Mon. Jun 24th, 2024

How to Manage Your Personal Finance

By Rusty Jul1,2022

How to Manage Your Personal Finance

Managing ones personal finance is quit different form managing business finances. With personal wealth, the key is only to spend when you have no otherwise and save as much as you can. For better personal management, it is advisable to first know where your money comes from, where your money goes and how much goes where. In short, one should keep a spreadsheet on how money is received and spent. This can be easily done by taking the total amount of annual salary and dividing by 12 to get the amounts per month. From the monthly amount, take away federal taxes, insurance premiums and any other deductible amounts.

Next, make up the list of payable bills such as rent, electricity, cable TV, internet, water, phones and other expenses. No single expense should be left out. After all deductions are taken care of, determine the amount of money that is left behind. The amount that one is left with after all the expenses have been taken care of, is the basis for personal finance management. To become a successful personal finance manager, develop the culture of saving ‘excess’ amounts of money. Be sure to force yourself to have some measure of discipline to the set saving regimes.

Once substantial savings have been made, the savings should be applied to investments that provide good returns. This is relatively easy to do. The most important mater is having a clear picture of your immediate finances and how these finances are spent. With a good personal finance, it is very easy to become rich. All that is required is a slight change in lifestyle and the knowledge of the things you need and those that you don need. It is also wise to keep your eye on how events change and change appropriately.

By Rusty

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