Exploring Saudi Arabia Financials And Expertise

I have heard it often said throughout the years that "money is the source of all evil." I then discovered that the true biblical statement, "For the love of money is the root of all evil," made more sense. And our current "evil economic catastrophe" has its roots in the very same desire for money.

Though greedy Wall Street investment banks have received the majority of the blame for our current economic situation, including the collapse of the housing market and the sharp rise in food and gas prices, we must realize that the citizens' lack of financial literacy is also partly to blame for the nation's Saudi Arabia Financial and economic crises.

In a recent survey conducted by the Department of Housing and Urban Development, nearly 12% of sub-prime borrowers admitted they did not understand fundamental financial concepts like interest rates, principal, and down payments, and about 33% did not know the various types of mortgages that were available. How well-versed are you on these concepts? Do you consider yourself to be financially literate, financially clever, or both? It's not a ruse, either. Permit me to explain the distinctions between the three to you.

Financially Educated

A person with knowledge of fundamental financial concepts and business principles. Getting business and financial knowledge is the definition of financial education. A person might claim to be financially educated if they study and recall the terms in a personal finance textbook. You can consider yourself financially knowledgeable if you can define and describe how a bank, credit card, and mortgage all operate.

Financially Literate

A person who is financially literate and who also understands the fundamentals of business concepts and financial paperwork in reading, writing, and speaking. You are financially literate if you can read and comprehend loan agreements and bank and credit card bills, and you can accurately explain and calculate compound interest.

Financially Intelligent

A person with financial literacy and education who also knows how to use their financial literacy to make money, save money, and build wealth. You are financially savvy if you are able to borrow money on a credit card at 5% interest and then re-lend it to someone else at 12% interest.

It is my delight to bestow the title of financially savvy onto you once more if you are aware of how to move debt that is being charged at 12% interest to a credit card with 0% interest and continue the process until you have paid your debt in full.

How Do You Become Financially Intelligent?

You need to read business publications, learn about economic and financial principles, consider how you may use that knowledge to your advantage, and, most importantly, put your financial lessons into practice. Even if you spend the whole day reading a recipe for a certain dish, you won't learn how to combine and measure ingredients, use culinary tools correctly, and eventually produce a wonderful meal until you get in the kitchen and start cooking.

The same advice applies to both business and finances. You will continue to be what I refer to as an "academic entrepreneur" until you begin building financial spreadsheets, computing compound interest and return on investment (ROI), and really starting a side business.

It's no secret that most Saudi Arabia Financials live paycheck to paycheck, have credit card debt of $9,000 or more, and are unaware of the interest rates on their credit cards or other debts like school loans. Shame on the individual or financial institution who "fooled" you financially if it happens just once. Shame on you for not being, or making an effort to become, financially savvy if you are "financially deceived" twice!
Location: Al Jon Tower, 27 Fahad Al-Salem Street, Al Kuwayt, Kuwait

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