Tips For Improving Your Financial Literacy

What is Financial Literacy?

Financial literacy is the ability to understand and effectively manage your money. It is a crucial life skill that empowers individuals to make informed decisions about their finances. Unfortunately, many people lack basic financial literacy, which can lead to poor financial decisions, debt, and financial insecurity. In this blog post, we will explore the importance of financial literacy and provide some tips for improving your financial literacy.

The Importance of Financial Literacy

Financial literacy is essential for making sound financial decisions throughout your life. Whether you are saving for retirement, buying a home, or investing in the stock market, having a good understanding of financial principles and practices can help you make informed decisions that will benefit your financial future.

Financial literacy also helps individuals avoid debt and financial insecurity. By understanding how to budget, manage credit cards, and avoid predatory lenders (that have led some to even commit suicide), you can avoid the pitfalls that lead to financial stress and hardship.

Tips for Improving Your Financial Literacy

Improving your financial literacy is a process that takes time and effort, but the benefits are well worth it. Here are some tips for improving your financial literacy:

Educate Yourself: There are countless resources available online and in print that can help you improve your financial literacy. From books and blogs to podcasts and online courses, there are many ways to learn about financial principles and practices.

Start Small: Financial literacy can be overwhelming, especially if you are starting from scratch. Start by focusing on one area of your finances, such as budgeting or credit card management, and work your way up from there. 

Seek Help: If you are struggling with your finances, don't be afraid to seek help from a financial professional. A financial advisor or credit counsellor can provide valuable guidance and support.

Practice Good Habits: Good financial habits, such as saving regularly, avoiding debt, and living within your means, are essential for long-term financial stability. By practicing these habits consistently, you improve your financial literacy and build a strong financial foundation for the future. 

Conclusion

Financial literacy is a crucial life skill that empowers individuals to make informed decisions about their money. By understanding financial principles and practices, individuals can avoid debt, financial stress, and achieve their financial goals. 

Improving your financial literacy takes time and effort, but the benefits are well worth it. By educating yourself, starting small, seeking help when needed, and practicing good habits, you can improve your financial literacy and achieve financial security and stability.

THE BLESSINGS AND CURSES OF MMM ET AL

This year 2016 has proven to be unarguably saturated with so many forms of online and offline communities of people helping people, multi-level marketing and Ponzi schemes viz; MMM, Icharity, Helping Hands International, ZarFund, Ultimate Cycler, Bits 2 Biz, Greenworld, GNLD, Fast Track and a host of others. Some of these platforms have been in existence for quite a long time now but happen to have gotten more publicity this year. Why so?

This is the part where so many of us will not like to hear of which I’ll just have to say nonetheless; it’s corruption.

All these schemes of course are legitimate sources of income, all you have to do to benefit from them is take a little risk, do some little work and afterwards smile a big smile, but I mention corruption because corruption has turned most Nigerians to becoming greedy.

Recall that before 2016, cash flowed generously in the country and so many persons literally had to do nothing to make cool bucks but right now, it’s no longer status quo. The standard of living of these persons have grown quite high and they need to keep up appearances, hence their current disposition to maximizing whatever opportunity that comes their way, which these schemes offer.

I’m in no way insinuating that all participants of these schemes are greedy. There are some who play by the rules and are moderate in their dealings which are absolutely commendable, but there are many much more that are ‘smart’ enough to play by their own rules, whose dealings threaten the sustainability of these schemes.

For example, why would the treasurer/executives of a cooperative union invest the entire cooperative funds in their possession? Why would a participant in MMM have up to twenty seven (27) accounts? Why would an individual invest his/her entire salary in any of these schemes? Why would parents invest their children’s school fees, shopkeepers their rents, students their fees? The list goes on and I’ll tell you why they do this. It’s greed.

A platform like MMM made it clear that one should invest only spare cash i.e. money not having any use for the time being which could be translated thus; whether or not you get your money back, it does not in any way affect your standard of living. If you invested any money that makes you feel uncomfortable, you’re definitely not doing it right.

More importantly though is the effect that these schemes are having in our lives as individuals and as a nation. Some are positive, others are negative. Let’s take a look at some of the positive benefits in summary:

1   Increase in standard of living.

Of course, that’s what more money in your pocket does.

2.  Increase in minimum wage/workers welfare

When people are faced with plenty of alternatives to make easy, cool and legit money, very few would be willing to scrub floors or take orders from anyone.

3. Pursuit of true passion

Lack of money and jobs have forced many to do things they ordinarily wouldn’t have signed up for —especially our secondary school teachers —. If there’s a way they can make more in investments than their monthly take home, they’ll most likely quit.

4. Improvement of banking policies

Since many people will no longer be willing to stash their money in the banks, bankers will be forced to think outside the box in other to ensure their survival. 

5. Reduction in unemployment

With so many people quitting their jobs and opening their businesses, there will be enough jobs to go round.

6.  Reduction in violence/crisis

With so much money in my pocket, I’ll be very quick to forgive any rough driver who dents my bumper. I’m always happy and hardly notice increment in the prices of goods and services.

Enough of the potential bright sides; how about checking out some negative impacts of these schemes:

1. Increment of government taxes

The profits from these schemes are not taxable, and with many people quitting their jobs and making this money, existing tax revenues will drop and non-participants of the schemes may be required to bridge that gap.

2. Inflation

Since so much money will be going round, prices of goods and services will definitely soar, thereby stabbing our already dying currency.

3.  Loss in national GDP

Many government and private workers already buried in the scheme focus more on multiplying their earnings rather than their job roles thus slowing down our growth as a nation.

4  Reduction in the nation’s workforce

Very few people will be willing to work.

5  A lazy people

There would be a colossal loss in productivity. Students will no longer see the need to study, workers may lose their drive etc. This is true though for those who define money as the ultimate.

6.  Unpatriotic Citizens

Many will tend to live carefree lives and may not be passionate enough to struggle in smoothening the nation’s rough plains.

And so much more…

I myself have been greedy and have my greedy tendencies too, but I will like to say this to all networking participants;

Never make the acquisition of money your drive in life. Money will definitely make you happy, but it gives no joy or fulfilment. You were created for a purpose, discover that, live it out passionately and you’ll find yourself on the pathway to greatness.

God Bless Nigeria.