FINANCIAL LITERACY – PART 2
Financial literacy is an intimidating topic. Just the term alone can make one feel inadequate or simply stated; stupid. When someone says that you lack financial literacy it is enough to make you either upset, angry, turned off and/or annoyed. These feelings occur mostly because the statement has some measure of truth to it. It’s not that we have heard about financial planning or that people do not desire to obtain more knowledge, however in most cases people tend to think of themselves as ‘less than’. In doing so tend to feel that financial planning isn’t geared toward them but designed for those with large amounts of money.
Here is where this gets interesting…..How much is a large amount of money? That number varies and is contingent based on where one is financially now and what he or she has grown accustomed to managing. Example: for someone a large amount of money is five figures (60,000) while for another six figures (115,000) and for someone else seven figures is their minimum consideration (1,225,000) for a large amount of money and to another one four figures (9,000) is a dream. Again these random numbers are relative and based on multiple conditions and circumstances. Four figures is peanuts as it relates to an annual salary but quite appetizing if it is the amount secured at the closing of a loan, home or business deal. When one learns to view money in terms of his or her lifestyle and plans then he or she will become more responsible and a better steward over his or her life and financial literacy.
Believe it or not, a person who thinks that he or she doesn’t have enough money to manage will never consult with another person even a financial planner and will continue to waste the substance he or she has believing and hoping for more! Money doesn’t work in that manner. Money is that thing that must be secured, managed well in order to attract more of it; otherwise, one will always chase it and never be able to maintain or retain its value or the power that lies within. You know them. It is that person who has money or appears to have it, he or she lives big and bold. They cannot plan because their money is always at the last minute, coming in the nick of time and as fast it comes it goes. These people live high, have fun but are never able to be stable due to lack of planning and preparation. Becoming addictive to the lifestyle find it impossible to settle and grow or change.
Financial literacy begins on whatever level you are living on currently! To get out of something, one must understand (1) where he or she is (not geography but economically), (2) how they landed in the position and (3) what lies in them that can propel them to the next level!
(1) Where are you economically/financially? Are you living your best life? Seriously, what is your income level? How much do you spend on disposable goods (material things)? Are there areas of improvement? What can you do to save money? The hardest thing for most people to do is to live within their budget, again budgets are considered by too many as something a person has who has a lot of money or something that a business would have. Well you are a business, your household is a business and if you plan to do anything significant in life, you need a budget, a financial plan for your future and that begins right now with what you make currently.
(2) Did you lose a job? Was your salary decreased? Many things occur that can throw off the balance of finances. This is why #1 is so important. If you can live within your means, you can always save money. Typically, financial issues occur when one obtains things for which he or she cannot sustain or approaches the acquisition with the thought: “I will figure it out later.” You know over spending, acquiring a new car that you hadn’t planned for and the list could go on and on. The thing about overspending is that it is a one-time decision that has lengthy financial impact for months to come! Most people do not make enough to bounce back from a bad financial decision and then pride will not allow one to live without or pay the price for the bad decision. As a result, one continues to rob from the future to pay for the past.
(3)What do you have that can take you from where you are to the lifestyle and financial security you desire? It’s always in your hands and it is never an overnight thing which is what many seek. The plans to move from one level to the next will be intense, require focus, sacrifice and a never give up mentality. As long your wealth display consists of a hip, lip and fingertip mentality (meaning all the money you make has to be on display on your body or face), accomplishing your financial goals will always be a distant dream.
Being embarrassed is a small price to pay for educating yourself on money! The truth is, financial literacy isn’t embarrassing at all. It means that you have grown from where you are and are ready to learn how to manage more! Everyone wants more, but tend to forget having more means managing more and you can’t manage the more by yourself! You could try but it’s not feasible or necessary.
Let’s build our financial literacy so we can enlarge our economic growth! Being economical sound is power!
