financial independence

Why Must You Be Financially Literate

Why Must You Be Financially Literate

Why you must be financially literate

Usually April is Financial Literacy month but we are going to take a look at it now since we are a little over halfway through the year. Financial literacy is not just knowing and understating how to manage your personal financial matters but actually taking what you know and putting it into action. To be totally financially literate you need to understand how to manage debt, do financial planning / budgeting, and learn profitable ways to save the money you earn. Learning these principles and applying them is what is needed to gain financial confidence and financial independence.

To be financially literate.

There are several steps for a person to have financial literacy which include key skills in making and keeping a budget, track your spending habits, learn simple ways to pay off debt, and plan for your future. Being educated in these areas from a financial expert can be very beneficial in achieving your financial goals and give you and your family peace of mind and financial confidence which leads individuals to be self-sufficient.

How financial ignorance can affect you.

Based on a report by National Financial Educators Counselors Council in an article that was published in Cardtrak.com the lack of financial knowledge is costing Americans more than $2.3 trillion dollars over their lifetime. The lack of knowledge cost people money, bank charges, high interest, credit card debt, losses on investments and it can hurt you from getting your dream job if your credit is poor. Also based on this report, financial ignorance affects all ages and demographics levels. The lack of knowledge can lead to owning large amounts of debt, which can lead to poor credit, bankruptcy, and or foreclosure.

Now I am not close to being financially perfect myself. I have had money troubles in the past and at one time I was close to living out of the back seat of my car. This was the wakeup call I needed to get my act together with my finances. I have worked extremely hard in the past ten years at applying financial principles and strategies to get myself out of debt and get ahead of the financial curve and become financially independent.

Here are a couple of excellent resources on how to become financial literate:

Rich Dad Financial Education

Financial Literacy

PBS – Financial Literacy

A statement that I read not too long ago makes perfect sense. “The key to building great wealth is having great knowledge to act on and great wisdom to know which course of action is the best”.

What are some of your financial goals that will help you to become financial literate and independent.

 

Posted by Tom in Finance
Keep Striving For Financial Independence and Freedom

Keep Striving For Financial Independence and Freedom

Financial Independence Is A Achievable Goal

Dare to achieve financial independence. Cross the threshold to personal freedom. Make the commitment for your financial success. Remember, the secret to achieving financial independence and real wealth is to establish the mindset of wealth.

In order to earn more money, improve your marketable skills in an area of demand. Focus on personal development to increase your value in the market by becoming better at what you do or by doing something that is more in demand. Look for opportunities to do what you love most in a way that provides service to others on a massive scale.

Pay yourself part of everything you earn. Saving leads to wealth.

Learn to invest your money wisely. It’s true that a fool and his money are soon parted but a wise person and his money will enjoy constantly increasing levels of abundance. Get expert help in your investments, but make your own decisions.

Focus on achieving the levels of wealth in their order of importance. First comes protection, followed by independence. If your investment income covers your essential needs without having to work, you are already financially independent. If not, make this your first major objective after you have a protection fund in place. And once you have achieved financial independence, you opened the door to ultimate freedom. Whatever you want can be yours.

Achieving more wealth will empower you to expand your service to others and, in the process, become more than you get.

Keep money in perspective. It is only a means to an end and not an end in itself. Do not let money control your life. Be the master of your money, not its servant.

Be grateful for what you have, always count your blessings even when you do not think you have any. Gratitude will open the doors to abundance for you.

Follow these exercises to achieve your goal of financial independence.

  • Accept the dare: Resolve to become financially independent.
  • Determine how much income-producing wealth you need to accumulate in order to live in reasonable comfort without having to work the rest of your life.
  • Implement a strategy for wealth-building:
  • Increase your earning power. Determine how you can increase your value in the marketplace and initiate a step-by-step program to do so.
  • Reduce or otherwise control expenses.
  • Pay yourself first. Save part of everything you earn.
  • Establish a Financial Protection Fund: Build a reserve of funds sufficient to live on for one or two years.
  • Start an investment program. Study and practice to become an intelligent investor. Capitalize on the benefits of compounding earnings and “value investing.”
  • List five ways you can contribute to a better world when you become financially independent.

Last but not least, share what you have. Nothing builds character more than helping others. Whatever you do to help others will be returned to you tenfold and more. Achieving financial independence can easily be more than just a dream, you have everything you need to reach your goals right now.

  • Move forward and achieve the level of wealth you desire.
  • You can do it. Try it.
  • I dare you!



 

 

Posted by Tom in Budgeting, Lifestyle