Most of us would consider literacy (the ability to read and write) as being one of the most important skills that you can have in life. However, it is also extremely important that you are financially literate, if you hope to have a successful life and live within your means. Studies show that most Americans have a poor Financial IQ, so here are 5 top tips for becoming financially literate:
1. Understand Yourself and Your Needs
While you should listen and consider the advice of others, it is important to remember that we are all different, and it would be unwise to blindly follow the advice of someone with a completely different income level, family situation and risk tolerance. If you’re young, then it is likely you will be able to take on a little more risk than a married couple with 3 children, so always ask yourself, before you do anything, whether it is right for you. Similarly, some people can keep multiple credit cards with no problem at all, while others cannot resist the temptation of maxing it out; ensure that you are fully aware of your own strengths and weaknesses.