Happy Financial Literacy Month!
National Financial Literacy Month is a government-sanctioned event that began in 2004 after the Senate passed Resolution 316. Its purpose is to raise public awareness about the importance of personal financial education in the United States and the serious consequences that may result from a lack of understanding about personal finances.
This month, in honor of National Financial Literacy Month, you can take significant strides towards improving your financial situation by committing to the following steps:
Identify at least one benefit you hope to gain by taking care of your finances and improving your money management skills. By doing this, you can create a financial plan that you're passionate about, and that energizes you to reach your goals. These goals could range from short-term objectives like saving for a cruise to long-term goals like buying a home or retiring comfortably.
Arm yourself with knowledge by reading financial books, listening to podcasts, and taking online courses. Knowledge is power, and numerous resources on personal finance can enlighten you. Start building a financial library by purchasing a hardcover, paperback, or eBook from your local bookstore or preferred online retailer.
Check and take control of your credit by obtaining free credit report copies and disputing any errors on your report to ensure your credit is in good standing. You can check your credit report for free within a few minutes by going to www.annualcreditreport.com. Understand the factors that affect your credit score, including credit utilization and payment history, and take the necessary steps to improve it. With determination and effort, you can achieve a better credit score and unlock new opportunities.
Identify and document your spending to better understand where your money is going and where you need to focus on reducing it. Use tools or apps that will help you track your sources of income, debts, monthly expenses, savings, and investments. I prefer to track my expenses manually using a budgeting spreadsheet. This simple activity has brought a lot of order and clarity to my finances.
It's essential to have emergency and retirement savings funds to cover unexpected expenses. One way to ensure you're contributing is to automate your contributions weekly, bi-weekly, or monthly. Automating your savings will help you build your emergency and retirement accounts and put you on the track to financial freedom.
Live within your means. One of the most important steps towards securing your financial future is to try to live within your means. Trust me, it’s not always easy, but you can achieve it with a little effort and determination. Keeping your spending in check will bring you peace of mind and financial stability in the long run.
Financial literacy is a continuous process that can help us achieve our goals and reach our full potential. By taking control of our finances, we can gain the knowledge and skills we need to succeed, and now is the perfect time to start this empowering journey towards financial freedom.
Keep the Faith,
Livia
AKA Livia Kelly (Author)
Livia Kelly is the Author of Unmarried and Debt-Free. Livia's book has made Amazon's #1 Best Seller list in Personal Budgeting and Two-Hour Self-Help Short Reads. Her goal is to simplify finance by providing sound and useful guidance about achieving financial success on your own. More information can be found at https://www.liviakellyauthor.com. Follow Livia on Facebook and Instagram @liviakellyauthor.
📸 Credits: Getty Images / Nicole Tyler