Wednesday, June 30, 2010

Why Do You Need Financial Education Anyway?

Okay, I am going to explain in a very simplistic manner why everyone should be financially educated.
The subject of money is a mystery and controversy for a lot of people. When I say a lot, i mean a lot, like millions of Filipinos.

Some would even shun discussions about pursuit of wealth creation, primarily because most of them think that becoming rich is something or relatively bad.

Although there are indeed bad rich people, it shouldn’t be used as a general rule for everyone.

What is Money

We need money to buy food so we could eat and nourish our physical needs. We need money for transport (plane, boat, bus, car, jeep, tricycle, and even pedicabs). We need to pay for the electricity. We need money to pay for water. (Who doesn’t want to take a bath?) We need money for a lot of things: communications, hobbies, playtime, wants, and even to help other people and donate to church or other cause oriented organizations.

With all these reasons, I hope you agree and understand that money itself is not bad, and the pursuit of wealth creation is neither!

It depends entirely on purpose for which great wealth is pursued. If your purpose is wicked and downright bad, then great amount of money will amplify your wickedness. But if your reason for being rich is to help other people, to solve other peoples problems, to add value to other people’s lives

Why Do You Need Financial Education

Here’s are simple reasons why


Since money allows you to have the ability to live the lifestyle you desire, then being poor in knowledge with the subject of money is equal to being slave to your job.

Why? The income you can earn from your job is limited. Highly taxed. It is equal to time spent at the job. So you are not free. You cannot do things that you love to do, while at work. You can only eat lunch according to rules set by your company. You cannot get out and go as you wish. You can only do things you are contracted to do, so they will pay you. If you don’t work, the company don’t pay. Plain and simple, it’s like prison in it’s subtlest form.

If you are financially educated, you will know how to make money work for you, instead of you working hard all day all week just for a paycheck


And because you don’t know how to manage your money, you’re probably drown in bad debt. (Yes, in case you don’t know, there are two types of debts: good debt and bad debt.)

I’m sure you know what it looks and feels like when you’re in debt with another party (person, credit card, loans, mortgages, etc) You work hard to make payments. You stress yourself out by extending over time at work, to increase your salary because a great share of your wage is already eaten up by your bad debts (also known as liabilities).

And you whine when tax eats up several thousand of pesos, and sadly, you just whine but never do anything

Newsflash! These bad debts come from your bad spending habits. And bad spending habits are result of financial illiteracy!


Have you experienced watching a movie, and when you watched it was horrible and ugly? And you hated it!

Would you go back and watch it again? Of course not! (I’m 101% sure that would be your answer) Why would anyone with a sound mind would watch a horrible movie again?

You will not see that movie again because you have a choice not to!

But when it comes to your job. There will come a time that you will hate it, if you don’t yet feel it. Admit it or not, you will hate getting to work for a lot of common reasons:

>> You work hard and your paycheck seems not worth your effort
>> You like your job and do your best but your boss gets the credit
>> You work hard and juggle different loads even if it’s not in your job description when you were hired
>> You used to like your job, but now you’re bored. It seems like there’s no more growth. Nakabobo as they say in the vernacular
>> You’ve been working for years and you feel like the company doesn’t recognize you. They don’t promote you
>> You complain a lot about your salary and the taxes witheld
>> and the list goes on and on

Despite these reasons, enough to really hate it, you still wake up in the morning Monday to Friday (and sometimes even Saturday and Sunday) and hurry towards your job. You hate it but you still do it. Because you “don’t have a choice” and it pays for your bills and expenses.

If you are financially educated, again, you will learn how to make money work for you, instead of you the one working for money.

When you do, you will have a choice. A choice to live a lifestyle according to your wishes and purposes. A choice to design the course of your life the way you want it, and not be dictated by circumstances and other people.

Becoming wise about money and learning financial education is a choice itself. You need to choose to be financially educated.

Are you ready to choose to be rich?

If you are, start your journey to freedom from bad debt and freedom of choice. Learn financial education through the Create Abundance 2020 community Wealth Courses and Cashflow events. RSVP to these Events by sending me sms or leave a message in the comment form.

Jervis Salvador
"teach a man to fish and you feed him for life"

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