Most people don’t have any financial literacy when it comes to managing their finances and making smart financial decisions. We have been taught to believe that saving money, living below your means, and not taking on any debt is the solution to living a well off life. However, it is only the common advice that is being taught by the world.

What is the point of not having enough money right now and always saving, hoarding everything, while at the same time having no guarantees at the stock market or the investments you make? What is the point of not having the energy and the ability to enjoy your wealth?

Financial literacy is very important today’s day and age where it’s easy to make poor financial choices and get stuck in a situation that could have been easily avoided.

Learning The Proper Mindset

Most people in the world have a negative association with money. If you ask a random stranger, they are most likely to point out the flaws, and the evil that money brings. However, it is just a tool, a vehicle you can use to do good or bad in the world. How you choose to spend your money is up to you.

Money is not necessarily good or evil; it just provides you the oppotunities to live the type of lifestyle you want, and it gives you more choices in life. Who doesn’t want more choices and more freedom in life?

It’s time to start viewing money differently and from a different perspective.

Opportunity Costs in Life

Is it always better to save money and buy the cheaper alternative? Not always, because when you buy cheap things you are allowing yourself to get used to cheap things and are associating yourself as being cheap. Saving a few percent here and there, and hunting for deals is not always wise.

How much do you spend wasting searching online for deals and coupons, and other means to save money? Wouldn’t the time have been spent more productively if you had used that time to do something you like and love?

We can always replace money, material goods, even friends and close partners, but we can’t replace time. So we need to learn to view time as the most important asset in your life.

Debt is Not Always Bad

We’ve all heard the saying to cut out your credit card, to not borrow from people, and live below your means. However, when you take a good debt it can actually be a good decision. If you need starting capital for your business, in the long run it is better to take a loan to scale and grow your business vs seeking an investor who will have control over your company.

Learn to distinguish good debt from bad debt. If you are using debt to leverage your business for higher yields and return, then that is a good debt, but if you are using debt to buy the latest smartphone, computer, car, etc, that is bad debt. You are only adding to your liabilities and not your assets.