How Financial Literacy Can Change Your Life

Are you constantly worried about money?  Are you struggling to meet debt obligations?  Do you feel that your salary is not enough to cover your monthly expenses?  Are your financial worries so stressful that they are already gravely affecting all aspects of your life including your health and personal relationships?

A few years ago, my family was in the same economic situation too.  No matter how hard we worked, the money was never enough to pay our bills and cover our monthly household expenses. We were both working as professionals.  In fact, our monthly household income was way above what minimum wage workers earn.  I was working at a renowned company while pursuing my Masters degree while my husband was working in the aviation industry.  Yet, month after month, we struggled to make ends meet.

We were stucked in the rat race for so long until we stumbled upon what is said to be the best personal finance book of all time, Rich Dad, Poor Dadby best-selling author Robert Kiyosaki.

Kiyosaki opened our eyes into a different way of looking into our finances. He also stressed the importance of financial literacy and what it can do to your life. Financial literacy is needed to have a secure financial future.

Unfortunately, financial literacy was never thought in school.  For most people, just like me, we only learn financial literacy  when already faced with financial crisis.


People learn financial literacy only when they have to.


So, what exactly is financial literacy?  Wikipedia defines financial literacy as ” the possession of the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources”.  

In short, financial literacy is the knowledge and understanding about money and how money works.  It is knowing how to budget, how to pay your bills, how to borrow money responsibly, how to save, invest and prepare for retirement.  

Financial literacy will help you make good financial decisions in your everyday life that will ultimately affect your overall financial situation and change your life for the better.

The fact is, you can be a graduate of a four-year course, have a master’s degree or even a doctorate degree but know nothing about personal finance just like Kiyosaki’s poor dad.

When faced with financial crisis, most people will look for ways to earn more money sacrificing their time and health. What they failed to realize is that it is not about how much money you make but it is all about what you do with the money that you earn that matters. Working hard is simply not enough.

It is not how much money you make, but how much money keep, how hard it works for you, and how many generations you keep it for. – Robert Kiyosaki

My family learned this lesson the hard way but financial literacy did change our lives for the better. Don’t wait until you are buried in debt just like what happened to us or when you are too old to work before you start learning about financial literacy.  The best time to start learning is now.

More so, have you ever wondered why the rich is becoming richer and the poor becoming poorer? Contrary to popular belief, it is not the government’s fault neither it is their duty to make you wealthy. If you want to know the answer to this question, start your journey with financial literacy and soon you will find out why.

And remember, financial literacy is a lifelong journey. It will not end by simply reading just one book.  It is something that you need to learn throughout your life if you want to achieve complete financial freedom.


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