While Aussies may make up a small portion (a tick over 24 million according to a population clock) apparently we're among the most financially illiterate folk out there according to a recent survey. Given that we're Aussie based and have an interest in financial literacy, let's unpack this and help you to become more financially funky!
Given that before you can improve you must find understand where you are faltering, well at least most of the time, let's look at 5 signs you're financially Illiterate:
- You have no idea where your money is going
While we're not saying you have to know exactly where all of your hard earned goes, jumping into the world of your personal finances without a vague idea means you're Financially Illiterate
- You didn't know that making the minimum payment on credit cards means you'll pay a crazy amount of interest
Aren't credit card companies generous for offering you the ability to make minimum payments and pay off your purchases over time? Maybe not right? If there's anything you can learn from #2 it's to keep an eye out for the terms and conditions attached to anything finance related. While you don't need to agonise over every single transaction you make, a healthy dose of skepticism can go a long way
- You don't know how much debt that you are in
If this you, don't feel too guilty you're certainly not alone. This doesn't give you an excuse or let you off the hook though. Get clear on how much you owe, at what interest rate is owing on it and to whom the debt is owed. Then start smashing out that debt, to get rid of it like it's the plague
- You live pay-check to pay-check
Again this is one that you are not alone in however again it is one that you should consider getting out of as quickly as you can. The big danger with living pay check to pay check, especially if you have debt is say if you lose your job how do you plan on funding the debt and keeping the lights on at home. It is particularly important to get your financial house (pun intended) in order if you have a family. Enough said on this
- You're retirement plan is the lottery
Okay maybe this say more about a person's math ability ;). We know that this will sound controversial although it is proven that all you're doing with buying a lotto ticket is hoping, wishing and dreaming. Get clear and get focused on other places to invest your money, perhaps under your mattress isn't a fantastic spot either
While there's been some fun and tongue in cheek in parts of this blog, we hope that you're able to get focused on improving your financial literacy as part of improving your life.
We're sure that most of the Money Glee audience don't suffer from any of the above :)!
Which of the above 5 do you struggle the most with?
What other "financially illiterate" signs do you feel you have?
Enjoy your weeks and remember to live your Money Glee!