A ‘happy new week’ to you; This Thursday, we have decided to pull out the big guns_let’s talk about personal finances.
There has been a lot of talk about how people don’t know how to manage their money, but here’s a crash course that will save you a lot of hassle.
What Is Personal Finance?
Personal finance typically means money management for yourself, especially investment, savings, budgeting, insurance and retirement planning.
Yes, it is about meeting personal financial goals, Whether owning a home, saving for your education or child’s, or even planning a getaway.
It is all about your income and these things that you have set to achieve; your desires, wants, and needs all depend on it.
To not cry hot tears during or end of these goals, one needs to be financially literate.
Personal finance strategy
First things first are, you need to make a budget; you can use the 50/30/20 rule; your 50 goes towards essentials like rents, utility, groceries etc
Thirty, towards yourself and living the life you deserve; outing with friends and such.
Twenty, towards the savings you have created.
Some principles that make this easier are;
1. Prioritisation: It is knowing what is essential and when it is crucial.
2. Restraint: Don’t settle for less; aim for the best.
3. Assessment: You need to step back and truly see the benefits of what you are doing and how it is a step in the right direction.