Financial literacy is a term I first came upon when reading the best-selling book, 'Rich Dad, Poor Dad.' It simply means knowing how to manage money. In Robert Kiyosaki's words, it's about having money work for you, rather than working for money.
Yes, I had an idea that it was what rich people did. What surprised me in the book though was that the author talked of how he came to learn this skill through years of studying and trial and error. He went on to explain how none of it is taught by the education system, parents, our peers...
I am an entrepreneur who provides a service, namely photography. In the past three months, I have come to learn some about business and marketing as it pertains to photography. It's a start.
Now I realize my complete lack of knowledge and expertise around money. I spend it liberally. I don't invest. I don't save. I know little or nothing about 'assets and liabilities.' I have the mentality of a poor person when it comes to money. I have NO control over it. It controls ME completely.
How can I possibly expect to have a profitable business without financial literacy? I can't, so I'm going to do something about it.
Kiyosaki created a board game named Cashflow. It is designed to teach its participants the principles of managing money. How you fare in it will reflect your attitude and expertise regarding money. Groups of people get together all around the nation to play it and learn from each other.
I found a group that meets in my neighborhood, Huntington Beach. You can find a Cashflow group in your area through www.meetup.com
Among other things, I also want to take a financial planning course at Orange Coast College next semester.
I actually love finding areas I know nothing about that can propel me forward. If I didn't know my weaknesses, how could I become stronger?
By the way, MERRY CHRISTMAS wherever you are :-)
Tuesday, December 25, 2007
Posted by Greg Clarke at 8:05 PM