I would start by saying that money is just a visitor, it comes and goes, but depending on how it is treated it will continue to come and it will help in the rainy days. Our daily struggles are all to achieve one thing being financially independent. And most times I would say that if it's as a result of our daily hard work that the money is flowing, nobody would have been poor,...we might be working very hard and our knowledge about finance is low no matter how hard we work we will continue to be in debt. Because we don't understand the financial principles, now understanding financial concepts like budgeting, saving, and managing credit responsibly, help avoid falling into the trap of excessive debt. Thus having the fore knowledge of financial education helps us to break free from the cycle of debt. Also with proper financial knowledge, we can make informed decisions, prioritize expenses, and develop a plan to pay off debts, and plan to save, with this living a debt-free life is possible. With financial literacy, we can be rest assured of being equipped with the necessary tools to make informed financial decisions that will align with our goals and our value
Personal Experience
As an earning adult I get to spend a lot, so talking about saving or investing, it was never in my plans back then, i was not really that good in terms of managing finances, but I got to improve on it when i read this book titled "The principles of financial prosperity by Bishop David Oyedepo" The book became a eye opener to me, I began to save bit by bit, i get to differentiate between my wants and my needs, i get yo stick with my budget. And that has helped me so far. with that I was able to pay off my debt and still have something left in my savings. And with that knowledge I can say that financial literacy is the only key to unlocking our future wealth and achieving long-term security, breaking out of debt and other financial challenges, also financial literacy goes beyond just making and managing money, it's also about being empowered to make the right choices that will align with our values and priorities, leading to personal growth.
Everything about life is the matter of how we plan it, that is why I always say; Failure to plan is planning to fail. If you have the attitude of spending excessively even on irrelevant things as I was before now, with that attitude sooner you will be left hanging with nothing to show for it.
***Some of the key valuable things I learnt as an earning adult about finances are as follows***
a) Saving: Savings habit is essential for financial stability and growth. Saving or investing money is an important tools in achieving financial goals. A well saving structure involves saving up your income regularly and consistently. Developing a habit of saving helps in the rainy days. This is an important factor as far as becoming financially independent is concerned,
b) Self-discipline: We need to discipline ourselves, because most times we get to save and remove later with the mindset i will replace it later, we need to discipline ourselves in that aspect, also cutting down some unnecessary spending, though having a budget help to eliminate that, not only having the budget but following strictly by what you budgeted for.
c) Differentiate between your wants and your needs: Oftentimes we get carried away by flashy things that are irrelevant at the moment, we ought to term our desire, and remain firm with our daily needs, that will help to minimize excessive spending.
Preparing a Budget: preparing a budget will help minimize excessive spending, it will guide us toward our goals. Tracking our income and expenses to gain a clear understanding of our financial habits, which will help us to set aside money for savings and eliminate excessive spending.
Financial literacy is the only key factor to financial stability and financial growth, it's not a one day project rather it's a continuous process that demands consistency and self discipline.
This is my response on this week's contest topic "Financial Literacy".
Thank you for reading