financial.

Financial Literacy: Why it should be the American Dream



Having at least a foundation in financial literacy is so

important in the average American’s life because without it one will never have

the chance to experience what wealth and freedom is all about. The recession and the rising amount of

credit card debt that American’s have prompted me to write this article. The urgency of financial education is

paramount because people are feeling hopeless and are becoming slaves to their

credit cards. This is why I will

discuss how a 6-month safety net of cash, investments, and paying off debt can

be a good foundation for changing one’s financial future.

Safety nets with cash are always important to any person

because one can loose their jobs at any minute and instantly have no source of

income. This is why I say having a

safety net is important. When one

has at least 6 months of reserve cash that can cover all expenses then they

will be in better shape. Having

this cash can help to insulate you from not being able to pay a mortgage or car

note in the event that a job is lost.

The next cushion is investments; this can range from stock

to a 401(k) retirement plan. This

is important because if you don’t have the 6 month safety net then hopefully

you can have some investments you can cash out which will put cash in your

hands quickly. Understanding these

investments can prove valuable as so that you can understand the tax

implications of clearing out an investment account in the event of lost

employment.

The last area that can help straighten up your financial

house is debt and debt control.

Having debt is something we all have, bun we all need to practice good

debt control so that balance can be paid off as soon as possible. Most of this debt we have will be in

credit cards and those generally carry high interest rates. Sometimes I think debt is the number

one burden for anyone when getting their financial houses in control.

Lastly having financial literacy is so important without it

one can feel as though they are hopeless and that they will never have money

because of debt. If you enact some

of these strategies I just suggested then perhaps more financial stability can

come into one’s life.

Author:.

"If you want something in life go and get it period". This is the quote that I live by, I wake up daily asking myself what do I have in store today and what am I going to do to accomplish it. I am a 2007 graduate of the University of Kansas where I acquired a BA in Sociology. I have been an Entrepreneur for the last six months due in part by my desire to work for myself and to no longer have a cap on my earning potential. I enjoy reading articles that help to provoke thought and debate and i...

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