There are lots of resources out there about money management, financial literacy, and the value of starting young. But what if you have only just started your financial journey as an adult?
Luckily, there are simple steps you can start today to master your financial literacy, no matter what stage of life you’re at.
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What Is financial literacy?
Financial literacy is the difference between living from pay check to pay check, and being able to afford the things you want and need, to building wealth that works for you, which is why financial literacy is so important.
Financial literacy enables you to:
- Build wealth
- Protect yourself in case of emergencies
- Achieve your goals
- Afford the things you really want
- Protect and care for your family
- Enjoy a happy retirement
- Live without money-stress
Hit the books (and videos, blogs and podcasts)
Become money smart and develop your financial literacy knowledge by learning as much as you can about it. Go to your nearest library or bookstore and pick up some personal finance books that pique your interest. Start following personal finance blogs and social media accounts to receive regular information (or start following podcasts if that’s your thing). Subscribe to personal finance newsletters (like ours!) to get money tips and resources sent straight to your inbox.
Some of our favourite financial enthusiasts are:
Personal finance enthusiasts
Use your favorite social media channels to follow financial experts on Twitter or LinkedIn, or maybe join a personal finance Facebook group.
- Nicollete Mashile
- Mapalo Maku
- Mirinda Dlamini
- Nokuhle Kumalo
- Soulfairy
- Thando Ndlovu
- Omega (money mondays)
- Lerato Maluleka
YouTube
Books
- What’s your move by Nicollete Mashile
- You’re not broke, you’re pre-rich by Mapalo Makhu
- Become your own financial advisor by Warren Ingram
- How to make your first million by Warren Ingram
- Manage Your Money Like a F*cking Grown Up: The Best Money Advice You Never Got by Sam Beckbessinger
- From Debt to Riches: Steps to Financial Success by Phumelele Ndumo
Blogs
Podcasts
Podcasts can be a great way to soak up financial news while you do housework, run errands or walk the dog.
This are just recommendations there is plenty more information on the internet. Use it to your advantage.
Look for free resources
To start, take advantage of free tools that might already be available to you. For example, we offer eight free personal finance courses to help you create, manage, grow, and manage your money.
Learn how to budget
When you have a budget plan, you can spend money accordingly and will be able to save any extra to use later in case of an emergency. Without a budget plan, you will be unable to control your spending and, as a result of this overspending, may suffer if your salary or allowance ends.
Read: How to Budget Like a Pro
Understand your credit score
Your credit score determines the success of your loan application, as well as the interest rate you’ll receive. If you know what your credit status is, you know what you can do to improve it so that you can have access to better credit to further your dreams.
Read: How to get a loan with a low credit score
Use financial management tools
One great way to gain financial literacy is to attach a finance management tool to your personal accounts. Sign up for one of these services and connect your checking, savings, credit cards and mortgage. Financial management tools like 22seven are great aids to improving financial literacy. These tools will also help manage your personal finances.
Open a savings account
Have you heard of a quote “Pay yourself first”? A savings account will help you to save any extra money you have, is the best way to keep your money safe and secure, and may even pay you interest, offer insurance and security. With a savings account you’ll be able to build a habit of saving.
Understand debt and loans
Learning about debt and loans is another important part of financial literacy. Not all debt is created equal, so learning about the different kinds of debt, the strategies for each and what you should focus on paying down first should be a top priority.
Need help to get out of debt? DebtSafe offers safe and secure Debt Consolidation. They are registered Debt Counsellors who fix debt within the firm jurisdiction of the National Credit Act (NCA) – with our process closely monitored by the National Credit Regulator (NCR).
Educate yourself about investing
Before you put any of your money in the stock market, it’s important to educate yourself about stocks and bonds. While they can be a good way to grow your money, they come with inherent risks.
Read: Can debt be a good thing
Plan for retirement
Retirement is closer than you think. Every rand you save today is a rand that helps you live better once you’re no longer able to generate income.
Read: How Much Should I Save For Retirement
Complete a financial literacy course
Many nonprofit credit counseling agencies offer online or in-person courses on financial literacy, establishing or repairing credit, bankruptcy, reverse mortgages, and debt management.
We also offer free courses to help you navigate your finances:
- How to budget like a pro
- Master your money mindset
- How to build an emergency fund
- Investment Guide: What’s your ‘Why’ in investing
- Investment Guide: Investment basics
- Investment Guide: Investment options
- How to pay off your debt
- How to create multiple streams of income: 7R’s of wealth creation
Hire a financial adviser
It may surprise you to find out that financial advisers are not only meant for wealthy people. They are often more affordable than you realise, and they can make a huge difference in your personal finances.
As you acquire more financial literacy, make sure to follow this tips to help you implement what you have learned:
Earn more
One of the best ways to improve your financial literacy is to learn how to earn more money. If you can find ways to increase your income, you’ll be in a much better position to improve your financial situation. There are a few ways to do this.
Spend less
It’s also important to learn how to spend money wisely. Just because you have more money doesn’t mean you should start spending more. In fact, it’s important to be mindful of your spending and make sure you’re only spending money on things that are important to you.
Invest wisely
Investing your money is one of the smartest things you can do for your future. But, it’s important to learn how to invest wisely. Otherwise, you could end up losing money.
Borrow safely
Using credit is one of the most important parts of financial literacy. When you use credit, you’re essentially borrowing money that you will need to pay back with interest. This can be a good thing if you use credit responsibly and pay off your debts on time. However, it can be a bad thing if you don’t use credit responsibly and end up with a lot of debt.
Read: How to use Debt Snowball to pay off debt
Protect what you have
One of the most important things you can do for your financial future is to learn how to protect your savings and investments. There are a lot of different ways to do this, but the most important thing is to make sure your money is safe and sound.
Read: What’s the difference between Life Cover and Funeral Cover?
One way to protect your savings is to create an emergency fund. This is a fund that you can tap into if you suddenly lose your job or have an unexpected expense. Having an emergency fund will help to ensure that you don’t have to dip into your savings in a time of need.
Another way to protect your savings is to invest it wisely. This means diversifying your portfolio and investing in a variety of different investments. This will help to minimize your risk and improve your chances of making money in the long run.
A lack of financial literacy may result in more unsustainable debt burdens, poor credit, money loss, and an increased risk of becoming a victim of fraud, threatening your long-term financial success and limiting your ability to live life on your terms.
