Financial Literacy is an increasingly pressing issue in our world today, with a recent test showing that only 30% of those who took it were financially literate. This lack of financial literacy is especially prevalent in the African American community, leaving many without the knowledge to make smart financial decisions. That’s why Troy Holt, CEO of Troy Holt Consulting, LLC, and co-author of the Amazon bestseller’s book, is on a mission to eliminate financial illiteracy.
In this article, Troy will share his advice on how to gain financial literacy and how to make smart financial decisions that will set you up for a better financial future. So, if you’re ready to take control of your financial future, read on!
Troy Holt is an entrepreneur and financial educator living in 20 states across the US. He is the CEO of Troy Holt Consulting, LLC, a co-author of an Amazon bestseller, and has his own podcast. Troy is passionate about helping others achieve financial literacy, and his mission is to eliminate financial illiteracy, especially in the African American community. He has been in the financial services industry for 22 years and is a certified financial educator.
Here are the steps you need to follow to also get financial security.:
1. Get an Education
2. Proper Protection
3. Emergency Fund
1. Get an Education
The first step to getting your finances in order is to get an education. There are many resources available to help you with this. You can read books, watch YouTube videos, and consult with a financial professional. All of these will help to increase your knowledge and understanding of financial matters. This knowledge is essential in order to make informed decisions.
Additionally, Troy Holtz, the CEO of Troy Holtz Consulting, suggests looking into the Rule of 72 to understand how compound interest works. He explains that this rule helps you estimate how long it will take your money to double depending on the interest rate you are receiving. With this information you can make smarter financial decisions.
Lastly, Troy suggests looking into the seven money milestones: education, protection, emergency fund, debt management, cash flow, investing, and wealth building. These milestones provide a roadmap for you to follow in order to get your finances in order. With the right education, you can make smarter financial decisions and take the first step towards achieving financial freedom.
2. Proper Protection
Proper protection is an important step in taking control of your finances. It ensures that your family is taken care of in the event of death or disability. This includes getting insurance policies that will provide financial security in the event of an unexpected situation. There are many different types of insurance policies that can be purchased to fit your needs, such as life insurance, disability insurance, health insurance, and more.
It is important to do your research to find the most suitable policy for your needs. Another important aspect of proper protection is to have an emergency fund. This is a savings account that is set aside for unforeseen expenses.
It is recommended to have three to six months of your income saved in this account for unexpected expenses. This allows you to cover unexpected expenses without having to worry about taking on more debt. It is important to start small, even if it is just a dollar a week, so that you can get into the habit of paying yourself first.
3. Emergency Fund
The third step in the seven money milestone process is establishing an emergency fund. This fund is a designated pool of money that is set aside for unexpected expenses and is an essential part of financial stability. It’s important to note that an emergency fund should not be used for luxury purchases or vacations, but instead for true emergencies such as an unexpected medical bill or car repair.
The rule of 72 can be used to determine how long it will take for your money to double, depending on the interest rate. This is important to keep in mind as you work towards establishing an emergency fund. According to Troy holt, 68% of Americans do not have enough to cover a $400 emergency, making it clear how important it is to build up an emergency fund.
When getting started, it’s important to pay yourself first and start small. Any amount set aside is better than nothing and will help create a habit of setting aside money. Once you have established a habit, you can begin to increase your savings and work towards the goal of having three to six months of your income saved in an emergency fund.
Financial literacy is an important skill to possess, and Troy Holt is on a mission to eliminate financial illiteracy, especially in the African American community. By following his advice, you can gain financial literacy and make smart financial decisions that will set you up for a better financial future.
This includes getting an education, proper protection, and establishing an emergency fund. With the right education and financial planning, anyone can take control of their financial future and achieve financial freedom. So take the first step towards financial freedom and don’t let financial illiteracy limit you.
I’d love to hear how you apply Seven Money Milestones to get financial security..
Leave me a comment on how it went for you or drop any questions you want me to answer!
