As you know, I have created a quiz that teaches you about financial literacy.
Why should we be financially literate?
It always amazes me how humans will trust other people blindly with their money. Most people I know trust their financial advisor to do the right thing and invest their money for them. Which is fine, don't get me wrong, but shouldn’t you at least know where your money is and what it’s invested in? You work hard for your money and you should keep an eye on it. And in order to do that, you need to be financially literate.
There are a lot of different asset classes and you should know them. The economy is cyclical and one asset might be good today but won’t necessarily be good next year.
You should make it a homework to learn as much as you can about money. I’m not going to lie, it is a complex subject and there is a lot to know. It might be the reason why most people give up before even getting started. But that’s also an advantage for you. You’ll quickly gain an edge over most people as soon as you get started.
Make it a goal to know how to invest your own money. When you become an expert about the economy and all the different asset classes, you’ll be able to handle everything by yourself and thus save thousands and thousands of dollars in fees throughout your life.
As you start learning, you will also learn a lot about yourself. You will find out your tolerance to risk, you will find out which investments you are most comfortable with and so much more.
We all have the same number of hours in a day so you need to make decisions on what you’re going to focus on. There are only so many things you can focus on in your life and if your goal is to be financially free, then becoming financially literate should definitely be one of them.
Don’t rely on other people to make the right decisions for you. Become financially literate so you can take matters into your own hands. In the end, you’re the one who knows what’s best for you.
Follow the MoneyQuiz every week and I promise you you will learn essential things that will greatly benefit your life. These things, unfortunately, are not taught in school.
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