There’s no denying the fact that money doesn’t grow on trees. Money is a precious resource which when not used judiciously can mess up your peaceful life. That said, proper handling of monetary resources is a skill that is highly sought-after. Managing your personal finance might appear very simple in the beginning, especially to those used to drawing large paychecks from a young age. So how exactly do you make sure that your hard-earned money is well-utilized? We bring you a host of simple steps that can make a large difference to your outlook on money and can significantly alter the way you handle your personal finance…
- Cut down on unrestrained shopping sprees
Although this must be obvious, it goes without saying that shopaholics who spend without a budget in mind are doomed to commit the biggest mistake in personal finance. Sure, it feels good to stock up your room with your favourite clothes, books, albums and gadgets that you’ve always wanted to own, but at the same time, one must be vary of the ill-effects therein. Planning a monthly budget might seem daunting, but it is worth every hard-earned penny you made. Carefully chart out a budget that fixes amounts for expenditure and savings, so that you don’t have to go broke at the end of the month.
- Debts and savings: the twain shall never meet
Most youngsters today care little about savings. Why invest for a safer tomorrow when one can have fun today itself? Nothing can be farther from the truth. How wisely you handle your personal finance will reflect the kind of life you will be leading five years down the line. It is indeed a sorry state of affairs amongst many people when they decide to pay off their debts using their savings. This is the most erroneous task one can do. Experts suggest that your first priority should be savings and you should allocate at least 15% of your monthly pay as savings. The rest of the amount is not for carefree spending. The best way to streamline your personal finance is by automatically allowing your bills to be paid from your account. this way you don’t have to worry about forgetting to pay them and at the same time, you can also keep track of the amounts that have gone for different purposes. Never, ever commit the mistake of sabotaging your savings for paying off your debts!
- Deplorable investing on depreciating assets
Flaunting the latest gadgets and fancy cars can win you some admirers, but can harm the delicate balance of your personal finance. These are called depreciating assets for a reason: their value decreases over the passage of time. So, using borrowed money to invest in these assets are nowhere close to a good idea. Besides, due to their depreciating nature, they are not going to add anything to your net worth. The best feasible option is to look for cheaper alternatives like used ones or better buy inexpensive models.
Having a well-planned personal finance is crucial to ensuring hassle-free life. Just take care of the little things and you will marvel at how your monetary resources are shaping up in the way you need it to be. So here’s wishing you a happy personal finance days!!
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