Choices That Will Help You Become Financially Literate

Some people live paycheck to paycheck, which can be stressful and make it hard to save for the future. If you are one of those people, the good news is that you can learn how to make better choices that will help you become financially literate.

Financial literacy is the ability to fully understand all the ins and outs of money, including investing, saving, budgeting, and managing your income and expenses responsibly.

Many people have a complicated relationship with money, and it makes living in this finance-centric world difficult. However, by learning basic skills to manage your money more efficiently, you can save more, pay your bills on time, preserve your credit rating, and have an easier time getting loans.

Keeping a close eye on your finances also helps you avoid making financial mistakes and makes you less vulnerable to fraud.

The earlier in life you start to become financially literate, the better. College students especially should learn financial literacy before they get out into the world. Some ways you can start to become financially literate are:

One of the best ways to become financially literate is to develop a budget, update it regularly, and stick to it. A budget helps you evaluate your income and expenses to see where you overspend, identify opportunities to cut back, and determine how much you can invest in your future. Budgets also help you achieve financial goals like saving for something big like a vacation, wedding, or home appliance.

It's easy to forget to pay a bill every once in a while, but even one missed payment can hurt your credit and ability to get financing when needed. To stay on top of your payments, develop a system, so you remember to pay every bill on time and in full.

Even if you save only $5 a week, those small payments will add up quickly. If you put off saving money, you will never find the time or resources to do so. Pay yourself first and watch how quickly even $5 a week adds up to a healthy savings account.

It's important to review all your bank accounts, credit cards, and loan statements each month. People make mistakes, and credit card fraud is rampant. By reviewing your statements, you can see how much you are spending but also quickly catch signs of identity theft and fraud.

Invest in homeowners’ insurance and extended warranties to protect all your expensive items. Upsie offers warranties for appliances, electronics, fitness equipment, and outdoor items. Having a warranty prevents high repair costs and out-of-pocket bills.

Good credit is essential. You are entitled to a free copy of your credit report annually with the three main credit bureaus. Review your credit report each year for any inaccuracies or signs of fraud, and be sure to contact the bureau to fix anything that looks off.

It’s not good to carry a lot of debt. If anything changes with your job, you could have trouble making your monthly payments. Try to eliminate all your debt as quickly as possible so that you will be safe if anything happens to your income, even temporarily.

Do plenty of research and find a trusted financial advisor to help you invest your savings wisely. Usually, it makes sense to diversify and not place all your money into one investment. That way, you can grow your savings over time and reap the benefits later.

An Upsie extended warranty can help you save money by eliminating expensive repair costs (parts and labor) when your electronics or appliances break.

For example, when you buy a big-screen TV, Upsie can save you money by protecting your investment long after your purchase. Upsie offers warranties that last two to five years. Long after your manufacturer’s warranty runs out, Upsie will still repair or replace your TV if something goes wrong.

Some of the things you won’t have to worry about are:

Many of Upsie’s warranties, including plans for gaming devices, tablets, and laptops, also include accident protection. This means that Upsie will protect your device from screen cracks, water damage, and drops. Upsie warranties cost up to 70% less than the competition. In addition, you can make an unlimited number of claims up to the item’s original price.

Financial literacy has many facets. Thankfully, Upsie wants to help ensure that you save money on all of your electronics purchases.

Learn more about how Upsie saves you money by visiting the website today.