When you’re a young adult the most frightening prospect of all is that of creating a financial life that works for you. most often you do not even know who you should consult on the matters of how to best develop your financial independence. You have to become responsible for many decisions which directly influence your day to day lifestyle as well as where you will end up in the future.
In a 2015 survey conducted by Wonga, 77% out of a group of around 18000 South Africans said they hardly ever took the time to note the interest rate when applying for credit. This is a good indication of how sorely lacking w are when it comes to financial literacy.
There is hope though if we are willing to educate ourselves so we can make better financial decisions. The sooner one starts with this type of self-teaching the greater the profits you will ensure over the years that follow simply by putting your financial knowledge into practice.
There are some important points which will definitely help you to gain sound financial wisdom and the practical know-how you will need to experience the benefits of being financially literate.
Make use of the freely accessible resources you can find on the internet. There are many websites online which are replete with knowledge and guides which cover virtually every financial challenge you are ever going to encounter. Give special attention to established financial institutions like banks and insurance companies since they make sure the information is both credible and practical.
Don’t be shy to learn from people in the know. Start with those closest to you who have experience behind them when it comes to proper financial management. And then seek out new friends and acquaintances who have specifically proven successful with money and learn from them. Also, get in touch financial professionals in this regard like accountants and lawyers, it’s that serious an issue to educate yourself about the workings of money.
Read and then read some more. From the finance columns in newspapers to magazines dedicated to personal wealth and how to grow it. You can learn much from financial experts who freely share their knowledge in publications. Also, you can typically rely on the information being up to date and relevant. It does not have to be a costly affair by subscribing to every finance magazine you can get your hands on. The IOL blog is a good starting point. Simply pick one up every now and then and try to actively implement what you read. You can also find good books on the topic of finance and these make handy references.
Join a circle of regular investors. There are many clubs and organisations which are dedicated to getting the most out of investing. For a reasonable monthly membership, you can take advantage of the group meetings and discussions that take place without having to get into any actual investing. Then as time goes on you will gain valuable insight and confidence in order to take the leap into investing yourself.
Financial literacy is best started early on but that is not to say that it ever stops. So it’s never too late either. One of the most important goals of making smarter decisions with your money is to avoid pitfalls and mistakes which usually damage your financial standing. This is the financially clever way of gaining more by losing less.