1.2 Your #1 Tool: The Internet

Getting familiar with the world of finances is not something you accomplish in a day or two. There are many terms, many types of opportunities and financial ventures, many different fields and areas. Some are vital, without which you will be unable to progress and succeed.

Personally, I believe that some general knowledge of the world of finances is valuable, regardless of your eventual “specializations”.

The internet, in my opinion, should be a key player in your financial education and initiatives. 

The next few posts will be dedicated mostly to the terms and fields I find the most elementary, one at a time. In this post, I wish to emphasize the importance of internet usage in general.


As you probably know, the internet is nowadays perhaps the most comprehensive and useful information source available.

Whatever financial initiative you have in mind, you are very likely to find plenty of online information precisely about it. This information might be of great assistance to you.

If it is general financial knowledge you are looking for, the internet offers plenty.

If you are looking to understand a specific term, the internet is, again, the answer. Wikipedia is usually a good place to start.

What I am trying to say is this: Whenever you have a financial-related thought in your mind, your following thought ought to be be “How will I use the internet to gather information, elaborate or otherwise advance this thought?”.

However, keep in mind that the web is full of misleading and useless information as well. Always be critical of the content you read. Usually, a misleading or otherwise worthless site is very easily discernible. If the site is badly written or if it promises quick, easy and enormous success, then it is very likely a spam site.
 ;.lp
How can you quickly find the credible sites? You can start with well-known, established sites and then check their links out.

Summary

Use the internet to your benefit. It’s a great financial tool, whether you are looking for specific or general information. However, don’t forget to be on the lookout for bogus or misleading sites!

1.1 Getting to know finances: Where to begin?

To work, then.

There is plenty of financial knowledge which is relevant or which could be useful to us. So plenty, in fact, that it may almost seem too hard a task just to determine the first subject to tackle, let alone to become all-around knowledgeable.

Well, this project is to be taken step by step.

The correct place to start, in my opinion, is with the very core of our financial matters: Our bank and our bank account.

0. Create a “personal finances” directory in your computer


This is the first step to take, really, once you have decided to get a grip on finances. Success will vary depending on just how organized you are. Thus, a “personal finances” directory, or a proper substitute, is a must.
1. Get Internet Banking


One of the most important things when managing an investment, any investment, is accessibility. This is not just for the sake of convenience. You must be able to check on your investment at all times. You need all the relevant information readily available to you.

If it’s hard to find out what’s going on in your bank account, then it is accordingly easy to neglect your bank account. Don’t let it happen.

Internet Banking is the answer. Make sure you have internet access to your bank account.
2. Get familiar with Internet Banking

Once you have internet banking, do not settle for an occasional balance check. Make sure you know and understand all (or most) of the functions available to you.

This serves two purposes: Firstly, these functions may be of use to you. Secondly, if and when you encounter something (a term) you do not understand, look it up. This will contribute to your financial knowledge.

A proper internet account should have sections dedicated to your balance and past account movement, credit cards, deposits, stocks and more.

3. Know the costs of your account
Find out what are the costs of your account. Find out what are the commissions you pay. How? Either talk directly with your bank, by phone or face to face, or look for it in your account’s internet page. Write your findings in a file and place it in your newly-created “personal finances” directory.

Some banks offer substantially better terms than others. This can make a difference. A quick and easy way to save some money is to compare prices between banks and make sure the costs of your account are in the lower range.

Summary:

If you have followed steps 0 to 3, you now have access to internet banking and you are familiar with what it has to offer. You also made sure you are not making an unnecessary expense, paying higher commissions than you have to. What costs you do pay are written down and stored in your “personal finances” directory.

Well done!