Personal Finance & Money Tips
“You can only become truly accomplished at something you love. Don’t make money your goal. Instead, pursue the things you love doing, and then do them so well that people can’t take their eyes off you.” —Maya Angelou
We have come across and even got amazed with knacks & hacks about handling finance; but when it comes to implementing on your own, it might seem the most difficult challenge.
We all dream about a good life. Many of us associate good life with wealth. It is said that wealthy people are the happiest, as they can do whatever they want. Have you ever thought of it the other way round?
Happy people are the wealthiest.
Live a happy worry free wealthy life by maintaining your personal finance. All you have to do is be in disciple and stick with your financial plans. Many practices can be adopted to establish financial well-being. Setting up a budget and planning future expenditure is a great way to begin.
Let’s begin with these 16 tips for managing personal finance:-
- Determine your financial status: Understand where you stand financially by finding out your net worth. This will help in deciding your future budget and where and when to splurge and save.
- Set aside a percentage of income for future emergencies: The moment you get your salary set aside a part of it towards funding your retirement, getting rid of debt etc. and other emergencies.
- Stick to your budget: Set a budget considering all your monthly bills, regular expenses, rentals etc. Once you have a rough estimate of your budget, stick with it.
- Get rid of loans with high-interest rates: Concentrate on loans, which have higher rate of interest. Like get rid of loans with the interest rate more than or equal to ten.
- Download a bill reminder app: Note down all your weekly, monthly, quarterly, and annual expenditure. Fill them in your bill reminder app. There are many such apps available online. This way you can avoid late fee fine.
- Set a routine of one-minute transaction check: In that one minute, find out where you spent all your money today. This will make you realize where you are going wrong in your expenditure and you will start spending money wisely.
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Set aside a percentage of income for lifestyle expenditure does not exceed that budget:
- Visualize fulfilling financial goals: For example, you need money to buy your dream house. Stick a picture of your dream house in your bedroom and see it every day. This will make an impact on your subconscious mind, which in turn will fill your mind with creative ways to achieve what you desire.
- Set a date in which you will complete your financial goals. For example, you want to pay off your 6000$ debt in 6 months. Calculate the date and write it in your goal chart, try to save 1000$ or more every month to pay off your debt within 6 months.
Make both long term and short-term financial goals:
- Be positive: Positivity works wonders. Keep on chanting in your mind what you want. For example, if you want to get rid of your debt, keep on chanting- “ I will get rid of my Debt” or “ I have got rid of all of my Debts”, instead of saying “I will never be able to get rid of my debt”
- Take care of your health and the wealth will automatically be taken care of. One study found out wealthy people are actually health conscious. It is said that any exercise or workout tend to increase your productivity.
- Gratitude- Gratitude is the key to happy fulfilled like. Appreciate what you have and more will be given.
- Be creative during your discussion with your boss. For example, when you’re asking for a pay raise, show your employer how your work has increased the value of the company. If your boss is not being able to increase your pay then you can ask him for other perks like increasing your leave.
- Buy intelligently: Purchase items that are really necessary. Before going to the shopping mall make a list of thing you are going to buy and stick to your list don’t buy extra.
- Spend on experience: Concentrate on things that make you happy. Stop buying things to impress others. For example, it is better to spend your money on a beautiful romantic gateway than on new home furniture. Do what makes you happy. Financially successful people are happy people.
- Start saving for retirement as early as possible. The power of compounding works better when you start early. As Albert Einstein says- “Compound interest is the eighth wonder of the world. He, who understands it, earns it … he who doesn’t … pay it.”
Benefit package, such as a 401k, 403b, or 457, should be fully taken advantage of when working for an employer that offers them. Workplace retirement plans are convenient and provide greater tax benefit as savings are automatically deducted from the pay check of the employee. Many employers provide a matching fund which increase savings to a greater extent.
- Resist the urge to withdraw Retirement Account Early– You end up paying a heavy amount for early withdraw and you prevent your money from being invested.
Summing Up
One of the best about handling personal finance is that you can experiment and mend your ways. Once you learn the skill, you can suggest others as well. Hope these tips from our experts would help you manage or learn about handling personal finance.
Thanks James for sharing these personal finance tips to manage my money. I came through your post on Investmentpedia and very glad to know these tips. 🙂
Thanks Manya.
Really liked these personal finance tips to manage money. I came through your post on this and very glad that I use to know these tips. Your Tips are so nice and are very easy to understand. Everyone can manage their money if they go according to your tips. Thank you so much for sharing this post. Please do keep sharing.
Yes, I totally agree with what you said. I think that it is very important to set aside a percentage of income for future emergencies. I think that by doing this, we will surely secure our future. Thanks for sharing this article.
Personal finance management is really important and must definitely be managed efficiently and taken care of. The tips mentioned by you are extremely useful and should be definitely kept in mind to manage finance. If one does not keep track of his expenses and does not start saving money, it will cause problems in the long run. Using finance management apps is also a great way to get the work done, as it is fast and less complicated.
Personal finance management often sounds scary, but it is so important. Unfortunately, there is no right or wrong answer a lot of the time because everyone has a different financial situation. Thank you so much for this article. You have some solid tips that re extremely helpful! I like that you put it in a numbered list. It helps the process. Keeping track of finances is one of the most important things a person can do. Great advice! Thank you!