Financial freedom does not mean be rich
Many people think the main problem in life is money, so having more money will solve the trust problem. What happened, when income rises, expenditure of life also improved, the use of credit card debt more frequently so that it swells.
People like this rather than the more affluent but increasingly distant from financial freedom. They forget that it’s not about how much money can be generated, but how much money can be saved and how much money it can pay for our lives.
In many countries, many people became rich by winning the lottery millions of U.S. dollars (equivalent to billions of dollars), can be inherited, or a celebrity. But because they do not understand the power of money and unable to control themselves, their money in and out so fast.
Instead of buying productive assets such as stocks, bonds, or property for rent, they will buy a bigger house and more luxurious cars. In the end, the money will soon run out and the debt re-emerged. You may remember the story of Mike Tyson, boxing’s youngest world champion in the history of falling into poverty, only a few years after he could no longer compete.
When his prime, Mike is able to produce millions of dollars from just one match. This is why I will not cease to write down the importance of financial intelligence. The problem of understanding about money is not taught in school.
Schools only emphasized the scholastic and professional abilities, and not the financial capacity which is necessary for the life science to everyone.
Even on campus, students never learn personal finance, namely the field of science which is indispensable for planning and managing personal finances and family. Business and accounting students are just learning how to manage the corporate finance companies (corporations).
Corporate finance science has never been taught how we can be smart as a cash deficit (the debtor in the face of the bank) as well as astute as the cash surplus (investor). Financial knowledge is also not reflect the reality of companies which most do not have access to capital markets.