Financial Literacy Month Challenge!

Financial Literacy Month Challenge!

April 02, 2019

April is one of my favorite months of the year.  Besides the fact that the month is a true reminder of Spring, it's also a month of rebirth and growth!  I'm happy April was chosen as the month to celebrate Financial Literacy. It's a month to provide us with an opportunity to rebirth our personal finance knowledge. Even though we can do this at any time of the year, Spring just seems befitting for the task.

One of the best things I could have ever done for myself in my early twenties was create the habit of systematically investing and saving. I learned from a very young age that we can't trust ourselves to put away money on a regular basis.  Something always comes up and the money is never placed where we intended for it to go, in our savings or investment accounts. Systematic investing and saving takes the work off of the table for you and suddenly puts you in the drivers seat.  Your money is like a car. It will go where ever you wish, as long as you are steering it in the right direction. 

For those who may not be familiar with the term, let me clarify what is meant by systematically investing and saving. A systematic investment plan is an investment vehicle offered by mutual fund companies that allow investors to invest fixed periodic payments (in my case monthly) to purchase mutual fund units. The payments are debited each month from your checking or savings account to buy units of the fund. Investing monthly frees the investor from speculating when to buy in the market. Making the purchases monthly on a regular basis allowed me to dollar cost average the unit price of the fund ( buying more units when the price is low and fewer units when the price is high) creating a lower unit price per share over the long run. This same concept was used to build up my emergency savings account. I had a fixed amount of money coming out of my checking into my savings account until I reached my savings goal. 

Systematic investing and saving encourages discipline. You adjust to living off of what is left over.  Before you know it, your accounts are pretty fat and cushiony in a nice way! Every time I got a raise, my investment accounts got a raise. I will admit that I was more discipline with my savings than I was with exercising.  Having a system in place to save was just easy, unlike exercise!

My challenge for you this month if you haven't already done so, is to set up systematic investing and/or saving accounts. Become the driver of your money (the car) and don't trust yourself to do it on your own.  Murphy (as in Murphy's law) will always stand in your way.

About Terrell Dinkins, MBA, ChFC®, CDFA®

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Terrell Dinkins, MBA, ChFC®, CDFA® is an investment adviser representative of and offers investment advisory services through OBN Wealth Advisors, LLC, a registered investment adviser offering advisory services in the State of Georgia and other jurisdictions where registered or exempted. Main Office: 950 Eagles Landing Pkwy, Suite 216, Stockbridge, GA 30281. Tel: 404-723-9780. Website: OBN Wealth Advisors