There are many financially uneducated people navigating the financial terrain without a compass. Sadly, they are unaware of the potential pitfalls that lie ahead.
These people desire financial success but fail to understand that their lack of financial education can have profound consequences that will impede their financial journey.
In this article, we will explore red flags that will help you assess your financial literacy and show you where you need to make the necessary changes. Let’s dive in.
They hate rich people and capitalism
One of the red flags of being financially uneducated is that you hate rich people for no just cause. Every single height they achieve irks you. You don’t want to associate with them or read about them.
Also, your hatred for capitalism shows that you are not financially intelligent. As much as capitalism has its dark sides, it makes room for competition and allows private entities to own and operate businesses. It drives innovation, economic growth, and personal freedom.
So, the only reason why you will hate rich people and capitalism is because you are not financially educated. If you are educated, you will know that networking with rich people, learning the principles they applied and embracing a balanced practice of capitalism is the best way to achieve financial independence.
No savings and investments
Another sign that you may be financially uneducated is living without savings and investments. Your savings help you manage unforeseen circumstances and preserve you from economic hardships.
Having no investments shows that you don’t know the power of investing. Investment is a cornerstone of preparing for the future. Begin by cultivating a savings culture. Also, keep yourself abreast with investment opportunities and invest where necessary.
Living the YOLO Lifestyle
Another category of persons that belong to the financially uneducated group is those who believe that You Only Live Once. These persons make impulsive decisions, take uncalculated risks, and spend extravagantly.
While it is true that you only live once, it is important to state that your one life can either be short or long. Living the YOLO lifestyle can set you on the path to ruin, which can cut your life short.
Remember, there are consequences for every action. The seeds you sow today, are what you will reap tomorrow. A long and prosperous life requires planning and discipline.
Always borrowing money from friends
Financially uneducated people are always asking for and borrowing money from friends, parents and relatives. This is because they don’t know how to manage their finances.
Failing to budget and plan will put you in a position where you have to spend more than your income. When this happens, you will be left with no choice but to fall back on your parents.
Zero financial goals
A financially uneducated person does not know he needs to set financial goals, so he does not have one. They spend without a budget, accumulate bad debt and live above their means.
But a financially educated person knows what he wants to become, how he wants to achieve his target and lives his life by it. If you want to become a billionaire, then you must think long-term like Tony Elumelu.
They spend beyond their capacity
Spending beyond your means at every given time is a sign that you are not educated financially. When making a purchase, ensure that it is within your capacity. Avoid panic-buying and prioritise your needs over want.
Default in paying bills
Failing to pay your bills on time could suggest a lack of financial education. This is because your bills should be one of the first things you do when you receive your payment. Defaulting on bills could mean that you failed to work with a well-planned budget.
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