Are some of your beliefs on financial literacy merely misconceptions? Misconceptions would hinder you from building wealth. As they say, personal finance is 80% mindset, hence, it is important that you have the right money beliefs to build wealth. In today’s post, I will be debunking some of these misconceptions.
Have no fun; save all your money- To build wealth, you do not need to sacrifice all fun and enjoyment. As much as the journey to wealth calls for discipline, it does not translate to a life of boredom. Financial literacy focuses on using your income to fund your lifestyle and goals (with the use of a budget). This means a budget will help you attain a balance in fulfilling your fun desires and smashing your investment/savings goals. By planning early, taking your goals one after another and, of course, not diverting the funds meant for investments to fund your fun activities, you can have fun and still be on your way to building wealth?
Investment is only for the rich- Like I always say, you do not need to have tons of money before you invest. If you have a stable income, you can start by consistently investing at least 10% of your income monthly. This means putting aside this amount monthly as capital to help you grow passive income. While this amount may seem initially small, the accumulation of it would translate to something substantial.
You need to have all the knowledge- Before investing, it is important to have basic information outlined such as the reason why you are investing (your investment goals), your risk appetite, the risk level of the investment option you are interested in and how the investment option works to give you returns on your capital. With these, you can take beginner steps. If you are waiting to be an expert before you invest, you may never begin. What matters is that you know the basic things and you take actions, even if they are baby steps. Furthermore, there is a lot of free basic information available on the internet to guide you. So, you have no excuse!
Conclusively, I would quote a verse from the Bible which says “He who observes the wind will not sow, and he who regards the clouds will not reap” Ecclesiastes 11:4. If you wait for all the conditions to be perfect, you will never start your journey to wealth. Know the basics, eliminate the misconceptions, and take action today!
To your financial independence and freedom!