I know what you’re thinking; what is financial literacy and why is this important? Financial literacy is the education and the understanding of all topics relating to finance – saving, investing, spending and saving money. Here’s a quick list of tips that can help you no matter where you are on your financial journey.
Budgeting Basics 101
Budgeting is essential. Vacations, graduations and more memorable events will be approaching in the coming months – and it’s important that you’re financially prepared to prevent unwanted anxiety and impulsive spending. Be sure to set aside a designated amount per pay period to alleviate the pressure of using bill money to cover these expenses. For example, setting aside $50 per pay period over the course of the year for these special events creates an atmosphere for you to truly enjoy those moments guilt free about where the money needs to come from.
Saving isn’t a new custom, however we still find ourselves in predicaments that leave us frustrated financially. Car repairs, hospital bills and other unknown occurrences often leave us unprepared and ill equipped for the unexpected. To make sure we are in the best financial position, allocate a percentage to automatically route to your savings account. This guarantees you’ll set and stick to your financial savings goals throughout the year.
In the age of social media and search engines, we’re constantly coming in contact with information by the second. There are a number of workshops, podcasts and many other streams of information telling you what you should and should not do as it relates to finance. While it can be overwhelming, it’s important to receive and retain information for where you are and where you would like to be financially in the future. The strategies you apply can vary based on your goals. Keep an open mind.
Interest is Impactful
We’ve all made decisions in our younger years that some of us are still paying for. Lack of understanding or resources resulted in not knowing the true impact of our decisions. Familiarizing yourself with the terms of credit cards, student loans and other borrowed money accounts can really help you determine if the purchase (or investment) is worth the sacrifice. For example, signing up for a credit card with an unreasonable interest rate to cover a low-cost expense will potentially impact savings goals in the future. Be intentional about all decisions big or small. Flex those decision making muscles.
Create a Money Mindset
In order to reach your money goals, you must develop a mindset that will allow you to succeed. This definitely takes practice, patience and perseverance but it’s absolutely worth the outcome. Instead of looking at your goals high level, create small milestones to boost confidence and increase the likelihood of following through. Build the momentum necessary to ensure your financial footprint is in its’ best possible state. Don’t forget to encourage yourself and others regularly; we all need support!
If you’ve gotten off track or lost sight of the financial goals set earlier in the year, it’s never to late to restart or revamp. Remain encouraged and continue the work – your finances will thank you.