They say, “What you don’t know can’t hurt you,” and “Ignorance is bliss.” However, these adages can be misleading—what you don’t know can harm you. Of course, there are contexts where those sayings hold true, but in many situations, ignorance is dangerous.
Not knowing can put you at risk—that’s why education is so important. Despite the popular slang “school na scam,” not everyone is dropping out. Regardless of any flaws in the education system, a certain level of learning and exposure is still gained through schooling.
When you decide to invest, you can’t afford to go in blindly. Lack of knowledge can harm you more quickly than knowing and dealing with tough conditions. When you understand a situation, even if it’s challenging, you can take steps to address it and emerge victorious.
That’s why Credlanche is not just here to manage your investments; we’re committed to educating you and keeping you informed about investments and the choices available to you. Here are a few reasons why staying informed is essential for your financial education:
1. Sabi Person
Many people get stuck in one type of investment, but financial literacy helps you explore a broader range of financial products such as stocks, bonds, and more. Understanding how these instruments work, their risks, rewards, and how they fit into a diversified portfolio enables you to make smarter decisions aligned with your financial goals.
With the right education, you can filter and assess the advice you receive from financial advisors, the media, or your peers. You’ll make informed decisions and stand by them confidently, avoiding the “this way, no that way” indecisiveness. Financial literacy also allows you to ask better questions about strategies, fees, and risks, continually expanding your knowledge in the process. It’s a beautiful, empowering cycle.
2. Reducing Risk and Avoiding Costly Mistakes
One of the most common causes of investment mistakes is emotional investing—making decisions based on emotions rather than facts and logic. Emotions like fear and greed are especially common in financial matters. However, with a basic understanding of investments, risks, and rewards, you can more easily manage those emotions and avoid costly mistakes.
For instance, emotional investing often leads people to buy high when markets are euphoric and sell low during panics. Financial literacy teaches you to maintain a long-term perspective, helping you avoid impulsive decisions driven by short-term market fluctuations.
3. Boss Moves
Picture this: On a beautiful Monday morning, you’re dressed and ready for work, calm and collected, admiring yourself in the mirror and thinking, “God really took His time creating me!” Compare that to another day when you wake up late, rush out of the house, and hope you didn’t forget anything. You know there’s a difference in how you’ll move on both days.
It’s the same with investing. Knowledge brings confidence. When you understand your investments, you’re not guessing or hoping—you know. Even basic investment knowledge gives you a sense of control and reduces anxiety, allowing you to manage your finances proactively and confidently.
4. Otedola with the Money
You don’t think Otedola, Elumelu, or Dangote built wealth that transcends generations just by handing over control to someone else, do you? While they may hire experts, building generational wealth requires personal knowledge and involvement. Financial literacy is key to creating and preserving wealth for future generations.
As an educated investor, you can pass on your knowledge to your children and heirs, teaching them about money management and investing principles. This ensures that future generations are equipped to make smart financial decisions, building a legacy of financial confidence in your family.
Bonus Tip: Financial literacy also includes understanding estate planning tools like wills, trusts, and beneficiaries. With this knowledge, you can confidently manage wealth transfers, ensuring your assets are protected and distributed according to your wishes.
Financial literacy is a cornerstone of investor confidence. By promoting financial education, we aim to create a more secure and confident investment environment for you. Stay informed—reach out to our customer service team at (234) 812 – 3778 – 399 for more information on investment, credit, and asset management services.