Where To Learn Financial Literacy?

Zen Foo — Tue, 10 Nov 2009 05:59:39 +0000

Financial literacy is important if you want to achieve financial freedom. We have being taught about economics, balance check books, and basic accounting in school but school never teach us how to grow our balance sheet, minding our business and money. Thus it is our own responsibility to learn about financial education if we need to succeed in financial life. There are a few ways to can learn knowledge of financial literacy.

Get a financial advisor - It is important to take note in the background of financial advisor, observe which cash flow quadrant they are from. Rich dad’s cashflow quadrant defines E-S-B-I as in E-Employee, S-Self employed, B-Business, and I-Investor. Most of the financial advisors are from the cash flow quadrants of S and E, meaning they are either self-employed or working for a financial institution such as bank or insurance company. If you want to be a successful business owner, probably this financial advisor who comes from S or E is not the best to give you advise. However if you want to excel as an employee, the mentioned first two might just be fine to get you started.
Pick up a few books – When picking up books, it is also important to note on the background of the author. It is important that we take advice only from the person who has already been successful in financial life. Robert Kiyosaki and Adam Khoo are best example authors that write good books about achieving financial freedom. Adam Khoo is a self-made millionaire who made his first million at the age of 26 years old. One of his popular books is Secret of The Self Made Millionaire. While Robert Kiyosaki is a successful business owner and real estate investor, and his best selling book around the world is the famous Rich Dad Poor Dad and Cashflow Quadrants.
Play the Rich dad’s Cashflow 101 Game – This game is available in both PC version and board game. The game basically simulates peoples role in financial life. The goal of the game is to escape from rat race – as in escaping the typical middle class life of working for money in order to pay off debts. Playing this game you will learn some basic on reading income statement, expense, and balance sheet. Best thing about this game is that it simplifies so much that it is easy for beginner to understand as well, however in order to win the game, it takes a bit of financial literacy, which one will learn in the process of game play.
Making Mistakes – Schools punish students for making mistake, yet the best way to learn is by making mistake. The more mistakes you make, the wiser you are. People who never make mistake are not that they are smarter, it is because they never attempt to succeed. So try taking action now, make your own mistakes and learn from it. Financial literacy learnt through experiences is priceless lessons one could ever learn in life.
Join Seminar – Probably this is the highest priced investment in pursuing of financial education but could well worth the investment in long run. One good thing about attending a seminar is that most of them will get you involved in many useful training and interaction sessions. You don’t get this by listening to coaching audio and books. Besides, during seminar you get to know others who also have a same passion and interest as you. You can hardly find people who are as interested in money as you from the office.
Online articles – Good thing about online article is that they are all free, all you need is to spend a bit time looking for good information. Web site like Ezinearticles.com and articlebase.com have abundant of well written articles focus on financial topics. However, be warned that most articles might just be well written but not technically proven, so just treat it like a reference and try applying it (with no cost involved of course) and see if it works in real life.

Future Money » cashflow quadrant

Where To Learn Financial Literacy?