Financial literacy does not require a PhD in economics. Every consumer can learn to manage, save and invest money efficiently. This concerns everything from budgeting to real estate to taxation. Whether you need help with day-to-day planning or long-term saving, the following methods will work:
1. Follow Financial Media
Check out famous websites and blogs covering consumer finance, including credit. For example, loan review sites explain the pros and cons of payday loans from Digido Philippines and provide a step-by-step guide for first-time borrowers. These loans are easy to get, but they should be used in emergency situations, or when other forms of credit are inaccessible.
To gain a better understanding of the financial industry in general, subscribe to updates from websites that cover finance in the Philippines, such as Inquirer.net. Global media channels like The Financial Times have special sections dedicated to the country. Choose only trusted sources.
2. Listen to Financial Podcasts
Podcasts are a great way to improve your literacy while multitasking. For example, you could listen to them while driving, doing housework or walking the dog. The Planet Money podcast by NPR provides a wealth of information about consumer finance that is useful for listeners in the Philippines. It covers such topics as personal budgeting, consumer behaviour, and financial news. You can understand retail pricing, insurance products, mortgage, and other financial services better.
3. Read Personal Finance Books
If you prefer books, the choice is just as broad. Begin with guides to personal finance for dummies, and develop your knowledge step by step. Check the lists of the best personal finance books for 2021 created by experts.
4. Use Social Media
Social media lets you connect to experts in any field, including personal finance. Join communities dedicated to the subject, follow prominent experts and financial service providers. Communities devoted to behavioural economics will help you shop and manage your finances more mindfully.
5. Start Keeping a Budget
Install a smartphone app for personal budgeting and start tracking your expenses. Alternatively, you can use a simple spreadsheet or a website app. Some systems can automatically link up to your bank account, so you do not have to enter the transactions manually. For example, the Goodbudget app is based on the envelope method. Users can divide their income and set budgets for different categories, such as groceries or transportation.
6. Talk to a Financial Professional
A finance expert can answer any typical questions about money management and help you with more complex topics, such as planning for retirement and the best conditions on a mortgage. They can evaluate your financial situation and help you plan your future.
To Sum Up
Work on financial literacy step by step, and never stop learning. The key is to just start. Knowledge of finance is crucial for any consumer. It will help you make wise decisions with your money, avoid getting into debt and plan a better future for you and your family.