The first question is why do people work very hard all their lives and still remain financially insecure (broke) when they should be lounging in financial freedom? Is it that they were not just born to make it or cannot just think for themselves or that they lack the basic rudiments of financial intelligence?So what exactly is financial intelligence or financial literacy? It is a gradual process of learning how to manage your income such that no matter how small, you can live a debt free life and achieve financial comfort if not freedom. Put in another way, financial literacy is the ability to read numbers and understand the dynamics of money and its functions.Achieving financial success in any society is largely attitudinal. Meaning it is determined by a person’s attitude toward time which is called “time perspective”.People who became financially successful invariably had a long time perspective. They took the long term into consideration when they planned their daily, weekly, and monthly activities. They thought five, ten, and twenty years into the future. They allocated their resources and made their decisions based on how their choices would affect where they wanted to be several years from now.On the other hand, people who are not successful financially invariably had short time perspectives. They gave little thought to the long term. They were more concerned with immediate gratification than with long term success and accomplishment. They were more concerned with having fun in the short term. Because of this attitude, they made short-term choices that led to long-term hardships.Another reason why a lot of people struggle at the level of financial insecurity is because they are so fond of minding other people’s business instead of minding theirs. That is, they work real hard at their job (as employees) just to earn a pay cheque (which gives them a false sense of security) while others are busy working hard at their business and developing themselves financially so as to be able to meet up with their future financial challenges as it evolves. There is a saying that; “if you work hard on your job, you will make a living but if you work hard on yourself you’ll make a fortune. So, it is better to work harder on yourself and make magnificent wealth rather than working hard on your job and be making stipend income.In other words, one cannot work at a job and possibly achieve financial freedom. So you need to be able to think out of the box, think wealth creation and self development especially in the areas of financial and money management.In financial literacy, there are basically three core financial values:
• Comfort ability
• Wealth/freedomFor us to get to the level of financial freedom, we need a plan that gives adequate security for food, clothing and shelter and a plan that makes us comfortable (helps us affords other luxuries of life) before we can think of financial freedom.The good news is that, getting rich is automatic if you have a good plan and stick to it by seeking the right knowledge and using it. Financial freedom/wealth through careful financial planning, does not come suddenly as it happens over a period of time. Depending on your discovery, you will always find out that there is a strong correlation between financial knowledge and the quality of financial planning. Your understanding will always be that when it comes to acquiring riches, the more you know, the richer you will grow. While on the other hand, what you don’t know will continue to cost you money.Unfortunately in this present jet age, everybody wants a quick solution to their financial problems. Nobody wants delayed gratification which is the essence of legitimate long term wealth.Don’t be naïve in thinking that your financial problems will come to an end if you get a better job (definitely not) or a quick fix solution that does not exist. You need to go through the due process of understanding your financial situation. So, it is never too late for anyone interested in enhancing their financial know-how by seeking financial knowledge and wisdom to be able to attain financial freedom. Your financial future is very much dependent on it.