How to become more financially savvy

Do you consider yourself to be financially savvy? If your answer is “no,” you’re not alone. A study by the FINRA Investment Education Foundation found that nearly two-thirds of Americans couldn’t pass a basic financial literacy test.1

Although this number is bleak, there’s a silver lining: It’s never too late to boost your financial know-how. Pursuing a financial education on your own or working with a financial professional to learn more may improve your financial outlook today and for your future retirement.

In fact, Boomers who work with a financial professional are more confident in their ability to meet financial obligations than Boomers who don’t receive professional guidance of any kind.2

Ready to start learning more today? Set a foundation for your financial literacy by learning about the 3 Circles Concept of Personal Finance. This flow chart may help you understand how to use the money you earn to fund not only your daily living expenses, but also your reserves and nest egg.


3 Circles Concept of Personal Finance


Circle 1—Readily accessible funds/liquidity:

The money you earn each month is deposited into a checking account. You use it to cover your monthly expenses, such as your mortgage and bills.

Circle 2—Reserves:

Some of the money that’s left over after your monthly expenses are paid should go into your savings and reserves. This cash can be used to cover emergency expenses, such as unexpected home repairs, or opportunities.

Circle 3—Nest Egg:

You should also be funding your nest egg, whether it’s through contributions to your IRA or purchasing mutual funds in other qualified accounts.

Are you ready to take the next step in improving your financial literacy and the outlook of your retirement? Team up with one of our financial representatives by contacting Bankers Life Securities today.

Everything you need for the life of your retirement

1Fortune, Nearly Two-Thirds of Americans Can’t Pass a Basic Test of Financial Literacy,, July 2016.

2Bankers Life Center for a Secure Retirement, 10 Years After the Crisis: Middle-Income Boomers Rebounding But Not Recovered, February 2017.