There are two main ways to use money that are known to everyone: spend and invest. What we don’t all agree on is the definition of each. There are necessary and basic expenses and then, there are extra expenses, and certain financial education is often required to really understand where one ends and the other starts. Regarding investments, we could define the term in a very simple way saying that it is money that we use to generate greater economic benefits. It is a very simple way to define it, but we are going to keep this definition for the moment.
As you can guess by the title of this article, I’m going to tell you that knowledge is really an investment and not an expense. I understand that for many people, it can go to the category of expenses, and more specifically, of necessary expenses: we all need knowledge, education. But we almost always fail to see it in the most basic way possible.
Yes, we need an education. We need the most basic tools to know how to work in this society and we need professional education. But when the academic part ends, it is when self-education begins, and this is when we talk about investment.
In order to do more than what you have been taught to do in school, to be able to perform new tasks and acquire new skills you will need to invest. And it is really an investment, because every euro or every dollar you put in a new course, a new book, a new conference, you are investing it in a future where you are more prepared for new goals, achieve better results and manage more efficiently your finances in the existing economic scenario.
Being better educated, being better professional in the sector that thrives the most, taking better decisions with more information… All these are the paths to financial freedom.