The Easiest & Free First Steps You Can Take To Improve Your Financial Literacy

The world of business & finance is no longer a taboo topic. What was once reserved for the "elite" and professionals has now turned into a growing world of retail (everyday) investors becoming their own portfolio managers. Yes, to most, this seems like a daunting area to dip your toes into, but there are easy stepwise approaches you can take to gradually become comfortable with the jargon & lingo out there.

I graduated from pharmacy school at the age of 24 in 2015 with little to no financial knowledge (as expected) but didn't think it would be important or necessary for my future success. Sure, I got basic personal finance education in grade school, learned how to write a check & pinch a penny, but anything beyond that (aka investing) was never stressed to the point it should be today. That's why they have financial advisors, right? Well, not always.

If you've read some of my previous blog posts, you'll learn that having a financial advisor was not really working in MY best interest when I had one. My bills were growing exponentially, and I was withdrawing funds faster than I was contributing to it. By 2017, I closed my account with the advisor and with determination, found a more creative (and reasonable) way to invest overtime via a robo-advisor app.

Without further ado, we all have different financial journeys and starting points. No matter when you start or how much money you start with, just know that it's never too late nor too little of an amount to get started. If you're ready to take matters into your own hands and get a grip on your finances to help grow your future then get ready to become immersed in the high-octane environment of financial markets & investing. I am consolidating years of research into simple habits anyone can adopt today. Here are the first steps that I personally took to improve my financial literacy and understand the big picture.

Take a deep breath.

First & foremost, BREATHE. Information in, information out. It's overwhelming, but don't let everything you see or hear about markets get to your head. There will be information coming in every direction, including the news and/or your family & friends who all have different opinions and risk tolerances, but it's important to focus on your own research from reputable sources to comprise your own stance.

Designate some time off from your day job to get started

Whether it's nights, weekends, or one day out of the month, devote at least a couple hours exploring products, researching topics, and reading articles to further your appetite in the world of investing. Make it a habit by working that time into your regular routine. For example, reading one business article (of your interest) each morning before starting your day will slowly but surely broaden your scope of knowledge in the world of finance. See some of the resources available to you below!

Utilize the educational resources on your current online banking app or website

Believe it or not, theres already a plethora of information hiding inside those existing banking apps on your devices! If you aren't currently banking online, check the website of your bank and consider creating a profile to utlize their glossary and tools.

Download the Yahoo! Finance app

Theres nothing like getting the latest news & updates on the world of finance & business for free on your notification screen. With Yahoo! Finance, you can follow companies you're interested in, read interesting articles on latest developments and incentives, track live charts & indexes, and more. I personally resort to Yahoo! Finance for its reliability and user-friendly platform. The more articles you read out of curiosity, the more it makes sense overtime.

Do some basic terminology research on Investopedia.com

Find a term you don't understand? Look it up under the vast glossary of terms on Investopedia.com. They will define the term in a simple statement with drawings to lock in your understanding, along with an in-depth explanation in practical use.

Switch your preferred news station to CNBC on a daily basis

Consider it "white noise" amongst the first few weeks of CNBC being on your TV. When I first tuned in, I had no idea what the anchors & commentators were talking about, but overtime I got used to hearing the scheduled reports & company earnings announcements that it started to make sense hearing the discussions around each topic. This is one of the best ways to start "thinking like the billionaires" if you want to become one yourself!

Follow economic calendar events on Market Watch

This site is helpful to know when major economic reports, speeches from the fed, and routine inflation & jobs numbers get reported ahead of time so you can mark your calendars as well! While you're at it, you can utilize the alerts function in Yahoo Finance! to get notified on your favorite companies' earnings & dividend dates.

Research different ETF products on ETF.com

This is my go-to for researching and selecting ETF products to add to my portfolio. For instance, if I want to buy an index fund that tracks a niche sector like travel or maybe more specifically airline companies, I simply utilize their search filter tools to narrow the thousands of ETFs down to a select dozen or so to choose from. From there, I compare funds based on their characteristics or the style of those ETFs. How large is the fund? What companies make up the highest allocation percentages? Which geographic region(s) does it cover? When did it launch? The answers to all of these questions can be found right on the user friendly site.

These are just a few of the many resources out there, so please explore at your own discretion and build upon the information you learned here! I encourage everyone to experience their own journey when taking this path with me. Thanks for reading!

XO Hope

Not Financial Advice