3 Personal Finance Tips every individual should follow
Personal Finance is a term from which most people are either afraid or confused. But it is one of the most important things to manage for survival and success. Good personal finance not only provides stability but also provides us with opportunities to do certain more things which are out of our comfort zone, for example, starting a new business, learning something new, or even investing in new start-ups.
However, I know you already know the importance of Personal Finance, but the question is how can we implement good personal finance? For this, I invited Mr. Gene Rice on my Podcast on Personality Development to guide us not only in personal finance but in different areas of life as well. Mr. Gene Rice is the author of the book "68 Tips for Grads to Grown-ups". He has written this book along with his daughter Courtney Rice.
In part one of the Season Finale Episode, Gene Rice shed some light on having a good personal finance strategy, and the same I am going to share it with you. So below are the 3 tips which he shared with me on the podcast, and which I feel all of us can easily implement in our day-to-day lives.
- Create a Budget Sheet:
I felt good when Mr. Gene suggested this point, as I do follow this from last 4 years. The idea is very simple, all you have to do is prepare a sheet note down your incomes and expenses of last month and also of your current month and understand where you are. If you need to cut down your expenses cut them down. If you feel you are running short in a particular month plan one of your expenses for the next month of that month.
For Example: If you want to buy a new pair of shoes which is costly, and you are a little short of money, don't worry about it, have a little patience and plan for the next month, or save money for a couple of months to get there. This way, you are not making any major impact on your current budget as well.
This also helps you to understand, where and how you can generate more income, maybe short-term or long-term. I can say this because I do follow it every month. - Have a Rainy Day Fund:
A rainy day simply means a day where there is an urgent need for money. For Example, your air conditioner is not working, or your car needs some expense, or your television is not working, or worst of all (in my case) Laptop needs maintenance. All these are like rainy days where the money is required urgently, normally what we do in these cases is give the money which we have and it may impact our monthly budget, but if you have a rainy day fund reserved, you can make those expenses from that and your monthly budget will not be affected at all. This also gives you a habit of saving money which is quite useful for your long-term goals as well. - Investments:
Mr. Gene Rice gave a great insight on Investments as well in this episode. We all want to invest money in one or the other area. The most important tip which he gave is to not be influenced by people in making investments, invest in things which you understand and invest in companies which you know. If you don't understand a particular area of investment don't invest there. Learn about it, spend time knowing it, and if you feel that it is worth then invest.
These are some tips on personal finance which you can easily implement in your lives. It is easy and very less time-consuming, I hope you will gain benefits from the above-mentioned tips.
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If you want to listen to the entire episode with Gene Rice, you are just a click away! Below is the link:
https://spotifyanchor-web.app.link/e/MeOgn6Wtxsb
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