1. Know how much you make.
If you want to live within your means, you have to know what your means are. You need to know the net income that appears on your paychecks. #financialliteracy
Once you know how much you make, you focus on reducing your spending to fit your income. If you don’t have one already, create a budget to plan your expenses and use it to keep your spending on track. #financialliteracy
If your expenses are minimum & you’re still spending more money than you make, then you make need to boost your income. You may need to get a higher paying job 2nd job to make ends meet. 🔑 is to make enough money to pay all your necessary expenses. ✍️📌
Using credit cards to pay bills or expenses is not living within your means. When you plan your budget, completely rule out credit cards as a way to make ends meet. Credit cards are unreliable, company can decrease credit limit without warning.
Resist the pressure to have the same things as the people around you and even on Social media. You may use credit/loans to fake wealth for a short period of time, but you’ll pay for it later, and you’ll end up paying with interest.📌
People often use credit cards for large purchases they can’t afford to pay for , like a new TV. Instead of paying for these purchases on credit, put aside some money each month until you’ve saved up enough to buy it.📌
Have savings that’s dedicated to emergencies will keep you from resorting to credit, a fund of 3 to 6 months. Use your budget to figure out what you can afford to save each month, set up an automatic transfer to make it easier to reach your savings goal.
Start a small scale business , buy assets such as stocks, bonds, mutual funds or real estate with the expectation that your investment will make money for you. Investments usually are selected to achieve long-term goals. #financialliteracy 🔑
Retirement benefits/Insurance are so important that they should be a top priority when you’re looking for a new job. To ensure financial security on retirement, it’s wise to create a plan early in life. #financialliteracy ✍️✍️✍️