How to be financially savvy
Being financially savvy is a great thing to be, but it is not alway easy to come by. The following are some tips for how you can become financially savvy.
Learn the basics of financial health.
The economy changes, jobs come and go, your income fluctuates, and life has a way of creeping up on you. However, despite all the changes in life, the laws of good finances are unchanging, and will remain the same whether you are in a recession, depression, or living in the land of milk and honey. If you can learn the basics of financial health, the bare bones of the issue, the simple stuff, you will be able to better control your finances, and eventually obtain wealth through continual practice.
Stay up to date on the economic condition.
While the laws of finance are universal and unchanging, this does not mean you should simply ignore the economy. Paying attention to the economy means making wise investments, whether you invest in stocks, real estate, precious jewels, etc. will be determined by the economic condition. If you pay attention you can make wise decisions such as not buying a home at the top of the market if markets will be turning down soon. Staying up on the economic condition can mean helping you find a job that will be secure regardless so your income stream does not get cut off. Part of financial savvy is knowing how the economy, along with the laws of finances work together.
Stay motivated, and remind yourself often of sound financial principles.
One great way to be financially savvy is to never let yourself get too comfortable or content with your situation, but rather, work to always become better with finances. You can do this by attending financial seminars, reading materials about finances, and staying up with the economic condition. You can also motivate yourself by setting some goals, and working to learn all you can about various investment options, etc.
Don't get emotional about money.
You can't be financially savvy if you let your emotions get in the way of your decision making process. Logic is a much better approach to money then emotions, but because money buys security, buys position, etc. it can be difficult not to let your emotions play a role in money. So, make sure that you have enough money saved and put aside that you do not have to make too risky, or too emotional of decisions. This usually clouds judgement and leads to poor decisions.