How to be Financially Literate

Out of all the conversations that I have had while at the Bondi Bowling Club, this one has got to be the most valuable. While there I met a business savvy CEO who gave me some advice that I will share below.

It’s common for people to complain about financial pitfalls and although they may claim to have bad luck, financial literacy is important in such cases. To remain financially healthy, it’s imperative that one learns about how to manage their personal finances. All you need is to have some basics and you are good to go. 

How do you know you have Financial Literacy?

It’s simple to know whether you already have financial literacy or not. It is not necessarily that you enroll to a class as it’s something that you can do on your own. If you are able to understand how different investments work, you are able to set financial goals and be focused, you are able to budget your money regardless of how little it is and use your credit card without going overboard, you have gathered some financial literacy. 

How do you Become Financial Literate?

It’s possible to become financially literate as long as you are willing and you make effort to. There are numerous ways that you can achieve this. 

  • Enroll into Financial Classes

There are organizations training people on this and all you have to do is enroll for the course. Most have a fee to pay before starting to learn, thus it’s good to confirm in advance. You can opt to go to class or study online. Having an interactive course is an effective way to gain knowledge.

  • Read Financial Publications

The amount of financial publications available today in books, magazines and online publications is inexhaustible. This is one way that you can learn at your own pace until you understand all about finances. For example, you will find blogs that talk about personal finances from budgeting, investment income, investments and retirement planning among others. Thus, you get to learn about different financial aspects that will enhance your literacy. 

  • Take Advantage of Financial Management Tools

Thanks to technology there are such tools today that you can download on your smartphone. Such tools help in personal finance management such as budgeting. You know where you are spending unnecessarily and in a better position to invest more.

If you want to achieve financial freedom, you have to do your best to gain financial literacy. It starts with learning the basics such as budgeting through reading of financial blogs, books and enrolling to financial courses. Take effort and start leveling up your financial literacy today.