If you’re going to be a millionaire right now how it would change your life? Wait! Let me rephrase. If you’re going to have P10,000,000 right now what you’re going to do? On this short article, we’re going to talk about the importance of financial literacy when you became a millionaire.
What is financial literacy?
In a simple and plain explanation, financial literacy is the attitude of how you make smart decisions in relation with your finances. It is the ability to keep and grow your money.
Why financial literacy is important?
There are people who sweat blood and tears before they became a millionaire. Those who started from scratch and worked their way up to the ladder. They worked hard. They persisted. They remain focused despite of the challenges and failures they encountered along the way. They became millionaire.
In the financial aspect, there is something that made them rich behind their success and their struggles. Aside from being hard-working, focused and determined they have this attitude that made them where they are right now. It’s called financial literacy. They are financially literate. They made smart decisions about their money. They know how to use and spend their money. They know how to keep it. And most importantly, they know how to grow it.
A good example are Rodolfo and Rochelle. A couple who started with P20 ice candy business and turned it to a multi-million business. They worked hard, never gave up and hustle ta heir way to success. Aside from those attitude, they disciplined their selves how to properly budget and save money. And most importantly how to invest to grow it as what we are seeing right now.
Another example is Carina Gorato called The Lumpia Queen. She started her business with only P2,000 and now grew into a multi-million business too. Aside from being hardworking and determined, she knows how to handle her finances. She managed to budget and save while growing her simple lumpia business. Now she’s one of the largest distributor of lumpia in Cebu.
On the other side, there are people who became millionaire in just a snap. Or people who became millionaire without working hard for it. Remember the super lotto winner who became bankrupt after a few years?
Donnie Reyes won P14,125,032 in the lotto 6/42 last 2008. He spent almost P2M for “balato” and other luxuries. He bought cars and houses left and right. After 4 years, he was in debt and struggling financially and reported to have P500,000 in debt.
Christian Tongol from Pampanga won a whopping P82,000,000 in lottery in 2004 reportedly having financial difficulties after 6 years. After winning, he reportedly bought 6 houses and 3 vehicles. On GMA’s 24 oras 2010 report, it was shared that he suffered financial difficulties only after 6 years the day became multi-millionaire.
These are just 2 of the many sad stories of Filipino who were already millionaire but failed to keep their wealth. Their unable to grow their “winning” and now suffer bankruptcy or financial difficulties.
There could be many other reasons behind this, but we know that the main reason is the lack of financial education. They don’t have enough financial education to keep and grow their wealth.
How to become financial literate?
To become financial literate you need to have financial education. You need to invest in yourself. It is said that investing in yourself is the best investment of all time. You can grow your knowledge by reading books, attending seminars, attending special courses, getting a mentor and more. As long as you seek knowledge and put them into action, you’ll grow.
In today’s world, you have many options and you can take the advantage of technology to search and acquire information that can help you become financially educated. Online courses and online webinars are available. Youtube videos and personal finance blogs are also a great sources. There’s a lot. You just need to invest time and effort to become what you want. And of course, put them into action to get results.
To become truly wealthy and achieve financial freedom, you don’t just work hard, stay focused and determined. It is very important that you have the correct mindset in dealing with your finances.
Bo Sanchez shared in his book 8 Secrets of the Truly Rich that you must enlarge your psychological wallet if you want to become truly rich. It means to widen your perspective and educate yourself about how to handle your finances properly.
Financial literacy is very important if you want or when you became a millionaire. By being financially literate you will know how to keep, grow and sustain your wealth. It’s one of the greatest attitude of the riches people in the world. They know the numbers. They are financially educated.
Do you agree that financial literacy is the key to financial freedom? Let me know your thoughts on the comment section below.
I hope this has been informative, until next time cheers!