5 Steps for Becoming Financially Literate

Financial Literacy Month Action Steps (Part 1)

Friday, April 1st kicks off Financial Literacy Month.

This is when we focus on how money really works, and taking simple action steps that help take control of your finances, and build a bright financial future.

The fact is, financial troubles are the #1 source of stress in our lives. And this stress can creep into many parts of our lives, bringing us even more problems with our family and our jobs.

So today I’m giving you Part 1 of a 4-part series on Financial Literacy Month Action Steps… which you can take action on to become financially literate, and get your financial life on track.

While you may have heard some of these tips before, today I want you to sit down and really think about each one. Are you doing each of these now? If not, why? Did you used to do these steps, but now think you no longer have to do them?

Take these Action Steps seriously. And take action on them today. (I’ll have more Action Steps for you next week.)

Here are my first 5 Steps for becoming Financially Literate:

Step #1: Decide to make your financial life better.

The first step to becoming financially literate is to break the pattern of finances out of control. This means you have to make a promise to yourself, that starting today you will put your focus on making your finances better, and stop doing the things that has made your life a financial mess.

Step #2: Find out where you stand now.

If you don’t know what your finances look like now, how in the world can you make your life better? The answer is, you can’t. An easy way for you to take a financial inventory of your life, taking into account your assets, your debt, your income and your expenses, is to [complete our Personal Financial Analysis here.]

Step #3: Review your credit reports for your score and potential errors.

You can’t go through life not even knowing your credit score. And you can’t ignore your credit reports. Inside these reports, you’ll see a report of your financial health. Plus, you’ll uncover potential errors that may be affecting your credit score negatively. Get your free credit report today, from AnnualCreditReport.com – Free CreditReport.com – CreditKarma.com… or get reports from each of the major credit reporting agencies at Experian.com, TransUnion.com, Equifax.com and FICO.com

Step #4: Get copies of your credit report every year.

In the world of credit, things can change. That’s why you can’t think your credit score will remain the same. Checking on your credit score yearly will ensure you don’t get any unpleasant surprises when applying for a car loan, a mortgage or any other large purchase that requires a good credit history. And you’ll always know how financially healthy you are.

Step #5: Organize your financial clutter.

It’s important that you keep receipts and financial records regarding large purchases, even smaller purchases where you’ll use the item you bought for a long time. It’s wise to keep records like these for 3 years, then discard them after that.

You also must keep any records relating to your taxes. These records, including your past tax returns and expenses, should be kept for 7 years. Then discard them after that, ensuring you destroy any documents with your financial and social security information. Organizing these records in a way that you can easily access any of them is a smart practice to adopt.

Get started on these Financial Literacy Action Steps today. I’ll have 5 more important steps for you next week.

Related posts:

Guilty of Not Talking About Your Money Problems?
Savings Bonds For College Funds
College Financial Aid Deadlines

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