Financial literacy is a term that seems familiar to some of you. Maybe you also understand the meaning of the term. Reported from The Balance page, the term is also known as financial literacy . Well, this refers to the skills you need when you have money.
For example, when there is someone who has an income of 20 million per month. They will not spend all their money and also will not feel deprived until they are forced into debt. Usually, they will manage their money well, and will even rotate their money to keep growing.
So, from this explanation, have you become a financially literate person? Come on, just look at the following signs that you are financially literate. Don't miss it, okay?
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Signs You Are Completely Financially Literate
1. Have a Personal Budget
Quoted from Spencer Savings Bank, making a personal budget can not only know your income, but you are also able to monitor how much you spend.
Without having or making a budget, you will find it difficult to determine your next financial goals or developments. In addition, your finances will also not be regular. Therefore, it is very important that you have a personal budget.
2. Know How to Save
People who are financially literate will understand not to buy something that is not what they need. Usually, people like this will look for products or goods that are holding a discount (discount), buy similar products at a lower price, and really avoid spree. Everything they will do to live frugally.
3. Know About Important Financial Points
The Cleartax website once stated that, "financial literacy must begin with understanding the important points about finance". Some of these include financial tracking skills, budgeting skills, strategies for paying off debt, and retirement planning.
If you already have some of these abilities, your financial condition will be safe. Your life will not be chased by debt or anything else.
4. Responsible for Paying Off Debt
The next thing is that you understand or have a strategy to pay off debt. In this concept, at least you can pay off debts, installments, or bills according to a predetermined tempo. That way, you don't have to pay interest due to late payments.
If you are not financially literate, you may be in debt and in the end you will do this activity regularly. The habit of paying debts on time will make you feel financially free. You can also invest your money easily and efficiently. So, be responsible when you have debt, yes!
5. Have Passive Income
With passive income, you will survive if your main income is being disrupted. So, what is passive income, anyway? As for one form of income, namely investment; whether it's in the form of capital, such as stocks, bonds, and mutual funds, or assets, even retirement accounts.
By doing this, you will get a lot of benefits, you know! The money you allocate to invest will be counted as an asset. Well, if your assets increase in investment, then your wealth will increase. Your financial condition will be guaranteed in the future.
Talking about investment, Whiz Smart Saver is the leading choice with high deposit interest reaching 6,75%. With much better interest rates than traditional banks, Smart Saver provides maximum opportunities for growth in your savings.
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6. Consistent in Saving
You must already know that saving has many benefits and must be instilled early on. Saving is key. People who are financially literate will always do this activity.
Usually, they also don't wait for the remaining expenses to be saved before saving. In fact, when they get income, they will automatically set aside a few percent to save.
Not only saving, you know! In addition, usually they will also prepare an emergency fund. An emergency fund will be very meaningful if you face a situation that was not planned in advance, such as being laid off at work, sick, or other calamities.
7. Have a Good Quality of Life
If you have almost all the habits above, then you have a good quality of life. That is, you really understand how to make a financial plan, control your finances, and spend your finances carefully and wisely.
Managing finances is not an easy business. In essence, if you don't have an awareness of the importance of controlling finances, then being financially literate will also be difficult.
Finance is indeed something that needs to be regulated according to its portion. You must be aware and be able to distinguish between needs and wants. If you find it difficult to tell the difference, of course your financial condition will not be stable.
Therefore, start from now on to set aside some money from your income. Don't overdo it first, as long as it's consistent every week or month. That way, you will get used to it and finally you have money in savings.
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Well, how? Do you think you have become a financially literate person yet? If not, come on, slowly apply some of the methods above.
You can also start with the Whiz financial application, you know! Whiz not only helps you understand finances as a whole, but also provides smart solutions to grow savings with high deposit interest rates reaching 6,75% through the Smart Saver feature.
With Whiz, your finances will be more stable and secure in the future. Come on, use the Whiz financial application now!
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