We at Kashcalf are all about financial literacy, you could kinda say it’s our thing. With that being said you can probably understand why we love April so much. No, not because of April fools…Ok we do love pranking people as much as the next person but you may not know that April is financial Literacy month.
What is Financial Literacy?
Great question. Financial Literacy sounds more like a cool buzz word than an actual thing you need to know about. That couldn’t be further from the truth. Financial Literacy is about learning the basic knowledge to make sound financial decisions. This can allow someone to grow their wealth and navigate the financial world with confidence.
So, in honor of Financial Literary month we are going to discuss a few simple things you can do to start bettering your financial life.
Make a Budget
Think of a budget like the instruction manual to your financial life. How can you know what you have or plan appropriately for the future without some kind of map letting you know where you are. There are tons of ways to make a budget. Use envelopes of cash, put money into savings first or break your income into easy groups for fixed spending, flexible spending and savings.
For more information on budgets read our article, Budgeting Basics.Â
Build an Emergency Fund
An emergency fund is designed to get you through rough financial times like a medical emergency, unexpected automotive bill or the loss of a job. While there are many thoughts on exactly how much should be saved it is typically believed that between three to six months worth of one’s expenses is adequate.
For more detailed info on making an Emergency Fund click here.
Take a Peak at your Credit Score
What better time than during financial literacy month to take a look at your credit score. There are several ways to do this. Some companies provide an annual tracking service of your credit (for a fee of course) but due to the 1970 Fair Credit Reporting Act, credit reporting agencies are required to provide you a free copy of your credit report annually. All you have to do is ask.
https://www.annualcreditreport.com/index.action
Cut Those Bills
One way to free up more of your money is by going over your bills. Oftentimes people are still paying on monthly services they don’t use anymore or paying too much for ones they do use. Calling all those companies and haggling over prices doesn’t sound like a fun way to spend a Saturday, does it? Well, the good news is you don’t have to. Companies like Billshark and Trim will do the haggling for you. They can save you money on cable, internet and cellular service. As we all know, these bills can add up.Â
Trim provides many personal finance tools. Some services like subscription cancellation are free while others like bill negotiation are only available at a price. Billshark doesn’t have any fancy features like Trim but, Billshark only charges you once they can save you money. They charge a 40% fee on the money they save you but, it’s better to have 60% of something than 100% of nothing.
Invest
Investing is the best way to turn your daily hustle into true wealth. Investing puts your dollars to work for you, and not just 9-5 but 24 hours a day 7 days a week. Money builds interest, and that interest builds interest and eventually you are sitting on quite a pile of cash. This is why no one has ever wished they had started investing later in life. The avenues of investment are plentiful. You can invest in a business, in rental properties, in digital currencies, in ETFs, mutual funds and even in good Ol’ stocks and bonds.
One way we recommend to get started investing today is through M1 Finance. These guys offer a unique combination of automated investing and customizations that could satisfy even a seasoned investor. M1 allows fractional shares so you can be fully invested as well as minimal fees so your money can work for you and not a financial advisor.
Conclusion
In honor of Financial Literacy Month do something for your financial future today.Whether it is investing, budgeting or simply saving money, actions taken today can help the size of your wallet tomorrow and who doesn’t want a fat wallet?