Personal Finance Guide

This personal finance guide goes beyond the basics of managing your finances to providing you with a full guide to personal finance foundations. While budgeting is the first place to start with any personal financial plan we’re going to talk about building the foundation for creating wealth.

How to Save Money

A good foundation starts with a solid habit of saving money. You’ll find many successful people over the ages give guidance on this aspect of managing finances. They all say “Pay Yourself First”. This does not mean you give yourself a salary then go spend it. It means taking a portion of everything you earn, each time you receive income, and putting it away preferably in a high interest baring account where you cannot touch it.

Generally you’ll find money experts talking about taking 10% of everything you earn, before you pay your bills, and putting it away. For those who are very strapped for cash and find this impossible, it is necessary to develop this habit if you ever want to get ahead. Without putting money away that you will never touch until perhaps retirement, you can never get ahead. Saving 10% of everything you earn is your way of getting ahead.

Tips for Getting Head With Your Personal Finances

So if you legitimately can’t put away 10% each week/month, then start with 1%. If you need to cut out a coffee, candy bar, takeaways, alcohol, smokes etc. then do so. Establish the habit of taking money and putting it away. You want your money in a high interest baring account that is accruing compounding interest.

Eventually build this to 10% so you can build a fund that will through off interest that you can potentially live off of without ever having to touch the principal. The next step is to look at ways of become more spend thrift and economical with your spending in order to increase your savings to 10% each week/month.

Then look at ways you can increase your income. Take an online course, upskill, look for what is needed in the market and move in the direction the money is going. Don’t be a dinosaur. Make the changes as society changes so you can get ahead.
Once again the foundation to a good guide to personal finances is to begin pay your self first and build habits that will get your ahead financially.