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Financial wealth: Lack of education may be your biggest pitfall

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A major reason why people get it wrong with regard to financial wealth is lack of education.
 
Financial literacy is arguably the most important bridge between financial freedom and surviving on a pension fund one day.
 
Most of us are familiar with conventional products like pension funds and retirement annuities.
 
Retirement products have become the retirement norm. Because when a multi-billion dollar industry shouts about a new product you’re most going to hear about it.
 
►Financial wealth planning is an industry
 
Retirement and investment planning is an industry like engineering, science, medicine and banking. It’s an industry with a target market (people who work), products (pension funds) and suppliers of these products (financial institutions).
 
Like any business, financial institutions have a profit motive. They sell products and services for profit, not for your financial freedom.      
 
So where does that leave you?
 
Unlike financial planning, wealth creation is not a specific industry or business or arty farty science reserved for the elite. There are no standard products or suppliers. But their are a few fundamental requirements:
  1. Financial wealth is achieved by following a systematic goal-driven process.
  2. Wealth creation begins with you. You need to take charge of your financial future. You cannot simply hand your money over to a broker or asset manager hoping he’ll do wonders with your bottom line.You need to know exactly what you want at the end of the day and it is up to you to make it happen. 
  3. Assets are essential to the process and leverage is a great way to make asset management and accumulation easier.
  4. Financial wealth = spend less + earn more through a passive income business

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