Although money is important, what’s more important is knowing how to manage our own
money. Understanding how to manage our own finances is called financial literacy.

No amount of money in this world will ever be enough if we do not know how to manage it,
because there is a tendency for us to spend everything we earn every month. Or worse - to
consistently spend more than what we earn. This is the root of almost all financial woes that
leads to other problems such as relationship problems, social problems and even health
problems if the stress that it creates becomes unbearable.

It is always good to know the sources of financing that are available to us, because when
used correctly they make living our lives easier and more enjoyable. But at the same time,
it is crucial to know the difference between needs and wants that require financing. Each
person has different priorities because we all lead different lives, but the bottom line is still
the same - we all need to understand the difference between the needs and wants in our
lives to manage the amount we spend in relation to what we earn.

Whenever we come across anything that requires spending, learn to ask ourselves, “Do I
need it? Or is it simply something that I want? Given the amount I earn and what I already
need to pay for at the moment, can I still afford it? And what will become of my savings if I
proceed?”

These simple questions are fundamental to managing our finances. Yes, they’re simple
questions but it’s these simple questions that some of us find hard to ask ourselves.

Stop. Think. Question. That’s the best habit on the road to achieving
financial literacy!