Financial literacy refers to learning finance best practices so that one can manage finances better in life. When I say you have to be financially intelligent, it doesn’t mean that you have to get a finance degree or be excellent in finance but, yes, you should have basic finance knowledge that we get to handle on a day-to-day basis.
It doesn’t matter where you are, whether you are working in an IT company or running a shop or doing a business, you have to deal with some kind of finance in your daily work and it requires good financial understanding.
Those who lack financial wisdom, don’t see financial growth in their lives and it becomes stagnant. The best example is to understand why some people are rich and some are poor, the only difference is rich people are more financially intelligent than poor. They keep learning new skills to avoid mistakes that eventually help them grow their finance.
Rich have a growth mindset; they use their money wisely for everything they do; they don’t just spend their money left and right on Mundane activities. On the other side, the poor/middle class lacks some financial knowledge that hinders their growth.
But it’s never too late for anyone, one can learn the finance best practices and become financially intelligent. Now you will be wondering how you can master these finance secrets and grow more. There are no shortcuts that you can learn overnight while sticking to the points below can help you learn those skills faster.
- Learn from your neighbors, friends, or colleagues, you can learn from them how they are using their money intelligently. Why they are rich? What is different they are doing? How do they actually use their money? Where do they invest in? Where they don’t spend?
- Read finance blogs but find the right ones as there are many on the internet these days. Do some research around this and you will find some good ones.
- YouTube finance videos, search for any topic related to finance on YouTube and you will be presented with many videos around that topic, but again find the right ones by doing some research.
- Learn from your mistakes, we make mistakes and that is bound to happen as we are not perfect. But this also teaches us many valuable lessons including finance. You can go back in memory and try to think what wrong you have done in terms of making financial decisions and try to correct next time.
- Invest your time in learning & calculating different ideas to better manage your finances as you will not find everything on the internet. Brainstorm ideas for your issues that could be unique and different.
