In my previous posting “Are You an Active Saver“, I wrote about a survey result concerning Malaysians’ financial situation. The conclusion is that we Malaysians are not saving enough for the future. You may belong to this group that is not saving enough if you agree with any of the statements below.
- I do not know where my money goes each month
- I do something everyday that wastes money
- I do not know my own weaknesses
- Spending on big items like a car, a house and even groceries are dragging me down
- I am wasting money carrying debt
In reality, these are the issues that need to be addressed and tackled everyday. These are the obstacles that may have been blocking your ability to preserve some money and save for the future. You may be earning a reasonable amount of money but still find it hard to save money.
How do you improve your financial situation?
The answer is by improving your financial literacy or financial IQ. Robert T. Kiyosaki, the author of the book “Increase Your Financial IQ”, advocates learning to solve financial problems to learn, grow and become more knowledgeable in order to become rich.
According to Kiyosaki, rich people view financial problems as opportunities to enhance their financial IQ or increasing their financial knowledge. Hence, having better knowledge means being able to solve more complicated problems and make more money.
On the other hand, the poor regards money problems as problems. They feel victimized which is compounded by their failure to solve their problems. Consequently, the problem stays and worsens and the poor becomes poorer.
A rich person may not be able to solve all his money problems but instead of ignoring them or walking away, he refers to others who are experts in the field to solve them and learn from the experience.
Lastly, everyone has financial or money problems even the rich people. Those who choose to face and solve the problems will fare better compared to those who choose to ignore or pretend they don’t exist.