RULES TO FINANCIAL LITERACY.
Those who are financially literate are the people who have power and control over their finance, they know exactly where their financial status is they know what is coming in and going out of their account, they have a good knowledge on their financial statement and they are sure about what their financial plans for the future will look like.
Money in itself is not a scarce option like most people will like to describe it, instead it is an option that is readily available for the people who have the capacity to capture it and rather than chasing money every day it is clearly important to chase after the skill that will help you get the money.
Break away from the habit of financial ignorance.
We are lucky in this generation because we have access to a lot of free information that are available on the web and just through a simple google search, but as free as this information is, so many people do not still find the need to educate themselves, there is high consumption of entertainment contents and the numbers continue to rise every day even if it means paying a large amount of money to get it but when it comes to knowledgeable items that are made available every day, we run away from it very fast.
Only invest in what you understand.
A few persons who get a bit of financial knowledge understand that it is important to make investment but I consider their knowledge as being partial because they do not understand that not all investments are worth it so they become victims of Ponzi schemes and lose all that they are trying to make more, investment is good but knowledge has to be gained in order not to fall into the wrong type of investment and lose money in the process.
There are two types of debt.
There are good and there are bad debts, good debts are debts that are obtained in order to make more money and bad debts are obtained in order to spend more on a lavish lifestyle. The first category of debt will make you make extra profit at the end of the day while the second category of bad debt will only make you get into serious danger.
Before getting into debt at all, calculate what you will be able to make as profit at the end of the day and if it will be sufficient to pay back the debt you owe as well as the profit involved but if it is a bad debt, it will completely destroy your financial reputation and even leave you with more problems than you can imagine.
