In an effort to help individuals make sound financial decisions, whether you are beginning your professional career, an entrepreneur, a trader, employee or nearing retirement, the financial literacy series will provide you with the tools and resources you need to make informed decisions regarding your financial well-being now and in the future.
Financial Knowledge for Managing Your Money
- Understand the day-to-day cash flow management of your money, which includes: making ends meet for both ordinary expenses and ‘lumpy’, large expenses (behavioural); keeping track of your cash flow and budgeting (cognitive); understanding the difference between necessary and unnecessary expenses (cognitive); and avoiding unnecessary expenses (behavioural);
- Planning for the future, which includes: making contingencies, such as saving-up or buying insurance for future emergencies/risks, including a time when one can no longer work; or opportunities (behavioural), as well as the cognitive process of articulating to oneself what those might be and developing a strategy for making such contingencies;
- Although you may have income that is not only low but the value fluctuates significantly due to inflation and other factors, you need to keep track of what cash come to you at the end of each month.
© Jerry J. Afolabi is a Financial & Economic expert who believes that ordinary people can do extraordinary things when given opportunity. # firstname.lastname@example.org # 0541238987