Increasing your financial education

In life, most people will say go to school, get a safe secure job, save money, invest for the long term, buy and house and plan for retirement. However, all these do not really work now in our society. One main reason is because of inflation. Inflation is getting higher and higher these few years, hitting as high as 7% per annum. This means that for every $1000 you save, $70 is being eaten up by inflation. Imagine 10 years ago you could still find food in hawker centres at $2. Now, it's at least $2.50-$3. That's a 25%-30% increase.

How can you make sure you can beat inflation so that your money does not depreciate yearly?

1) You need to invest and have returns more than the inflation rate.

- If we calculate inflation over the last 10 years, it'll be an average of 3% year on year. This means you need to have a return of investment of more than 3% yearly.

There are many ways to do that and to be able to know how to do it, you need financial education. If you're thinking right now about how you can do it, then you really need to start learning.

Our school system teaches us 2 types of education.

1) Academic Education

2) Professional Education

They do a good job training us on language, mathematics, science in academic education. Schools also train us to become lawyers, doctors, engineer and equip us with the necessary skills.

But they do not teach us one thing which is very important. That is financial education. That is why so many people cannot manage their finances and are constantly living in debt. There are also people who work so hard and then still do not have enough money to retire.

So, start increasing your financial education now. You can really achieve financial freedom and retire early. Money is not everything but everything is money. If you have money, then it will give you the choice to do the things that you love, give your family the best and make a difference in this world.