Money
Money is symbolic energy. It is manmade. It is a tool, a means to an end of your choosing. We can trade our time and skills for it; we use it to pay bills, feed and clothe ourselves, and to provide shelter; its uses are vast. One of the most effective ways of enacting social change is changing how you allocate your money. Corporations, markets, governments, and economies all respond to shifting consumer trends. Therefore, financial literacy is a way of reclaiming power for the people.
Financial literacy can be learned by anyone. Being rich is a head start, yet without proper handling, it won’t last long. Building wealth is what uplifts people, families, communities, and provides greater options in life. This requires a deeper understanding of money, ways to grow it, discipline, and a longer time horizon.
Budgeting
Having a budget is an essential step in saving. When you track how much you spend versus how much you make, you can then set guidelines for how much you set aside to save or invest. A checking account can be used to receive income and pay monthly expenses. A savings account is helpful for holding cash for an emergency fund (ideally 6-12 months worth). A surplus of cash beyond this can then move into investments. Bank accounts offer very few benefits these days, so its best to just find a bank or credit union that has minimal fees and quality customer service (bonus points if they serve their local community).
Spending
What, where, how, and why do you spend money? Similar to choices you make about your time or energy, understanding this enables conscious shifts so that your money is not spending you. Controlling your outflow gives you immense power as a consumer and directing this power into businesses that you believe in uses your influence in a way that’s aligned with your values.
Credit
Credit cards are among the most popular forms of debt. Using credit cards wisely (paying balance in full each month) can offer several benefits: increasing your credit score; unique perks; rewards programs that offer points, miles, or cash back; card-specific offers/deals for things you may already buy.
There are several sites that rank, review, maximize, and break down the cornucopia of card options out there for your particular situation: The Points Guy, Nerdwallet, The Wirecutter.
Investing
Investing can be daunting. The first and easiest place to start is if you are a full-time employee at a company that offers a 401(k) matching program. If not, opening your own retirement account (traditional IRA) can be a fairly easy process, encourage saving for your future, and create tax advantages for you. If you’re self-employed or a freelancer, a SEP IRA expands those benefits.
Once you’ve funded your account, you can choose to invest in stocks, precious metals, index funds, ETFs, and much more. Investopedia is a very helpful learning resource.
Real Estate
Real estate is often seen as the pinnacle of investments. While owning your home is viewed as financially preferable to renting, this all depends on your situation. A mortgage is debt. Property taxes, maintenance costs, mortgage interest, insurance, a fluctuating economy, and the occasional house emergency can erode any potential profits and even result in considerable losses. Renting can be a generally lower-cost way to shelter yourself without the overhead of a house while building wealth in other, less debt-laden ways.
This area in particular heavily depends on the specificity of your situation and location.
Cryptocurrency
Cryptocurrency is a complex topic. In essence, it’s a new, digital form of currency that offers a move away from the current centralized banking, country-specific, fiat model that we operate in to a decentralized, global system (a network akin to the internet). While it is certainly still a nascent industry, there are exchanges that offer the purchase of cryptocurrencies, staking (holding an investment for interest), and use of cryptocurrency as money via a debit card.
At present, it is most commonly being used as an alternative investment vehicle.
Coinbase is a leading exchange, especially for residents of strictly-regulated NY.