First of all we will know What Is The Personal Finance And Example ? Why is personal finance so important to you? But if we look at its simple definition, how do you manage your money and how do you take your final decisions? Like how you budget, how you save, how you invest, personal finance covers all financial aspects. How do you take financial decisions? How do you keep your family financially stable?
Example:
So let’s assume, you earn Rs 50,000 every month and your expenses are Rs 30,000. So in the end you end up with ₹20,000! This 20,000 is your savings but personal finance is how you spend and invest 20,000? Where your money can double. We call this knowledge personal finance. You can take the right decision, it may be right for you. This investment is an avenue for you. Going forward, your money can double in future. When the right financial decision is taken, it is called personal finance.
Today I am going to tell you five personal finance strategies. By adopting which you can strengthen your personal finance and you can manage your personal finance well.
1.Emergency Fund
Before investment anything, three things are very important. A fund is a fund that holds your money and covers your lifetime expenses, which you can still deposit into. Fixed deposits in the 70% Fix Inc fund have not been verified for the same. 20 percent in your bank account and 10% in cash because sometimes it is needed at any time. So you can deploy this battery fund!
2.Life plan
For you and your family, when something happens to you again and your income stops or you die, this food should not fall on your family. Whatever your passport settings are. So should cover 20 times 25 times . Meaning if your annual income is ₹ 5,00,000 then your lifestyle cover should be of 1.25 crore or at least 1 crore.
3.Health Insurance
So that if anything happens to you and your family members or you get admitted to the hospital. Carriage company so that your expenses do not go out of your pocket. This includes health insurance for their parents and their own separate health room. If the parents are elderly, their room will be a little expensive. If you join them, your health care will also become a little expensive.
You have to check at least 20% of your monthly salary every month. If you are a freelancer then try to invest at least 20% of what you have.
Spend on Desire Whatever salary you get per month and whatever you earn from freelancing. 30% of that should be spent on your desire. Like you have people buying phones, people buying clothes. To go out to party is to take a trip. All this should go out of this 30% to go on holidays. There is a very important condition in this.
You should already have the app when you spend this money. For example, if your monthly salary is Rs.50,000, then 30% of it becomes Rs.15,000. And you need a phone worth Rs.45000. So don’t make it easy by buying the phone at zero EMI in the very first month. Now we will save Rs.15000 in 3 months and save Rs.45000 in 3 months.
You will buy this phone after 3 months of saving, sometimes you don’t buy credit cards and sometimes even Amy when you are paying for your vacation. You must have full funds to use your credit card. That’s a smart way to save money.
4.Personal development
There is never any restriction on personal product spending. Like there can be books, there can be courses. There is no budget for all the expenses for your child’s health. I can also splurge on all this stuff because I know I got all these stuff on good sales. Because of this, what I have created will remain very alive throughout the day, because my mind and my entire body are becoming useless for all this.
5.Time to Value
Know the value of your time. If I ask you what is your 1 hour worth you will not have any answer? Many people know their time is free. Because the speaker has no value, no value. Because of this we take many decisions which we should not take. For example, let’s look at one hour each day. And you earn Rs.50,000 every month. So let me ask you, how much money do you spend every month on your netflix? So you will say Rs. 299 to 499 whatever your plan is. Normally you spend 8 to 9000 on a laptop.
Because you an hour! The value of your hour is included in this cost. You said something like this was my free time. I was not making any money in this. Who spent 1 hour of his time in his entire year for his growth. Books are posted and courses are purchased. Do something that makes your time count.
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