The situation is dire: you’re drowning in debt and don’t know how you’re going to get out of it. You’ve gone through the advice of friends and family, and have even taken a finance course or two. You have a new short-term goal in mind, but you’re not sure how to get there without putting yourself in a financially dangerous position.

What Is Financial Literacy?

Financial literacy is the ability to handle your money in a smart and effective manner. Additional goals include the ability to navigate unexpected issues like job loss and to set and work toward financial goals. It improves the quality of life of an individual, family, and community.

It starts by building a basic knowledge of money matters.

Here are the strategies to improve your financial literacy skills:

• Create a Budget
• Pay Yourself First
• Pay Bills Promptly
• Get Your Credit Report
• Check Your Credit Score
• Manage Debt
• Invest in Your Future

Create a Budget

Want to create a spending plan, but don’t know how? This guide is everything you need to get started, without any prior experience in budgeting or money management. You’ll learn where to start with your budget, how to prioritize it, and how to change your spending habits to create a positive impact in your life.

Pay Yourself First

Pay yourself first is an idea that has been around for a long time, but it is still an extremely effective way to set up your finances so that you have the money you need to make the most important decisions in your life.

As you grow into a successful person, you have a tendency to forget about the little things that help you succeed. Like taking a small amount of money from each paycheck and putting it into a savings account for a rainy day. Many people do not realize that a savings account is a good way to save, as it is a good way to make sure your money is safe from unexpected expenses. Of course, those unexpected expenses can happen to anyone, no matter how much money you make.

Pay Bills Promptly

Being able to pay your bills on time will help you save money. And, like anything else, it’s easier said than done. Paying bills on time is sometimes difficult for many reasons. It’s easy to forget about things like bills; after all, they are only things. But if you want to save money, you have to pay attention to these bills, or you’ll miss them.

Get Your Credit Report

Your credit report is important, whether you are applying for a mortgage, renting an apartment, or looking for a job.

First, you have to get a copy of your credit report from each of the three credit bureaus—Equifax, Experian, and TransUnion—and then compare them to see how thoroughly reporting agencies got your updated information. Then you have to see if there’s a mistake in your report and decide whether or not to dispute it.

34% Of Consumers Have Found A Mistake On Their Credit Report, New Survey Shows.

Check Your Credit Score

The number that appears after your name on your credit report is the credit score you’ve built up over the years. It’s not something you can change overnight. But you can take steps to help your score get better, like paying your bills on time, making your minimum payments on time, and keeping your credit utilization (the amount of your credit that you’re using) low.

Manage Debt

When you have credit card debt, you often feel trapped. And you probably have a lot of questions about how to get out of Debt, how to deal with it, including how much debt to take on, how much to pay down each month, and whether the debt is even worth paying off.

Here’s a little secret: Most people don’t manage their debt effectively. In fact, a new survey from Credit.com found that more than half of Americans don’t even know how much they owe, let alone how to pay it off.

Invest in Your Future

Your journey to financial independence begins the moment you start saving for your future. And if you have a goal of retiring at age 35, you’ll need to start saving a lot earlier. At the same time, a small amount of a rainy day fund can go a long way to helping you weather the rough spots.

If you’d like to help your kids and your family, invest in your future today! The older we get, the harder it is to save money, and as we get into our 50s and 60s, we realize that our retirement may come many years away. Don’t put it off any longer!