Hey readers, happy November! Grab a blanket, a warm drink, and settle in– it’s financial literacy month! Here at EmpowHERto, we are excited to share some financial tips and tricks to welcome this month’s financial festivities. In today’s inflated economy, the importance of understanding financial literacy is growing with it. But fear not! We are here with simple tips and tricks to help you up your financial literacy game. Let’s dive in!
1. Create a monthly/yearly budget
Creating a monthly budget is essential for keeping track of income and managing how much you spend. To start simple, begin to track and document your income vs. expenses. List all of your sources of income, such as your paychecks, and then track your monthly expenses, such as rent and groceries. Don’t forget those extra coffee runs! Add them up and compare your earnings and expenses. If the amount you spend surpasses your income, it’s time to reduce non-essentials. Set aside some of your earnings for savings or an emergency fund, and stick to it. Remember that budgeting isn’t about deprivation; it’s about making your money work for you so that you may achieve your financial goals with assurance.
2. Open a savings account
Another tip for budgeting and financial planning is to create a savings account. Having a savings account is helpful for a variety of reasons. First and foremost, it gives financial stability and peace of mind. By saving a percentage of your income monthly, you build a safety net of funds for unforeseen costs or emergencies. Savings accounts also pay interest, which allows your money to grow over time, albeit slowly. Furthermore, having a specialized savings account encourages smart budgeting and saving for long-term objectives such as your first car or post-secondary education plans. Overall, a savings account is an essential instrument for obtaining financial stability, planning for the future, and realizing your financial goals.
3. Be cautious about misinformation
It’s important to note that not everyone giving financial advice on social media is a trained financial expert. Their intentions may be motivated by personal gain rather than genuine concern for your financial well-being. As a result, be sure to double-check information, seek advice from trustworthy people, and perform thorough research.
4. Set and track financial goals
Creating monthly and yearly financial goals may sound a bit scary. However, once you begin to earn money, it is important to track and estimate realistically what your financial goals are. This can be assessed using short-term and long-term goals. Short-term goals can be more urgent things that you want to achieve in a shorter time frame. Long-term goals are things that usually aren’t as urgent and allow you to save for a bit longer. In an ideal world, the short-term goals should help add up to long-term goals, however with individual circumstances it’s not always going to be possible.
Want more financial tips and tricks? Follow us on instagram @empowherto for info on our Finance Finesse program.