Have you realized how incredibly important your personal finances are? It is because what you do now for your personal finances not only impacts your life today but also has far reaching impacts into your future. Do you know what actually personal finance is? How does that look for you? And also how can you best set yourself up for financial success in the future?
What is personal finance?
It encompasses everything about the way you manage your money. So, basically your personal finance is unique to you. Therefore it has nothing to do with the economy. That means what your buddies, co-workers, family members, and whoever else does is going to look very different from what you end up doing. At the end of the day, personal finance boils down to you and the way you approach your financial pillars.
Are you aware of the financial pillars? The four pillars of personal finance are:
Saving: How you keep your money
Investing: How you let your money grow
Earning: How you make more money
Spending: How you use your money to purchase things
MoneyMindz.com, Free Financial and Investment Assistance Portal breaks down each pillar now and sees how you should be approaching each.
It encompasses all of the actions and tactics you take in order to save money. This happens to be the system people mess up all. The. TIME. You must have heard of saying advice like:
Keep a budget
Cut out lattes
Collect your spare change in a jar
Don’t eat out and cook your own food
This advice might make sense at first, it’s not that great. But actually it’s worse than not great. This can be downright harmful if you rely on these as your only methods of saving money. Such financial “advice” like “keep a budget” and “cut out lattes” to save money doesn’t work because it solely relies on human willpower. As human power is limited. It means we only have so much of it we can devote to one action before it runs out.
When we have to do things like give up lattes and check our budget spreadsheets every day, we overexert our willpower and end up giving up our goal of saving money entirely. Therefore you should be able to save money without relying on your willpower. You only need the right savings systems.
This is the single most important thing you can do today to ensure your financial success in the future. It can be termed as that old adage. Like the best time to plant tree was 100 years ago. The next best time is now. That is the reason why you need to invest as early and often as possible for your success.
There’s a limit to how much you can save — but there’s no limit to how much you can earn. The power of earning more is one thing people don’t often realize. Instead of trying to pinch every penny and cut out the things you love in order to save your money, you should focus on making more money so you can spend guilt-free.
There are plenty of people who take spending too far, but it’s not spending that’s led to financial downturns — it’s not being conscious with your spending that can lead to unhealthy financial habits. You should be able to save money purposefully by avoiding the mindless spending that can come from disorganized finances.
For more information visit: www.moneymindz.com or give a missed call to 022-62116588 and download our FinFree app.