Financial Literacy

Financial Literacy

Managed to read the following books during my spare time or leisure:

Security Analysis
Rich Dad Poor Dad
One Up on Wall Street
The Intelligent Investor
The Essays of Warren Buffett
The Theory of Investment Value
Benjamin Graham on Value Investing
Common Stocks and Uncommon Profits
The Five Rules for Successful Stock Investing
The Neatest Little Guide to Stockmarket Investing

What is financial literacy, and why is it so important? I acknowledge the fact that people address and view this issue differently, however, a low perceived importance regarding financial affairs does not necessarily diminish its influence on our everyday lives. The old paradigm of achieving success has placed a flawed emphasis solely on intelligence quotient and emotional quotient, while these vital elements are indispensible, a new component has emerged - financial quotient.

While attaining excellent grades and studying at a prestigious institution used to provide a ticket to a life of luxury through high earning power, times have changed. The rules of the game have changed, just as how our economy has transformed to what it it today. Playing the new game using an old set of rules produces unthinkable consequences. We must learn to adapt to this changing world, for those who don't will eventually fail and face the fate of elimination.

Conversely, the shrewd few who invest their time and money to master the rules of the game will thrive, grow and prosper for generations to come. It is the survival of the smartest, the ones who are intelligent enough to recognise the effective means to achieve what they want, typically in standard Machiavellian fashion.

Shamefully enough, I have yet to gain a thorough understanding of the ideas expressed in these famous works. Nevertheless, I have already embarked on a financial journey and reached to an end of the NS stage. Results are mixed, but overall there is an improvement in my position and I am thankful of that. No one can predict what will happen in the future, but throughout passage of time we can still reasonably expect that generally sound principles produce sound results, and we must act on the assumption that they will continue to do so.