Financial training as a to achieve financial freedom.
In economic terms, financial training is nothing more than being financially capable, being self-sufficient with money. So that a dynamic is achieved in which money is used to produce more money in order to achieve financial freedom.
The path to financial freedom is based on two fundamental aspects: skill and action. Both skill and action must go hand in hand in this enriching process.
You can be skillful in the matter and be able to carry out a certain activity and still not be exploiting your capacities to the maximum in order to overcome the limitations and obtain an excellent result.
Financial training is the way that makes it possible to follow a practical and efficient model towards the objectives that are desired to be achieved; in this case it is financial freedom.
Let’s look at an example:
Our boy Ted has a tight capital (almost zero) and his brain, due to the knowledge he possesses, constantly sends him signals that he does not have to worry about keeping his finances in order because he has nothing to manage. Something totally uncertain and it is precisely these types of thoughts that work as a barrier between Ted and his financial goals.
Therefore, the first lesson here is that in order to know how to manage large sums you must learn to manage and take care of the smaller sums first.
Let’s continue with the example:
The capital that our boy has is $1.00. At home he has bills and bills to pay such as water, gas, electricity, plus he needs to buy a good coat because winter is coming.
On the way home, after a long, hot day, Ted decides to stop with a friend at an ice cream parlor. In this place the ice creams cost $5.00. We know that he only has $1.00, but since he has a good friend, he decides to borrow the $4.00 that he needs to buy ice cream. Ted’s friend agrees to grant the loan in exchange for 1% interest. So now Ted can have all the money he needs to buy ice cream. After having enjoyed the good company and the ice cream, he goes home happy and confident that the debt has been worth it and that he will soon be able to pay it because he is waiting for a raise.
Let’s review Ted’s situation:
✓Has a new debt of $4.04
✓At home, bills remain unpaid
✓He doesn’t have the savings to buy the new coat he needs before winter.
-I think Ted is broke-
Lesson number two would be don’t be like Ted.
(Loans cost and sometimes actions lead us to tighten the rope around our necks)
If the same example is analyzed on a larger scale where $1.00 represents $1,000,000.00 and $4.04 represents $4,040,000.00, we would be in the presence of a large and difficult debt to liquidate.
Anyone could think that it is an absurd analysis, because if Ted had had $1,000,000.00, he would not have had to borrow money from his friend and could have had all the ice cream he wanted without having to go into debt, even if he managed it well (cutting expenses and having moderate tastes), he could save for the future. But now: Why didn’t Ted stick to his $1 budget in the first place?
So the next lesson would be don’t expect millions to fit your budget, because that way you’ll never hit a million.
At first glance, a debt of $4.04 or even less may seem easy to pay off, but the truth is that it is still a debt and if you adapt to being in debt, what do you think you will have? Let me answer for you: more debts!
Being in debt can become a comfort zone and unfortunately the only thing that comfort zones are for is to remain pleasantly stuck with a noose around your neck.
That is why one of the main objectives of acquiring new knowledge and putting financial techniques into practice is to be able to create a healthy and effective way of life to achieve the goals you want. But of course it is not for everyone, because it is essential to have a lot of willpower. Training and programming the mind in such a way that all the actions you carry out lead you to amass the fortune you want without worries or limitations, is not an easy task but it is not impossible either.
Remember that achieving financial freedom is having the money you need and more working for you to make more money.
Would you be able to hold ten apples with one hand without the help of anything else?
I think there can be two answers:
1_ You could choose apples so small that all together they fit in your hand (it is clear that very small apples could be devoured in one bite and still be dissatisfied)
2_Your hand could be so big that ten apples or more could easily fit in it (you would have as many apples as you wanted and you could even share with those you love)
At this point I think it is a very personal decision; you could either remain unsatisfied forever or push yourself to the maximum and exploit all your abilities to transform yourself into an incredibly large being: a giant.