EmmanuelIntroduction to Personal Finance: Learn Money Basics
Beginner Finance courses are those courses designed to teach beginners about money basics, and the step by step way to grow ones finance.
Below are some of those basic things to know:
1. Learn key terminology
To understand finance, you need to understand the lingo. Courses will introduce key terms like income, expenses, assets, liabilities, interest rates, and the time value of money. They’ll explain each concept in an easy-to-grasp way.
2. Create a budget
A budget helps you track your income and spending so you can make sure you have enough to cover essentials. Courses teach you how to build a realistic budget that works for your situation.
3. Pay off debt
Debt is one of the biggest obstacles to financial freedom. Courses outline strategies to pay off high-interest debts like credit cards first before other debts.
They provide calculators to determine how long it will take to become debt-free by paying a little extra each month.
4. Save and invest
Saving money is key to meeting both short-term and long-term goals. Courses teach the difference between saving and investing, how interest works, and the power of compound interest.
With the basics under your belt, you’ll gain confidence in managing your money and be able to set realistic financial goals to work toward.
READ ALSO: How to Make a One-Time TD Bank Payment Online
Budgeting Bootcamp: Take Control of Your Spending
Learning how to budget effectively is a key life skill, yet it’s not always intuitive.
If the very thought of balancing your income and expenses gives you anxiety, don’t worry.
Here are some great free online courses that can help you master the basics at your own pace.
1. The Ultimate Guide to Budgeting by Dave Ramsey
Dave Ramsey is a finance guru known for his simple, common-sense money advice. His free online course breaks the budgeting process down into easy to follow steps.
You’ll learn key strategies like allocating your money for essentials first, how to cut out excess spending, and tools to help you stay on track like the envelope system.
Ramsey’s supportive, non-judgmental style makes budgeting feel accessible no matter what your financial situation.
2. Learn to Budget by NerdWallet
This simple six-lesson course by the personal finance website NerdWallet teaches you budgeting fundamentals in under an hour.
They provide helpful visuals to illustrate key concepts like calculating your income, prioritizing expenses, and balancing variable costs.
One useful tool they introduce is the 50/30/20 rule: aim to allocate 50% of your income for necessities, 30% for wants, and 20% for financial goals.
Each lesson ends with a short quiz to reinforce what you’ve learned. This budgeting crash course is perfect if you’re short on time but want to start building better financial habits.
3. Budgeting 101 by The Balance
The Balance offers an eight-lesson beginner budgeting course with short, focused videos and supplemental materials.
They walk you through the entire budgeting process step-by-step, from gathering your financial documents to analyzing your spending habits and income.
One helpful technique they teach is how to look for expenses you can reduce or eliminate altogether to free up more money for your priorities.
READ ALSO: The Best Finance Leasing Software for Your Needs
Investing for Dummies: Grow Your Money With Beginner Investing Strategies
Here are some of the easiest ways for beginners to get into the investing game and start growing their money.
1. Open a High-Yield Savings Account
A high-yield savings account is a safe and easy first step. Shop around at different banks to find the highest interest rate. Your money will earn money just by sitting in the account. No risk, low reward, but a good starter option.
2. Try a Robo-Advisor
Robo-advisors like Betterment and Wealthfront are automated investing services perfect for newbies. You answer some questions about your goals, risk tolerance, and time horizon.
The robo-advisor then invests your money for you in a managed portfolio of low-cost funds. They do the work so you don’t have to. Many have no account minimums and low fees.
3. Invest in Index Funds
Index funds track the stock market and provide broad market exposure for little cost. Two popular index funds are Vanguard’s S&P 500 ETF (VOO) which tracks the S&P 500, and their Total Stock Market ETF (VTI) which tracks the entire U.S. stock market.
You can buy shares of ETFs through any brokerage firm. Set up automatic contributions each month and watch your money grow over time.
4. Learn About Individual Stocks (Optional)
Once you get the hang of index fund investing, you can start researching and buying shares of individual companies if you want.
Look for high-quality, innovative companies with solid growth potential. Companies like Apple, Nike, Netflix or Visa are good stocks for beginners.
Conclusion
The keys to beginner investing success are: keep costs low, take it slow, do your research, and don’t panic. Start with small steps, learn as you go, and watch your money grow over time through the power of compounding returns.
Emmanuel
