Resources for Improving Financial Literacy!

 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-

1. Rich Dad Poor Dad- Robert Kiyosaki
2. The Richest Man in Babylon- George S. Clason
3. The Millionaire Next Door- Thomas Stanley
4. Think and Grow Rich- Napolean Hill
5. 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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10 Ways to Become Financially Independent ! how to grow money consistently !

Financial Independence or Financial Freedom refers to being in complete control of your finances. Being Financially secure is a concept that must be on everyone’s to-do list. People must set an age limit by which they can attain Financial Freedom and adopt measures to become Financially Independent. Attaining Financial Independence has many benefits and helps people in living their dream life by buying a house, investing in gold, traveling, living a carefree retirement life and many other goals, which are subjective for each individual.

Your financial position must be planned in such a manner that it supports you even if your primary source of income decreases over time or there is a contingency or emergency. While achieving Financial Freedom is not an easy task, one must strive to achieve it from a young age by prudently utilizing their Savings and Investment.

In this blog, we have discussed the top ten ways that can help you attain Financial Independence and help you work towards Financial Security: -

1. Determine your Life Goals

Everyone has a general desire to achieve Financial Independence but the first step to work towards this goal is to set goals, determine the lifestyle that you wish to have in the coming few years, and the age limit by which you want to achieve Financial Freedom. The next step is to do the backward calculation from your deadline age to your current age so that you can establish how much time you have to attain Financial Independence. This will help you systematically plan your savings and investments.

2. Track your Spending Habits

Another important aspect is knowing how much you spend on a monthly, quarterly or yearly basis. This will assist you in setting a limit on your unnecessary spending and allocating your resources to the pursuit of Financial Independence.

3. Create an Emergency Fund

Because there are always unanticipated events, having an emergency fund is one of the most essential requirements. One may not need to borrow money if they have an emergency fund that can be used in case of medical conditions, job loss or any other contingent scenario.

4. Develop Multiple Sources of Income

Having only one source of income is insufficient because our environment is continuously changing. Today, with the advent of technology and digitization, it has become simpler to generate opportunities and earn more income from freelancing and other modes of working. This ensures that one can maintain a standard of living while also driving the savings towards investments for the future.

5. Prioritize Financial Literacy

Everyone makes money but how to put your money to work is an art that not everyone can master. To learn this skill, one must learn the skills related to financial management, investment and management of personal finances. This can be accelerated by reading financial magazines, newspapers and newsletters, understanding the basics of stock markets and reviewing relevant changes in the field of tax laws. Knowledge on the financial front will also help one in investing wisely.

6. Start Investing Today

The most underrated tip is to start investing as soon as possible. This will enable you to protect your savings from inflation and other negative aspects of the markets. For instance, if you have a diverse portfolio with investments in precious metals, real estate, equities, commodities, ETFs, bonds, etc., your portfolio will gradually start to become more resilient, which will be extremely beneficial to you in the long run. Create an investment strategy for this and stick to it at all times.

7. Stick to a Financial Plan

Most of the time people make a financial plan but only a few of them stick to it religiously. This hampers the process of wealth creation and becoming financially free. Sticking to a financial plan will enable tax planning, cash flow management, investment management, retirement planning and organically growing your wealth.

8. Learn the art of Risk-Taking

Taking calculated risks is one of the most important factors in achieving Financial Independence. Taking calculated risks helps in prudent decision-making and making decisions that most people would otherwise miss. It also helps in making the most of the opportunities available to them so that wealth can be created smartly.

9. Save for Retirement

Another important point to be kept in mind while planning for Financial Independence is to save enough funds for retirement. If you can take a few measures to invest now, the magic of compounding will work wonders for you and even a small amount saved early in your life can make a big impact in the future.

10. Follow the 50/30/20 Rule

Most people have their Investment strategies as their life goals are also different. Still, there is a rule called the 50/30/20 rule, popularized by Senator Elizabeth Warren which implies that to imply financial stability, people must categorize their spending in the following manner- 50% for needs, 30% for wants, and 20% for savings. This enables people to control their spending and savings and accordingly plan well for their future.

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