I don’t know if it is just on my social media platforms but every time, I log onto YouTube, Instagram, Facebook etc, I am inundated with the ‘financial gurus’ screaming at me invest blahblahblah!
Are all these recommendations relevant? Absolutely, but there is one very important thing that needs to be understood-FINANCIAL LITERACY. This is the ability to make financial choices that not only benefit you in the short term but sets you up for financial success long term. It is the ability to seek knowledge regarding everything personal finance to improve your habits, to break the bad ones that have been wreaking havoc on your wallet and how to improve the ones that will ensure you never go broke.
Here are 5 things to do to get started on your financial literacy journey:
Read books on personal finance: I remember when I had my first ‘eureka moment’ about investing. I have always been a saver but investing didn’t come naturally to me until I read the book rich dad poor dad by Robert Kiyosaki. This book made me start seeking investment opportunities and helped me have a mindset shift. It seemed like magic when I started seeing potential investment opportunities that I otherwise won’t have considered.
Take Action: When you learn a new idea from the books you read, take action immediately. This will help you not just have the theoretical knowledge but the experience of being intentional with your personal finance. I took action to seek viable investment opportunities and I was able to increase my net worth by 20% the first year when my eyes were opened lol.$
Invest in actual knowledge:It takes 10000 hours to be an expert at a given trade so to become savvy with your finances you have to create time daily to improve your financial literacy. I listen to several hours of podcasts during my commute to work, while doing chores at home and frankly as my ‘lullaby’ when I go to sleep lol (kidding…. But not really). You will be exposed to several concepts and strategies that can aid in your quest for financial literacy.
Do some research: I usually get to hear of a new word, strategy etc from the podcasts I listen to and I make sure to do more research to further understand the concepts I have heard and find ways on how these concepts can be beneficial to my overall financial health.
Surround yourself with people who are on the journey to build their financial literacy: Belonging to a community of like minds where ideas can be shared while holding everyone accountable to be better in making financial decisions.
There is a saying that goes ‘do not invest in anything you don’t understand’. Financial literacy is the most important tool you need to be successful in your personal finance journey because you are aware and prepared to take calculated risks & increase your savings by being intentional with your expenditure.
What books have you read lately? I recommend reading the richest man in Babylon to get started!
P.S: The image contains actual budget items that you can incorporate into your budget if you already have one, If not we will get into that in the next couple of posts.