Financial literacy
Financial literacy according to ChatGpt refers to the knowledge and skills needed to understand and manage financial matters effectively. How do we gain knowledge? By learning and learning takes place in the mind which is why Robert in his book "Rich dad Poor dad" states that "the single most important asset we all have is our minds. If it's trained well, it can create enormous wealth". In other words, if the mind is not trained, the reverse will be the case. "Financial struggles" will replace where we have "enormous wealth". Even if we stumble at wealth, we might not be able to manage it sustainably and this would lead to our sudden loose of it. Little wonder Robert stated - "money without financial intelligence is money soon gone". So financial literacy or intelligence shouldn't be over emphasized especially when it is concerned with sustainable wealth.
One other thing I'd want stress is that financial literacy isn't just about money as most people would think but also about confidence, security and freedom. Now the question emerges- confidence in what?, What security? and freedom from what?
Confidence: in managing your money and making financial decisions.
Security: knowing you can manage emergency and unexpected expenses.
Freedom: from bebt, money stress and dependence on others.
A few tips to improve financial literacy include: saving and investing money. The word "invest" here means using money to grow your wealth.
Next is budget wisely: this is not only about limiting spending but also prioritizing spending in a way that aligns your values and future plans. Robert stated "don't just budget to survive, budget to build wealth" which means- don't only set aside money to pay bills but as well, set a goal to acquire one income-genarating asset and make your budget work around that goal.
What follows is understand credit and debit. Understanding Credit simply means being smart with/managing borrowed money and on the other hand understanding debit means to be managing your own money wisely.
Other tips include paying of bills on time, keeping credit usage low, building an emergency fund, avoiding unplanned purchase that is what we call "impluse buying" and most importantly, reading books about money and how it works.
Thanks for reading.
Stay inspired, stay true.
Always your girl @Rita