finances on.

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Getting financial education or being financially literate, apart from helping you to make better financial decisions and investments, can also help you to achieve other things. Like it will help you to save, teach you how to spend; prioritization of budgets, how to avoid unnecessary debts, etc. When you see someone, you can tell the level of their financial literacy when you look at their financial activities. Some people may not even know the consequences of borrowing. That even if you should borrow, the purpose should be for investment (for production), not for consumption on one's needs.

It is important to note that there is no true financial security and financial freedom without knowledge. That is; knowledge of what to invest in, knowledge of the right financial decisions to take, knowledge of when to investment and how to invest. The more you educate yourself about the nitty-gritty of finances, the easier it will be to achieve your financial targets. I will conclude with this statement from a highly respected mentor of mine:

The more you know, the more you discover that there is still a lot to be known.

Thanks for reading