You may be worrying what financial literacy is?
It is understanding how money works in financial world,we are living.Financial literacy is building financial wealth,managing financial goals,look upon financial structures.In depth it deals with depts,investment,pitfalls in finance etc.
This blog is all about financial savings.Mantra for financial saving and insight of assessing one's financial situation.A little effort on financial education now will give a tremondous result at the end of the year.
- Make a commitment However financially aware you may be, until you are not committed nothing will work.It requires wise decision to be made to tackle any sort of financial problems.The most important step in developing and following a financial plan is to examine your attitudes about money.You are definitely ready and able to start your path to financial wellness; if you are also willing, take the pledge!
- Assess your financial situation One should be true to oneself about his financial situation. Active decision is made accordingly.Start your journey with a self assessment.To develop an accurate picture of the amount of money you will have in the future, take a look back. Decide if your income will be from the same or from different sources and the amount of income you can expect to earn in the future.
- Make a priority list Set your priorities.Creating a list of needs and wants can help you establish your financial priorities.For Ex- EMI,party,Buying a car,Planing a vacation,saving for further studies etc..
- Make a smart financial goal S.M.A.R.T. financial goals should be specific, measurable, achievable, realistic, and time-bound. Make sure all your financial goals are realistic and easy to achieve.
- Where does all money goes? Maintain a worksheet/balancesheet of expenditure.Keep an eye on extra expenditure.Plan very-well.
- Identify your starting point. Calculating your net worth is as simple as comparing what you owe(liablities) to what you own(assests).But it's a must.Money from different sources must be considered.
- Q&A Financial literacy starts with question and answers.Start understanding unwanted spending.Identify ways to reduce spending.
- Extra tips There are various ways to save on tax,funds,bonds, etc.One should know them properly.Avail all the schemes in one's office like mediclaim etc
- Paying off your debts. Calculate the total amount of debt that you need to pay in the year, which should include the total amount you owe through your credit cards and loans. Then, identify the debt which carries the maximum interest and pay more than its minimum monthly payment amount, while continuing to pay the minimum monthly amount on other debts.Continue this strategy until the highest debt is completely paid, and then repeat the process with the next highest debt and then subsequent debts.This smart strategy has been tested and recommended by financial experts and proven more cost-effective than simply paying the minimum debt amount every month.
- Savings Save 10% of your income no matter what.Saving is very important for your future goals.For you and your family saving is must.
That's all, beginners tips for financial literacy
Make sure to comment how these blog is helpful.Any advice,correction will be appreciated.
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