Financial Literacy - Six New Ways of Thinking That Will Change Your Financial Future!

"If hard work and dedication were all it took towealth is simply how long can you go without a
become wealthy, our grandparents would havepay cheque. This should be the foundation of your
been millionaires!"- Glennfinancial planing as you will only earn a fixed
April is Financial Literacy Youth Month in thenumber of pay cheques during your working
Bahamas thanks to the tireless efforts of myyears.
friend Keshelle Kerr of Creative Wealth Bahamas2. Think Debt Free. You can not create wealth if
and her passion for empowering the nextyour money is being consumed by debt.
generation of Bahamian financially. But what isTherefore, you must evaluate every offer of
Financial literacy and why is it important to you?credit critically. While credit provides the immediate
Simply put Financial literacy is "the ability togratification that we all desire it robs you of the
understand and make informed and effectiveopportunity to create real sustainable wealth. And
decisions about the use and management of youronce you allow yourself to get into debt is usually
money." And while money is an important part ofdifficult to get out.
your everyday life, you will agree that few3. Think Net Worth. By focusing on your net
subjects are as intimidating or frustrating for youworth you will ensure that you maintain the
as money.appropriate ratios between your debt and assets.
And while you are expected to make informedAs your net worth is the best indicator of what
and effective decisions about the use andyou actually own.
management of your money. You are challenged4. Think Financial Education. The best way to
by the fact that you have not been taught howimprove your financial literacy is learn as much as
to manage your money effectively.you can about money and how it works. commit
It is not surprising then, that your money worriesto reading at least one book or magazine on
maybe one of the biggest causes of stress inmoney and investing each month. "Taking Control
your life. And why improving your financial literacyof Your Money Workbook is good resource to
may be the best decision you can make.help you get started.
While you may have bought into the notion that5. Think Simplicity. One of the biggest challenges
all you need for financial success is to "get a jobyou will have is distinguishing between your wants
and work hard" by now you have realized thatand needs. So once you learn how to distinguish
this is not the case. The fact is working hard isbetween what you want and need you will
WORTHLESS - unless you know how to manageimmediately reduce your spending by at least 38
your hard earned money!percent. As most person spend 38 percent of
The truth is no matter how much time, efforttheir money on things they do not really need.
and dedication you invest in your career, you will6. Think Financial Goals. Setting financial goals may
never achieve the success you deserve - unlessseem elementary but setting financial goals is the
you know how to take control of your money!key to bringing discipline to your money
As you live in a society that makes you ultimatelymanagement. And while it is important to live for
responsible for your financial future and the resulttoday you must also plan for tomorrow. Finally,
you get from your money, here are six newyou do not have to be rich to be financially stable
ways of thinking that you can use to improveall you have to do is change your thinking about
your own money making decisions.how you are managing the money that you do
have.
1. Think Wealth Creation. And the definition of