Here are 4 articles, a quote and a suggestion to help you build your knowledge base to become a better investor, in 7 minutes time + a travel deal.
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No one knows what to do, though they know who can help them.
We spent last week talking about rejection, and how real the consequences are financially for most people.
This week, I thought I’d hit on another real topic that I’ve spoken to many of you about.
Financial literacy.
As I’ve said here before, most Americans can’t pass a simple financial literacy quiz.*
So why is this? Why do most people walking around fail to understand?
Well first, how does knowledge flow in its purest form?
By three people and in person, the teacher, the person receiving instruction, and observers.
Furthermore, researchers at Cambridge have found that children’s basic perceptions of money are formed at age 7.**
Crazy.
When I read this the first time, I was astonished at how young it was and I realized where and when I wanted to start talking about money with my children, at home and early in their life.
Anyways, so in person is better and our collective mindsets about money are formed when we were observing our parent/s interact with money and life.
If this is largely true, financial literacy issues have been passed down, generation to generation, for millions of people in our country, in the home.
Good, bad, or indifferent.
So in order to be free financially, which is not common in our world, you need to possess a basic understanding of how money works and a skillset to do the basics well.
Here’s how confusing this can be if you don’t know.
It’s hard to save for retirement if you don’t understand compound interest.
If you do know about compound interest, it’s hard to know what compounds.
If you know what compounds, but you don’t know what a Roth IRA is, you’re only going to know about investing but never do it.
There you have it, and if you can’t put the pieces together, you’ll never move forward.
And here’s the secret, this problem can be solved relatively quickly.
It’s the same solution as last week too.
This is a who problem.
And it’s always been one.
What do I mean by this?
Rather than people focusing on what stock they should buy.
They need to find people who can help them… a friend who is farther down the road than them, a trusted mentor, an advisor, or a colleague.
Though the internet, books, and news media are great at distributing information.
Humans have a knack for wanting other humans to help them with their problems.
Again, as we spoke about last week.
Money problems are often life problems and life is all about relationships.
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If you can possess basic financial knowledge and pair that with people who care for you, you’ll solve your financial problems.
And equally, you’ll be able to help those who go after you in life.
I’ve already told Lucy, my 4-year-old, the importance of money, generosity, bravery, independent thinking, taxes, and investing.
She doesn’t get the technical aspects of this.
She doesn’t need to either.
But I want her to absorb our mindset about money. That money is a tool, we own it, it doesn’t own us, we are to be blessers with it, and we can grow it in many ways.
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Thanks for reading, friends. I hope this inspires you to act, learn/re-learn the basics and find your “who” to the issues you are facing financially.
As always, I appreciate your time and your attention.
See you next week.
TS
*https://www.cnbc.com/2017/09/19/94-percent-of-americans-failed-this-financial-literacy-quiz.html
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