Why is your money always not enough? It might be lacking this skill.

Most people spend money as if they were in front of an ATM, turning around and forgetting how much is left in their account. However, those with high financial literacy can turn their salary into assets. What makes the difference?

What you lack is not money, but these 5 skills

1. Cash Flow Management - Know how much money comes in and goes out each month, rather than finding out at the end of the month that there is no money left. In simple terms: bookkeeping → budgeting → execution.

2. Investment Thinking - It's not about getting rich overnight, but understanding how to make idle money work for you. Stocks, bonds, real estate… the logic behind each tool is different.

3. Credit Management - Loan interest, credit card bills, credit records… these things directly affect how much you can borrow and what the interest rates are. If managed well, you can save a lot; if mishandled, you could end up in debt.

4. Risk Awareness - Buying insurance is not wasting money; it's like buying “bankruptcy insurance” for yourself. Sudden illnesses, accidents… these won't notify you in advance.

5. Tax Planning - Earning the same 1 million, a person who understands taxes may take home 10% more than someone who does not. This is not cheating; it's legal tax avoidance.

Why is it crucial to learn financial literacy now?

Mindset Shift: From “My income is too low” to “How can I make my money worth more?”.

Strong Fraud Prevention Ability: Identify scams that “guarantee an annual return of 20%” to avoid being taken advantage of.

More Rational Decision-Making: Buying a house, changing jobs, investing… is no longer a spur-of-the-moment decision, but rather a calculated one.

How to get started?

• The earlier, the better: Learn the concept of saving money in elementary school, understand interest in high school, and play investment simulations in college… It's important to build a solid foundation.
• Continuous Learning: Financial news, wealth management apps, financial podcasts… can be utilized in fragmented time.
• Find a reliable person: Join investment communities, consult financial advisors… Avoid unnecessary detours.
• Decide to start from an early age: Regular monthly investments, recording expenses, reviewing purchases… gradually develop the habit.

The Most Common Pitfalls

Information Asymmetry: Financial products are too complex; most people don't understand them and just buy them, only to be exploited by hidden fees.

Impulse Buying: Buy what you want immediately, regret it 30 days later… This is why there should be a waiting period.

Blindly Following the Trend: Seeing others buy a certain coin or stock and rushing in, only to end up as the bag holder.

Ignoring Retirement: Not saving money when young, only to realize at retirement age that social security is insufficient, but it's already too late.

Bottom Line

The essence of financial literacy is not to get rich, but to take control of your economic destiny. With this ability, you can freely choose whether to continue this job, when to retire, and how to leave a legacy for the next generation.

Simply put: Those who learn to manage money will have money that listens to them.