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Personal Finance Path Towards Financial Freedom

Personal finance is the financial management of budget, spend, save so that the person fulfill their need and also save for the future.

In addition, here the owner of money Or budget makes a plan according to their need and also the concern about the future.

It is not matter how you earn but it is matter how much  you save.

 Sometimes a low earning people had a highly control on their money   .

Here person according to their need buys private investment like (stock market, bonds, mutual funds) and insurance (life insurance, health insurance, disability insurance).

What Is Here For You

  1. Explanation Of Personal Finance
  2. Personal Finance Planning Process
  3. Books On Personal Finance
  4. Personal Finance Basics
  5. Why Is Personal finance Important
  6. Apps for personal finance
  7. Conclusion
  8. Frequently Asked Question

An individual also concerned about their retirement plan so that he or she takes the retirement plan. As Personal Finance, Public Finance manages the fund on behalf of the public

It is not matter how you earn but it matter how much  you save.

 Sometimes a low earning people had a highly control on their money   .

Here person according to their need buys private investment like (stock market, bonds, mutual funds) and insurance (life insurance, health insurance, disability insurance).

An individual also concerned about their retirement plan so that he or she takes the retirement plan.

Explanation Of Personal Finance

You have met with lots of people who earn a good amount of money but they always struggle financially, on the other hand, you interacted with a person who has not to earn a lot but they are aware financially.

The best way to teach financial planning to children is to give small financial responsibility in terms of little amount children and say you have to fulfill your need by this amount.

You can also give the responsibility for the monthly budget pertaining to some little amount.

It is a study has been found in the study that a good decision maker take better decisions related to personal finance.

It is known to study at the undergraduate level by seeing its importance. You can do two things either you find the other source of income or become good at finance.

It is generally your building block for the upcoming time so that you can take better decisions in the future.

The poor get poorer and the rich get richer and the middle class suffers from the problem of debt because the subject of money taught in the home, not in school or college. You can become rich by finding Investing Options In India

Personal finance Planning Process

expenditure is more then the earn

A personal finance planning contains four parts :

Assessment:

A financial statement includes a balance sheet and income statement. The balance sheet includes both the asset (car, house, clothes, stocks, bank account ) and liability include credit card debt, bank loan, mortgage.

One thing I want to mention here that your house is not an asset because it takes money from your pocket.

Goal setting:

A boat in a ship hovering here and there in the sea is wasting its fuel and not going anywhere because it has no goal same like that personal finance has a goal too whether you doing it for the retirement plan, the marriage of a daughter, housing, study of child whatever .but it is necessary to have a goal.  

Plan Creation:

You have made a goal here is time to go you have decided to minimize the unnecessary expenses and start investing in the stock.

Execution:

It requires hell lots of patience and discipline. Many people hire lawyers, Accountant, CA to manage their asset.

Books On Personal Finance

  • Best Overall: Why Didn’t They Teach Me This in School?
  • Best For Building Wealth: The Automatic Millionaire
  • Rich dad poor dad
  • The richest man in Babylon
  • Best For Budgeting: Your Money Or Your life
  • Best For Inspiration: The Millionaire Next Door
  • You Are A Badass At Making Money
  • How To Retire Happy, Wild and Free

Personal Finance Basics

basics of personal finance

Make Budget Your Friend

Try to make budgeting your friend. Firstly if you are earning a lot and you do not need to think about budget and expense like a thing. Secondly, you manage your Finance better treat it like a friend.

You have to classify your needs (without which you can not survive e.g., rent, utilities, groceries) and discretionary spending (e.g., shopping, travel, Netflix). think about a monthly income and your unnecessary expenses .

Build An Emergency Fund

  You should make an emergency fund .take 10 0r 15 percent of your monthly income and save it as an emergency  Purpose because you don’t you when you are to put in trouble .like it can be used when you get in any unwanted situation like health, life storming issue.

Avoid Credit Card Balance

Management

Never ever rely on credit. If you could not afford and commodity than don’t buy.

If today You spend on the thing you don’t want then you are going to suffer for important things in the future.

Pay Bill On Time

Pay the necessary bill on time like electricity bill, water bill, cleanliness. It looks like no brainer but the quarter of Americans suffer to pay the. If you forget the date then set the reminder. If you do not pay a bill on time than your will bad and in the future, you would not get a loan and another bank facility since your credit is bad.

Start Saving For Retirement

When you are young retirement seems to be far .but as you start early you would realize that this small amount becomes so big over the period but due to compounding .you get the advantage to learn to invest but you have the time to make mistakes.

Investment

It is said that your biggest asset is your mind so that you make an enormous wealth. keep On investing yourself, read books buy online courses, build assets. Don’t show-off show up.

infographic of personal finance basics
Personal Finance Increase Your financial status

Why Is Personal Finance Important

Ensures That You Meet Your Money Needs

We go to school then college then do the job earn  money and feed .we spend our important and precious life in earning so it becomes necessary to think about the money in a broader perspective

Easily Manage Your Money

It is very important that you are aware of the usage of money so you should know where is it going can it be used in the more right way.

Being able to manage your income you would be able to know which expenses can handle first and which manage on later.

Budgeting ,Spending And Saving

If you are earning 100k per month but still you are living in debt because you are not managing your income may be you spend more then you earn

So first make a budget where you are going to spend and after spending on some necessary commodity think about where you are going to save .or save first then spend.

Personal Finance And Cash Flow

When you manage your budget properly and keep your eye on the expenditure then next source of income   generated .

 Offer Family Security

saving

The majority of the population earn money to secure the life of their family member they do not want that their family suffers in any type if they are there for them. We work, struggle, over time so that we provide better facilities for our parents. It needs Personal Finance Management

This is also the motivation for lots of people

Personal Finance App

Mint

Quicken

You need a budget

Prism

Spendee

Monify

Personal capital

Birch finance

Acorns

Robinhood

Source

Conclusion

So get personal finance knowledge so that you can use it in a better way. Here person according to their need buys private investment like (stock market, Bonds, Mutual Funds), and insurance (life insurance, health insurance, disability insurance).

FAQ (Frequently Asked Question)

1:Personal Finance Course

1: Personal and Family Financial Planning, Coursera
2:Personal Finance 101, Udemy
3:The Core Four of Personal Finance, Udemy
4: Personal Finance Planning, edX
5: Finance for Everyone: Smart Tools for Decision-Making, edX
6: Financial Literacy, ALISON
7:Introduction to Managing Your Personal Finance Debts, ALISON
8:Introduction to Simple and Compound Interest, ALISON
9:My Financial Mountain: Understanding Your Path to a Solid Financial Foundation, Skillshare

2:Personal Finance Consultant

There are consultants who are paid for their advice.
They have enough knowledge and experience in their subject.
Today consultants are in every field like retirement, education, day-to-day expenses, and investments.
The consultant has detailed knowledge.
Consulting is one of the highest-paid carriers where they are earning on an hourly basis.

3:Personal Finance India

In India, we are not given any financial knowledge.
This is the only reason why we struggle financially. There are many myths that are spread among us which stop us to chase big money.
Very few people invest their money they consider it gambling.
Rich people investment to become richer, middle class spend to look rich.
Believing in hard work is not enough, we have not given the basics of financial knowledge.
We collect lots of liabilities even we do not know the difference between assets and liabilities.
It is not only the knowledge it is a way of life if we have known the fact about finance and money then we would play from it.
Money attracts money and follows attention.
It does not matter how much you make money it matters how you save.
Most people put their money in the bank they did not know that the interest rate that the bank is giving to us is less than the inflation rate our money is actually decreasing  

This is Anurag Dwivedi. I have completed my B.A from Allahabad University. Help you at content writing, WordPress site development, FB ads, and SEO

Anurag Dwivedi
This is Anurag Dwivedi. I have completed my B.A from Allahabad University. Help you at content writing, Wordpress site development, FB ads, and SEO
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