Financial products (insurance, investment, loans, credit cards) are becoming more complicated nowadays, if we are not well-verse with it, how?
A very good example have been shown by the toxic-bonds thrown by Lehman Brothers.
If we are financially literate, we will be able to:
- make effective personal decision
- avoid financial breakups because of money
- improve our mental and emotional well-being
- know our own financial status, and not blaming others
- asking the right questions and getting accurate answers
- increase our ability to understand sophisticated products
- mitigate the investment market risks
- avoiding scams and toxic investment products
- differentiate between network marketing and pyramid schemes
Sometimes, it's not necessary to fall into a hole, for the sake of knowing how deep the hole was.
If the hole is shallow, congratulation for having a 2nd chance with lesson learned.
If the hole is deep, you may not back to your feet anymore. Good Luck !!!