Everyone aspires to achieve financial stability and success in their lives. Sadly, the playing field is not level for people of colour. According to The Guardian, there’s an ethnicity gap that covers everything that involves money. Compared to their white counterparts, people of colour, especially those who come from black households, have lower earnings and less money in investments, private pensions, and other assets.
If you’re stuck in a financial rut, you should aim to improve your financial literacy. Having a solid foundation in financial literacy can help you make better fiscal decisions and figure out the best way to achieve your life goals. Here, we outline four foolproof ways that can help you boost your financial literacy.
Use personal finance apps
You can use your mobile phone to easily manage your finances and expand your financial literacy. This is thanks to the various personal finance apps that you can download on your phone. One example of this is Quirk, which allows you to set up a budget and closely monitor your expenses. In addition, Quirk can also give you financial tips that are tailored to your lifestyle and needs. All you need to do is to answer a quick survey about your financial preferences. Another personal finance app that you should consider using is Plum. By linking your financial accounts to the app, Plum can give you an analysis of how much you can afford to save. It will also automatically transfer small amounts from your account so you don’t forget to set aside your savings. There are a lot more personal finance apps available to download on your phone. Be sure to do your research to figure out which one best suits your preferences and needs.
Read, read, read!
Another great way to expand your financial understanding is by reading resources, whether it’s in print or online. Today, there’s a diverse set of POC authors who can give you advice on how to manage your money, inform you of the best strategies to achieve financial stability, and detail the top financial trends that you should take advantage of. Online publications such as MoneyWeek and the Financial Times have plenty of columns and articles by POC where you can pick up sage financial advice. Stylist also lists some of the top money management books by POC authors that you should add to your reading list, such as Black Girl Finance by Selina Flavius and How To Save It: Fix Your Finances by Bola Sol.
Don’t be afraid to invest
The best way to practice your financial knowledge is through investing. For one, you’ll learn about the different components of investing such as interest rates, diversification, risk mitigation, and price levels. Furthermore, investing can motivate you to widen your financial knowledge in the search for more lucrative and stable investments. However, you have to be strategic and decisive when you invest in order to reap its rewards. You should also go beyond the usual investment assets like stocks and mutual funds, and explore other options such as spread betting and certificates of deposits.
Spread betting is a good investment to make as it allows you to capitalise on the movement of a particular security without having to own it. FXCM also adds that spread betting is an excellent investment as your profits can be instantly realised and are free from taxes. Meanwhile, certificates of deposits allow you to gain risk-free profits by simply leaving a certain amount of money deposited in your bank for an agreed period of time. Through investing, you can further sharpen your financial literacy and be introduced to other important financial concepts that can help you secure your future.
If you want to become the next Strive Masiyiwa or Valarie Moran, be sure to heed the tips and advice we discussed above.