Schools and Colleges don’t cover the topic of personal finance which leaves a student clueless about their own finance management. I have assembled top 10 finance management tips suggested by investment experts and as an individual you must know to get an achievement in your financial life. Carry on!
People, who don’t keep a track of their expenditure on a weekly and monthly basis, end up giving more than bargained for, because of which they find themselves in debt thinking how they got over there. There are number of ways through which an individual can keep a track of their financial expenditure. They can use excel sheets to keep a track of their outflow and inflow of their cash. They can also use expenditure tracking apps or by simply maintaining a book of finances.
After maintaining a ledger or an MS excel sheet or an expenditure tracking app you are aware about your expenses now it’s time for you to find out how much you can spend on yourself without getting into a debt. You can divide your budget between necessities and luxuries. Your necessities include your food, transport to your work and college etc and your luxuries include going for a dinner or lunch in some fancy restaurant. After spending your money on luxuries and necessities, the rest of the money which will be left with you can be saved, make sure you stick to your budget.
Normally people ignore the fact about saving a part of their income which creates a lot of problems in future for them. After you stick to a budget you are aware about how much money you should save so that you can have a stress free life and retirement. A regular saving accounts with the power of compound interest you will have huge amount of money in your account till the time you need money to send you child to college or till the time of your retirement.
Huge number of people will be waiting to swindle you of your hard earned money. The schemes will look very attractive but you should first research about any schemes in which you wish to put your money into.
You should start investing your money in mutual funds or some other financial instruments. You should first learn about how these instruments work, become financially literate and learn about taxes.
You don’t need to have degrees from a big reputed college to help you to manage your finances. All you need to have is just your self control, discipline and knowledge, to achieve freedom of finances and their management for yourself.