Did you know, that August 14 is Financial Awareness Day? No…? Well, now you know! Financial Awareness Day isn’t exactly one of the coolest of the holidays out there, but financial literacy can really help your future self thrive, even during economic downturns, pandemics, or when unexpected expenses crop up.
In this blog, I give you five simple tips, to help you make the most out of Financial Aware Day:
1) Learn how to invest – It’s never too late to start investing, and it can be an easy, and relatively passive way of helping your savings grow at a rate faster than inflation. If you’re not investing your money, inflation will slowly eat away your purchasing power. Not sure how to start? We have many free webinars to help you get started.
2) Create a budget – Creating a budget enables you to manage your household finances and gives you a good idea of how much money is going where, on a frequent basis. Budgets can help reduce stress and enable you to have more control over your money and spending.
3) Plan for your retirement – Retirement is one of the biggest milestones that many of us hope to one day be able to reach. As you get older, you are generally less mobile, and have less income coming into your household. Be smart and plan ahead by setting goals, budgeting, and working with your family, or a financial planner to prepare for this major life event.
4) Only borrow when you need it – Chances are that you’ve heard the saying that there is good debt and bad debt. Examples of good debt include: purchasing a home, and paying for post-secondary education. Examples of bad debt include: unpaid credit card bills, auto loans, and payday loans. Borrowing money can be very costly, because you’re often paying interest for any loans you take out. Next time, ask yourself, do I really need to borrow money to purchase this item? Do I need this item? Will this investment (such as a house) appreciate in value, or will it depreciate in value (such as a car), to help you determine if this is good debt, or bad debt.
5) Be forgiving of yourself – Did you spend more money on an item than you intended? Did you stray from your budget a bit? I get it, we’re only human, after all! Feel free to plan for a periodic Cheat Day if you need to! After all, if you plan it, you will also be more prepared, and hopefully be able to get quickly back on the right track towards achieving long-term financial success.
With these tips, you are now ready to celebrate Financial Awareness Day every year! Good luck on your journey!