By Peter Locandro
Now, more than ever, it’s worth investing and becoming financially literate.
When someone starts discussing finances or bringing up personal questions around how you handle money, you may not want to share any details of your own. Don’t worry, though, this is completely normal and you are not alone.
We get it, it can be difficult to be an open book about your mortgage or how you don’t have enough money in your emergency account. However, by being more honest and candid with yourself about your financial situation, it makes it easier to get a better grasp on things.
Regardless of whenther you are a beginner or a knowledgeable expert, it’s always important to understand the fundamentals of your finances in order to reach your financial goals and feel more comfortable having real conversations.
- Establish simple money habits and reconcile your bank account each month. As soon as your bank statement comes in the mail or appears in your inbox, go over it to be sure that your records agree. It will also paint a picture of monies in & more importantly, monies out. Where are your monies being spent?
- Use financial tools. Financial apps are your friend, and they are designed to be user-friendly. Many are free. Any decent app can give you free access to your score at credit reporting agencies and help you to understand, monitor, and improve your credit standing. They can also help you “test drive” various scenarios to help you see how certain financial decisions will impact your cashflow. Apps will also assist you watch for signs of potential problems and provide tools to help you organise your financial life.
- Join with friends. Your friends are likely in the same financial literacy boat as you are, so band together to improve your finances. Talk, swap books and knowledge etc. The key is to learn and empower each other. That’s what friends are for!
- Use your eyes and ears. Read books about finances in areas that interest you – debt reduction, money mindsets, investing basics, or taxes. If reading isn’t your thing, watch financial videos on the internet or go to free financial seminars in your community.
And once you have started learning more about finances, educate your kids and involve them as much as you can. Financial literacy is best when it’s started young and at home.