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February 7, 2013

Top 10 Reasons on Why We Need to Invest in Our Financial Education

Posted on February 6, 2013 by in Money Blog

I am a firm believer that you are your biggest asset.  That when you invest into yourself first, you will reap dividends not just now, but  also in years to come.  Because you can never go wrong when you put a budget in educating yourself first!  I personally have spent a lot of my time and resources just to fill my mind with the right tools that I need in investing.  Has it helped me make wise investment choices?  Yes!  It not only helped me maximize my gains, but it also helped me prevent potential loses that I may have gone through if I did not study.  Education has protected me from going through the agonizing torture of being scammed into putting money in bad investments.

As a financial planner and investment advocate I feel sad when I meet potential clients, relatives, and friends who have lost money in their investments because they just invested blindly without studying the investment as a whole.  My heart is to educate more and more Filipinos so that they don’t have to go through investment mistakes that some of our countrymen have gone through.  I want more Filipinos not just to be blinded by the possibility of getting big returns but for them to also think twice, check the risks, the gains, to analyze if the investment is legit and to know the ins and outs of it.

Inline with that I have invited my co-RFP Mon Lao to share his “Top 10 Reasons on Why We Need to Invest in Our Financial Education”

Ever since the Philippines was colonized by foreign powers , the Filipinos have adopted the culture of Siesta and Fiesta from Spain and consumerism from America. It is no wonder both Spain and America underwent bailout from their financial crises which was brought about by poor financial literacy. Although we are not in the same situation with that of the two, because of illiteracy in terms of finances, majority of the Filipinos still live on or below poverty level.

Financial literacy is so important to us. Look at our taipans who were not able to finish school, but still are financially literate. They were able to make money work for them. Although times are so different then compared to now, the need to have financial education does not differ at all. Let us see why we should need financial education.

1. By acquiring financial literacy, we can make sound decision on planning our personal financial program the right way..Just like when I took up an Engineering degree, we were trained to compute to come up and decide with the best engineering plan and design. The same goes with our financial education. If we don’t not plan properly for our money, somebody else will be planning to get it away from us.

2. Why are people always scammed? This is the result of lack of financial education. Had they chosen to educate rather than entertain themselves, they would not have been conned of their life savings. As the saying goes: “If financial education is expensive, try ignorance”.

3. Financially educated people know how money works and know how to leverage properly. Without education, all they know is to save money in the bank. Banks do not exist to grow our money. They exist only to safe keep our money.

4. People do not want to be liabilities to their children come our golden years. There are stories of retired people who are like basketballs because they are being passed from one child to another because they are already burdened.. Majority of the retirees erroneously see their children as their retirement fund.

5. Filipinos need to be free from the bondage of debt. Without education, one will just keep on accumulating debt and will not be able to find ways to eliminate debt. Unless one is debt-free, he will not be able to start saving for our emergencies. The usual problem encountered is emergency but no fund.

6. Financially educated people are often relaxed. In any uncertainty that comes up, they have the resource to fund or to recoup their losses. In short, they have peace of mind.

7. By having financial education, people will be able to overcome the fear of the unknown specially in the field of investing.

8. Money, without financial education, is money soon gone.

9. By being financially educated, one can be a blessing to others. Remember, it is difficult to share what you do not have.

10. Most importantly, financially educated people can pass on to their children their knowledge in order to eliminate poverty and create a wealthier next generation. It must be noted that a wealthy nation is composed of wealthy citizens.

Nowadays, there are seminars, forums, books, and RFPs like Randell Tiongson, Efren Cruz, Marvin Germo, Alvin Tabanag, Kendrick Chua who can help us with our journey to financial freedom. As long as one knows WHY he needs financial education, he will hunger and will strive to learn, this is how I began my financial journey that started way back March 26, 2003.

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For those that want to learn how to earn in the stock market, Stock Smarts Basics will be on March 9, 2013, 830am at the Berjaya Hotel.  For more inquiries you may contact clientrelations@marvingermo.com

 

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