3 Simple Steps to Learn the Basics of Financial Stability

Three Simple Steps to Learn the Basics of Financial Stability. Do you get nervous every time you need to use your debit card because you’re just not sure how much is in your bank account at any given time? Do you find yourself feeling a little uncomfortable each time money is brought up in casual conversation? Do you tend to leave your bills unopened until it’s almost too late because you just don’t know how to budget properly?

If you’ve said yes to one or more of these scenarios – don’t worry! You are not alone – many individuals struggle with fully understanding and managing their finances every day. Today we’re uncovering three ways you can get started with learning the basics about handling your personal finances well.

Step 1: Uncover Your Learning Style – and Utilize It! (Elrick Lauren, August 2018¹)

Do you know your preferred learning style? Traditionally there are four types of learning styles: visual, auditory, kinesthetic, or reading/writing learners (Elrick 2018). Visual learners who learn by sight need to see things laid out visually in order to process and retain information. Auditory learners will ask questions to better understand concepts and listen intently. Kinesthetic learners need to move and use activities to best retain information. And those who use reading and writing to learn will need to take notes and go through various books in order to feel as though they’ve learned things well enough.

Once you’ve identified your learning style, utilize it while educating yourself about personal financial management concepts. This is the first step to truly learning and retaining key information surrounding money basics.

Step 2: Practice Makes Things Perfect (Smith Lisa, June 2019²)

Nothing incredible ever happens overnight, so it’s important to understand the foundation of your personal finances and build on the habits you’ve created over a lifetime. For example, start small with strictly following a budget for six months. After those six months are up, reevaluate what worked and didn’t work for your lifestyle. Then, build on that newly developed habit: repay debt or begin researching investment strategies to do on top of following that updated budget. The most important thing is to avoid doing too much at once or else you can become overwhelmed and unmotivated which won’t help you to create sustainable money habits.

Step 3: Try to Learn from Others (Kunsman Todd, September 2019³)

There is some truth to the age-old phrase, “Early bird gets the worm,” especially when it comes to finances. Studies have shown that the sooner you begin saving or even taking control of your finances, the more you will accrue across a lifetime.

If you begin investing, saving, and paying off debt as a young adult, your savings and investments will compound dramatically through the years. Still, there’s no better time than right now to re-establish a strong financial picture, so if you’ve neglected to do so in the past, start today!

In the end, money concepts can often be overwhelming, which is why it’s smart to start small and build on foundational concepts. By identifying your habit-forming language, practicing, and learning from others, you can start to make smarter financial decisions and stop putting off your ability to find true financial health today!