Dealing With Consumer Affluence Abundance And Apathy
Almost all spheres of life are somehow connected with money. You can’t build a house, bring up a child, get an education, go on vacation without them.
Generally, the higher the financial literacy of the population, the better and more stable the country’s economy, the higher the standard of living. Countries with financially educated citizens are the most prosperous in the world.
When a person has money, he/she either spends it, pays VAT along the way, or invests, or deposits it in a bank account. In all cases, the state gets more money and becomes richer.
In private, financially literate person = wealthy person. He knows how to invest and improve his wealth annually. He knows how to plan and is not afraid of tomorrow. If he doesn’t have enough money, he quickly finds a way to earn more.
You cannot make an investment attractive to those who do not know what it is. In different countries, they tried to launch investment programs, development plans and pilot projects on financial literacy. Two crises broke out, in 2008 and 2014, and people had to learn how to handle money not in order to increase it, but in order not to lose it.
How to know you need to become financially literate?
- You never have enough money.
- I would like to earn more, but it doesn’t work – the income stands still or decreases. Wages are not raised, bonuses are not given, overtime is not paid.
- Money is not accumulated, it is not always possible to live from paycheck to paycheck without debts.
- You take out a loan to close another loan for them.
- You are afraid of investments, and even if you try to make money work, you lose more than you earn.
- You are afraid of the future.
- To become financially educated, you need not only to be able to make money, but also to be able to manage the money earned.
Why do people who win large sums in lotteries often spend them without a remainder and are left with nothing? Money is dizzy for those who do not know how to handle it. Instead of saving and increasing, the lucky one spends more and more, losing touch with reality, becoming easy prey for scammers and lovers of good time at someone else’s expense. And then the winning ends.
A financially literate person most likely does not buy lottery tickets. He generally does not spend money on dubious adventures that promise get rich quick. His income grows more slowly, but it always grows, despite inflation and force majeure. He has savings that make it possible to be confident in the future and manage his life as he wants.
He is independent: several sources of income that do not depend on each other allow you not to worry that one of them will run out. Such a person is not afraid of a stock market crash, loss of job or clients. When passive income exceeds the monthly salary, he may no longer work for hire, but rather do whatever he wants or devote himself to developing his own projects.
Where is it taught to be financially literal?
There are no classes in financial planning and investing either at school or at the university. This is not surprising, because economics is often taught by the same incompetent theorists who only retell textbooks with outdated information. How many successful people teach finance at universities and colleges? The answer is clear. Better to address CU marketplace to get much more information.
Most often, everyone who is interested has to look for information on their own and learn from their mistakes. Now there are short-term courses that introduce you to the main financial instruments, help you analyze your behavior and begin to consciously manage money and diversify income. Remember that the information received in the course also needs to be disposed of. Knowledge does not fit in your head by itself – you will have to keep track of income and expenses, perhaps open your first deposit or investment account. Money needs to be managed, not just how it’s done.