Making Money Personal

Mastering Your Money: Essential Steps to Financial Freedom - Money Tip Tuesday

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Building a financially free life is a journey that takes time, dedication, and, most importantly, financial education. Understanding your finances is a crucial step towards a secure future.

It's not just about learning the lessons but also about putting them into practice. Taking a proactive approach to financial literacy is one of the most important decisions you can make for your life and future.  

Links:

  • Financial Books to explore: The Psychology of Money, The Millionaire Next Door, & The Richest Man in Babylon
  • Explore the TCU University course catalog for educational webinar videos
  • Check out TCU University for financial education tips and resources! 
  • Follow us on Facebook, Instagram and Twitter! 
  • Learn more about Triangle Credit Union

    • Transcript:

    Welcome to Money Tip Tuesday from the Making Money Personal podcast.   

    Education is a powerful tool that empowers us to make significant changes in our lives. As Benjamin Franklin wisely said, "An investment in knowledge pays the best interest." When it comes to financial knowledge, the interest you gain is not just figurative; it's a real sense of control and confidence over your financial future. This empowerment is the key to unlocking your financial potential.   

    If you're ready to level up your financial game, there's a reliable way to get started. It's all about actively learning about money and finance; the good news is that anyone can do it.   

    Here are a few ways to get proactive about your financial education this year.  

    1. Read or listen to finance books. Various books have been published over the years that offer excellent financial advice and strategy. Plus, more are published every day. A simple Google search will bring up long lists of top financial books that could change your life. Start with one, but don't stop there. With finance books, the more you read, the better. Different authors provide all kinds of insights and experiences they weave into their financial philosophy, so the more exposure you get to various points of view and perspectives, the more you'll learn from a bigger pool of knowledge and will be more likely to strategize and build a customized plan for your specific financial situation. Some of my personal favorites are The Psychology of Money, The Millionaire Next Door and the Richest Man in Babylon.

    2. Take online courses or in-person workshops. Books are great for building knowledge, but online courses and live workshops provide carefully developed activities and worksheets to help you practice hands-on action plans. They also offer opportunities to engage with a teacher or professor who can answer questions and guide your situation. Explore Triangle's Financial Literacy course catalog for free webinars you can watch on your own time. We cover topics like getting out of debt, budgeting, preparing for an auto purchase, and buying your first home. We will continue to add new lessons, so check TCU University for regular updates.  

    3. Practice is key to financial learning. As the saying goes, practice makes perfect. But if, at first, you don't succeed, try, try again. You can read all the books and take all the courses, but all that knowledge won't work if you don't implement it. This is where the rubber meets the road. If you've been holding back from getting active with your finances, now's the time to jump in. We learn some of our best lessons through experience. You won't know everything when you start, and that's okay. Taking action is part of the learning process. Try out the lessons you've learned and test the theories you've read about by applying them in your own life. Get that budget together and work it out. You've got this!  

      4. Here are a couple of extra tips for those interested in putting their financial education and knowledge into practice. 

      • First, it means paying attention to your money. Check it often. Give it the attention it needs. Know how much money you have in your accounts, credit balances, debt balances, credit score, and net worth (the total value of your assets minus your liabilities). Know how much money you bring in monthly and how much you spend on groceries. 
        • Second, do the math and do it often. Get really familiar with a calculator. Use your phone or computer to calculate important balances to stay on track. Calculate how much you'll have in your accounts once you pay a bill, and do the math on how much more you will save if you increase your retirement contributions by 1%. Get familiar with calculating interest rates and payment amounts so you know exactly how much you'll pay over a year. If there's a number you don't know pertaining to your finances, find it out. You'll always be better off knowing more about your money than not knowing enough.   
          • Third, explore and use financial tools to your advantage. Financial institutions invest a lot of time and money into providing easy and available tools to help you organize, manage, and track your money. Your bank likely already offers tools like budgeting apps, automated bill payments, and credit score trackers to help you set and track goals, automate payments, and provide alerts that keep you in the know. All you have to do is use them. Explore the interfaces and features and get familiar with how they work. You may discover they'll save you time and empower you to advance farther than you initially thought possible.  

            • If there are any other tips or topics, you’d like us to cover, let us know at [email protected].  Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.  

            Thanks for listening to today’s Money Tip Tuesday and check out our other tips and episodes on the Making Money Personal podcast.  

            Have a great day! 

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