How To Improve Your Financial Literacy in 2022

Nowadays, being financially savvy has become imperative; not necessarily because money matters more than it used to, but because the ways and means by which we earn and retain money has become increasingly sophisticated, therefore, your financial IQ affects every single decision you make about money: how you earn it, spend it, save it, invest it, retain it and ultimately preserve it for the next generation.

Being financially savvy simply means having the “know-how” and confidence to efficiently and effectively manage, save, invest, retain and preserve money for you and your loved ones and for other stakeholders.

 We have put together 7 simple helpful ways to improve your financial savvy in this new year 2022.

1. Start by Reading Books and Blogs About Personal Finance. Books offer a great way to change your mindset and approach to managing money. You will need to “sharpen the saw” of your mind regarding the workings of finance, if you want to become financially savvy.

2. Start Keeping a Budget.  It’s impossible to anticipate every expense that could arise in 2022 but based on how much you typically earn and spend; you can start tracking your spending by setting up a monthly budget using a simple spreadsheet or website app. Some examples of spreadsheet and web app that help budgeting includes, Google sheet, Mint, Goodbudget, Gnucash, Pocket Guard, Personal Capital and many others.
3. Cut Down Monthly Expenses. One of the simplest things to improve your finances is to reduce variable expenses, such as entertainment, clothing, eating out etc, by being flexible and thinking frugally.
4. Build Your Savings and Include an Emergency Fund. Save what you can and consider ways to adjust your spending to accommodate a higher savings rate. And for emergency savings, experts recommend setting aside at least six months’ worth of basic living expenses in case of an unexpected financial situation.
5. Determine Your Credit Score and Learn How to Improve it. Improving your credit score is another way to save money on interest.
6. Speak with a Financial Professional.  When it comes to basic daily money situations or more complex long-term scenarios, a financial professionals can answer your financial questions and guide you to make good decisions. They can as well help assess your current situation; help you plan for all your financial needs and help you stay on track as you go forward.
7. Make use of Social Media. Use your favorite social media channels to follow financial experts on Facebook, Instagram, Twitter or LinkedIn. You can as well consider joining a personal finance group.