5 Personal Finance Hacks to Make You Rich
Becoming financially literate will help you manage your finances more effectively and efficiently—and accelerate your journey to financial freedom!
The important of financial literacy cannot be understated!
Today, I'm going to explore the top five ways to become financially literate. And show you the benefits of educating yourself in the field of personal finance!
But before I show you how to become financially literate—what is financial literacy?
What Is Financial Literacy?
Financial literacy can be described as the education and understanding of various areas of personal finance.
A financially literate person is responsible for their money and takes the correct steps to set them-self up for financial freedom.
Financially literate people also have a great understanding of investing, real estate, insurance, college funding, tax planning, budgeting, retirement and more!
Now that you know what financial literacy is, it's time to explore five ways to boost your financial literacy!
1. Read Books
Reading books is one of the best ways to educate yourself on personal finance for less than $30!
By knocking out a chapter a day in a great personal finance book—you can typically obtain 70,000 words of knowledge in under 2 weeks!
One of the best books to read to become “financially literate” is Rich Dad Poor Dad: What The Rich Teach Their Kids About Money – That the Poor and Middle Class Do Not!
Rich Dad Poor Dad is the #1 best-selling personal finance book of all time.
Robert T. Kiyosaki explains how anyone can become wealthy by properly allocating their money.
The book’s main lessons can be summarized in three lines:
- Buy assets instead of liabilities.
- You don’t need a high income to be rich.
- Rich people make money work for them.
If you'd like to learn more about Rich Dad Poor Dad and some other great personal finance books, visit our post here: The 3 Best Personal Finance Books
2. Listen to Finance Podcasts
There are many great personal finance podcasts that will help you get a hold of your finances.
Podcasts are great because you can listen to them while driving, while exercising—or even while you're drifting off to sleep!
Here are some of the most popular personal finance podcasts:
The Dave Ramsey Show
On this show, radio host, best-selling author and personal finance guru Dave Ramsey shares his thoughts on debt, investing, retirement, insurance and marriage. It's perfect for the person who wants to know a bit of everything from an authoritative source—whilst avoiding boredom!
Check out the show here: The Dave Ramsey Show
BiggerPockets Money Podcast
On the BiggerPockets Money Podcast Mindy Jensen and Scott Trench interview financial experts to teach you how to save more, spend smarter and build your nest egg just that bit faster.
Hedge fund manager and best-selling author Phil Town and his daughter, Danielle Town, helm this podcast by diving deep into the topic of bigwigs and their investment strategies. Anyone who wants the inside line on how to make the stock market work for you, take note.
Did I mention Town is a hedge fund manager?
You can check out the podcast here: InvestED Podcast
The Smart Passive Income Podcast
Pat began podcasting in 2010. Since then, He has published over 1,300 episodes across three podcasts, with more than 50 million downloads.
Pat Flynn's goal is to teach you proven strategies for running an online business and optimizing it for passive income!
Podcasts are a great way to learn about personal finance while multitasking!
3. Follow Financial Publishers
There are many publishing companies that have a strong presence on Twitter. Many of them link to new content frequently—and retweet other relevant content.
By following some of the publishers listed below on Twitter—you will always get the latest news on financial developments.
Here are some of the companies I'm referring to:
CNBC is an American pay television business news channel that is owned by NBCUniversal Broadcast, Cable, Sports and News, a division of NBCUniversal, with both being ultimately owned by Comcast.
The Wall Street Journal
The Wall Street Journal is a U.S. business-focused, English-language international daily newspaper based in New York City. The Journal, along with its Asian and European editions, is published six days a week by Dow Jones & Company, a division of News Corp.
The New York Times
The New York Times is an American newspaper based in New York City with worldwide influence and readership. Founded in 1851, the paper has won 127 Pulitzer Prizes, more than any other newspaper. The Times is ranked 17th in the world by circulation and 2nd in the U.S.
The Australian Financial Review
The Australian Financial Review is an Australian business and finance newspaper published by Nine—six days a week. The Financial Review is informally referred to as the Fin or the Fin Review. Its satellite publications include Financial Review Smart Investor, Financial Review Asset and BRW.
You could even follow some personal finance bloggers as well.
4. Take Advantage of Money Management Tools
While I personally don't use any money management tools—I hear a lot of great things about them!
Personal Capital is an online financial advisor and personal wealth management company headquartered in Redwood City, California with offices in San Francisco, CA, Denver, CO, Dallas, TX, and Atlanta, GA.
Personal Capital allows you to include your bank accounts, mortgage, and other credit accounts, plus your investment accounts—to have your complete financial picture right in front of you.
5. Find a Mentor
Finding and learning from a mentor will enable you to increase your financial acumen extremely quickly—as you're learning from someone who has extensive life experience!
It would be great if you had someone in your circle who is both wealthy, and willing to mentor you—over a prolonged period!
Your mentor will increase your confidence and help you develop a strong understanding of personal finance very quickly.
I hope these resources will help you increase your financial acumen and ultimately—boost your financial literacy skills!
If you'd like to learn more about personal finance and managing your money, check out The Five Pillars Of Personal Finance where I explore the five major aspects of personal finance!
Would you consider yourself financially literate?