When hearing ‘financial education’ many people think of boring accounting classes and long lectures or that only people in that field should learn about finance. No, if money affects your life (which it does to everyone) you should have a financial education. How many times do students complain that they don’t understand what taxes are, what retirement really is and how you should save up? It’s frustrating when all they are told is earn good grades and you’ll get a job. What if you don’t want a job? What if you want to travel the world and earn money at the same time? To try different ways of getting an income, you must learn about what an income is and how it can be generated. You don’t want to end up loaded with bad debt and stuck in the rat race. So the answer is a personal financial education. Here are some ways to get started:
It doesn’t matter if you don’t like reading. These are not stories, they are education materials. Set one hour a day to read, to learn. And they will motivate you. Although the best books will have a cost, try buying them as an eBook for Kindle or Phone. In the long run, the cost of high quality books will be nothing in comparison with what you earn from their education. For a list of recommendations visit my Reading page.
An interesting way to find out whether you can exit the rat race. On this page of Robert Kiyosaki’s website is an online board game, where you play against other online players to ‘beat’ the rat race. This means doing different activities such as investing, paying off debt and earning enough passive income to pay your bills. As in real life, unexpected costs such as babies, events and bankruptcies can happen to you.
Have you always thought investing is super risky and simply a game of chance? Think again. After reading investing books, you learn that if you know what you’re doing, you will mostly earn a profit. If you want to try it out but don’t want to lose any money, try Google Finance where you enter the ‘simulated’ market with fake cash and can try buying and selling shares on the stock market.
If you go on Udemy or coursera you will find plenty of Financial Education courses, whether it’s accounting, investing or just learning how to manage your own money. It’s more interactive and is simpler than going to a class. I’m currently following one on how to earn a passive income by building websites. The step by step description with examples makes it much easier to understand and follow.
If you have a family member or a close friend who is an accountant, tax lawyer or just very knowledgeable, try asking them. It’s free and they have first-hand experience with it. Invite them out to dinner and simply ask them what you want to learn. They can then give you additional tips to continue educating yourself.
These first 5 methods are mostly free and don’t take a lot of effort. Once you enter the world of financial education you will be astounded by how little you know, and will probably find some of it interesting. As you get the ball rolling you will get more ideas on efficient ways to earn money, ones which require less effort and more enjoyment.
And if not, there is no harm in trying!