Knowledge is confidence when making financial decisions
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What financial decision have you avoided because you don’t know what to do? Maybe you’re hesitant to invest, intimidated by the intricacies of the market. Or you’ve delayed saving for retirement, uncertain of where to begin? You’re not alone. Across the nation, there exists a pervasive gap in financial confidence—a gap that hinders individuals from managing their finances confidently.
April is Financial Capability Month. It’s the perfect time to overcome knowledge gaps and build the confidence needed to make more informed financial decisions. Financial capability is more than just numbers, it’s about empowerment. In this ever-changing economy, it’s more important than ever to be informed and seize opportunities for success.
Start with what you know. Perhaps you know you need to be saving more for retirement, or you’d like to pay down your mortgage more quickly. Start by taking inventory of your finances. Look at your income, expenses, assets and credit score. Then look at your goals and how you’re going to accomplish them. Understanding where you are will help you understand where you need to go and what information you’re going to need to make more informed decisions.
Know what you don’t know. It’s hard to admit we may not be as smart as we think we are, but pride shouldn’t be an obstacle. If making a financial decision is hard, ask yourself, “What information am I missing?” Is it that you don’t know where to invest for retirement? Or you’re not sure how to make additional mortgage payments? Identify the blind spots in your financial knowledge.
Fill in the knowledge gaps. You’ll find a wealth of resources online about every financial topic you would ever want to learn about. Start there with reputable sources you trust.
Ask an expert. Depending on the financial topic you’re educating yourself on, the amount of information can be overwhelming. Now is a good time to reach out to an expert at a trusted financial institution and learn from their experience. Ask questions about what you’ve learned from your own research and clear away some of the misinformation you may have come across.
Make informed decisions. With your newfound knowledge, you can now make informed decisions that are aligned with your long-term goals and aspirations.
Knowledge is confidence, and we all want to feel confident in our financial futures. Instead of putting off financial decisions, let’s take them head on armed with new knowledge.