Do you start your day with breakfast or money management? Well, if you do think about managing your personal finances even while having breakfast, you’ve landed at the right place.
Personal financial planning is a daunting task, at least for a few. Most people recognize their financial needs and plan accordingly.
Let’s kick off straight to discuss 9 pillars of personal finance.
1. Upgrade Your Income, Without Upgrading Your Lifestyle
Be mindful of your expenses and adjust them to suit your needs. Limit your lavish treats so that each penny saved increases your overall wealth. The importance of financial planning simply cannot be overstated.
2. Maintain Good Credit Score
Supporting the earlier point, you should always pay off credit card bills on time. It is one of the personal finance basics that we should keep in mind. If you cannot afford to pay your credit card bills, you are certainly treading on a dangerous path. Also, watch out for signs of fraud and identity theft on your card bills.
3. Never Say No To Your Ambitions
Always dream and dream big. Well, this does not mean that you dream of achieving your goals overnight. Always ask, "How can I afford it?” or “What should I do to afford it?”. How to plan personal finance etc. Please seek advice from 5nance to plan your financial goals. 5nance also offers financial planning for individuals.
4. Get Rid of Unrealistic Time Frames
Always set your goals with well-defined long-term savings and investment plans. Financial plans that revolve around narrowly-defined timeframes and milestones make the perfect recipe for disappointment.
5. Don’t Use a Coupon for Something You Don’t Need
In the current era of the internet, there are lots of sites which come out with discount coupons and offers. Do take advantage of coupons and internet promotional codes as often as possible, but stay away from impulse purchases so that you don’t repent it later. When you discover the importance of personal financial planning, there are chances you may not fall prey to unrealistic offers and impulsive buying.
6. Review Your Monthly Budget
Online applications such as 5nance.com provide platforms to plan and review your budgets for free. Make use of these platforms and diligently follow your budget. It’s one thing to create a budget, but if you don’t have the discipline to put it into action, it would go in vain.
7. Plan Your Taxes
Plan taxes well in advance so that you may contribute in a phased manner rather than taking a hit at the end of the financial year.
8. Plan Your Retirement
Start saving part of your income for retirement by opting for retirement planning through 5nance. Try saving at least 10% from every paycheck; it’s never too late to start.
9. Plan For An Emergency Fund
Always maintain an emergency fund. It is highly recommended to maintain three to six months of living expenses in the bank. One should not tap this fund unless it is an emergency.
Treat your household as a business you run. You will be a successful personal finance manager by following these pillars of financial management.
PS: Say to yourself outloud - I love money management!