The Mystery To Practical Money Skills
You Need Practical Money Skills
Why should you care about whether or not you have practical money skills, after all, you’re getting along. That might be the problem, you’re just getting along, you’re not getting ahead. Having good moneyskills means more than the ability to just live pay check to pay check. It’s about directing your financial life. If you are always running out of money before the next pay-day or just making minimum payments on your credit cards, you may need a financial education brush up.
Your Financial Literacy
What is financial literacy? It sounds complicated, but it’s very simple. It is your ability to understand how to make good financial decisions. How to manage your money, improve your spending habits and take charge of your finances.
Are you buried in debt? If you are, do you really know how to dig yourself out? Are you saving for retirement? If not, when can you start? Are you following a budget? If not, why not? Do you have any idea where you are spending your money? Do you want to know? How much do you know about where your money is invested? Do you trust yourself to make good investment decisions? If not, do you know where to go for help? Do you have a resource to go to with your financial questions and concerns?
Tough questions but important if you want to change your financial direction and become financially self-reliant.
Do You Have Financial Discipline?
Your ability to resist financial temptations is a critical money skill. Financial discipline will keep you out of financial trouble. Many people become financially squeezed because they cannot resist the temptation to spend. If you can shrink your appetite for spending you will take a big step towards financial self-reliance.