Whenever we join a College or a University, we choose specific subjects to boost up our skills or practices for specific field or for future job. But have you ever thought that why we don’t choose any specific subject at school level? Why we read down all the subjects even which we don’t fit in? Why we spend likely 7 to 10 years to learn about all the subjects? The Answer is simple “Basics”. Before following some specific field or profession we learn the basics of all subjects so that we can easily research about any issue in our field. But one of the main subject which we don’t choose to read at school even it is not taught as a traditional education is “Financial Literacy”. We spend half of a life in gaining education about some specific field to earn money but we don’t learn how to manage money that is included in financial literacy.
What is financial literacy?
Financial literacy is the skillset of learning how to manage money in order to meet the expenses in better way. It includes Portfolio Management, Emergency Funds Management, Currency vs Asset identification, Investing Management, etc.
Why we should learn Financial literacy?
Whether you are a Job seeker or want to become a businessman you must learn Basics of Financial literacy. For a Person, who has money (less or more, no matter) he becomes responsible to manage his expenses for future needs in form of Emergency fund, Business fund, Credit card fund, etc. Life is Unpredictable but we have to live it in every situation. So, we have to master the basic rules of life from which one is Financial Literacy.
Benefits of Financial literacy:
Before learning about any specific field, we should know its key benefits so that we take it seriously and learn it wisely & directionally. Here we will discuss the key benefits of financial literacy:
(Maybe we don’t cover any specific benefit but you can tell us by visiting “Contact Us” page on our site www.tharkitrader.com )
1.Money in a way
Whenever you start to learn a new skill or a new subject, your mind start to visualize that teachings which you learn from that specific topic. Similarly, it implies in Financial Literacy. The first and most important impact gained from Financial knowledge is that if you are really a serious learner, you start to spend money in a better way. Although at the first step, you don’t know “How budgeting works?” But you start saving as you become serious about your Future.
2.Smart Budgeting
You start saving money when you start learning but it becomes very interesting when you move forward towards next step that is “Smart budgeting”. In simple wordings, smart budgeting means to save money in a smart way. But here the word budgeting makes it more amplifier as it means first you calculate your total expenses, then you make a budget (calculated money for each and every single expense). Smart budgeting plays a key role in your life because you know how to spend money in a calculated & better way? The other name of Best Investor is Smart budgeter.
3.Debt Ctrl.
This is very common that by nature or by need or deed we need debt but here the benefit of best Financially literated Person speaks because if someone is learning Financial literacy he doesn’t depend his life on debt or Debt Trading. It’s true that some people take debt to start their business or investing etc. In such case, a financially educated person makes a best decision because he do this in a calculated way. It is very easy to take debt but it becomes very difficult to return it on time. Because when you are under debt you are not just under Money Return Pressure. It affects your mindset towards money. Your emotions overwhelmed you. Small things look difficult but really they aren’t. These all the things define your non-calculated steps towards debt.
4.Early Saving, Later Having
Early steps towards learning Finance proved to be a Future-Proof. No one can tell you exactly when you should start? What will be the best age to start saving? But if you ask me[Tharki Trader] when you should start, so I will say, “In your lifetime, Whenever you take money serious you should start?” It doesn’t matter you are earning in hundreds or thousands but you start saving, it matters. Saving money from early time helps you in bad times. Maybe it shatters different questions in your mind that how you should start saving? So, don’t worry we will guide you in upcoming blogs. Be updated with Tharki Trader.
5.Emergency Fund
It is unpredictable that you will face health issues in your life or not. But it is 100% true that Health is Wealth. So, before starting earning more money from money, financial literacy teaches you how to save some part of your funds for Emergency Time? According to me [Tharki Trader], this is one of the main & key benefit of learning Financial literacy that it teaches how to save money for Emergency situation.
6.Investing Mindset
Financial literacy doesn’t just teach you how to save money for your daily life expenses but it also provides you different ways to earn money from different ways. One of them is developing “Investing Mindset”. In which field you will invest or for how much time period you will invest? It all depends on your investing niche selection but I am just trying to remind you benefit of learning Financial literacy.
7.Early Retirement
Life is so short to enjoy the long-tail pleasures of Natural beauty. Nobody has time to glorify their soul with such beautiful moments. Everyone is busy in their daily life although it is not bad even it’s much important to work day by day to fulfil the requirements of daily life but we should try to plan our financial goals in such way that it doesn’t burden or force us to kill the happiness hope of our life. The hallmark of a true job keeper or business man is that he doesn’t waste his time in idle habits at first. Your first main goal of work is to make enough money from different resources like investing, trading, or any other skill which you suit so that you can fulfil your best wishes on time. It leads you to retire early or to be happier man earlier. And it all happens through learning financial literacy in your free time.
8.Say NO to Credit Score
Maybe you think that this line “Say NO to Credit Score” looks unreal but it’s reality. What if I tell you “Say NO to Bad Habits” and wisely it also means “Say NO to Credit Score”. Our financial outcomes are the results of our daily life habits. We can’t blame luck for all the instances. Hard work, Discipline, Goal Planning etc. these all determine our habits. As you know, what we consume tells us what we will produce. If you will follow unnecessary wants you obviously want to get debt and the limit of your un-necessary wants will measure your Credit Score. By learning financial rituals, you will explore that which habits are becoming dangerous for your future.
9.Financial Scams Awareness
In case of Money, you shouldn’t trust on every random guy. Especially in this Digital Era it is very difficult to trust on someone where fraud is everywhere and people are greedy of another People’s hard earned efforts. At this Point in life, financial literacy makes you self-independent. By knowing Authentic Sources in Financial literacy, you become capable of identifying the difference between right and wrong.
10.Goal Planning – A way to Better Decision Making
In this life, we face such events where we have to perform or show our potential by offering Right opinion. Similarly, in case of Financial Race we face different time periods where we have to make a decision. Whether it is in our favor or other’s one but we have to play better for best of the best outcomes. What if you take a decision based on Education and Calculation. Many people think financial strategies are just like a slot game (solely dependent on luck) but you must know that there is a Mathematical term called Probability to predict the outcomes. Overall, a better Financially literate Person play better in this case of Goal Planning and Decision making.
11.Say No to Stress – A better Risk Manager
There is no field/profession full of profit or no loss. Every Profession comes with different goals, different happenings and different outcomes. If we are not well educating or we have not enough nerves to face the rejections or loss we Give Up. We can never say NO to stress but we can manage stress to lower down its effects. By luck, it will be very rare if you don’t accuse of hurdles but if you are not ready for such circumstances you are going to give away your efforts for free of cost.
12.Lead Generation
Efforts don’t talk to Public but Results are louder and louder. One of the important step towards creating Generational wealth is not just earning money and more money. It also includes learning Money management, Account handling, making right decisions, emotional intelligence, updating ourself for modern technologies and principles, adopting latest technologies, strong nerves towards Rejection, etc. This all comes by learning and maintaining financial literacy in your bloodline and first of all at least in you.
