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Top 3 Rules of Financial Literacy

by Ganesh Kolekar
Top 3 Rules of Financial Literacy

Give a grown man a credit card and he will spend it down to zero to survive. That’s how gamblers behave when they are given a limitless online Canadian casino account and they won’t rest until they’ve spent it all.

So what do you do to get out of this group of people and become financially free? How do you become financially literate?

Work With Attitudes and Beliefs

Do you have a plan to be rich? Do you have such a goal? I think you’ve even tried to do it, you’ve thought about investments, capital.

But the statistics of working with my clients show that a person may be thinking about saving money, creating investments, but there is some conviction sitting in their head:

  • I can’t become rich.
  • It’s impossible for me to create capital.
  • If I save, when the crisis comes, I will lose everything.

If people have negative beliefs, then investments can end in failure.

Such people start, even open a brokerage account, buy stocks and bonds. But there is a pullback or a decline, the person gets disappointed and quits.

You can try as much as you want to do physical actions, but if the thought “this is impossible for me” sits in your head, you will always make mistakes, choose the wrong securities or entrust money to the wrong organizations.

That’s why two things are important to achieve sustainable cool results:

  • Working with the mindset.
  • Working with financial tools.

If you find any negative attitude in yourself, replace it with a positive one. For example: “I can be rich.”

Notice, the mindset comes first! So work with it first, and then move on to financial tools, which we’ll talk about below.

Keep a Budget

Keeping a budget is the first place to start. Often people say: “I don’t want to save money at all, I want to live happily. Budgeting should be done by those who are poor, who don’t have enough money. Why should I count the pennies I spend on tea, coffee or food? That’s never the way to become rich.”

But all the world’s financiers recommend keeping track of expenses and income. All of them. And not just keep them, but create a financial plan out of it. With it, you know what you can afford now, and what you need to save up for. This is characteristic of a financially literate person

A financial plan shows you the items in your budget and what you can do with each item.

Create a Freedom Fund

Once you have mastered the first tool, it’s important to create a freedom fund. Why can’t you call it a rainy day fund? Because when you constantly think of a rainy day, you create it, you manifest it in your space.

Why a freedom fund? With it, you can easily make different decisions:

  • Quit a job you don’t like.
  • Get out of a relationship that is disempowering.
  • Stop tolerating bad attitudes in any area.

The background of freedom is equal to 3-6 average monthly expenses.

It’s important to create a six-month safety cushion for yourself. It will include all your spending, desires that you want to carry out in the near future. This money should be easily accessible, for example, deposited or in a piggy bank. That is they shouldn’t be invested in real estate or somewhere else where they are hard to get. You should have the ability to use that money at any time. It gives you mobility and adult freedom.

Just remember that we don’t spend it on travel, things, or shoes. It’s the money that provides us with a rear end in a difficult situation.

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