Exploring Financial Literacy

Ways to Improve Your Knowledge on How Money Works, Grows, and is Maintained:

1. Be honest about your financial situation

2. Admit you could use some good help

3. Create & Maintain an accurate budget

4. Read many books, listen to podcasts on wealth, take financial classes

5. Set goals where you want to be

6. Change your network to people who know how to grow and find money opportunities

Investing Starts in the Mind

How do you build wealth? My answer, make smart decisions about what to do with your money, daily. Here is a great excerpt I read off CNN Underscored on How to Build Wealth written June 3, 2024.

If you want to build wealth, it’s best to have a long-term mindset.

It’s really common sense, but budgeting, maintaining a consistent savings habit, avoiding or paying off debt, stashing money away in an emergency fund and spending less than you make are all pillars of building wealth. Investing is the more glamorous side, and that’s also necessary, of course. But day-to-day money management habits are equally important, if not more so.
When it comes to your investments, you can diversify your holdings by owning stocks, bonds, real estate, and other alternatives like commodities. That’s a proven way to smooth your return and help mitigate losses.
It’s easy to have “expense creep” as your salary increases over time and you feel that you can spend more money. That’s why it’s important to monitor your expenses. Consider doing a review once a year to see if you can trim any excess fat from your budget, such as unnecessary memberships or subscriptions you no longer use.

Assets to Build Financial Wealth

Definition: Financial literacy is the ability to understand and effectively manage personal finances. It encompasses skills in budgeting, saving, investing, and understanding financial concepts like debt and credit.

"Less than 30% of all Americans consider themselves financially in the dark with assets less than $300,000 by age 50."