Key Takeaways
  • August 14 is National Financial Awareness Day, a celebration of why it is essential to be financially mindful.
  • As becoming financially aware is a crucial part of becoming financially successful, below are four tips you can use to better your financial habits.
  • CapWay helps others become financially aware; read more below to see how it is done.
Are you ready to make some real money moves?

August 14 is National Financial Awareness Day, a celebration of why it is important to be financially mindful. You have the power to take control of your money and become financially aware and responsible. Below are four tips you can practice to help you reach your long-term financial goals. 


Check Your Accounts Regularly


Reviewing your financial accounts, such as checking, investment, and savings accounts, will help you become more aware of how you are handling your money. People tend to avoid checking their bank accounts out of fear, which can lead to financial anxiety

 

If you know how much is in your accounts, you have the power to direct your money toward certain categories in your budget and begin improving your financial position

 

CapWay Pro Tip: Sign up for a CapWay debit card account to help you organize your finances and track your money goals.

 

Create a Budget and Adjust When Needed

 

The first step towards building your wealth is financial planning. A tool that can help you properly manage and achieve financial stability is a budget. There are plenty of budgeting methods, such as the 50/30/20 budget rule and the zero-based budget

 

couple looking at bills

Image Credit: Cast Of Thousands / Shutterstock.com

 

Budgeting does not have to be complicated. You can start tracking your income and expenses by using the Notes app on your phone or using an old-fashioned pen and paper. At a minimum, your budget will help you keep track of how much you earn and spend.


Once you are ready to take your budgeting skills to the next level, you can gradually start saving and investing.

 

Invest Your Disposable Income


You can’t save or spend your way to wealth. The only option to build wealth is by investing. After ensuring your budget is well established, you can use your disposable income to invest in your future. Whether you are (or want to) invest in the stock market, real estate, or in your 401(k), the key is to start when you are fully prepared. 


Recommended Read: 401(k) vs. IRA | Which One is More Suitable?


Investing comes with big wins, but it is also known to come with significant risks too. Therefore, to mitigate the risk when investing, do your research to ensure you know where you are investing your money.

 

Build Up Your Credit Score

 

There may come a time when you need help from a financial institution, such as getting approved for a home loan. To receive a home loan, you need a good credit score to show lenders that you can payback the loan on time. 

 

Recommended Read: Tips on How To Improve Your Credit Score

 

credit score

Image Credit: Mironov Konstantin / Shutterstock.com

 

To build credit, you need to start using credit cards (responsibly). It is crucial to use credit cards wisely and only when you know you can afford to pay back what you owe. Using credit cards properly will increase your credit score. 

 

Your credit report will also show that you are creditworthy. Your creditworthiness will let lenders know that they can trust you to pay back your debt on time.


How CapWay Promotes Financial Education


Financial education is important because it allows you to confidently manage your money while handling issues as they arise financially. By increasing your personal finance knowledge, you can better control your money now and in the future.

 

student checking her phone

Image Credit: mimagephotography / Shutterstock.com

 

CapWay offers many resources and tools to help you with all your finance-related questions, such as these informative articles. Also, CapWay offers Phunds, a digital-first financial literacy program, to individuals, schools, organizations, and more, which aims to teach people critical financial topics to become financially literate. 


The Money Wrap-Up

 

Everyone aspires to have enough money to the point where they are financially independent and stable. Financial education plays an essential role in achieving financial stability and independence. Therefore, by following the points outlined above, you can improve your financial habits to ensure you stay on the path of achieving your financial goals.


Main Image Credit: Pixel-Shot / Shutterstock.com

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