Making financial decisions has always been an important part of every individual’s life yet it has been observed that all individuals cannot make financial decisions with ease or they fail at them. Financial literacy is seldom taught at an early age despite being such an important skill. Improving financial literacy is a good way to ensure that you are building healthy spending habits and making investments in a prudent manner.
Before we dive deep into the best resources for improving financial literacy, let us first understand the meaning of financial literacy.
What is Financial Literacy?
Financial Literacy refers to the ability to understand the basic concept of savings, banking, budgeting, personal finance, investing and debt management among others. It also means the ability to understand and make use of financial skills. Financial Literacy includes using personal financial management skills so that individuals avoid making poor financial decisions and get on to the path of financial freedom and financial independence.
Improving financial literacy is of prime importance because it helps people in planning for rising education costs, medical expenses, buying a property and attaining other life goals.
Financial Literary Resources
It doesn’t matter at what stage of financial journey you are presently on, here is a list of some of the best financial literacy resources and tips that you can use to improve financial literacy: -
1. Read Books related to Finance
For anyone who wants to increase their knowledge on financial literacy, the best place to start is by reading a good book and gradually reading many books. Many e-books are also available which can be accessed easily and some of these books include worksheets and other documentation that can help individuals to assess their financial wellness and make decisions.
This can also help you in setting financial goals systematically and one can attain the path of financial independence through early retirement and building wealth.
Below is the list of some financial literacy books that you must read to improvise your skills-
- Rich Dad Poor Dad- Robert Kiyosaki
- The Richest Man in Babylon- George S. Clason
- The Millionaire Next Door- Thomas Stanley
- Think and Grow Rich- Napolean Hill
- The Richest Engineer- Abhishek Kumar
2. Subscribe to Financial Newsletters
One of the best ways to improve financial literacy is by subscribing to financial newsletters from various sources. These newsletters are designed to teach you many aspects of personal finance, financial news, latest happenings in the field of finance and expert advice on finance management.
Such newsletters talk a lot about investment techniques, importance of investing in stocks, rising popularity of mutual funds and various other avenues of investments. Making a right decision by understanding in depth about the financial information through financial newsletters can help one in achieving their goal of wealth creation. You can subscribe to newsletters and get business-related news, updates, tips on managing personal finance straight to your inbox. Some famous financial newsletters are from The Economic Times, Financial Express.
3. Listen to Financial Podcasts
With the advent of technology, podcasts have become very popular. Various influencers and financial experts come up with great content in their podcasts which are available on Apple Podcasts and Google Podcasts or through music streaming services like Spotify and Amazon Music. These podcasts cover a variety of topics like advanced investment strategies and several topics on financial literacy for beginners and also for daily traders and investors. Some of the best financial podcasts are ET Wealth Radio, Podcast by MoneyControl, Podcast by Money Girl, Podcast by Millennial etc
Thus, it can be said that podcasts are a great way to absorb financial news and can be listened to anytime during the day like while doing household chores, running errands, jogging or before sleeping.
4. Make the best use of Social Media
Social media is a powerful tool which can be used to one’s advantage if it is used in a rightful manner. Today, a lot of financial guidance is available on various social media platforms like LinkedIn, Instagram and Facebook where experts of finance share knowledge on various aspects related to financial literacy. Thus, following such accounts also hones skills and improves financial literacy, especially for beginners. It is believed that social media is one of the best financial literary resources available in the present times. All one has to do is learn maximum from it.
5. Take Help of a Finance Professional
A finance professional is one of the best persons who can help you in improving your financial literacy. Instead of relying on hearsay opinions, individuals must ask questions related to personal finance, savings, investments, budgeting etc. to finance professionals so that they can be guided well and ensure that complex scenarios are simplified.
A finance professional understands your financial position and current situation in the best manner and guides you in the right direction.
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