Amazingly, the single biggest skill that can make or break your financial success isn’t taught in school. You can graduate with a four-year college degree and learn nothing about personal finance or investing.
Doctors and attorneys can open their own practices without any clue how to read a financial statement. Business owners and investors can remain dangerously ignorant of the tax law.
The truth is, financial literacy is the essential skill you must develop if your goal is to build wealth and enjoy financial security. One reason financial education is necessary is to understand the subtle shades of gray hiding behind all the investment half-truths you hear.
We live in a world of complexity and change. The challenges facing consumers in managing their finances are significant, in large part because much of the information that we receive daily – about money and financial products is extremely misleading. Financial institutions spend BILLIONS of dollars each year bombarding the American consumer with financial services marketing.
So many people get overwhelmed by the barrage of financial advertisements and advice of so-called “gurus” that they usually end up buying a mixed bag of financial products that have little or nothing to do to help them achieve greater success.
Aren’t you tired of all the financial and investment experts with their conflicting investment advice? How is a person supposed to learn how to manage money when the supposed experts can’t even agree? It’s enough to make you go bonkers! Who can you trust?
If your investment decisions aren’t based on knowledge, then what are they based on – salesman’s charisma, speaker’s charm, media sound-bites, trust, or blind faith? None of these are a reliable prescription for investor success.
What you can’t get from “so-called” financial experts is the real key to financial security: figuring out which of the many available financial strategies will work for your personal situation. You are a unique individual with your own skills, background, experiences, and outlook on life. You have a risk tolerance unique to you and preferences, time frames, and goals that are different from everyone else’s.
Therefore, your financial success results from a financial plan that capitalizes on that uniqueness. How you retire early and live wealthy is going to be different from everyone else you talk to or associate with.
Instead of letting financial salespeople try to sell you products based on the “so-called” benefits of their products, you must base your decisions on the products that match the purpose of what you are trying to do and the characteristics of your ideal financial plan!
As you raise your financial intelligence, you raise the ceiling on what’s financially possible for you. Your financial intelligence sets the context for your investment success – or lack thereof.
Your return on investment should improve as you learn how to invest more consistently and control losses when the inevitable mistakes occur. That translates into more dollars in your pocket and greater financial security.
A little-known fact about financial intelligence is it grows and compounds just like money. The effect is multiplicative – not additive. Each new tidbit of information connects to all the other knowledge which multiplies. It doesn’t just add up, but it grows geometrically by multiplying.
The sooner you seek investor education, the sooner you can begin reaping the rewards. The longer you enjoy financial literacy, the more value you will get from it. Every year it compounds profits in your portfolio.
So, what should you do now? The answer is simple: commit to growing your financial literacy with a process of continual improvement by beginning to learn today.
Here’s a great way to start: MoneyRX: Your Prescription For Financial Success (Kindle Edition)