Personal finance management and budgeting

Outline

Start managing your finances today

What is personal finance management?

A few Examples of personal finance management from daily life

Tips for personal finance management

Article

• Start managing your finances today

Hello guys! Here I am with my new article. If you want to live a healthy lifestyle, you need to focus on your income and expenditures. Because without it you can never achieve the goal of an ideal lifestyle.

Let’s begin the article and discuss a few crucial points about personal finance.

You must be thinking that you are too young to manage your money or you are too rich to keep track record of your expenditures. These excuses would only work for you for a short period and in the long run, you would find out that you have lost all of your money due to lack of personal finance management. You must be clear that the majority of our goals that we want in life need money and financial assistance. So, my dear, nothing is possible with an empty pocket. First, try to find out the meaning of personal finance to better understand the term and its importance.

• What is personal finance management?

Personal finance means managing your money and it also includes saving and investing. It doesn’t matter to which age group you belong; you should know the techniques of personal finance management to avoid a lack of finances in the future. For instance, a student should know how to manage his pocket money in the best possible way so that he can not only meet all his expenses, but he can also have fun with friends and buy accessories needed to live a healthy lifestyle. Another example is if a person who has been retired from work life hasn’t managed his finances his whole life, then he wouldn’t have sufficient money to live a balanced life after retirement. 

• A few Examples of personal finance management from daily life

Here I am going to tell you about a few examples of personal finance management from our daily lives to make you understand that your finances and their management are a crucial part of your lifestyle.

1. Many people around us are saving money for their after-retirement life. Because they know, that once they would be retired and come out of work life, their monthly inflow of cash will stop. So, they have planned ahead of time and started saving money from their monthly earnings. After retirement, all of us would need money to maintain good health, buy healthy food items, get regular checkups, maintain our wardrobe, and avoid the stress of insufficient finances to live a balanced and healthy lifestyle.

2. You might have taken a loan from a bank or a friend to fulfill some urgent need. Now you have to pay back that loan and if you are not managing your income, then you wouldn’t be able to pay back the loan on time and would face a lot of stress and humiliation. Loads of stress can ruin our health and our lifestyle. 
3. A person who is used to making a budget to live day-to-day life surely knows the value of personal finance management and its link to his lifestyle. The technique of budgeting makes you live within your means and prevents you from spending too much on extravagant things. This technique makes our mind free of burden and lets us sustain mental peace and physical health. It also lets us determine which expenses are crucial to living a healthy lifestyle and what expenses can be avoided, as they are not relevant to our lifestyle.
4. Your personal finance management helps you to save excess money by investing it in some fund or by depositing it in your bank account. This saving will help you to meet an extra expense at the time of some emergency and it will also help you to not ask for help from others by lowering your self-esteem.

• Tips for personal finance management

Without managing your money how can you think of buying items needed to live a healthy lifestyle and avoid stress and depression that are killers for your healthy lifestyle?

So, here I am going to share a few tips with you to manage, save, and spend your money by remaining within limits and living a balanced and healthy lifestyle.

1. Every time you go shopping, try to pay with cash instead of using your credit card. Because every transaction that you make with a credit card is a loan taken from the bank. If you can’t pay the bill by credit card on time, you have to pay a substantial amount as interest or fine and it will ruin your monthly budget and put you under stress.

2. You need to educate yourself about the importance and value of personal finance management. Once you become aware of this, then you will never deviate from the right track and indulge yourself in excessive spending.
3. Don’t look at others’ spending graphs, because they must have more financial sources than you and they can buy extravagant items and make huge transactions without disturbing their monthly budget. Also, looking at others’ lives and their lifestyle would only put you under stress and bring disappointment in your life.
4. You need to start saving for your retirement today and make the best retirement plan to enjoy the same lifestyle throughout your life.
5. Always try to make an emergency fund and deposit a fixed amount of money in it every month. Because it will save you from tension and anxiety during hard times and you could easily use your savings and enjoy the same lifestyle.
6. You need to set your priorities while spending your hard-earned money. Because it will let you refrain from wasting your money and spoiling your habits. For example, buy clothes that you need most and don’t buy clothes that you are not going to use recently. This will help you not only save a few dollars, but it will also save you from stacking your wardrobe with items that you don’t need in routine life.

You don’t know what turn life is going to take and what situation you are going to face. So, be ready and manage your money wisely. My dear the choice of living a healthy lifestyle is a life-long choice and you must be prepared to afford it throughout your life. So, start planning for your finances today and live a balanced life till your last breath.