7 ways to improve your Financial Literacy

Financial Literacy is one of the most crucial things in any adult’s life. Being financially literate means having the skills and knowledge to save, invest and manage your money.
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Financial Literacy is one of the most crucial things in any adult’s life. Being financially literate means having the skills and knowledge to save, invest and manage your money. Financial Literacy is not something that one should learn after becoming an adult, it is a process that should happen as we grow up, as there is not 1 adult out there for whom money is not important. Everyone had a different level of financial literacy but there is a basic level at which everyone should be at. Having a lot of money does not ensure financial literacy, people may have a lot of money and yet no knowledge of managing it. This is a classical example in today’s times where even rich people struggle with money.

To those who are really new to this concept, learning can be a bit tricky because following more than one financial expert or planner having different financial opinions may lead to confusion in your understanding. What is crucial to understand is that no expert is wrong as there is no thumb rule in this field. What one needs to understand is that financial literacy includes the very basic things like how to save and invest, other detailed things such as where to invest and how to do it most likely falls into financial expertise and it is okay to not have that. But you can only trust someone with your money only when you understand the basics, else its just working on faith which in many instances does not work. People learn that over the years and thus Financial Literacy is a must.  

Here are few ways one can keep learning about finance and what is new in the arena. 

  1. Reading Financial Books

This one may seem a bit boring and not appealing to those who are not ardent readers. But, it is also one of the best ways to understand Finance. To learn financial Literacy one does not need to read very hard-core books with a lot of technical jargons. You should read books with very simple language such as ‘Rich Dad, Poor Dad’ Series by Robert Kiyosaki and ‘Unsheakable’ by Tony Robbins.

  1. Doing Crash courses on Financial Literacy 

There are numerous introductory financial courses available today, most of them are online and recorded. Mostly FREE these courses help you get started on your financial freedom journey. We at AskTheWiseGuy also do a FREE webinar called Introduction: Financial Nirvana. This can be a great place to start by just spending 1.5 hours in learning and proceeding further on your interest in Financial Literacy. You can register here – https://www.askthewiseguy.in/askthewiseguy-passive-income-free-webinar-financial-nirvana/

  1. Reading  financial newsletters.

There are numerous financial newsletters in the market published monthly, weekly or even daily which one can subscribe to and gain enough knowledge about finance. One can not become a financial fool if the person reads any of those properly. You may or may not pay much heed to the financial advice given in the newsletters as that is totally on you as to whether or not you find it convincing, but what you ought to do is definitely follow the precautions mentioned in those in order to save yourselves from losses. Here are some articles of AskTheWiseGuy in the press – https://www.askthewiseguy.in/askthewiseguy-passive-income-media-awards/

  1. Budgeting

You do not need to subscribe to a newsletter to know this. Budgeting is the core of money management. This is a type of plan in which all the income coming in should be mentioned and all the expenditure to be spent in that particular period should be estimated and rest money (savings) shall be allocated in the most suitable investment option according to your financial knowledge at that moment. It is advised to go for a less volatile asset class if you are just starting out on your way to financial literacy. 

  1. Being a part of Communities

The best part of being in a community is that everyone has the same goal. A community can be digital or physical. Research says that if you were to achieve something you are more probable to achieve it with a partner or a community rather than try alone. Most digital communities are FREE, however if a person is serious they should consider being part of a tribe which is often paid but adds immense value in their learnings and earnings.

  1. Learning via Social Media 

Social Media is a very useful tool for those who know how to make good use of it. There are various financial coaches/experts who are sharing their financial knowledge on social media platforms like Instagram, Facebook, LinkedIn etc. If you come across good YouTube channels related to the area, you can subscribe to that and keep learning. This is something everyone must do.

  1. Have a mentor 

Warren Buffet accredits his success to Benjamin Graham, ‘his hero’ as he calls. He got a job with him in his early years and he didn’t even ask what salary he would get. That’s the mindset of a mentee. Today the world might be in a lockdown but access to mentors is easier than ever thanks to the world wide web and you are a message away to connecting with yours. 

This is the era of the internet, there is no barrier left for those who have the willingness to learn something and seeking Financial Literacy is a must. You must learn everything about Finances if you have the time to do so as it is only going to benefit you in the long run. Good luck!

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