Investing and growing the money earned is equally important to making the money. Smart people with lower incomes can end up making bigger fortunes in life if they know how to invest their money in smartly. But a number of people end up making poor choices when investing money. Money is mostly invested in low return options like real estate or the ones which give zero real returns in the longterm like gold. Good financial literacy will help people to know the better investment options available. Many people lack even basic financial literacy that can help them in taking good investment decisions.
Some of the ways in which financial literacy can be improved are:
Follow Finance Blogs
In the age of Internet, there is a treasure trove of information available online regarding the various investment options available to investors. Finance blogs written by successful investors and personal finance consultants give a good idea on building a good investment portfolio. As blogs focus on niche areas, readers can follow the ones which suits their needs and tastes. For example, there are certain blogs that specifically focus on investment classes like real estate and equity.
Read Personal Finance Columns in Newspapers and Magazines
Every good newspaper now has a personal finance column that is published every day or once in a week. Personal finance columns give valuable suggestions regarding the different investment options available for investors. Impartial columns written by eminent finance journalists, economists, and personal finance advisors analyze the returns on different investment options over the years and suggest the ones that can have good growth prospects in the future. Some newspaper columns also give personal suggestions to readers regarding their investment portfolio. Reading such personal finance columns can help busy people to get a good understanding regarding the different investment options and their future potentiality.
Read Broker Reports
For people with an account with full service brokers, reports published by them can give invaluable information regarding the returns on different security classes. Equity and debt reports published by brokers analyze the performance of individual equity and debt securities and suggest an ideal portfolio depending upon the income and risk taking capabilities of different investors. Many brokers make their reports accessible to everyone (even to people who do not have an account with them). Start reading reports from good brokers to get a deeper understanding of the current state of financial markets.
Watch Business Television Channels
Business television channels are also watched by general people to get an understanding of the economic and business environment. Business channels like CNBC telecast special programs to advice investors on different asset classes. Watching these programs can increase financial literacy of people who do not like reading newspapers and magazines. Business television channels also offer continuous updates on stock and bond prices during the trading hours.
