Why Knowledge Alone Is Not Power

Having knowledge indicates being aware or familiar of a subject through experience or education. The old statement that you are familiar with says knowledge equals power.  However, that statement is not complete.   It’s becoming clear that knowledge alone is not power.  Action adds to the equation and now makes the statement complete. 

How many times do you play the should’ve, could’ve, would’ve game?  This game is played because you have the knowledge or you are aware of specific information but you do absolutely nothing with the information.  This game is played throughout your lifetime in many situations.  It is definitely played in one of the most significant areas in your life.  You play it constantly when it comes to handling your finances.  Do any of these statements ring a bell:

• I should’ve purchased more life insurance when I was younger and had less health problems.
• I could’ve put more money away for my goals if I actually followed a lifestyle plan.
• I would’ve had more money to live on now that I am retired but I was more worried about living the life during my working years instead of considering how I will live during my retired years. 

These statements are examples of how knowledge does not equal power.  Just knowing you need more life insurance doesn’t give you power.  Just knowing you need to put money away for retirement but you choose to spend your money on other things does not give you power.  If you take action on your knowledge by purchasing the necessary insurance before it’s too late or by allocating a specific amount of your income to your financial goals or retirement, you will have the power. 

If the above statements do not ring a bell.  Maybe you are someone struggling with your current financial situation.  Every month ends with one of the following results:

• Not enough money to pay all the bills
• Enough money to pay bills but no money to save
• Enough money to pay bills and money left over but still unable to save

Whichever the situation, everyone is aware that creating a realistic lifestyle plan (knowledge) and following the plan (action) will change a negative financial situation into a positive financial situation (power).

So starting today, there are no more excuses about a negative financial situation and no more saying should’ve, could’ve, would’ve.  Use your knowledge, take action and become a powerhouse in your finances.

If you need assistance with creating a realistic lifestyle plan, click here to schedule an appointment.