PERSONAL FINANCE: FINDING THE RIGHT PERSONAL FINANCE FOR LIFE

You should distinguish between your wants and needs as wants can wait but needs will never return. One should learn to spend within limits and never beyond what he earns. Make a budget with your family or make it for yourself if you are an individual and strictly abide by the budget. A budget is the perfect way to discipline you in over-spending. If your income cannot afford your present membership of a club, a gym or an expensive item, you should immediately get rid of all these.

Nowadays one of the costliest and easiest ways to get loans are in the form of credit cards. People view credit cards as a source of money when they don’t have enough money but a very few realize that it is also a form of debt. Use your credit card wisely and only when you are in dire need. Remember credit card doesn’t offer you free shopping as you only have to pay the bills afterwards. Why not pay on time? The very basic principle of personal finance is to spend within your limits and spend wisely.

A step in finding the right personal finance is to invest your money wisely and reap benefits. Remember that idle money brings no profit and if you keep your money locked in a locker then it is of no use. You should invest your money in a good investment and let it grow. You must spend time to understand finances and especially the products which are of use for you. Select the financial product which suits your risk appetite and requirements that you want from your money in short span or long span of time. If you want to invest for short and specific time, it is better to invest money in fixed instrument like fixed deposits but if you are a young boy with no dependents then you can invest almost 85% of your salary in share market and earn profits on it. So manage your money efficiently and be secure in days of market falls. It is advisable to buy health and life insurance to further secure your life.

These two above mentioned advices will definitely help you in choosing the right personal finance for you. You must spend sensibly and you should let your money grow. These are fundamentals of personal finance which will go a long way in securing your future financially. Always focus on saving and spending less and manage your money to earn interest on your money. We need money for our survival and personal finance just helps us to manage it and use it judiciously. Get hold of certain rules of personal finance and live king-size life with financial freedom.