Studies suggest that as many as two-thirds of adults in the US lack basic financial literacy. In the wake of the pandemic, many individuals are struggling to make ends meet. Strengthening your financial knowledge can help to make the most of your income and increase your financial security into 2022. This article is going to share advice on how to strengthen your financial knowledge this year.
Get On Top Of Your Credit Card Debt
Are you in credit card debt? Many individuals are happily paying off the minimum each month. However, paying the minimum on your credit card means that more interest will build up over time. You’ll end up taking longer to pay off the debt, as well as paying more in the long run. Take the time to review your credit cards, maybe consolidate them into one low interest card with a balance transfer, and start paying off more than the minimum each month.
Get A Financial Advisor
If you’re struggling to get on top of your finances, a financial advisor can help you to streamline your income and make the most of your current funds. Financial planners like Kevin Canterbury can help individuals develop knowledge of how to maximize their income and make the most of their money.
Set Yourself A Budget
Setting yourself a budget can help you monitor your expenditure each month and really get to grips with your spending habits. Monitor what goes on entertainment versus essential items like food. If necessary, see how you can cut back on luxury expenditures, but simply monitoring your spending each month will help you strengthen your financial knowledge over time.
Listen To Finance Podcasts
There are hundreds of finance podcasts out there that can help you improve your financial wellbeing. Podcasts like So Money can help you with advice on getting out of debt and learning how to invest. Podcasts also share real life stories which can help you get a feel for other people’s situations. Many of us feel like it’s only us struggling with finances, but the truth is you’re not alone.
Study A Free Online Finance Course
There are many free online finance courses endorsed by financial institutions and universities like Harvard University. Sites like EdX provide free courses for those looking to improve their financial knowledge in 2022. These courses will help you understand a wide range of financial resources like budgeting, saving, investing and the different terms associated with these.
Read About Investing
Investing sounds like a great idea, but how many of us know how to start doing it? Learning about investment bank accounts are a great way to start building on your financial knowledge and start making money in addition to your main source of income. Investing does come with its share of risk, so start small and only invest money that you can stand to lose.
Strengthening your financial knowledge does more than just improve your income. It has benefits for your mental health, feelings of security and even your relationships. We hope this article has helped you develop an insight into growing your financial knowledge this year.