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While you're looking for the next get-rich-quick scheme, consider these 4 money-savvy tips

Knowing the right lingo and applying that knowledge can help you manage your finances successfully. Picture by @wocintechchat/UnSplash

Knowing the right lingo and applying that knowledge can help you manage your finances successfully. Picture by @wocintechchat/UnSplash

Published Apr 28, 2022

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We are not taught at school how to be in the real world or even how to manage our finances.

Many Gen Zs and millennials are thrown out into the world without any idea of how to make money, save money or how to use and invest it wisely. If the school curriculum isn’t offering you the advice, you need a financial expert suggests you do your own research to ensure financial success.

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In fact, knowing the right lingo and applying that knowledge can go a long way to help you manage your finances successfully, says Nomi Bodlani, the head of strategic markets at Allan Gray.

She calls it “financial literacy”. Basically, she says, it is understanding financial concepts and then applying them to your life. Financial literacy is “the cornerstone of being financially savvy and being able to make financially responsible decisions”.

Bodlani says being financially literate is the gateway to improving the outcomes of your investments at any stage of your investment journey.

Here are her top tips to become financially literate.

Tip 1: Do the research

Look up topics such as “living within your means”, “using debt responsibly”, and “how to invest for long-term goals/retirement”. People can use resources such as books, podcasts, videos, blogs, webinars and seminars to grow their knowledge of financial literacy.

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“The most empowering thing you can do when it comes to money is to educate yourself. You can’t make the best decisions for yourself until you understand what those decisions are,” says Bodlani.

Tip 2: Speak to your employer

In addition to offering retirement planning tools and resources, more and more companies are offering financial wellness programmes. These programmes are particularly relevant if you are a part of a pension scheme or umbrella fund offered by your employer. Some employers and their financial service providers will allow you access to financial coaches, mentors or advisers.

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Tip 3: Get the help of qualified financial experts

Speaking to an independent financial adviser can help people put an actionable plan in place but also be a be coach on the important terms of financial literacy.

It is important to seek the help of a financial expert whether you are looking for information on day-to-day money management issues or advice on complex issues involving your business or personal finances and investments.

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Tip 4: Take action

Being financially literate will not benefit you if you don’t apply what you know.

Arming yourself with credible information and expert financial advice will allow people can take the necessary actions to achieve the desired outcomes.

Bodlani shares one final piece of advice about financial literacy:

“Becoming money smart doesn’t happen overnight. Financial literacy is a lifelong pursuit which, over time and through experience, will give you the confidence you need to make the right decisions for your unique circumstances”.

IOL Wealth

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