Many people are stressed out when it comes to their finances. Some may be living beyond their means even if their income is just or not enough. Some have the habit of maximizing their credit cards and only depend on their monthly paychecks. Some may be saving for unexpected expenses. The question is, can we be financially secure even if we do not have a lot of money?







Understanding Financial Literacy. It all starts with this basic terms:

  1. Income. This is the money that comes in. It is the money we receive from work or investments. It’s important to ask the question “How do you make money?” Set goals in achieving your dreams. Create and practice good values in the job market. This can lead you far.
  2. Expenses. This is the money going out. This is money that you pay for goods and services. Always ask the question, “How do you spend your money?” It is important to construct your own financial budget and how you would execute it.
  3. Assets. These are things we own. This includes money or property a person owns that has a value. The road to building assets starts with saving. Make it a habit to save.
  4. Liability. This is a debt you owe to any person or a business. A lot of people get into financial trouble by constantly spending more than they earn. Credit is readily available today, this may be good and may be bad. Good because it can enhance your ability to undertake attractive investments such as a home or even your education. Spend in assets when using credit rather than buying something that will soon disappear such as food.