Here are some steps you can follow to gain financial knowledge:
One - Hiring People
When hiring people to work for you, consider candidates who
are more knowledgeable in their position than you are. Don't be
intimidated by their ability to perform their job better than you
could. This type of employee is an asset to his or her boss, not
a threat. Pay the employee well to ensure loyalty and reap the
benefits of another's knowledge. You won't have to worry about
whether or not a person is able to competently perform the job.
This frees up your time, so you can concentrate on the aspects of
your money-making ventures. Still, watch out for "double
standards" in any information you obtain. Remember that it's
better to reconfirm information than recover from poor business
decisions.
Two - Profit
Profit can be made from changes. Modified business practices,
especially those that involve bargains, can increase revenue. For
example, when a supermarket announces a sale, the first reaction
most people have is to stock up on essential items, buying more
and saving more at the same time. Another example is landscaping
and painting a home before selling to improve the curb appeal and
raise the property value.
When we analyze this reaction, however, it seems peculiar that
the opposite happens during stock market price crashes. People
tend to shy away from discounted transactions on Wall Street but
not the supermarket. Why is this? Consider the opposite as
well. On the other hand, when prices in a supermarket go up,
shopping slows down. But when stock market prices go up, people
start buying. This seems to go against logic.
Three - Asset and Liability
Know the difference between an asset and a liability, and
you'll be on your way to financial knowledge. Whether something
is an asset or a liability depends entirely upon the view of its
owner. One person's asset is another person's liability - and
vice verse. Here's a rule of thumb: Assets earn interest.
Liabilities don't.
Four - Business Methods
Consider unconventional ways of doing business. Too often we
stick to what has worked in the past. We say: "This is the way
we do it here" or "We don't do that here." But the conventional
way of conducting business might be most effective. Innovation
could end up saving you time and money. Money saved is money
made.
Five - High Emotions
High emotions, especially fear, can block your path to
financial knowledge. Don't let your financial ability submit to
your emotions. Part of the learning process includes managing
your emotions. Similarly, financial decisions made without proper
financial training can be disastrous.
Money comes and goes, but -- unlike money - current financial
knowledge stays forever. If you want financial stability to stick
around too, consider consistently updating your financial
knowledge. If a person obtains a lot of cash without financial
ability, his or her money is as good as gone. Scenarios have
become cliché that depict athletes or celebrities who acquire
millions of dollars a year, only to lose it when their heydays
are over.
Don't feel limited by your formal education. Use it in
conjunction with your real-world financial education. That
begins when you decide to actively seek out ways to grow and
maintain your financial wealth.
