So, you’ve decided you want to get financially literate. That’s awesome!
But then you do a google search, and suddenly you’re buried in a ton of financial jargon. Sound familiar?
Here’s the truth:
There is a lot to learn about money.
And it can feel overwhelming.
But, it doesn’t have to be. If you focus on the 5 principles of financial literacy you’ll get clarity and start speaking the language of money.
So, let’s get started.
Here it is.
Earn. Spend. Save. Protect. Borrow.
Simple, right?
But here’s the thing–knowing these words and what they mean is not enough to get you your financial know-how. What’s more important is to create actionable steps for each of them.
Here’s how:
• Earn: Earn income and then grow it.
• Spend: Spend less than you earn (this one’s big).
• Save: Make saving and investing a must—even small amounts add up.
• Protect: Protect what you earn and own.
• Borrow: Borrow for more assets, not stupid stuff.
So where should you start?
First, learn small tips and hacks to make these principles part of your everyday life.
The easier it feels, the more likely you’ll stick with it. (Our newsletter can help—get tips straight to your inbox!)
Next, surround yourself with people that are already doing it.
Good habits are contagious.
Join a community that shares your goals. (Have you checked out the TWC Network?)
Finally, take action.
Start small if you need to, but start.
Momentum builds when you stay consistent.
When I first learned these principles, I was 20.
Growing up as the oldest of 12 kids, money was tight, and financial education wasn’t something we talked about. I knew I didn’t want to stay broke, but life kept pulling me in different directions.
Then one day, I hit rock bottom. Stranded in Los Angeles with $200 to my name, $30,000 in credit card debt, and no job, I knew something had to change.
Here’s what I did:
• Stopped watching TV and started reading about money.
• Skipped the parties and went to networking events.
• Gave up shopping (hard, I know!) and spent time learning from people who were ahead of me financially.
• Turned off the radio and listened to motivational talks instead.
It wasn’t easy. But with focus and consistency, it paid off.
If you want to get there, too, it’s going to take some changes.
But trust me, it’s worth it.
Commit to change.
Commit to learning.
Commit to taking action.
Commit to your financial future.
P.S. I get into each one of these 5 Principles of Financial Literacy in detail in the next post. And we go even more in depth in our courses in The World Changers Network.
