Why People Struggle Financially

Has the thought ever occurred to you that the average educational system does not teach us about money? Most of us spend at least 16 years in school studying a profession so we can graduate and finally be able to make our own money but, no one ever teaches us what to do when we finally make it. This is why a lot of us struggle financially, we have the skills to make money but we don’t have the financial intelligence or self-control to let our money work for us.

Think about it!

Wouldn’t we be more financially stable and debt-less if we built our financial intelligence? Financial intelligence isn’t just about knowing what accountants and bankers do, cause some of these highly educated people are also broke; it is about knowing the power of money, understanding cash flow, the fact that the rich buy assets, and understanding how to play the game of investment.

Also, financial intelligence helps us to pay attention to self-control because financial intelligence teaches us to make SMART goals. These goals guide our spending decisions and help us to establish our priorities. As a result, we begin to realize that some things we think we really need are things we just really want. For instance, most of us get into trouble and debt attempting to buy luxuries we can’t afford. For example, as a young couple just starting out, it makes sense to buy a house. They look towards the feeling of owning their own home instead of the 30-year debt that comes with that decision.

Is it wrong to own your home?

Of course not! But should you live the better years of your life, paying off debt after debt, and not living up to your full potential?

Is it wrong to get the new iPhone coming out?

Of course not! but can you afford it right away without worrying about how to pay later?

Robert Kiyosaki says “the rich buy luxuries later, the poor and middle class buy luxuries first”. We have to build a robust financial portfolio that yields enough returns to pay for those luxuries. It might take longer but we get to be free of debt, worry, and stress.