How do you address the lack of personal financial skills?
Have you ever wondered why our educational system does not emphasize life skills? I did. In fact, they believe they provide education, but it could be worse since we lack the life skills we all need in every aspect of life.
Life skill we were not taught that how to manage your money??Have you learned this skill from your guardians?? Are they spenders or savers?? Did they teach you how to save your money? Have you learned how to keep your savings for old age? Yet I have the better answer, no, from most of us. Think about it! Life skills are not taught in school. We all learned from our life experiences where we face many ups and downs. Just because you didn’t know good financial skills in school doesn’t mean you didn’t want them now.
It is common to worry about money. Unfortunately, thinking about money too much can worsen your financial situation, but there are simple things you can do to break this cycle.
As a student, you might not learn much about financial literacy in school. However, it is an incredibly important topic to know about, and many of us don’t realize just how necessary it is! Chances are, you already have some knowledge of the basics like major expenses and what to do with your pay check. But there is so much more to know if you want to take charge of your money and start making better choices with it.
Lack of financial skills can have significant long-term effects on your future. The most common reason for this problem is that people never learn how to manage their money, even after graduating. The good news is that there are many ways to address this issue and regain financial management skills that will help you today and in the future.
1.Through proper Budgeting:
Do you Know Where all your money goes? Do you go outside to spend all your money eating burgers, buying drinks, seeing movies, and purchasing clothes?? Are you worried about how to manage your budget?? If yes, make a budget plan go through your bank statement or chequebook for the last year. Write down how much you spent in each category? You probably won’t be able to spend every penny you have on travel, but it will likely surprise you how much of your money you weren’t aware of.
Make a budget plan for a month:
Every month, you have a set amount of money coming in. Every month, you have bills and other expenses going out. But without a budget, figures are always up for grabs as your funds get low and the balance dwindles. But if you have a budget, you know exactly when your bills are due and when you get paid, and this gives you the security to make spending decisions with some sense of ease.
It’s no wonder that everyone is talking about making a budget—the benefits are well documented: You save yourself time by planning your expenses before they happen. You save money by knowing how much you have to spend each month on the items on your list. And you feel better about your financial situation because it’s out in the open.
2. Be a Conscious Consumer:
When you go for groceries, do you have a list? It’s tough to know if you are spending too much money when you don’t clearly understand your spending habits. Whether groceries, gas, or clothes, there is nothing quite as tricky as tracking what you spend daily. So let’s start by establishing your spending habits and then move on to some tips for being conscious consumers.
For example, if you need a new laptop or an iPad, there is nothing wrong with buying one without the “Apple” on it. Or maybe you need a new set of speakers and want something better than Beats by Dre. Unfortunately, we can’t afford to buy products because they cost more that’s the reason we cant buy these things in our money.
Make a plan and vision:
To achieve anything, you have to make a plan, right. So if you really want to do something, and you know what to do but not how, well, then make a plan and vision. The plan is the step-by-step guide of how you will get from point A, where your starting point is, to point Z, where your finishing goal is. The vision is seeing in your mind what you want it to look like when it’s done. Some people call this their idea or an inspiration picture.
3. Think like an investor:
As I said first, our educational system doesn’t teach us how to handle money, invest money, and how your money makes your business grow up? But think about it how to do this to achieve your goal. For instance, if someone begins his small business with a £500 investment and wishes to grow his business, he learns how to invest his money to make his business grow. But, till now, if someone doesn’t know how to invest their money?
So here I will tell you how to invest your money and grow it. But, first, let me ask you a question. Do you know the source of money how it has got? The answer is no. We are no means of getting our money from anywhere. We only have money because someone else has it.
However, if you want to earn money for yourself, you will have to work for it, and we are daily talking about how to make money, that’s why…
Ok, now let me show you how to invest your money and make it grow with some simple steps:
First of all, you need to ensure that your investment is good; otherwise, people will know about it.
If your source of investment is good or from a positive way, then automatically your business grows with the time rather if you use your money comes from wrong way then u will get lost in your business.
Then you should think ahead and find out if the investment will bring you some profit you are looking for.
And then the last thing you need to find out is how much time it will take for your investment to come back with some profit from what you have invested.
So, in the end, if you do all of these steps correctly, then your business will grow up.
The best way to improve your financial situation is to seek professional help. The best way to do this is by consulting a financial planner who can show you how to streamline your finances, steer clear of unnecessary debt and maximize your savings to have a more financially comfortable life.
Another essential step for anyone trying to fix their finances is spending less than they earn. In addition, various things can help address financial skills, including proper Budgeting, being a conscious consumer, making plans and vision, and thinking like an investor.
On the other side, people who lack financial skills are always scared and worried since they cannot be sure of their financial security. They need to work hard and long hours to make money, but they do not want to save it. Therefore, their financial condition is worse because they lack skills and knowledge in handling money.