Question

I need to write a financial literacy plan for my life that I believe, if followed, will allow me to live a responsibly healthy financial life and retire in a financially sound position. What are some things I can discuss in it?

Answer 1

Financial literacy is very essential in life. Without financial literacy, it is very difficult to manage the personal finance and get through the life without any extreme financial emergency.

Following are the things one should discuss when one talk about financial literacy:

1. Create a budget: creating a budget should be of regular exercise in this way one can keep track on ones spending.

2. Ability to track the spending: Spending should be tracked there should be the accountability of each and every spend so that a later date one can analyze where to cut loose the spending

3. Paying off the debt: Debt should be paid off first then the investing should begin. it is very essential to keep track of your debts.

4. Invest according to your risk: When it comes to investing one should invest according to one risk appetite and at what stage of life one is. A young man will have more risk tracking ability and can invest in risk-taking instruments for the returns but an old an nearing its retirement should not invest in risky assets.

5. Financial planning for every stage of life: Savings should be done keeping in mind every stage of life. Let's say a man just starting earing his salary will have various goals o achieve like marrgaige, buying house, childeren education , retirement. so for ach event one should save individually.