I come across tons of people who either have a business idea, want to create a business, even people that already have a business, that do not have any financial knowledge or education. It’s a bit bizarre but if you think about it, it’s not surprising.
If you’ve gone to public school here in the U.S., financial education is not a part of the school’s curriculum. So we, here in the U.S., are naive of financial knowledge to a very basic level. Best put, what majority of the people know coming out of high school is, get a job, work hard for your money, pay bills, and debt is bad. The “more advance” knowledge of money is known as; save money, invest in a retirement plan like a 401k, your house is an investment and so on.
Not much people know any much more than what I have stated above. Knowing things like what is an asset or what is a liability is a rarity amongst the majority of people. Being able to read a financial statement is common – amongst accountants, bankers, and the wealthy.
There are conspiracies that say this is done on purpose to keep people in the lower working classes. But I’ll save that post for another day.
If you have read the book Rich Dad Poor Dad by author and business tycoon, Robert Kiyosaki, all of this I’m stating should all be familiar to you. But, if this all seems foreign, I suggest you pick up the book. It is fundamentally essential to get educated on finances if you want to build your biz cred and reading Rich Dad Poor Dad is a perfect start.
Get your Biz Cred up! Read!