There are no available shortcuts in achieving financial Independence and stability other than becoming financially literate. Financial literacy neither happens overnight nor is it accomplished by just knowing a thing or two. It happens through education, practical experience, and life lessons. Typically, many people struggle with knowing how to manage personal finances, reduce debt, understand the workings of the stock market, or save for retirement. That’s why you can help yourself by learning.
Financial education is one best investment you can make for yourself. Players in the financial market assert that financial education is the clearest starting point to building wealth. People can steal your money, but no one can ever take your knowledge, or financial education from you. The truth is that at various points in life, you will need to learn the ways to cut down cost; take advantage of a financial opportunity or save for the future. The quicker you seek investor education, the sooner you reap the rewards.
The benefits of financial literacy are numerous and time-tested. Principally, such knowledge increases your earning potential, increases your return on investment, improves the quality of your life and finances, and secures your retirement. What is more, it protects your investment portfolio from unnecessary losses and makes one confident in handling money.
How then does one become literate in financial matters? Here are a few prudent ways:
- Start Now
It is never too late to improve your knowledge about financial matters. You need to make the decision now and commit to it. These days information on anything abounds; you can have knowledge on investing in the stock market, social security, saving for the future, insurance, retirement, forex trading, etc. Providentially, there are many resources at your fingertips to help improve your knowledge about making financial decisions. It is however best to learn one topic at a time and begin with the subject you are most interested in and build a solid foundation of financial know-how. Be curious of wanting to know more.
- Read Financial Literature
Your first source of financial literature should be newspapers and magazines tilted toward money matters. To begin with, read the financial section of the local newspapers and business newspapers like the Business and Financial Times, Graphic Business, amongst others. Additionally, financial magazines to check out are Business World, Kharis Business Africa, Forbes Africa, etc. These provide insight into the domestic and global world of finance and business. Also, there are a multitude of self-help books that teach key financial concepts and personal money management.
- Use the Internet and other Media
Taking advantage of the internet is another great way. The internet is full of relevant information and resources you could use to increase your financial literacy. Wikipedia and Investopedia are useful internet sites one can explore. There is a caution worthy of note to prevent misinformation: there is no one-size-fits-all approach to becoming wealthy or financially literate. Financial and business programs on the Television and Radio are a great avenue for learning too.
- Talk to Licensed Investment Advisors
Getting advice from the experts will go a long way to help you avoid the bad choices in your money dealings. The investment advisors are there to aid you learn how the stock market, treasury, and bond markets operate so as to make some good money. Similarly, take advantage of courses, seminars and lectures organized by investment companies in the country to increase your knowledge base.
- Take a Financial Literacy Class
Take a class on subjects that will help you learn how to manage your finances. Short courses and seminars offered by the Ghana Banking College, Ghana Stock Exchange and the Securities and Exchange Commission of Ghana can shore up your knowledge and build up your capacity on money matters.
- Start Saving and Investing
Experience, as is said, is the best teacher – start saving and investing now. Build financial confidence and muscles by being involved. It’s much easier to learn to play when you’re in the game so don’t be afraid to get in. Either way if even you fail, you would have gained knowledge on the dos and don’ts of the game. It will on the other hand build your risk level so that you could take higher risks which will give you greater returns. For a start, you can take advantage of InvestEye investments portfolios to optimize returns.
These six pointers are very easy steps anyone can take. It is prudent to put in some effort now and reap the benefits of financial comfort in the future than to have the reverse of financial stress. The ball is in your court and the time to act is now.
Martin Luther Otu,
Liaison and Communications Officer,
InvestEye Capital Partners Limited.