One thing many of us aren’t taught is how to be financially literate. They don’t teach this properly in schools, and this usually means we just pick up on the lessons our parents teach us – whether they mean to teach us them or not. For example, if your parents constantly believed that they didn’t have enough money, this is something you may carry with you, regardless of how much money you actually have. The mind is a powerful thing, and this is why teaching children should be emphasized not only in the things you say, but the way you act. Let’s not digress, though – you’re here to come up with a plan to become more financially literate during lockdown.
If you have more free time on your hands now, you could dedicate some of this time to becoming more financially literate. You don’t need to be the most productive person on the planet and start a side hustle right now, but learning something new will go such a long way to helping you get to where you want to be.
Below, you’ll find 8 ways you can become more financially literate during lockdown. Take a look:
1 . Figure Out What Your Limiting Beliefs Are
Limiting beliefs might sound like woo-woo, but they are something we all carry with us to some degree. Your parents may have passed their limiting beliefs onto you, or you may have picked them up elsewhere without even knowing it. For example, you may have beliefs like the ones below running unconsciously:
- I will never have enough money
- I’m not the sort of person who becomes wealthy
- You can’t take money with you so you may as well spend it now
- Money is too hard to come by (it doesn’t grow on trees, etc)
When you know what your own personal limiting beliefs are, you can move on to the next step.
2. Work On Your Money Mindset
While your situation from birth can have a lot to do with the opportunities you are presented in this life, as well as the challenges you must overcome, your mindset plays a huge role too. You will only be doing yourself a favor if you learn your limiting beliefs, get to the root of where they came from, and then come up with new beliefs to take their place. This can take time, but it’s always worth it!
3. Read A Book
There are a ton of great books out there on financial literacy, and many of them have great tips in them too. You could read one of the following:
- Think and Grow Rich by Napoleon Hill
- Rich Dad, Poor Dad by Robert Kiyosaki
- You Are A Badass At Making Money by Jen Scincero
- The Total Money Makeover by Dave Ramsey
Whatever you decide to read, if you commit to reading just one finance book each month, you will have read 12 by the end of the year. In this time, you could be so much more knowledgeable and better off!
4. Find A Great Podcast
If you prefer to learn new things by listening to them, you could find a podcast instead. The Dave Ramsey Show and Radical Personal Finance are just two great ones you could start with.
5. Come Up With A Plan To Get Out Of Debt
If you’re in debt, the first thing you should do to make improvements to your situation is come up with a plan to get out of it. Being in debt is like a huge weight on your shoulders, and the sooner you get out of it, the better. It isn’t always enough to get out of it – how did you get into debt in the first place? Is it an uncomfortable feeling that leads you to spending money you don’t have? You need to be honest with yourself so that you can change this behavior in the future.
6. Come Up With A Plan To Save More Money
When you’re out of debt, it’s time to come up with your plan to save more money. Reducing your bills, using vouchers from places like Netvouchercodes.co.uk when you shop, and buying second hand can all be useful methods to use.
7. Come Up With A Plan To Start Investing
When you’ve saved an emergency fund, investing will ensure you are making the most of compound interest and looking out for your future self. Start now, no matter how small.
8. Find A Professional Financial Planner
If you still need assistance, now could be the right time to look for advice from a reputable financial planner. See if you can set up a zoom call if you want assistance right away!
