Despite the fact that capitalism is a major part of our daily lives, few of us reach adulthood with the knowledge necessary to make wise financial decisions. If we’re lucky, someone has taught us how to balance a checkbook somewhere along the way. But most people don’t even know how to create and adhere to a basic budget, much less use credit cards appropriately or set up an investment portfolio. In short, it’s no surprise that so many adults find themselves facing a mountain of debt with no real hope of digging themselves out. But you have the capacity to learn the ins and outs of basic personal finance, and you don’t have to wait for the consequences of bad decisions in order to learn your lesson. Here are just a few helpful guidelines that can get you started down the path to making wise financial decisions.
You might want to start by taking a personal finance class. You can often find such offerings at your local community college, adult continuing education center, or even through your community center. In some cases these courses are available online. And the benefit of taking such a course is that you’ll get a broad overview of personal finance, including household expenses, retirement accounts, investments, and more. But you may also have access to specific and practical lessons like how to create your own budget or pay down credit card debt.
The majority of us are sticklers for finances at work, but often disregard our personal finance at home. For those who are not accountants, the process of keeping financial records and ensuring all financial items are squared away can be quite boring and often confusing. Instead of ignoring your personal finance until a problem arises, take the initiative today!