Sunday, September 14, 2008

The Best Return...Investing in your Knowledge

Knowledge is power. -Sir Francis Bacon (1561 - 1626)

A common saying that I have heard is "if people knew better, they would do better". This is so true as the importance of education (knowledge) is being emphasized more than ever today. In earlier times, graduating with a high school degree could basically get you any type of job you wanted. As time has progressed though, more and more employers are requiring degrees of "higher education". Even without a degree, they will more than likely require some duration of experience that can carry you through, but in most cases, a degree is necessary.

Now, by no means am I saying having a "higher education" degree makes you knowledgeable because there are plenty people out there with degrees that still have no idea of what they are doing. On top of that, there are plenty of people out there that seem to be very intelligent but have no common sense. There is a balance that needs to be maintained, however, the more knowledge you have, the better the chance that you will have a general idea of what it takes to be successful.

For instance, take some of the great men of our century:

Martin Luther King Jr
Bill Gates
Albert Einstein
Warren Buffet

(Click the name to read the Wikipedia bio of the person)

One thing that you will find in their biographies is that they all pursued educating themselves in their field. If Martin Luther King Jr. was not as meticulous in his research about civil disobedience and non-violence, there is a large possibility that the Civil Rights Movement would not have been successful as it was. If Warrent Buffet was not as thirsty to understand the principles and concepts provided by his mentor, there is a strong probability that he would not have amassed the great fortune that he has today. All in all, they took steps to increase their individual stock price (and the price of others) by becoming more knowledgeable.

Below are some of the keys things that I have done to help invest in my knowledge and increase my overall stock price.
  1. Read, Read, and then Read more.
    • Searching on google alone can give you a plethora of information in regards to ANYTHING. (Blogs, information websites, etc). Many people want to share the information, we just need to know where to look to get it.
    • The local library has a large collection of books that can be used to further enhance your knowledge all for free (just be sure to bring the books back on time).
    • If you have a free day, check out your local Barnes and Nobles. You can get a table, couch or the floor and read until your heart is content, unfortunately you cannot take the books home without paying for them.
  2. Talk to people with experience.
    • During my quest to enhance my knowledge about computers, I surrounded myself with people who were great with computers. The amount of information that I soaked up from just being around them was priceless.
    • Learning from other people's experience will help to prevent you from making the same mistakes that they made.
    • People sharing their experience can increase our knowledge and help to open up our minds. We can learn to think in a way we typically would not think, allowing us to have better options to making a decision.
  3. Attend classes, seminars, free information.
    • There are many non-profit organizations as well as educational institutes (Pamplona Finance Group) that offer free classes and workshops to help increase your knowledge about a particular subject.
If you know better, you will do better. Most people do not do anything about personal finances because they do not know anything about personal finances. Being ignorant to the fact that you need to save for your retirement does not make it go away and allow you to magically have money once you hit retirement age. We have to take control today and make it a point to educate ourselves on the important matters of our lives so we can live the future that we want to live.

What are some of the ways you invest in your knowledge? If you do not invest in your knowledge, when are you going to start?

Stay Disciplined!

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