Improving your financial literacy

Tips to improving your financial literacy in business and starting with the basics.

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Financial literacy is something you really need in business if you want to succeed, but often it’s one of the last things prioritised.

While you don’t need to become an accountant overnight, understanding how money is generated, distributed, and earned, is necessary for achieving financial and business success.

Understand the basics first
Things like knowing how to balance your chequebook and read a financial report can help create clarity and purpose in your financials.

Do you understand what dexterity means, or whether you’re making the most of your time and money at work?

When those financial reports come in at the end of the year or quarter do you know enough to make decisions based on them?

Know how to manage and invest your income
Understanding what is going on with your own income is the first step after all, that is the end result of your business. It gives you a starting point and helps put finances into a real life perspective.

Considering property and shares investment as well as superannuation and insurances will be helpful in your personal and business life.

A basic understanding of your tax requirements especially if you are a business owner can certainly be of benefit and mean you are always ahead of the game.

Having a Workable Budget
Not having a thorough plan of how you spend and save your money can make it almost impossible to save for the future, and can even put you in debt.

We need money so we can keep a roof over our heads, put food on the table, and pay the bills. If we’re running a business, you also need to pay for outgoings – insurance, travel, services, learning, associations.

I believe the biggest reason why people struggle to save is because so many of us budget poorly, or not at all. That’s not to say that we aren’t capable – we’re just too busy trying to juggle all the balls that need to be in the air at any one time to really knuckle down and get a grasp on our finances.

Reliable Advisors and Financial Mentors
Maybe you have no mentor at all and don’t even know where to start. There are several places to look for a financial advisor, places such as local business associations are a great place to start.

Advisors and financial mentors can help us understand where we are positioned now and what we need to do in order to live the best life at our full potential.

Today, there are many challenges we face every day, but getting a grip on your finances can make a major difference to your business and life!

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