At some point, you have to take control of your finances. Learning about scary terms like compound interest might seem overwhelming at first. Investments and retirement funds don’t sound like very fun concepts, true, but the worst thing you could do is ignore them.
It’s time to face the reality of your finances! You might even have some fun along the way; it’s a promise. With the right strategies and tactics in place, anyone can do it! These steps will get you on the right track for boosting your financial IQ.
Tools, Apps, and Websites
Admittedly, it does sound ludicrous, but it works! Instead of playing Candy Crush and checking out Instagram, you can use your phone more productively.
Apps like MoneyLover, Shopping List, and Save Bengies can help you create a budget, manage your finances, and save money. You can even use apps for accounting tasks.
Get a financial calculator from Canon, Casio, Sharp, HP or Texas Instruments. The tool can perform functions such as calculating percentages, cash flow, amortization schedules, interest rates, and loan payments. It can also solve time-value-of-money calculations like savings, leases, mortgages, and annuities.
Know what you spend. Keep track of your expenditures. That $5 macchiato adds up, and so do those $30 takeout dinners.
Websites are a great way to learn about personal finances without actually spending any of your finances. Be sure to browse personal finance blogs and websites. Sites such as MoneyNing, Wise Bread, and Free Money Finances are a good place to start.
Money Crashers has shown to be a great website for learning the basics. Don’t disregard finance forums either. There is a ton of useful info there. You can read reviews of financial products and find some useful money-saving tips.
Books, Magazines, Blogs, TV Shows, Podcasts…
Good reads are a great way to grow your knowledge of finances, be they in digital or paper form. Books like “Rich Dad, Poor Dad,” “Intelligent Investor” and “Total Money Makeover” can educate you on a range of topics, from choosing investment strategies to getting out of debt. There’s always a way to learn from other people’s experience. You can find informative business blogs that offer useful insights.
You can learn about practical techniques and tricks that will gain your financial benefits. And it costs just a couple of bucks to acquire benefits that will last you a lifetime. Magazines like Kiplinger’s have well-researched articles on various topics ranging from how to earn extra income to how to get out of debt.
Reading isn’t just a great way to increase literacy. It’s a great way to increase financial literacy. It’s time to head to Barnes &Noble!
Make an effort to find an investment club in your area. It’s a group of people who pool in some cash and invest it all together. The focus isn’t just on turning a buck, but on socializing and educational interaction.
It can help you learn how to make better investment decisions, learn what’s going on in the economy, discover new investment opportunities, and find out what is the best investment platform.
But, don’t forget to invest in knowledge as well. Some companies have free webinars and workshops. Use them to increase your money IQ.
Local organizations, businesses, and community colleges often offer relatively inexpensive finance courses. It’s not all about accounting textbooks and investment charts. Absorb all the info you can.
Talk to investment advisors, stockbrokers, personal finance, advisors, real estate agents, etc. Be pesky! Ask about everything and anything you think of. Most pros would be happy to share their expertise.
Experts are aware of the fact that the average Joe doesn’t have a high financial IQ. The more you ask, the more you will learn. As a result, you will be more comfortable with your money-related decisions.
Personality and Psychology
When it comes to money, what type of person are you? Are you a spender or a saver? Gaining better insight into your own spending behavior will help you grow.
Your personality has a big role to play here. It all starts when we are kids, watching how mom and dad handle money. Examine your own awareness.
Check it regularly! It can tell you the most about your financial standing. Aim above 750. It is essential for applying for a mortgage and taking out loans.
The good news is that the average credit score of the average American is going up. It’s currently at about 703. However, there are still many Americans with scores in the 500s.
Your credit score can have an impact on everything. It can decide whether you will get approved for a new flat and the type of interest rates you will have to pay.
If it’s too low, you can take action immediately. Make sure you don’t max out your cards. Pay credit cards in full and on time. You can check your score in just a few seconds whenever you want with Discover’s Free Credit Scorecard.
The consumer mentality is the bane of many Americans. By developing a high financial IQ, you’ll be able to break away from it. Ubiquitous advertisements, lavish lifestyles are seen in media, social media rife with coveted belongings… none of that will be a match for your new financial mindset.
Check out my guide on how to start your business right with tons of useful tips I learned by successfully starting, building, and selling multiple companies.