Financial literacy is essential not only for financial planners, but for all walks of life. However, if you are not a finance student or have no experience in managing your financial affairs, there are other ways for you to become financially informed.
Financial literacy will allow you to take control of major aspects of your lifestyle. It dictates where you live, what kind of car you drive, how much you can spend during the holidays or when you can retire—to put it simply, financial literacy affects the general satisfaction you have in your life as you need money for almost anything these days.
As times are difficult and uncertain due to the pandemic, you may be required to make many financial compromises in your life, which is why it is important that you know how to effectively manage your money.
The digital age provides numerous lessons on personal finances to help us become more resourceful and responsible with our money.
Purchase finance-related books
The self-help category is increasing both in volume and popularity at bookstores worldwide! In today’s fast-paced digital era, people are becoming more self-reliant as there is an abundance of information available on the web. It seems like any and all questions are just a google search away, but nothing can replace an in-depth self-help book.
There are plenty of self-help books that are related to effective money-management, investments and general daily finances. Dedicate at least an hour every week to educate yourself on a topic that you are weak in. As you read, highlight the parts that are applicable to you, make notes of new insights and mentally reflect upon the information that is in your hands.
Read financial blogs
While finance-related books are important, blogs dedicated to improving your finances are equally important too. Following a blog that is based on financial literacy helps you stay updated on the latest findings and insights that will benefit you. Blogs have the ability to convey the latest information and fresh perspectives to keep the public well-informed at all times.
Attending a financial seminar
If you ever come across an opportunity to join a financial seminar, do not let it go to waste! A financial seminar is usually led by a professional who can help you build your financial plan. So, the lessons that you get from a seminar could greatly benefit you. This is the time for you to take your notebook out and learn the basics of financial planning, understanding basic economics and figuring out what is your next financial move. It is also a great time for you to meet new people, even virtually!
Use financial tools
Securing your finances does not have to be difficult, time-consuming, or mundane. There are a plethora of tools available to assist you in becoming more proficient, thanks to the internet.
There are plenty of money-management apps that will organise and analyse your financial life. In addition to that, you will also learn a great deal about budgeting and setting realistic financial goals through the app’s built-in learning centres or blogs (if any).
Stop thinking like a consumer
We are in a consumer-centric era that thrives on new products and services. The media promotes extravagant lifestyles and social media makes us envious of others' possessions. With a large volume of advertisements being directed at us on a daily basis, we are drawn to instant gratification and quick-fixes.
Through the course of your learning in financial affairs, you will learn to replace the consumer mentality with an investor mentality. Instead of seeking superficial satisfaction, you will start to put your money into things that will bring long-term benefits.
These are just a few of the many ways you can get yourself financially educated. We hope that this will encourage you to start your journey in improving your financial literacy as it is a life-long learning process.
If the world of finance strikes a great interest in you, have you ever considered turning that passion into a profession? Being a financial planner requires a great deal of financial literacy and care towards helping people achieve financial stability. Here in KWO, our financial planners will personally guide new recruits to help them thrive in their first year as financial advisers in Singapore. If you would like to embark on a beneficial career as a financial planner, join us today!