Still in the spirit of the new year, many of us are trying to make intentional decisions from mistakes learn from the previous year so as to avoid them.

In the same light, our financial life should not be left out. Beyond the usual decision to “save more and spend less” and to work on a budget( which is important, regardless of how much you make).

One needs to understand the dynamics of how money breathes to do better with it and financial illiteracy should be among those decisions.

Financial illiteracy in simple term, is about having knowledge and skills on how to effectively plan and save money.

In other words, it can be viewed as applying critical thinking in money usage. For most developed countries, the culture of having financial illiterates among its citizens is gradually increasing while for developing countries like ours ,it is slow and we ought to embrace this knowledge as well as the world is a global village; thanks to technology and to fit in, one need to be a global citizen; hence the importance of this skill.

One may wonder how to get this knowledge? Unlike developed countries that have more trainings for their citizens to benefit so as to foster understanding.

Use Google.

For starters, read about financial policies influencing any financial institution you want to invest in.

For example,the Banking Industry.Read about the Central Bank policies. Towards the end of the previous year, the governor of the apex bank announced series of reductions in several bank services. Read on how the decision and policies would influence your savings culture in that industry among several others.

Secondly,Ask questions from financial advisers.

It is usually said that “no-one is an high-land”. Never be too afraid to speak out on areas you are not clear on. For instance, if you are trying to invest in the stock market or want to start a retirement plan. Ask your stock broker,questions that is important to you.

Of course, it is recommended you do your own research on the investment but do yourself more diligence to ask a enough questions to your satisfaction.

You may wonder how much do you need to have to start ?

The little or more you have does not matter but the knowledge you seek is priceless. So, do not be afraid to ask.

Furthermore, understand some basic concepts in the financial sector. Concepts like interest, profit,dividends etc.It helps to encourage better understanding of how the money business works in one’s favor or not.

Interest for example, encompasses a lot and it comes in different forms like simple interest,compound interest,etc.When applying for any kind of loan. Know the what type of interest attached to the loan before agreeing to the terms and conditions.

In the end,its no rocket science that some individuals are good at keeping money while some are good at spending it.

In respectively, one of what category belong to,be smart with your money; save and invest right.

Understand that you are responsible of how you choose to manage your money.
Happy new year