Aung Hlaing - Smart Business

Chapter - 1

What is Financial Intelligence?

What is financial literacy?

When I was about 5 years old, I had to go to the hospital for emergency surgery... I was in severe pain due to an infection. Unfortunately, while I was in the hospital, I got chickenpox again. My father and brother hugged me in the hospital. My two other sisters were standing on the grass outside the hospital, pointing towards the window that I could see. My mother couldn't come to the hospital. She had been bedridden for several days with a weak heart...

During that year, my younger brother was hospitalized again... he slipped and hit his head in the garage, another sister was hospitalized for knee surgery... and not only that, another sister, the youngest, a newborn, was hospitalized for a skin infection.

It goes without saying that that year was a very difficult year for my father, as almost all of my siblings, including me, were hospitalized. Out of our family of 6, including my father, mother, and 4 siblings, my father was the only one who was not sick. After a long time, we heard the good news that all of us were recovering. But the bad news was not far behind. It was the medical bills. My father was not happy that his children were recovering, but he was worried about the debts.

The year we were hospitalized... the same year we were in debt, my father graduated from the University of Hawaii. He was a good student. That's why he was so smart and got his degree in just two years. My father's dream was to one day become a college professor. But the current situation doesn't allow him to become a professor. Supporting a family of six and paying off his debts are urgent matters for my father.

My father gave up his dreams to face reality. My father took a job as an assistant principal in a town called "Hilo" on the island of Hawaii. Over the years, my father rose through the ranks. But suddenly, when he was 50, he lost his job. Not long after the election, my mother died of a heart attack. For my father, it was an irreplaceable, irreparable loss.

While my father was unemployed, his financial problems were getting worse. So, my father took out his benefits and invested in an ice cream business. But he didn't make any money except losing all his money. As the seasons changed, my father decided that he would put his children first and support them from the back. My father was unemployed and could not put his education into practice, so he felt discouraged. One day, my father said, "All my friends in school the same age are rich." "What should I do?" I spent my whole life teaching children in Hawaii, but nothing happened."

Before my father died of cancer at the age of 72, he called me to his side and said, "I'm sorry, son, that I couldn't fully fulfill my responsibilities to you and your children." I held his hand and wept bitterly.

The problem of insufficient funds

My father struggled with money all his life. No matter how hard he tried, he never had enough money. He was financially wealthy.

Although I didn't succeed, I gave many students the most valuable education (that they can rely on for a lifetime). When I was about 9 years old, my father taught me about financial issues. My father's words always included the importance of having financial knowledge. The following are the things that my father taught me about financial literacy.

Financial problems related to the poor

1. Not having enough money

2. Using a credit card without sufficient funds

3. Rising cost of living

4. Paying a lot of taxes

5. Being anxious about a situation that requires emergency medical treatment,

6. Getting bad advice about money

7. Not being able to live on a retirement income

Financial problems related to the rich

1. Having a large amount of money

2. Need for financial security and investments

3. Not knowing how to manage a lot of money

4. Need for expert financial management advice

5. Having children who waste money

6. Real estate ownership and inheritance

7. Excessive taxation by the government

As stated above, it is clear that both the rich and the poor have different types of financial problems.

Inability to solve financial problems conveniently

Most people believe that once they become rich, they can solve all their financial problems. But they don't understand that having too much money is a financial problem. There are many cases where the lives of wealthy and successful people have gone from top to bottom due to poor financial management.

Some people win the lottery and become rich by the billions of dollars. But within a few years, they are in debt and have to sell everything to pay off their debts. Another is an athlete. Being a professional athlete, he is rich enough to live in a big house and have a large entourage. But after he could no longer be an athlete, his business went into decline and he finally went under the bridge. Another famous person is a “rock singer”. He was a millionaire by the age of 20. But when he was about 30, he lost his money for various reasons.

So, the above examples clearly show that money alone cannot solve financial problems. Some workers in the world work very hard but do not earn enough. However, the expenses and income for the family are not balanced, and they end up in debt.

The problems faced by those who lack money the most

It is expressed in the inner words of those who are financially deprived.

1. “I don’t have enough money to survive.”

2. “I’m drowning in debt.”

3. “I can’t even buy a house.”

4. “My car broke down, where can I get money to fix it?”

5. “I have $10,000. Where should I invest it?”

6. "My children want to go to college, but I don't have the money."

7. “I don’t have enough money to retire from work.”

8. “I don’t like my job. But I can’t quit this job.”

9. "I just got off work. I'm short of money."

10. “I can’t afford surgery right now.”

Financial literacy can solve a variety of financial problems, but it is still difficult to solve them because there is not enough knowledge. For example, millions of workers around the world are facing difficulties in retirement due to not having enough money.

Achieving success in life by solving financial problems

The more you solve financial problems, the more your financial intelligence will increase and you will become a richer person.

If you are unable to solve your financial problems, you will end up in poverty and ruin your life. Therefore, everyone should be careful not to let financial problems last long.

A person's financial problems can be compared to a toothache. If a toothache is not treated, the condition will worsen over time. In addition, the pain will prevent them from working well and will also lead to loss of income opportunities. A person with a toothache (financial problem) must be treated (solved) in time to prevent the spread of germs (complications). Any financial problem should be treated (solved) at the very beginning, when the toothache begins (small).

The cause of poverty

Poverty is a bigger problem than the solution. Poverty is also a byproduct of financial problems that those affected cannot solve. Financial problems that contribute to poverty include drug use, poor choice of spouses, living in close proximity to criminals, lack of skills in their jobs, poor transportation to work, and poor health care.

Most of the current financial problems are low wages, high debt, and lack of systematic financial management. Low-wage earners often go overseas to work. However, the main focus is on earning high wages, so they work in factories.