With so many financial products on the market available to consumers, it’s more important than ever to make sure you’re financially literate. How can you improve your financial literacy? Here are six ways:
Manage your money week to week
You should be actively deciding where you want your money to go.
What is important to you? Don’t look back and wonder where it went.
Plan for the future
Have a goal for the future and a plan to reach it. You’ll be surprised what you can achieve when you put your mind to it. But without a plan, it won’t happen.
Make your finances as easy as possible
We all have good intentions, but don’t necessarily get around to it. Make things automatic instead. Have money go automatically into your savings account or investment account every payday. Set up a direct debit to pay your regular bills.
Talk to your partner
Talk to your partner about where you stand financially and where you want to go. Nothing kills a relationship like financial tension.
Investing is not gambling
You will gain financial success by steady, sensible decisions over many years, not by gambling on spectacular returns or picking a winner. The key concepts are:
- Diversification (spreading your investment).
- Buy things you understand (or use an unbiased professional who understands).
- Invest within your risk comfort zone (where you can afford the likely ups and downs).
Don’t be scared to seek advice, either to build your wealth or if things go wrong.
Source: Financial Literacy Australia
Ten copies of Universal’s Money Monster to win!
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