Financial Literacy: It’s Never Too Soon To Plan For Retirement
When you think of your Golden years, what do you envisage? We predict that good health, happiness, peace of mind, financial security and stability are a great part of your vision. Most people look forward to this kind of retirement when you can finally relax, with no pressure of work or daily responsibilities, spend more time with family and simply enjoy life.
So, now that you’ve visualized your own future, drop the illusion that it’s a distant dream just because you’re a couple of years away from 50 or 60. You can only live comfortably during your golden years if you carefully plan in advance.
Without a plan for retirement, you risk surviving on minimal savings, experiencing financial stress, and becoming a burden to your family. Retirement planning is the gateway to the standard of living and financial security you desire to enjoy in your golden years.
However, even with this in mind, it can still be a struggle to plan and save for retirement due to the inescapable day-to-day expenditures that dictate your financial behavior. Financial behaviour is basically how you make financial decisions based on your financial knowledge. This knowledge is what is termed as Financial literacy.
Financial literacy is for everyone, not just the aging. A study that was carried out in 2021 by Financial Analysts revealed that on the overall, there’s a limited understanding of basic concepts of interest rate, inflation, and securities which indicated an overestimation of financial literacy among people in Kampala, most especially among younger people, and those employed in the formal sector. But the Financial literacy required for retirement planning doesn’t have to be complex. Managing your personal finances begins with a comprehensive understanding of simple financial concepts and principles, such as budgeting, saving, investing, managing debt, and of course retirement planning which focuses on saving for retirement, investing in retirement accounts, and developing retirement income strategies.
Simple Ways to be Financially Literate
Self-educate
Read as much as possible about financial topics a few minutes every day. There’s a wealth of financial information available everywhere; on the internet, daily newspapers, finance newsletters, books, journals and finance-focused blogs which can introduce you to the fundamental concepts and jumpstart your journey to financial literacy. Gaining basic knowledge to manage personal finance is very important for all income earners to make the right decisions that would foster financial stability.
Start budgeting
Overspending is often a result of spending without a budget plan. In order to make a budget plan, you need first to get back to the basics by tracking your spending to understand your spending habits, defining your needs vs. wants (include all your fixed expenses like rent, utility bills, loan payments etc. and variable expenses such as groceries, entertainment, etc), and then set your financial goals (include long-term goals such as retirement savings). Sticking to your budget plan even with your evolving needs will set you on the right track to financial freedom.
Talk to an Expert
When in doubt, seek advice. Many agencies offer professional financial advice that can help you understand your finances better so you can learn how to manage your money, pay off your debts and reach financial freedom. Investing in an accredited, unbiased financial expert will offer services to get the basics straight and enable you to reach your financial goals like buying land and constructing a family house.
Get Training
The preconceived complexity of financial education, the tendency to be overwhelmed by financial jargon, and the reluctance to seek expert advice can all be major barriers to improving your financial literacy. However, enrolling in a training program is a great way to start fitting together the pieces of the financial jigsaw puzzle.
Attending this year’s EBC Financial Literacy & Retirement Planning Training happening on 12th July at Protea Hotel will equip you with essential knowledge and skills to make informed financial decisions, plan effectively for retirement, achieve financial independence, manage debts, avoid scams, and enhance your financial security and well-being. Start your financial literacy journey sooner rather than later.
To register, go to [link]
