Busines Tips: Invest in your personal financial education

When it comes to investing, what comes to mind in most people is where to get the best returns on their money or investment. While that is important, it is secondary. If you don’t know where to invest your money, you are at the mercy of those who do. There is this joke that when […]

When it comes to investing, what comes to mind in most people is where to get the best returns on their money or investment. While that is important, it is secondary. If you don’t know where to invest your money, you are at the mercy of those who do. There is this joke that when a person with money meets someone with experience, the person with the experience ends up with the money while the person with the money ends up with experience. That is a hard way to learn.

Your best investment is investing in your ability to invest. It is like attempting to cut down a giant tree. Your best investment is in sharpening the saw, or else a blunt saw will dissipate the energy you have. The better you are in investing, the greater your returns. Hence it makes sense in investing first in growing your ability to invest – in your financial education.

If you want to drive, it makes sense to learn how to drive first (and getting a driver’s license) before getting behind the wheel. Observing others and jumping in may seem like a short cut. When you end up spending a lot of money repairing damage from avoidable accidents, it becomes obvious that education is way cheaper than ignorance in the long run. While your accountant will help put your books in shape, it is your responsibility to manage your finances. This function cannot be outsourced, as many celebrities have learned the hard way. 

Usiere Uko is author of Practical Steps to Financial Freedom & Independence and can be reached at [email protected], www.financialfreedominspiration.com