Apr 122014
 
        Knowledge is power, but just knowing alone cannot lead us to victory. We must also take action if we are to succeed 🙂 I’ve presented dozens of financial strategies here over the years, such as my investment last week in Dollarama. Many readers have told me they appreciate all the tips I share. But one thing that I can never give to my readers is the confidence to take that knowledge, and turn it into something real for themselves.
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        This is because the only person who can give you confidence is yourself 😀 This is why financial literacy is so important for every individual. It gives you the confidence you need to make wise judgements and take control of your finances.
14-04-confidence
        If someone proved to me that they have consistently made huge profits from trading copper futures, will I jump in head first? Probably not. That’s because I haven’t done enough research on the futures market yet to build up the confidence I need to decide whether or not that’s a good idea for me.
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By doing some research on farmland, I was able to build up the confidence I needed to make a decision about it. And despite investing on margin, I am confident in my ability to withstand any stock market crash in the future because I’ve looked at all the different possibilities and I believe the current path I chose would give me the best chance for long term financial security.

“A bird sitting on a tree is never afraid of the branch breaking because its trust is not in the branch, but in its own wings. Believe in yourself.” ~Unknown

For those with the same risk tolerance as me, knowing is not enough on its own. To increase our confidence, we just need to do our homework and increase our financial literacy.

Any fool can know. The point is to understand.” ~Albert Einstein

The way I build up my own financial confidence is usually by using the internet. For example, if I wanted to learn more about “currency manipulation”, I would Google that term and read through all the contents in the top 10 search results. Other methods to boost financial literacy include attending free investment seminars, reading personal finance books, taking courses on applied financial markets, or even study for an MBA in finance if you want. There’s no limit to what you can learn 🙂

I often absorb as much as I can on the web first, because it’s free and readily accessible. Then decide whether or not to take more in debt options if I feel like I need to build up more confidence in that particular field before I make my decision.

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Random Useless Fact: On average men carry more debt than women. Source: bankrate.com

14-04-menvswomen confidence

 

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Linda A PerezLiquid IndependenceWes Tibbetts, CFA® (@GenWiseWealth) Recent comment authors
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Wes Tibbetts, CFA® (@GenWiseWealth)
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Great article here! I totally agree that knowledge is power and financial literacy is absolutely paramount. Many go to college and study finance or do post-graduate work to get certain accreditations (CFP, CFA, CPA, etc.) to form their base of knowledge, but many just go to the library or hop on the internet and read!

How did you learn enough yourself to have a base from which to start?

Linda A Perez
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Good information on the power and financial literacy and it’s great to be updated with the latest financialposts.My friend who works in KPMG is a part of the financial management board in Toronto Financial management advisory Toronto