{"id":59639,"date":"2023-02-27T11:58:24","date_gmt":"2023-02-27T15:58:24","guid":{"rendered":"https:\/\/www.iwillteachyoutoberich.com\/?p=59639"},"modified":"2025-04-02T02:52:15","modified_gmt":"2025-04-02T06:52:15","slug":"financial-literacy","status":"publish","type":"post","link":"https:\/\/www.iwillteachyoutoberich.com\/financial-literacy\/","title":{"rendered":"What is Financial Literacy?"},"content":{"rendered":"\t\t
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Most people think financial literacy means fixing spending habits like daily $4 lattes and investing the money in some little-known financial instrument your college roommate can’t shut up about on Facebook. It is so much more than that.<\/p>\n

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Financial literacy is something that is new for a lot of people. It usually takes a long time to acquire, but, the good news is that we can speed things up for you, saving hundreds of hours of frustration and confusion trying to shore up your personal finances.\u00a0<\/p>\n

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You don’t have to spend years studying compound interest charts or weeks trying to find the latest hot stocks to get there. All that’s required of you is a willingness to think about money in a different way<\/a>. This new-fangled thinking forms your financial literacy.<\/p>\n

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Here are Ramit’s five simple steps to help you become financially literate and create a personal money management system that practically runs on auto-pilot.\u00a0\u00a0<\/p>\n

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1. Automate your money<\/h2>\n

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Let’s face it: making and saving money is hard work but understanding<\/em> how to make and save money can be even harder.\u00a0<\/p>\n

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It doesn’t have to be. As Ramit points out, when it comes to managing money, 80% (or more) of your long-term success comes down to your behavior around saving, spending, and investing,\u00a0<\/p>\n

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The other 20% comes from knowing what to do.<\/p>\n

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So, why not spend 20% of your time on acquiring financial literacy, and put systems in place to reduce the 80% of the time needed on those good behaviors to save, spend, and invest.<\/p>\n

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The good news is that 80% of your time spent on such good behaviors can get drastically reduced by automating your bill paying and saving. Whether from the websites of the bill payees themselves, or directly from your online checking account, set up recurring payments and transfers so that you’ll never have to think twice about where your money is going.<\/p>\n

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Spending a few hours getting all your payments automated may seem like a pain, but it will pay off in the long run.<\/figcaption>\n<\/figure>\n

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You won’t miss the money because all (or most) of your money will go where it’s supposed to go \u2014 automatically.<\/p>\n

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Here are Ramit’s spending recommendations:<\/p>\n

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