How to Build Solid Financial Literacy in 4 Sequential Steps

The world might be full of smart and educated people, but very few actually possess the skill of financial literacy.  There are many reasons why this is so, but the bottom line is that people struggle with money.  The bad news is that financial literacy takes time and effort to learn.  But the good news is that anyone can become financially competent with the right attitude and habits.

Money-Management is a Masterclass:

Author/Communications Manager Heidi White explains that, “Financial literacy is more than just the knowledge you need to make responsible financial decisions. It’s also the ability to put that knowledge to good use. Those who are financially literate can create a budget and manage their checking account. They understand how credit cards work and how to use them without racking up debt. And they know what’s involved in saving for their future financial needs like college, a home, or retirement.” Here’s a quick outline of how to develop financial literacy:

STEP #01 – Learn How to Earn Money:

Money doesn’t grow on trees.  It materializes through income.  And income can only be generated through entrepreneurship or employment. Financial literacy begins with developing the ability and reputation to earn an honest living.

STEP #02 – Learn How to Spend Economically:

Money isn’t made to be hoarded.  It’s made to be spent.  But spending is also a behavior that can destroy wealth when done irrationally.  Financial literacy means figuring out how to spend money in a way that doesn’t create problems or emergencies.

STEP #03 – Learn How to Borrow Sensibly:

Debt can turn into a sinkhole when money is borrowed recklessly.  In fact, the average borrower only starts to take debt seriously when the risk of bankruptcy is imminent. Financial literacy means doing the math before borrowing money.  Not after.

STEP #04 – Learn How to Protect Profits:

Money only grows when it’s saved.  And savings can only be achieved through surplus budgeting.  The pinnacle of financial literacy is figuring out how to become financially independent by generating substantially growing savings.

Conclusion:

Money makes the world go round.  The more people are mindful of money, the more opportunities are created to thrive and succeed. Financial literacy can only be achieved by embracing a lifestyle of fiscal balance and intellectual maturity. If you like what you just read from our blog, you’ll love the various informative courses, workshops, and events listed on our websites and social media. Whether you’re interested in personal development, health and wellness, bettering your relationships, or the overall improvement of your business, give us a call at 1 (800) 913-0222 to find out how Richard Martinez can help you break past your daily struggles and start soaring in success.