19 Mar Why being financially literate will help you?
Most of the people around, and even you – must be entirely relying on financial experts to make all your financial plans. Charting out a financial plan is not an easy task – but if you know the ins and outs of it, you will be able to best chart out your financial plan for yourself. So why wait till you find someone to plan your finances – here are a few reasons why being financially literate is a big deal:
To create your budget:
Who knows your incomes and expenses better than your yourself? So the first step about being financially literate is that you can easily chalk down your incomes and expenses, maintaining an account will help you a lot – and doing it regularly will help you maintain a systematic account of your inflows and outflows. A proper budget will aid you in maintaining a proper appropriate estimate of your requirements.
The economy is not stable – there are a lot of fluctuations every single day. So if you don’t keep up with the pace, it isn’t really of any use for you. You need to keep up with the ups and downs of the economy and have the ability to adapt your financial planning according to the whims of the economy. And keeping yourself updated is always great – so attempt to learn something new every day.
Control your debts:
If you know the intricacies of your finances, you won’t ever fall in the trap of debt. This is because you’ll be in a position to analyze and understand the calculations which are decisive factors in making decisions related to debts. So if you are in the position to know and understand these calculations, you will never be worried about how to repay those debts.
No one can fool you:
Well, it may sound funny, but being financially literate, no one can con you. Most of the times you see people cheating other non-specialists with ponzy schemes and other money doubling schemes – if you are financially literate, no one can possibly fool you when it comes to finances. Also, you will be in the position to analyze and work out the proposition put forth in front of you. You won’t fall for the way these schemes are marketed and made to appear lucrative – because you know what they’re based on!