Financial literacy itself does not bring money. But it helps you to rationally manage the money you have and not to miss opportunities that life offers.
A financially literate person is able to find the best solutions to any problems related to money. He takes responsibility for his life, rather than blaming everyone and everything for the lack of money and other financial woes (e.g., borrowing). This is similar to the way a person who can read easily picks up any book from the shelf and reads it as long as he or she wants.
Why study financial literacy? I have studied hundreds of books on the subject, written dozens of reviews that have been read by thousands of people. And what has it gotten me?
Did I learn where the best place to invest is? No. Although the limit of thought was to buy index funds in ETF format, but the asset freeze with these very ETFs has compromised the entire system. There is no trust. What have I learned then?
I know 999 ways of what not to do with money! What good is this information? It keeps me from doing anything rash.
The richer a person gets, the more risk there is from their level of financial ignorance. I hear stories of people going broke and filing for bankruptcy because of just one wrong move. And that step was made by them when the unit of operation of their money was $100,000 (!!!). Yes, I wish that you and I also reach such minimum levels of the report and be ready for them.
When a person has tens or hundreds of thousands of dollars, the easier it is for him to make a fatal mistake.
Recognizing unscrupulous financial offers is an important part of financial literacy. If you have this skill, you can easily recognize when a financial advisor is trying to scam you. Moreover, you will be able to avoid the mistakes associated with investing in pyramid schemes and other fraudulent schemes. Of course, even with a high level of financial literacy, you can make mistakes in managing your money - after all, we are all human. However, with financial literacy, you can live more confidently and securely knowing that you can protect yourself from unscrupulous schemes.
Learn the financial world. The richer you become, the more you need to know about it. It is possible to prepare in advance and learn what to what. Because then there will be less time for all this learning!
Rule #1 from Warren Buffett "Never lose money". You will save it if you get into the financial mechanisms.
P.S:
Don't forget to save money for emergencies. Having savings increases your confidence in the future several hundred times over. Everyone should have a financial safety cushion. Learn to anticipate possible risks: job loss, economic crisis, pandemics and other troubles. Accumulate gradually, saving as much as you like from your paycheck, even 5-10 percent. Reduce spending if you realize you are buying unnecessary things. Look for alternatives, buy used stuff if possible. That's the order of the day.
