Use Financial Skills to Make Smart Decisions

 

Financial Knowledge & Financial Wellness

Financial literacy is to acquire knowledge about financial skills and to use these skills effectively, such as personal financial management, earning income, budgeting, paying off debt, savings, investing etc.  The earlier you start acquiring financial knowledge the better in managing your money matters.  When you start practicing financial skills, you are less vulnerable to financial frauds. Once you acquired the financial knowledge impart it with family and friends, because most of the people find it difficult and confusing.

To learn and manage finance you should learn the language of finance.  As a beginner you need to identify your source of Income, a job or business to earn money. 

Next step is creating a plan for spending, includes needs such as food, clothing & shelter and, wants such as your desires for shopping, dining out, travelling etc. This spending plan is Budgeting.  While budgeting make provisions for emergencies, short term and long term goals. 

Saving money, as a beginner (young), you may think retirement is far away, but you have to start keeping money aside at young age itself. The more years you have, the power of compounding interest gives you leverage in saving money.  As a benchmark spend 50% of your income for needs, 30% on wants and save the remaining 20%.  If you find this difficult, you can automate savings by instructing the bank for recurring deposit.

Saving for retirement alone is not enough for building up a fund for Financial Wellness.  For financial wellness, Investment helps to build up fund.  Some of the investment instruments are bank fixed deposit, company deposit and recurring deposit, which gives fixed income.  Other options are market linked products such as shares and mutual funds, which are risk bearing.

During troubled times whether you are a business owner or employee financial stress has become a key factor for anxiety.  People are searching tips for financial well-being from any source they can get.  Financial wellness is having sufficient income or fund to meet budgeting, savings, investing and monetary goals as per your plan.  Financial wellness is having control over spending money for your needs and wants, meeting your financial emergencies and other monetary requirements.

Financial knowledge helps you to make smart financial decision that help you achieve the lifestyle you want.  It helps you to overcome situations like financial depression due to natural calamities, pandemic etc.  

Even in normal life the more money you make financial literacy supports you to make more effective decisions in managing your money.  To afford better things in your life like buying a home, travelling, having a family, your dream car, retirement and financial security.  In short without financial literacy money gets wasted and financial literacy helps you get closer to your financial goals. 

Personal Financial Management

Personal Financial Management, are we cent percent successful in money management.  What normally we do, what we feel right and is that feeling sufficient enough?  To do smart money management you should have an in depth knowledge in different aspects of Financial Management.

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Wellness & Lifestyle Management

Wellness is a process of imparting knowledge and encouraging others to practice healthy habits in all dimensions of a person's life, including Social, Physical, Emotional, Occupational, Intellectual, Environmental and Spiritual well-being.   Wellness is the act of practicing healthy lifestyle in your day to day life to attain a state of complete physical, mental and social well-being, instead of leading a life without disease and a weak physical and mental state.  READ MORE....