7 Steps You Can Take to Improve Your Financial Literacy

Financial literacy is not just about understanding money—it’s about empowerment, investing in your future, and making educated decisions. Join Claire Hollander, a wealth advisor at Liberty Group, as she breaks down the vital importance of financial literacy and provides actionable steps to strengthen yours. Whether you’re a financial novice or an experienced investor, these seven steps can help you make informed decisions for your financial future.

Step one, expand where you’re getting your information from.

Whether you’re listening to podcasts, articles, newspapers, it’s important to research where these sources are coming from and make sure that the opinions are unbiased.

Step number two, create a budget.

By having a budget you will be able to track very effectively where you want your income to go. Whether you want to use a portion for it for things that you want, things that you need. paying off debt, just saving a budget will help you outline exactly where you want your money to go.

Step three, understanding your credit and managing your debt.

It is very important that you understand the way credit works, good credit can help you get a loan. So if you want to have a mortgage for a new home, if you want to have a loan to buy a new car, having good credit gets you there. And the way that you can build up your credit is by opening different credit cards and using those credit cards towards your big purchases. Also, it is very important that you pay off those credit cards monthly and get rid of that debt. By paying off your credit card monthly it will help your credit score go up. And you can also enjoy numerous benefits from having credit cards, whether it be restaurant perks extra miles when you’re flying hotel perks, cashback, you name it, the opportunities are endless.

Step four, learn about Investing. Investing can help you reach your long term goals and accomplish your financial objectives.

It’s important to start with the basics when you’re learning about investing, focus on stocks, bonds, ETFs, mutual funds, and real estate. Understanding these things can be crucial and can help you work towards your financial goals. Step five, understanding your insurance policy. Depending on which kind of policy you have, it is very important to understand the way that it works. Typically, insurance policies have four parts, a declarations page, and insuring agreement, conditions and exclusions. Knowing those four sections and how they work will help you to protect against financial liability, and risk.

Step six, come up with a savings plan.

Figure out how much of your income you can save every month, and figure out where you want it to go. Whether it be you open a savings account just a traditional one or a high yield savings account. It is important to do the research and figure out which savings account you would like to use. After you do that and figure out how much of your paycheck you want to go into your savings account each month. Then you can set it up so that it’s automatic. Having that automatic transfer set up will ensure to help reach your financial goals in the future.

Step seven, talk to a financial professional.

Come talk to us here at Liberty group. A financial professional can help answer all questions that you have. from simple to complex. We are here to help educate you and advocate for you and the financial future that you have in mind.