Financial Literacy

Elements of Empowerment from the 27th Transformational Agenda Magazine: ‘Professional

* note: This is the fifth of nine articles which together make up the “Self-Analysis Tool”. See directions at end of article.

Financial Literacy Financial literacy starts with knowing the basics of how to earn, borrow, save, invest, spend, and protect. Understanding these six principles is essential to achieving a working knowledge of your finances and will help you make informed and effective decisions in your life.

• Are you getting it while the getting is good?

Position yourself to earn as much as you can, and know the details of both your paycheck and your benefits. In these difficult financial times, you must be certain to earn what you can while you are able.

Optimally Earn | Rate Yourself – 1 2 3 4 5 +

• Is the payday loan man your best friend?

Borrowing money is a way to purchase something now and pay for it over time while incurring interest. Sometimes it is a wise investment to borrow for a home, a practical car, education, or an entrepreneurial pursuit. However borrowing for consumption and necessary living expenses most often indicates that difficult decisions are being delayed while your financial health is rapidly crashing.

Minimally Borrow | Rate Yourself – 1 2 3 4 5 +

• Will a rainy day wash your savings away?

Open a bank or credit union account and “pay yourself first” by immediately saving a portion of all you earn. Savings are essential to achieve comfort and security in life and in retirement, are essential for investment, and are necessary to successfully handle unforeseen needs and life’s inevitable rainy days.

Maximally Save | Rate Yourself – 1 2 3 4 5 +

• Does Your Money Work for You?

The wealth-building potential of regular savings is enormous. Even a small amount of regular savings, combined with the power of compound interest, is an effective means of creating wealth. Why only earn money by working for a wage or salary? Why not save and invest on a regular basis so that your money can work for you?

Investing requires both knowledge and discipline. Many types of investments exist, and we should choose our investment vehicles based on our risk tolerance and our financial goals. Financial vehicles such as savings accounts, certificates of deposit, stocks and bonds, indexed funds, employer provided retirement accounts, and Individual Retirement Accounts (IRAs) should all be considered. Only invest in things that you understand, and never hesitate to seek competent financial planning and investment advising assistance. It is wise to hire competent financial professionals to aid you in wealth accumulation, and remember that wealth accumulation takes time.

Invest Wisely | Rate Yourself – 1 2 3 4 5 +

• Who controls your wallet?

To get a handle on where your money is going, it is important to make a budget or plan and to track your spending. Remember that “friends” who encourage needless spending are only “fair weather friends” who probably struggle with their own finances. Family members who want you to provide for them what they won’t provide for themselves (especially while not contributing what they can non-monetarily) require that you insist that they become more motivated and self-sufficient.

Control Spending | Rate Yourself – 1 2 3 4 5 +

• Do you believe in protection?

Insurance, wisely bought, can help assure you and your family’s financial security given sickness, disability, or death. A will and insurance that is tied to a trust can help ensure that you will be able to provide for your loved ones “from the grave.”

Assuredly Protect | Rate Yourself – 1 2 3 4 5 +

Never spend more than you earn and always make intelligent decisions with your finances. Spend consciously! When you circulate money within your family and community, you create wealth, provide jobs, and actively improve your community.

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Read this article for a better understanding before using the ‘Self-Analysis Tool’:
Introduction: Making Your LEAP in Empowerment Easy, Quick & Successful

Print forms from this article on pages 42,43, & 44: Your Beloved New Being – Print PDF ➡

Start with the first article of nine. This is 5 of 9. Read each article and enter your response for it on your form when you finish each one.

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