In the 21st century knowing how to manage & grow your wealth is a superpower that can only be fueled by Financial Literacy. It is a concept that isn’t as appreciated as much as it is popular. Most people often downplay its importance and the role it plays in having healthy finances, but the truth remains, KNOWLEDGE IS POWER!
Here are 5 misconceptions most people have when it comes to the financial literacy and investment culture in Nigeria.
Question: Do I really need to understand personal finance when there are quick-fix tips all around me?
Answer: Most of the popular investment advisors are commonly known for contradicting one another. While one might advise that you should buy stocks when the price is low, another might go as far as encouraging you to buy when it is high because of its appreciating value. Looking at both contextually, they may not be wrong, but you can only know how to best use the advice given when you are financially educated.
Question: Why do I need financial education when I can just follow Mr. X’s path?
Answer: There is no one size fits all model for saving and investing. There are many paths others may have taken to achieve financial freedom, but it is only when you understand what financial freedom means to you that you can identify which strategy would work best for you. Remember that your values, risk tolerance, experiences, and skills are unique to you.
Question: Why should I be interested in financial education when I can just get an expert to tell me what to do?
Answer: The only person 100% interested in your financial success is YOU. Everyone else making financial decisions for you are in business to serve their best interest. You are the sole proprietor of your financial well being. Understanding how the financial system works makes you less dependent on others to take the necessary steps to make a better life for yourself.
Question: How long before my financial knowledge becomes obsolete?
Answer: The financial environment is very dynamic. To keep up with the changes and technological advances your finance arsenal should be kept updated. Your financial intelligence compounds, just like your money. The more financially savvy you become, the higher your chances of achieving financial freedom. As you make deposits into your financial investment account, make deposits into your financial intelligence account.
Question: Why do I need financial education when I earn enough now?
Answer: Financial knowledge will be useful to you throughout your life. It is an essential skill that will keep you thriving regardless of life’s uncertainties. You can lose your money, but you will never lose your financial knowledge. Once you have it, it is yours for life. It is an investment in yourself that will always prove invaluable.
Ready to start making deposits into your financial intelligence account?
OVERWOOD ACADEMY goes live on the 23rd of November 2020!