In our daily lives, we inevitably encounter various financial products. While considering the risks and returns, it’s also important to be vigilant about the traps hidden within these products.
this is in line with the School of thought that suggest that whenever you're buying most physical assets, you're indirectly buying a problem the seller is trying to do away with, you've got to figure out the Problem and a possible way of solving that problem while still getting good returns out of the assett. I aggre with that thought and having that at the back of your mind helps you to probe things before investing or putting in an amount in them so you don't enter into a financial trap.
You've got to also find a way of creating a balance in following this rules such that you don't play too safe and in the process miss out on the potential reward because you're too focused on the possible risk in the asset.
I’ll start with one: Never believe that financial management can make you rich.
financial management alone can't make you rich but on your ladder to becoming rich you will need the knowledge of adequate financial management and when you eventually gets to the top, it takes indept knowledge on financial management to remain at the top.
Human wants are insatiable and when you're at the top and have the means of meating all those want, the tendency of spending above your financial capacity is a big issue and that's when you will understand that gaining the knowledge on effective financial management is as important as becoming financially bouyant.