What is financial literacy? Many people mistakenly believe that saving the family budget is financial literacy. But in fact it turns out that it is not. Financial literacy is a broader and more comprehensive concept that includes many aspects. In the modern world, a financially literate person is considered to be a person who can correctly dispose of not only a personal or family budget, but who can competently invest money and receive additional income in the form of dividends. Let's figure it out in order.
How can you become financially literate and manage your money?
Most believe that saving one or more items of expenditure cuts and that this will lead to a stable profit at the end of the month. Maybe it is so. But if you think these investments will on the contrary take money, as they are set aside from income and are a liability. A vivid example, the purchase of a flat or a car on credit, for which you sometimes have to pay for a lifetime. In this case, the invested funds will soon depreciate, and loans never. Therefore, many people who live on wages receive only an increase in expenditures with the same income. Other people, who are called wealthy, create assets that bring stable profits in the future and every month, a certain part of their income goes to the purchase of assets.
So how can you still make yourself a financially literate and independent person?
It is necessary to read more books on finance and methods of saving and increasing money, as well as attend courses, exhibitions, seminars on this topic. Start saving from 10 to 30 percent of your salary to invest in some assets in the future. Learn to spend money. Keep records of your income and expenses, and then analyze where you can reduce them, and where to increase. Change your thinking from negative to positive. Do not think about how hard it gets you money and quickly spent, and imagine your future profits. Start setting goals for yourself. These goals should not be about specific purchases, but goals concerning the increase of your capital. Start communicating with people who have achieved financial success.
Communication with them can charge you with positive energy, and additional knowledge will not interfere. Remember that most people may fail the first time. The main thing is not to despair and continue to move in the chosen direction and most importantly forget about old and unnecessary habits. Daily work in this direction will soon bring positive results in the form of profit. Financial literacy can drastically change your life for the better and make it interesting and comfortable.