TOPIC: FINANCIAL LITERACY EPISODE ONE
CONTENT
² My own financial story
² Introduction
² Few striking statement
for your thoughts
² Financial terms and
their meaning
² Conclusion
Ø
My
Own Financial Story
I was gainfully employed by Ghana Education Service in
1st September, 2014 and was posted to my village where I am still
teaching till today. Before this time, all I knew about becoming rich was; once
I start working I will become rich. After four years of working, I was also
blessed by God with my first business. In a year the business became lucrative
and profit forthcoming. So now I had double source of income. After all that I
was gaining at the end of every month, I came to realize that I was still
having financial struggles. Nothing was working for me in terms of finances. The
more I gained, the more I struggled. This self disappointment and financial
confusion pushed me to start reading books on money and finances. I read some
couples of books but still nothing was Working. In the midst of all these mess, I
felt like God is not helping me. So I asked loved ones to pray for me.
This
disappointment led me to take about 4hours retreat in my room. During this time
for whatever reason which I cant tell. I just took some of my books on money
titled Cash Flow Management and Rich Dad Poor Dad. I read for like
2-3hours that day. It was during this time that the eye of my understanding on
money and finances came alive. I then paused to think of some of the striking
statements I came across while reading which includes the following;
l
Getting
more money does not solve money problems but rather create more money problems
l
Good
education, good grades and good job with high paycheck does not make a person
rich or successful.
At this point I paused and started looking at my actions in relation to money. I then realized that I was the problem.
A person
can be receiving not much as a salary but if the person has a strong financial
education he or she can become rich.
Ø INTRODUCTION
Becoming rich or wealthy
is not just a matter of;
i.
Going
to school to get a diploma, degree, masters, PhD in order to get employment and
get paid
ii.
Neither
is it in a person receiving the big salaries at the end of every month or the
one who has more money at the end of the months.
A lot of people have worked hard gotten a lot of money before but today they are struggling financially. This is seen most often among sportsmen, government workers, actors, etc. Have you ever heard someone saying I use to have a lot of money? The simple question is, what happened to all the monies.
There is a man in my local community now who used to have a lot money because he was privileged to have a family lands that he sells. In fact this person I am talking about had a lot money but today as I write now, he is bed ridden(sick) with no money and now family(kids and wife are the ones struggling to take care of his health). All these confirms the fact that getting a lot of money everyday or every month does not necessarily mean you will become rich one day. Most often getting a lot of money leave a lot of people with more money problems. Therefore there is the need for every individual to re-think and re-position themselves to pursue the right financial education.
In my small
world some years back I was having enough but was struggling financially. The
sad thing about my story is that I eventually ended up borrowing every month to
solve problems irrespective of all the gains. The problem is not the money but
our thinking and actions
Ø
FEW
THOUGHTS FOR YOUR PERUSALS
There is nothing that can be successfully done without knowledge. That is to say your success as a child of God, your success in marriage, health, finances, business, ministry etc is directly proportional to the requisite knowledge you possess.
Knowledge is key in all endeavors of life. So the word of God entreats us to grow in grace and knowledge. 1peter 3:18.
So says Benjamin Franklin "Investment In knowledge pays the best Interest." My brother my sister be determined to pursue knowledge at all cost lest you shall be destroyed.
Take these thoughts serious;
l
It
is our spending habits that causes financial struggles
l
If
you seek more money because of the things you can spend on. Then you cannot
climb the ladder of becoming rich
l
The
trouble is how you choose to spend the money you do have that is the real cause
of financial struggles
l
Many
great financial problems are caused by going along with the crowd
l
The
rich get richer because their assets column generate enough income to cover
their expenses
l
We
must learn to invest in income producing assets.
l
The
processing of increased spending throws us into greater debt and more financial
uncertainty or struggles even though you may be advancing in your job and
receiving pay raises on regular basis
l
Spend
time to study to learn how to invest
l
A
livelihood that is solely dependent on an employer is risky
Ø FINANCIAL TERMS AND
THEIR MEANING
v
Financial
Intelligence:
This is the ability to convert cash or labour into assets that provides cash
flows
v
Rat
Race:
This happens when an individual expenses increase in equal increments as their
wages increase. (This is a major sign of weak financial education)
v
Cash
flow management:
Cash flow is the inflow and outflow of money out of a person’s pocket, accounts
etc. Cash flow management is simply the direction and individual gives to his
or her money.
v
Assets: These are things that
bring money into an individual’s pocket or accounts
v
Liability: These are the things
that take money out of the pocket or accounts of the individual’s pocket
v
Financial
Red line:
This occurs when person’s income and expenses are nearly the same every month
v
Financial
Literacy:
Financial literacy occurs when ones mind is trained to tell which way the cash
is flowing
All the above definitions are by Robert Kayiosaki, the
author of Rich Dad Poor and cash flow management. Ones ability to know the
difference between an asset and a liability(This is the most important rule to
know). Once you know the difference between an asset and a liability then the
door to becoming rich is opened.
Ø
CONCLUSION
²
Be
disciplined: Without discipline the possibility of success becomes minimal
²
Education
equips us with scholastic skills and professional skills(I.e Academic Pursuit)
²
Don’t
spend above your financial means. Always work within your means.
²
Don’t
let your emotions think for you when it comes to decisions on money instead
think through your emotions
²
Try
as much as possible to reduce your liabilities and increase your assets column
²
We
must learn to invest in income producing assets
²
Avoid
being loaded with liabilities with no real assets that generate income.
Edwin Kweku Yalley
Founder /An Entrepreneur
The School of Dominion.
05424888522