Hello TRIO fam! Welcome back, and I hope that you are excited about what is ahead.
I know I am. I get excited thinking about how our financial health is getting better as we, together, heal from financial anguish by undertaking the outlined principles in these blogs. If we are to be better stewards, it is vital to assess where we are now and do something about it.
Below there is a quick assessment I want you to take and be serious about it. Gather you a notepad and pen, then answer each question honestly.
How to assess your financial literacy
An easy way to assess your financial literacy is to ask yourself some questions about your own personal finances.
- Do you know how to create a personal budget?
- Do you have an emergency fund that covers at least three months of basic living expenses?
- Do you have a plan for retirement?
- If you have debt, do you have a plan to pay it off?
- Do you know your credit score and how to improve it?
How to improve your financial literacy right now
- If you answered no to some (or most!) of the questions above, don’t worry. There are a few concrete things you can do right now to take control of your finances and improve your financial literacy.
- Create a personal monthly budget. Your budget is the foundation of your financial health, and it’s easy to get started. Learn how to create a personal budget by looking at the previous TRIO blogs on budgeting.
- Start an emergency fund. Experts recommend setting aside at least three months’ worth of basic living expenses in case of an unexpected financial burden like a layoff or large medical expense.
- Plan for retirement. The easiest way to start investing is with a retirement account: a 401(k), a traditional IRA, or a Roth IRA are all great options. We will discuss this in a few up-and-coming TRIO blogs.
- Decide to get out of debt. If you’re caught in a cycle of debt, planning to pay it off can save you thousands of dollars in interest.
- Determine your credit score and learn how to improve it. Improving your credit score is another way to save money on interest. Learn how credit scores work in our next TRIO blog.
- Spending responsibly on rent can help you achieve your financial goals. Remember, this is not a sprint but a marathon as it relates to financial literacy. Take your time and be smart. Let’s Build!