Whatever your goals, dreams and challenges, financial literacy is a critical factor influencing what you can achieve in life.

Why? Because financial literacy can help you make smart decisions today that will shape your life and the opportunities you enjoy for decades to come.

As November is Financial Literacy Month, this is a good opportunity to highlight the meaning of financial literacy and show how it can positively impact your life.

Empowering your financial life

Being financially literate doesn’t mean you have to become an expert in financial matters.

However, it does mean getting to know the basics so you can ask relevant questions and have meaningful conversations with financial professionals.

Ultimately, becoming familiar with financial topics is about empowerment and being an active participant in the shaping of your financial future.

Financial literacy 101

Learning some of the fundamentals of personal financial management can go a long way in demystifying this important topic.

The following are some of the building blocks of financial literacy:

  • Managing your debt. Personal debt in Canada is at a record high, which is particularly concerning for younger Canadians who are growing up to see cheap debt as a way of life.
    • Financial literacy means understanding the impact of debt on your finances – including your credit score – and how different strategies can help you pay it off more quickly and at a lower overall cost.
  • Growing your wealth. Working hard in a job or running a business is only one part of the equation – there are many other factors that will influence the growth of your wealth during your lifetime.
    • Financial literacy means understanding how your income is taxed, learning how best to balance spending and saving, and identifying opportunities for growing your wealth through wise investment choices.
  • Protecting yourself and your family. The past year has clearly shown that life can throw unexpected curveballs, highlighting the importance of proactively safeguarding your financial well-being.
    • Financial literacy means understanding the role of life insurance as a powerful investment tool, the importance of disability and critical illness insurance for protecting your financial well-being, and the value of locking in lower insurance premiums when you are younger and healthier.
  • Working toward goals. A career can be incredibly rewarding in itself, yet it can also be a means to achieving any number of life goals.
    • Financial literacy means understanding the steps you can take now and throughout your career to help you achieve major goals, such as buying a house, starting a family, retiring early or engaging in philanthropy.

Adopting a holistic approach

Adopting a holistic approach to your finances means ensuring that all decisions and strategies are thoughtfully aligned with your current situation and future goals.

A base level of financial literacy – together with support from a trusted advisor – will help you put in place a comprehensive financial plan that covers all the bases and can evolve throughout your lifetime.

In addition to giving you greater peace of mind regarding your financial security, it will also leave you free to focus more time and energy on your family, your career and other important areas of your life.

Securing your financial future

Whatever your worries today and hopes for the future, boosting your financial literacy will empower you to move forward with greater confidence.

If you’d like to discuss your financial situation with a trusted advisor who can provide thoughtful guidance, please contact Rubach Wealth to schedule a call.

To discuss how greater understanding of your finances can get you on the right track to a better financial future, contact us contact us at info@rubachwealth.com or at 647.349.7070.