By: Catalyst Wealth Management
April 11, 2022
April is Financial Literacy Month, so we thought we’d help our readers understand the simple ways they can become more financially literate. You are never too young or too old to learn new ways to manage money. Here are 4 ways you can become more financially literate starting today.
The way you view money determines your relationship with it. Many factors affect our relationship with money including our money story; how you grew up with money, your experiences throughout your life, and even your emotions. It’s important that money makes you feel secure and satisfied rather than stressed and anxious. Consider the way you talk or think about money and how financial habits—good or bad—are formed around those ideals.
Budgeting is the best way to control where your money goes. It’s like giving your money a roadmap. You know how much you must allocate to bills, variable expenses, fun spending, and saving. You’ll instantly see where you overspend, where you can cut back, and how fast you’ll reach your savings goals. If it helps to have a method, try the Give/Save/Spend method. You choose the percentages for each category and make your bills and/or spending fit within the categories.
No one knows everything about personal finance. If you’re great with budgeting, for example, but aren’t sure how to invest, how to save for retirement, or even what an emergency fund is, make note of what you aren’t familiar with and create a plan to figure it out. The more knowledgeable you are about each area of personal finance, the more confident you’ll feel moving forward.
Once you’ve identified areas of personal finance you want to learn more about, then it’s time to do your research. Talk to people you trust, find a trusted advisor, do research online, or read personal finance books. There is an endless supply of research and resources available to you.
Your financial future is up to YOU. Set yourself up for success by creating a positive relationship with money, setting a budget and sticking to it, identifying areas you want to learn more about, and seeking out advice from trusted advisors.