April is Financial Literacy Month. Why is this important? Financial literacy is key to understanding how to save, earn, borrow, invest, and protect your money wisely. It is also essential to developing short- and long-term financial habits and skills that lead to greater financial well-being. Simply put, financial literacy is not just about the money you are spending, it is about the smart choices you are making every day and having a planning-forward focus.
- The most important part of Financial Literacy is having a plan. It can be overwhelming to learn all the “financial jargon” when it comes to managing your money. The most important part is to make a plan about your finances. Look at expenses that will continue after retirement and what will be reduced after retirement.
- Track what you spend and how it makes you feel, so you can decide what’s worth it to you and what’s not. Shift your spending toward what makes you truly happy – slaying debt, savoring a treat, helping a friend, or investing in an experience.
- Focus on what you can control. Unfortunately, there are a lot of things that are out of your control when it comes to money. For example, you cannot control how the markets perform, a pandemic, or even how long recessions last. However, there are things you can control. For example, you can control things such as the amount of your monthly contributions, your spending habits, the investment and account management fees you are paying, and even the type(s) of insurance you have in place to protect your family and your financial security.
- Start with small, manageable changes and celebrate milestones along your journey! When considering how your money can help you meet your physical, social, and emotional needs, break goals into bite-sized pieces which are easier to form into habits.
- Consider using your home equity. At Mortgage South, we are committed to helping you find the best solution for your financial needs. When it comes to making decisions about your retirement goals and objectives, we want to show you how you can make the equity in your home work for your retirement needs.