How to improve financial literacy-6 Practical Tips

Are you also suffering from paycheck to paycheck no matter how much you earn at the end you struggle. I can assure you if you follow this you can change your financial level to the next level so without any delay let’s get started on how to improve financial literacy.

1. Mindset

The first and foremost step to improving your financial literally is your mindset. Trust me or not you are not going to achieve any goal in your life if you don’t change your mindset. In order to improve financial literacy or financial numbers or if you want to change anything in your life first you need to fix that then the rest of things will work. I have seen so many people who are very negative about money or talk negatively about finance.

Whatever the reason maybe if you do this stop this otherwise forget about becoming a millionaire you are not able to live happy for a longer time you can pretend to be happy but you can’t seriously speaking. Once you are done with the first step you are ready to go to the next step.

2. Surround yourself with financially literate people

You know that the people you hang out with daily somewhat you become like them over a period of time. This can be also said that you are the average of 5 people you spend most of the time with. Surround yourself with good people who are actually financially good. This will help you to think about how their mind works, and what qualities they have so that you also will automatically incorporate yourself. Surrounding yourself with financially literate people will automatically help you to move your financial graph up.

3. Consume content regarding finance

One of the best ways to improve financial literacy is to consume content regarding them. If you seriously want to improve your financial literacy you need to do this anyhow. There are lots of ways that one can improve the literacy rate in finance by consuming content on YouTube, listening to podcasts, and reading blogs, books, newsletters, or newspapers (if you are still using the traditional approach). If you think that you want step by step from beginning to advance you can go for buying a course also.

4. Ask for financial advice

Now you will say I am a novice I don’t know anything about finance or personal finance what should I do? So in this case you can contact any financial advisor around you so that they can guide you. You need to see to it that they might charge because if you have a decent amount of money you can directly approach them.

If you don’t have money I would suggest that consume content on personal finance or finance on a daily basis so that you will get used to that slowly and gradually you will make progress and after that, if you need you can go for it no problem at the end it’s your choice.

5. Focus on creating assets and minimizing liabilities

I am 110% sure that 99 out of 100 who are reading right now you have maximum liabilities and hardly any asset. You will say no you are wrong we have assets that we live in your own home. So let me correct you if you live in a house that doesn’t fall under asset categories it falls under liabilities categories. If you don’t know what’s the difference between asset and liability. Something that puts money in your pocket is called an asset and liabilities are something that takes away money from your pocket.

As I said earlier if you live in your house means that you have to keep your wallet ready to cover the expenses of whatever renovation or repairing of your house. So try to maximize the assets column and minimize the liabilities column. I can give a guarantee if you do this and make your financial decision wisely you can see a huge increase in your financial graph.

6. Take financial decisions wisely

If you make your money decision in fear, emotion, pressure, fear of missing out, greed, sudden, excitement, sadness, or any circumstances. Your decision is going to be wrong in the future. Don’t believe me ask yourself any money decision you had taken which falls in these circumstances you had wipe out or lose your money or don’t get that much value. Isn’t it? That’s why I always tell all of you to make financial decisions wisely. I know you work day and night to accumulate some amount of money after spending years. But due to your stupid decision, you instantly lose your all hard-earned money within a second.

You will say now what should I do to make the right financial decision?

1. Go through your financial goals and see to it that you seriously need that thing you are going to buy
2. Ask a financial advisor
3. Get your spouse and family member’s opinion
4. Ask for help from who you think is good at personal finance decision-making
5. Do at least 5 minutes of meditation daily to have control over your emotions.
6. Take some time to take a wise decision.

Note that see to it that you are asking from the right person. If your spouse doesn’t know anything about finance and you ask then the probability is that you might lose all your money. Be careful.

Read more: How to grow your money fast

Final Call

It’s up to you. Mark my words. Repeat this sentence “Things don’t change, until I change”. That’s why do it now or regret it later.

FAQ’s

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