By now you should have taken my financial literacy quiz. If you didn’t you still have time. Your answers are strictly confidential. It is never too early or too late to become financially literate. NOW is the time to take control of your finances and put yourself on the road to financial security and freedom. Being financially literate allows you to earn more, spend less and obtain the things you really want.
Financial literacy is just another way to say you are financially fit. When you are financially fit, you are able to make informed choices about your finances, and you understand how those choices will impact your wallet and your life. Financially literate people plan for their future and can manage financial surprises, because they have trained for these situations by saving and planning. To enjoy the benefits of financial literacy, you have to train. You must obtain, information, knowledge and skills and apply them in order to make good choices in how you treat your money.
Do you ever think about how you treat your money? Do you save it, or spend it all the dame day you get it? Do you pay all of your bills first and hope that you have enough left over for your basic needs? No matter what you answered to these questions or what your relationship is with money, or what your level of financial literacy is, you can start right now to improve your financial situation and become more financially literate. Here are 7 things you can do to become more financially literate.
- Become familiar with your household finances. Know exactly how much money you have coming in and exactly how much you have going out. Review your online bank statements daily or weekly. Make sure to have a paper copy of that bank statement as well. Find out how much of your money goes in the bank and for what, other than your normal monthly bills, it comes out. Go through your monthly bills so you know exactly whom you pay each month for what and how much.
- Set a financial goal. A while back, I wrote a post on setting financial goals. If you missed it, you can review it here. Setting a financial goal or goals, makes being financially responsible much easier. Decide on what your goal or goals may be and make sure that it is something that you want that you have to save for.
- Develop a budget and stick to it. I cannot stress this enough. Once you know how much is coming in and going out and you have a financial goal, you will need to develop a budget that you can stick with. If you need help doing that then you can register for my FREE 30 day Budget Bootcamp.
- Watch television programs offering financial advice. Some television channels that offer sage financial advice and planning are: CNBC TV, BLOOMBERG TV, Nightly Business Report, CNN, Fox Business News
- Read newspapers and magazines. Read newspapers and magazines that are geared toward money matters. Some great publications are: The Wall Street Journal, Financial Times, The Kiplinger Letter, Barons, Fortune, Forbes and Money
- Use government resources. Uncle Sam, is making a marked effort to see that U.S. citizens have ample opportunities to learn about personal finance. Check out these websites for more information on financial literacy. http://promotions.usa.gov/newyear.html, here you can order up to 5 packets to start managing your finances like a pro. Financial literacy and education commission is affiliated with the U.S. Treasury Department, and its mission is to improve financial literacy by coordinating efforts between the public and the private sector. MyMoney.gov is a website dedicated to teaching the basics about financial education. You can find assistance with things, such as, balancing a check book, investing in a 401(k), or purchasing a home.
- Set up a wealth building system. Once you have set your financial goals, transfer money to accounts to automatically begin saving for those goals.
Becoming financially literate is not hard, it is one of the best things you can do to improve your quality of life.