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

I have always had an enthusiasm for homesteading and for living off the grid even though I live in a combination of country and urban setting. Living in Central Florida north of the big cities we have the best of both worlds, country and the conveniences that a person would have living in a large urban city. I personally have had a concern about our weakening economy and how it effects each and every-one of us. The second thing that I have a concern about is how most of the world view’s our country and what may happen one day here in the United States. My Life Experiences I was raised by parents that grew up during the great depression, they passed onto me what life was like and how people had to live during this time period. My family were farmers, gardeners, and homesteaders, they were raised this way and they passed onto me these qualities. I also have family members that live totally off the grid. They live in the North Woods of Minnesota which is a great location for living off the grid. The Southern Homesteader is a passion of mine, I love passing on and sharing information about cooking, news, being self-sufficient, living off the grid, canning, food storage, budgeting, and much more. Since this blog is a passion of mine I am constantly adding and tweaking this site to be a better resource for you. More About Me I grew up in Northern Illinois farm fields. After spending most of my life in large corporate business I decided to relocate to a small town on the nature coast of Central Florida. This is where I met my wife and between us we have 4 wonderful daughters. We have a small homestead where we raise our chicken and live freely. We also have a bug-out place in the mountains of North Carolina that we call our retreat. We spend time there getting things prepared for all our family members when SHTF. I am blessed with a wonderful family and the knowledge that God has given me so I can pass this along to you the readers. I will never tell what you what to do or what to purchase, I just am offering my opinion. I want to take this time to thank each and every one of you. Always feel free to contact me and drop me a note. I will do my best to respond to your emails in a timely manner. Thank you again, Tom Johnson