Achieving Success With Financial Literacy And Investment Education

Are you saying, “Finance is only for experts, what good would it do me if I knew finance?” This thought may not be very true. Why?; Due to incomplete or incorrect information about finance; we may lose the savings that we have accumulated with great effort for years.

If we take on extra debt when it is not necessary, our house may be foreclosed. We think, “I am not easily deceived, it will never happen to me anyway,” but malicious people who take advantage of our lack of financial knowledge can defraud us and cause financial loss.

Therefore, financial literacy is a necessary education for people of all income levels. Fortunately, today, investments and financial literacy can be managed at a more advanced level thanks to many online courses and communities.

What Is Financial Literacy And How To Improve It?

Financial literacy is a skill that everyone should have, not just certain people. Because we all have dreams in this life and we can achieve these dreams by setting financial goals. For example; A child’s dream may be a bicycle and they can achieve this dream by saving their vacation allowance.

Families want to have a nice vacation to relieve the tiredness of the year. For this, they need to save some of their income during the year. One of these dreams is to be able to buy a cute house in a coastal town to spend their retirement comfortably and peacefully. For example, you can realize this dream by investing some of your income in the individual retirement system.

In short, financial literacy is important for all of us. So what benefits does being financially literate provide you? First of all, you gain the ability to make better financial decisions. First of all, we need to know our budget.

We should make good planning to ensure the balance of our income and expenses. In addition, we should develop a saving habit and try to save no matter what our income is.

What Are The Resources For Investment Education?

We should think not only about today but also about the future, and we should invest the money we save when the time comes. We do not have to know every concept in the field of economy and finance, but we also need to be familiar with basic financial concepts. Inflation, interest, deposits, and similar concepts are frequently used in daily life, we need to have information about these concepts.

These gains benefit not only ourselves but also our country. For example, individuals with increased financial literacy use their money more sparingly and enable efficient investments to be made with the savings they make, and thanks to these investments, savers earn while our country’s welfare level increases.

In addition, financial literacy is very important in order to keep up with the changes in the world, both as individuals and as a society. Because the world has become a global village, technology, and the internet have connected us all, everything has become very fast.

While this speed makes our lives easier on the one hand, it also brings risks on the other. We should improve our financial literacy level in order to benefit from the advantages of these conveniences in the financial field and avoid their dangers.

What Are Online Investment Courses?

Online investment courses provide participants with in-depth information about the process of managing financial activities and financial literacy to get better investment projects. In addition, information is provided about how the money earned should be evaluated, and the evaluation process in question is addressed with its sub-dimensions such as living, spending, saving, and investing.

In order to evaluate your money correctly in financial terms, you need to know the basic financial concepts of today’s world and be able to carry out your financial transactions. In this context, financial literacy education provides the person with the competence required to act in accordance with their financial realities while using or managing money.

Today, it is possible to access countless online investment courses, both paid and free, from online course recordings of many universities to programs on YouTube. For this reason, today’s investors can research what they are curious about financial literacy.

What Are Investor Clubs And Communities?

Investment clubs or communities are generally small investor groups established by people who know each other to make joint investment decisions and thus evaluate their savings together. Each member continues to participate in the investment club by making additional payments every month or every three months with a certain amount of money.

The members decide which securities to invest in. Such clubs provide small investors with the opportunity to participate in large investments with their small savings and the advantage of lower commission payments.

Establishing an investment club first emerged in America at the end of the last century. Investment clubs became very widespread in the 1950s, and thousands of investment clubs were established in America.

Later, investment clubs were adopted and introduced to the scene in many Western and developed countries such as England, Germany, France, Japan, Sweden, Belgium, the Netherlands, and Ireland, and the number of clubs and members increased rapidly. Clubs established in the United States and other countries are grouped into national federations. 

These federations provide various services to their members and investors, such as educational publications, organizing regional meetings, and establishing investment consulting services. Today, investment clubs and communities largely continue their operations online.

How To Manage Personal Finance?

Personal finance is a concept that helps you create plans to achieve financial gain. It allows individuals to keep their lives under control and makes it easier for everyone to protect their lives. Personal finance guides the management of income generation and expenses.

The use of personal finance helps individuals to make necessary savings and investments for their future and regulates their total financial expenses. In addition, personal finance helps you to manage your budget effectively, control costs, and save money.

Aside from running a startup, every financially independent individual should act responsibly and prepare themselves for bad days. The first step in this preparation is to create an emergency fund.

You should determine your average monthly expenses. After determining the minimum income you can live on in a month, it is up to you to determine the period you want to protect yourself. The ideal period for this period is between six months and one year. 

Let’s say you can get by with a minimum of 2 thousand Dollars per month, in this case, you should create an emergency fund of 12 thousand Dollars in total for a minimum of six months.

Of course, it is not possible for an employee/entrepreneur with a limited income to create such a fund all at once. If you plan to create such a fund regularly and stick to the plan you create, you can easily get through the bad days.

See you in the next post,

Anil UZUN