Financial awareness is a basic understanding of your financial status in terms of income and outflows, of savings and investments, of cover for your future needs and emergencies. Information, instructions and financial advice provided by experienced professionals will help you make independent financial decisions.
Assess Your Financial Situation
- Look closely to how you are performing financially. Learn the inflow and outflow (income and expense) of your finances. Figure how to balance the two and find ways to improve your savings.
- Look at your debts and ways to clear them. Your credit report is almost sure to indicate debt but you can improve your credit score if you clear the debt as fast as possible.
- Once you are aware of your financial status, look at ways how you can rectify problem financial areas like pending credit card payment bills, other loan EMIs etc.
- Prepare a road map or financial goal calendar to chalk out when you will be clearing your loan and have that same monthly EMI amount now available for savings.
- Analyze your investment options and track their performance so as to build a stable investment portfolio and try to improve the returns.
- Analyze risks that different investment options bring to the table and only take up those investments where you are comfortable with the risk.
- Research constantly and be vigilant to trends that influence your investments or speak to family members who are experienced in investment.