Financial literacy is the possession of knowledge and understanding of financial matters. It is mainly used in connection with personal finance matters. Financial literacy often entails the knowledge of properly making decisions pertaining to certain personal finance areas like real estate, insurance, investing, saving, tax planning and retirement. Are you comfortable with your financial knowledge?
Here are 10 valuable tips to improve your financial literacy:
1. Make a plan. Identify your financial goals and objectives.
2. Know yourself. There are plenty of investing and trading approaches; be sure to consider your goals, risk tolerance, and time frame when you choose the one that makes sense for you.
3. Protect your assets. Understand your tolerance for risk and use it to determine the size of every investment you make.
4. Analyze from the top down. Learn how to identify current market trends and the stocks following them.
5. Search for additional opportunities. Make sure you are reviewing your employee benefits and understand how they work.
6. Get social. Go to events, seminars and workshops. Join groups on Facebook whose priorities line up with yours.
7. Manage and monitor your positions. Use online tools to better understand your portfolio's exposure to different industries, geographic regions and sectors.
8. Keep emotions in check. Creating a financial plan and sticking to it needs logic.
9. Practice first. Then teach others. Bring them to workshops with you. At home explain what you are learning.
10. Commit to learning. Make financial education an ongoing priority. You can join a book club!
What small step can you take to improve your financial knowledge?
I’d love to hear your feedback!