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Six ways to improve your financial literacy

Money is often the root of most problems in relationships and the source of personal struggles. Wait, actually, it's the lack of money or the mismanagement of money. But that can be addressed properly.


How?


Through financial literacy.

Financial literacy is the capacity to understand financial concepts and utilise your understanding to make wise financial decisions. Among other things, this entails understanding how to make a budget, utilise a credit card, pay off debt, and invest for the future.

You'll be better equipped to make wise choices to efficiently save and invest money for yourself and your family, the more knowledge and understanding you have in managing your finances. The following tips will help you become more financially literate.




1. Create a budget and follow it as best as you can

Taking an inventory of your finances is the first and most important step in managing your money. In order to determine what you spend your money on each month, a budget is the answer. A great person once said, a budget is not telling you where to go, it tells your money where to go. Think of it like this - you may get to the end of the month with little money left and have to curtail your life because of it! If you budget and stick to it, instead of money restricting you in doing certain things, it allows you to live your best life. It can be simple to overlook savings and overspend if you don't know how much money is coming in and going out. In fact, there are personal finance apps and money management software that make it so much easier to track your funds. You may organise your costs, keep tabs on your incomings, outgoings, and receive payment reminders with the aid of a money management app or template.

However, you may feel easily burdened if you cannot keep up with your budget. Make sure your budget plan is flexible while still being sufficiently restrictive so you won’t be living pay-check to pay-check. Our Budget Like A Boss tool allows you to organise at your best and motivates you to achieve your financial goals.

2. Schedule some time to learn

You have a wide range of resources that can boost your confidence in your financial future. Of course, there’s Fempire Finance. But you can also browse or purchase a variety of books about money management. But reading such large portions may not be for everyone. Other excellent tools include websites, newsletters, online magazines, and online courses that will teach you how to develop sound money habits. The fundamentals of money management are covered in a range of free courses offered by online schools, colleges, and further education facilities– from budgeting to saving, to paying off debt, to investing. You'll also be able to catch up with the most recent financial trends that can have an impact on your financial planning.

3. Follow financial experts and influencers on social media

Using social media to follow financial gurus and influencers on Twitter, Instagram or LinkedIn is one of the best ways to remain up to date on money and how to navigate it. A personal finance influencer uses social media to share insights and experiences on money and finance. You'll receive bite-sized financial advice, allowing you to gradually pick up new ideas and strategies over time. The best part is that when you follow educational accounts from financial institutions like banks or credit unions, you won't need to look for this information anymore; it will come to you. Always be sure to check the legitimacy of the 'finfluencer' you follow though!

4. Create a community of accountability

Even if you have the best of intentions, life occasionally gets in the way. You might find reasons to put off reaching your financial objectives. Having a group of individuals who share your values and share ways to help education yourself will hold you accountable. If your current friends have similar objectives, consider holding regular gatherings to discuss money-related topics and share knowledge, rather like a book club. As an alternative, you may join a social media group that already exists as a community.

5. Identify fraud and decrease your risk

Although fraud is frightening, those with financial literacy are typically better protected against it. When you closely monitor your finances and are clued up on the possibilities of what may go wrong, you're more likely to notice anything that seems out of the ordinary, such as a tiny purchase on your credit card statement that wasn't made by you or an inquiry on your credit report that wasn't initiated by you. Running a tight ship reduces the likelihood that someone will be able to commit fraud using your name and accounts. Always keep an eye on your finances, and report any shady expenses or withdrawals right away.

6. Meet with a financial professional

Meeting with a financial expert who can help you with planning, saving, retirement, paying off debts, and more is an excellent approach to increase your financial literacy. There is one thing you must keep in mind when selecting a financial counsellor. Make sure anyone you do business with is governed by the Financial Conduct Authority (FCA), which seeks to safeguard consumers from harm that may result from unethical behaviour in the financial services sector. To search and check that an advisor is regulated, you can use the search function within the Financial Services Register.

Congratulations for your willingness to improve financially! Getting your money organised in the manner you want them to be takes a lot of work up front, but your future self (and potential family) will appreciate the wise financial choices you made.

Fempire Finance


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