Financial Literacy helps us in many ways in different phases of life, from maintaining a checkbook to planning a house budget to the retirement planning. In this article we write the basic five important steps to maintain financial literacy, you can even use finance calculator India to calculate the financial expenses and interest rates.
Identifying the Starting point:
Knowing where oneself is in his financial stage is very important to plan for the future financial growth, be it 5 years or a decade. Calculating the net worth is one of the simplest ways to know the financial status of individual. Its very important to spend on needs than wants, cause wants never ends and needs are limited.
Setting up Priorities:
First step is to clearly differ the needs and wants of the person. Needs are the basic requirements to survive like food, shelter, clothing and housing, transportation vehicle etc. where as wants are the stuff we would want in life, like luxury items etc. which are not necessary for survival but to satisfy own desires. When one knows the difference between the two, then one can easily prioritize all the necessities without spending money on unnecessary stuff.
Document your expenses and spending:
Having a personal spending plan is very necessary, most of the people know how much they are earning and certain people can only tell how much they are earning and spending. The best way to find this is to create budget of how much you are getting and how much are you spending overall. Using finance calculator India will help you maintain all your budget and expenses and even calculate the interest you’re spending and paying.
Pay Your Debt ASAP:
Most of the employed people and businessmen have huge debts, be it credit cards or medical bills, student loans and personal loans. These debts stop oneself from getting into better financial positions. There are many strategies on how to clear debt in the earliest. First step is not to make more debts.
Securing The Financial Future:
No one knows when one will retire. There is different age limit in different sectore for retirement. Even then life changes in an instant, be it health issues or accident type issues or may be even to take care of a family member. Its better to have a plan when you are young and energetic. Once you have a plan in the beginning of your career, you’ll have more time and you can save for your goal from beginning.
Even if one has finished their education, no one teaches money skills in school or college or home. Focus on your career and goals and save up money for future financial stability.