PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

What Does Personal Finance Mean To You?

Laura Moore by Laura Moore
February 5, 2019
in Industry Opinions
0
Even before Coronavirus, There Were Doubts in the U.S. about Paying Bills:

Even before Coronavirus, There Were Doubts in the U.S. about Paying Bills:

15
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Personal finance is a broad subject that encompasses money management, investments, and savings. It includes budgeting, estate planning, banking, tax planning, insurance, retirement planning, and mortgages, among other aspects.

It is about setting and achieving financial goals, and may involve meeting short-term needs, saving for your children’s university education or making retirement plans. Personal finance is determined by factors such as your level of income, individual desires, expenses, and living requirements, among others- and developing a plan to accomplish those needs within the existing financial constraints.

What does personal finance mean to you? 

It’s important to start planning for your personal finances as soon as you can. However, you can never be too late to come up with financial goals to offer yourself and family the freedom and security that everyone desires.

The following are tips that can help you plan for your personal finances:

  1. Create a budget 

Budgeting can help you cut costs according to your body size. It can also help you save enough money to achieve the long-term goals that you have set. The 50/30/20 strategy is very effective.

The HR manager of Tactica said that “50% of your net income should go towards rent, transport, utilities, and other living essentials. 30% should be allocated to shopping for clothes and other lifestyle expenses, while the remaining 20% should be allocated to payment of debts, emergencies and retirement planning”.

If you create a budget, then you may never have to deal with ruthless debt collection agencies.

  1. Keep an eye on your credit score 

Credit scores are usually built and maintained by credit cards. It is therefore important to monitor your credit spending.

To obtain various forms of financing (such as mortgages), you’ll need to have an attractive credit score.

  1. Create a fund to cater for emergencies

Make sure that you set aside some money to take care of rent in case you unexpectedly get laid off, fall sick or you have to deal with other unforeseen problems. Paying yourself first is the rule of thumb.

  1. Do not misuse credit cards

Even though credit cards can help set you free from financial quagmires, many people have been led into debt traps by the instruments. However, we live in a modern world where everyone expects you to have credit cards.

Proper credit management is very important. Ideally, balances should be offset every month or maintained at the lowest credit utilization rate.

Strive to pay all your bills on time, and avoid maxing out the financial instruments at all costs.

Misusing credit cards can set you on a collision course with financial institutions, and they will, without doubt, send debt collection agencies after you.

  1. Limit debt 

The amount of money you spend should be less than what you earn. You should only get indebted if the action leads to the acquisition or accumulation of assets. A good example is applying for a mortgage. However, leasing should be the first option.

Personal finance strategies 

It’s okay to think about philosophy once you have come up with fundamental procedures. Learning new skills may not necessarily help you get on the right financial track. You must learn that the principles which make you succeed at work or in business are also applicable in the world of personal finance.

There are three main principles that can help you succeed in personal finance management:

  1. Prioritizing
  2. Assessment
  3. Restraint

Prioritizing essentially means that you have the capacity to examine your finances, find out what brings in money and ensuring that you remain focused on the efforts.

Assessment refers to the primary skill that prevents experts from spreading too thin. Your ambition must be accompanied by a list of good ideas that can help you hit the jackpot, regardless of whether it is your main business or just a side hustle.

Restraint is the ultimate big picture ability of excellent business management that ought to be applied in the management of personal finances as well.

Lessons that you cannot learn in a personal finance class

Getting educated on the aforementioned subject is an exceptional idea for everyone, especially those who are still young-given that they ought to understand the fundamentals of credit management, taxation, savings, and investment.

However, there are certain things that you cannot possibly learn in a personal finance class.

They can be broadly classified into three:

a) Financial discipline

b) Emotional detachment

c) Sense of timing

When should I break the rules? 

There are many rules that ought to be followed in the world of personal finance. Even though it is wise to know and obey the rules of thumb, circumstances usually differ from one person to another. Some of the rules that you may consider breaking revolve around the following:

  1. Investing or saving a significant percentage of your income.
  1. Long-term investments/ investing your money in risky business ventures.
Tags: Finance
15
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Eco-Focused Payment Cards Help Pave the Way for a Sustainable Future

    Eco-Focused Payment Cards Help Pave the Way for a Sustainable Future

    October 4, 2023
    money-laundering, money laundering

    AI Can Alleviate Money-Laundering Frustrations

    October 3, 2023
    Online Grocery Sales Efforts Take A Giant (Stores) Step Forward

    Did Payments Innovation Kill Brick-and-Mortar?

    October 2, 2023
    open-banking Data-Sharing as a Solution to Cash Flow Issues standa

    Disjointed Open-Banking System in U.S. Leaves Opening for Permissioned Data Providers

    September 29, 2023
    FedNow

    FedNow Could Mean a Renaissance for Smaller Financial Institutions

    September 28, 2023
    Best Merchant Practices for Dealing with Supply Chain Disruption

    Nearly Half of Merchant Data is Probably Wrong. Here’s Why it Matters.

    September 27, 2023
    Mitigation of P2P Fraud Begins with Education

    Mitigation of P2P Fraud Begins with Education

    September 26, 2023
    digital payments

    Mass A2A Payment Adoption in The U.S. Contingent on Compelling USP

    September 25, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result