In a world filled with Presidential Committees on Literacy, book clubs and libraries, the focus on literacy is high. What's truly amazing, though, is how little attention all these committees and groups pay to financial literacy! Learning to read is important, but learning to speak the language of money and wealth is just as important.
In this society, most of us have come to rely on accountants, friends, and specialists to tell us what to do with our money (if we even ask at all)! We regard quarterly financial statements as too difficult or painful to read, and just stuff bank statements in a drawer and "hope everything is all right."
If you truly want to become wealthy, though, you have to take the time to truly become financially literate. Relying on specialists, such as accountants, is fine, but how do you know whether your accountant is doing the best job for you? You have to speak the language.
Only when you understand something about tax law, investment law, business law and the laws that govern personal finance will you be able to use you accountant to the best advantage, identify opportunities for investment, rank investment opportunities, and generally be smart about your money. You have to know how to earn money, how to save money, and how to invest money. And you start by learning the language.
Is it painful to learn the language of money? No more so than learning to speak any other language. You just have to do it. The good news is that there are plenty of books out there to get you started. We recommend two great books to get you started:
- "Rich Dad Poor Dad" by Robert Kiyosaki
- "Courage to Be Rich" by Suze Orman
These two books address your understanding of money and how it works. Once you read these two books, you'll know where to go to learn more. Your journey to financial literacy will have begun, and you'll probably develop a galloping thirst to know more. Good luck and have fun learning to speak this new language!