Financial Literacy – The Key To A Secure Financial Future

In most households, there is hardly any discussion about saving, investing and multiplying money. The focus is usually on how scarce money is, and how we should only strive to earn what is enough to get by on a day-to-day basis.

To further compound the problem, as vital as it is, a solid financial education is one thing you cannot get in school.

In this article, I’m going to give you some tips about specific areas you need to focus on when it comes to financial literacy, and how you can secure your financial future by gaining a thorough understanding about each of these areas.

1.  Understanding how money works

When it comes to money, there are rules you have to live by in order to manage it effectively. These rules govern how to save, invest and multiply the money you earn.

For example, money is not and has never been an investment. In spite of this, the erroneous belief that stacking away as much money as you can in a bank equates to financial security is prevalent.

2.  The right and wrong reasons to borrow money

Borrow money for the wrong reasons and you will find yourself sinking in a sea of debt wondering how to find relief for your anguish. Borrowing should only be used as a form of leverage, and not as a quick way to buy what you cannot afford.

3.  How and when to plan your finances

Different events in life including marriage, divorce, a growing family, job loss or a medical emergency may require additional financial commitments on your part.

Planning your finances therefore becomes a very important habit to master.

This also helps you devise means to realise your financial goals instead of shrinking your dreams to fit into your current financial circumstances.

4.  Developing a money conscience

Being acutely aware of how money is merely a tool, being able to separate it from your emotions, and understanding that money gravitates to those who know how to attract it can go a long way in helping you develop a money conscience.

There should never be any shame when it comes to talking about money.

Most people find it hard and stressful to have conversations about money with their spouse, so they try to avoid doing so, and miss the opportunity to avert financial problems that can even threaten their marriage.

5.  Eliminating limiting beliefs and myths about money

Until you identify and shatter those beliefs and myths about money at a subconscious level, your struggles with money will always be far from over.

If you believe you do not deserve to be successful financially, you do not need to be a genius to figure out why you keep struggling with money.

Resolving the inner conflicts you may have about money and wealth will give you a new way to look at money, and can have a profound impact on your financial success.

The sad truth is that the majority of people are not properly educated about money while growing up. This causes a lot of avoidable money problems in the future including not having enough, failing to invest wisely, and making so many mistakes when it comes to handling it.

If money is your primary concern at this point in your life, and you are looking to increase your financial literacy, click here to download my FREE report entitled ‘7 Things About Money You should Have Been Taught In School’ and feel free to share it with your friends.