Financial literacy is one of the most important parts of your journey and key steps to Financial Freedom. We are not talking about a Harvard MBA or Finance Degree, we are talking about the streetwise education of how money works.
However, a formal education whether it be a Degree, Diploma, Trade Qualification or other is still very important because these allow you to generate a cash flow when starting out on your journey to Financial Freedom. Beware, they can also trap you into a false sense of security where you are dependent on an employer for income and exposed to the PAYG (Pay As You Go) tax system and younger, better educated, tech savvy staff as you get older. Economic conditions also play a significant part in your future, just ask those highly educated bankers after the GFC hit Corporate America.
People just keep doing what we have done previously, this just won’t allow you to complete the journey to Financial Freedom. If you want to change your future you will need to change your thinking, attitude and be open to new ideas. You will need to create a plan on how to get to the future you want.
There are different types of income people can earn. The most common type of income is the exchange of hours (your life) for dollars. This type of income is limited by the physical number of hours you can exchange and the amount of dollars you can demand. The income you will need to learn to create is called passive income. This type of income is not dependant on you exchanging your life for income.
You will need to educate yourself on how to be entrepreneurial and apply these skills to create cash flow and create wealth from opportunities as they present themselves. The best entrepreneurs don’t wait for opportunities to present they create the opportunities.
Reading and listening to the experiences of others who have completed the journey is very useful in broadening your knowledge and understanding of how money works in the world. Some of the items you will encounter will be completely new to you and will make total sense when put in the right context.
One of the great educational benefits to be gained from other people’s experiences and knowledge is from the mistakes they have made, so that you don’t make these same mistakes in your journey to Financial Freedom and security. This allows you to fast track your journey to the life you want.
I’ll give you an actual example of a mistake I made many years ago when I was starting out. I purchased a five acre parcel of vacant land which was quiet rocky but still fertile enough to grow grass. The land had approval to erect one residential building on it, I worked hard and finished erecting the fences and had a small waterhole dug.
Then I had an idea to split the land into two lots as this will allow me to sell one and keep one. Going back to the sale contract I noticed the surveyors name and I thought I’ll contact them to get the land split into two lots because they will be familiar with all the details. The surveyors said there was no way the land could be further divided. I accepted their advice on face value and sometime later, after selling the land, there were two residential dwellings on it. My acceptance of that advice had cost at least a $100k.
We at Summadays.com strongly recommend you invest in your streetwise education to fast track your journey to Financial Freedom.
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