Entrepreneurs Who Failed Are Financially Illiterate!

Entrepreneurs Who Failed Are Financially Illiterate!

Certainly, some are going fly into a fit of rage , for saying “you are financially illiterate”, yes , its Facts Only on success Diet. 

We might wonder why people who were not opportune to study or college drop out are so successful in their businesses , employing those with a PHD, BSC and HND degrees right?
 

The reason is not far fetched, of course you got a degree and learned a skill to make an impact in the society or successful , but yet college drop outs are your bosses and are doing very well at their businesses , they use you to shape their business or life, consequently, you work for them to earn salary while all your life depend on hope to retire someday.

You have probably worked for 30year and at 60 you retire and depend on pension for the rest of your life .

Have you ever asked yourself why the college drop out controls empires of businesses, but you are his employee, and you were made to believe that education is a key to success , of course, yes it is, but if you ARE FINANCIALLY ILLITERATE, you have rendered all your certificate useless and all your years in school are waste of time. FACT!

As an entrepreneur “If you are highly educated and professionally successful but financially illiterate” which is very common with us who claimed to be educated, you can never be financially stable .

Ordinarily , you were taught at the school to have a professional skill, but never taught how to be financially literate, however , I have put together three ways to be financially literate and it is just about what you experience everyday but never gave it a second thought, why you fall into such situations always.

HOW TO BE FINANCIALLY LITERATE

1 . You must know the DIFFERENTS between an Asset (Profitable Assets) and Liabilities (unprofitable Assets)

2. You must learn how to invest aggressively on profitable assets

3. You must learn how to discipline your spending attitude by saving more and spending less. Be prudent.

“Assets are anything or investments that put money into your pocket or bank as profit”.

Liabilities are anything that takes money from your pocket or bank e.g (A car or personal belongings and expensive phones, are all liabilities, if you are not financially stable .

Furthermore , most educated people of our generation lack financial education during the early stage of their life through parents and guardians, this is not about the courses your studied at the college, E.g Financial Management, or accounting, I am referring to how you spend your money , What kind of assets do you invest in? and your financial discipline . Many of those who studied financial management or accounting still failed in their businesses.

For instance , as a civil servant or an entrepreneur looking to start up a small business , why get a loan to buy a house or build a house you want to live in, instead buy or build apartments for individuals,organisation or company to rent, while working you can also make money renting your house .

If you are an employee and you get a loan to buy or build a house with the intention to live in it , you are buying a liability because it wont bring money to your pocket. Your expensive phones are not assets, they are liabilities ,

if you are not financially stable why buy an expensive phone and complain you are broke? Why take loans to buy expensive cars for personal use instead of investing the money and make profit ?

Why buy expensive clothes and shoes instead of saving more and spend less?

Conclusively ,if you look around the world today, wealthy people spend more on their investment and dressed moderately than spending on liabilities, E.g, Bill Gate, Aliko Dangote and Mark Zuckerberg all of these guys are wealthy but they spend less on what we the middle class people spend more on.

Every rich person or a serious entrepreneur spends more investing aggressively on profitable assets, but the middle class people spend more on liabilities. Learn how to become financially literate.

Ademola Adetunji