Financial Literacy Step One: Having a Dream

The famous quote by Martin Luther King, "I have a dream.." should be the first part of everyone's financial plan. King's dream was the vision that provided him guidance and reassurance when things were not going well. The markets will have ups and downs as will your life, so having a dream will keep you on your path towards where you want to be.

The dream also acts as your rationale for all of the other steps in your financial literacy plan. Some of the steps will not be easy to do and will test your will power. Having a strong rationale will prevent you from swaying off course. Your dreams should be clear and specific. They need to be shared with your family and friends and then this way they can support you as you move along your path.

Possible dreams could be to retire by the age of 55 so that you are young enough to truly enjoy retirement. Others may include: developing passive income streams to pay you while you sleep, travel to exotic places in the world, build a cottage on the lake or start a dream business. Achieving your dreams will essentially be the essence or the true test on whether you have developed your financial literacy to the fullest.