Financial Literacy: The First Step

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shutterstock_125937002Financial Literacy refers to the capacity of an individual to understand how money operates and how to operate money. It is the knowledge of how one earns it and then how one manages it. It is also considered a set of skills used in making wise decisions with regards to financial resources.

Most Filipinos have the wrong notion that financial literacy is simply for the wealthy people. This kind of mentality often leads to a routine type of lifestyle – work, earn, and spend. Some put an effort to save. But is saving enough? Even if you have a large paycheck and a low-key lifestyle, the money not spent becomes stagnant without financial education. It kind of just sits there – in your bank account. Which is perfectly fine, but then if you have the ability to make it grow why not do it?

People work for money – we all do. But do you know that money can work for you too? That is the most essential learning one can acquire through financial education. A financially literate person knows how to make money work for him or her.

For those of you have no idea at all how to make money out of your hard-earned money, the answer is simple: investments. And there are a lot of options. Through financial education, you get to know these options. Some people ignore the idea of investment because of the risk. But all fears are rooted to ignorance. That is why financial literacy is a must if you want to earn more than what your job gives you.

Internet is like an ocean of information. You just have to learn how to swim to be able to use it for your advantage. There are a lot articles and websites that talk about financial education. There are books that contain information on financial literacy. There are also seminars that you can attend to educate you with regards to investments. And there are financial advisers you can talk to if you want to learn more about financial education.

Some of you work to get the bills paid. How about making your money work so you can live the life you want? How about a nice vacation for you and your family? If you are the family’s breadwinner, wouldn’t it be nicer if you don’t have to worry about how expensive college education can be? Wouldn’t it also be nicer if you don’t have to worry about hospital bills and medical expenses when illnesses or accidents befall? Having a comfortable life means that despite having problems you know you have imaginary cushions to fall into when mishaps knock you down.

If you would like to start your financial literacy journey, you can join Truly Rich Club. I learned a lot of strategies in earning money as well as stock recommendations. What I also like about being a member is that you are reminded of your goals everyday.

Before you can change your life you have to change the way you think. And you simply can’t change the way you think without education. Always be hungry for knowledge and take time to learn. To sum this part 1 of financial literacy post, the first thing that you have to do is to educate yourself.