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The Ultimate Guide To Personal Finance: How To Be Financially Free

 


 


If you’re reading this post, chances are you’re interested in personal finance. You might be a student trying to figure out how to manage your money before you graduate, a recent grad trying to get your finances in order, someone who’s been interested in personal finance for a while, or someone who’s been putting off this post for too long.


No matter what your story is, I hope you find value in these personal finance basics.



What is personal finance?


Personal finance is the set of concepts, laws, and guidelines that help you make your money work for you. There are basically 2 parts to personal finance: Your financial situation Your spending Your financial situation is how you made your money, i.e. your income. Your spending consists of what you’re using that money for. This post is going to be focusing on how you make money and how you spend your money. Step 2What should you know about personal finance? Personal finance is a topic that’s incredibly complex. This post is here to help you get started. Don’t get overwhelmed and continue reading after reading it. Below I’ll cover the most common things you need to know: 1. What is debt? Debt is the situation when you’re borrowing money from someone else.


Why should you care about personal finance?



If you want to improve your financial situation, it’s important to have a basic knowledge of personal finance. If you want to improve your financial situation, it’s important to have a basic knowledge of personal finance. What is personal finance? You hear the word “personal finance” and most people think something about money. But it’s more than that. You want to make your own money. You want to be able to go out and enjoy life on your own terms. You want to be able to save money when you need it, spend it when you want to, and have a little extra for emergencies. While most people think that personal finance is all about money, it’s actually about much more than that. Personal finance is about managing the other things in your life that also need your attention: Acquiring knowledge.


Why is personal finance important?



Money is the root of all evil. Don’t let it scare you. Read on. It’s a sad truth that most people won’t be financially stable until their mid-twenties, and the older we get, the less money we earn. Whether you make $25,000 per year or $50,000 per year, most of us aren’t in a position where we can save anything for the future, because we’re either living paycheck-to-paycheck, or else have invested in properties or cars that will take us through our working life. Whether you’re making $25,000 per year or $50,000 per year, most of us aren’t in a position where we can save anything for the future, because we’re either living paycheck-to-paycheck, or else have invested in properties or cars that will take us through our working life. There’s no need to feel bad about your financial situation.


Personal finance and the early years



So, you’re now in the process of building a personal finance portfolio. For the sake of convenience, let’s say you graduated from high school and you’re taking classes at a local college. You’re not quite sure how you’ll manage your finances, but you know you want to find out. Here’s a great, free resource to get you started: Look for a class at your local college. Find out what the tuition is, and make sure you’ll be able to afford the cost. Next, look for a program that will teach you how to manage your money. While you won’t be making a fortune at this stage in your life, you’ll learn a lot and it could help you figure out how to make more money in the future. Want to avoid debt? Then start with a debt-free life! What if you’re not studying?


The middle years


In your 20s, the average American will accrue $18,300 in debt, so most people will have to save for longer than in their teens. (Some will have to save even longer, like when they buy their first car, or if they go back to school.) Step 6After you get out of college, you’re expected to start saving more money than you do in your 20s. You’re no longer in school, so it’s time to buckle down and learn to be an adult. Start by forming a budget, which is a list of your fixed expenses—like rent, groceries, and utilities—plus any extra money you have coming in, like tips from your part-time job or bonus cash from work. Your budget is the best tool for figuring out how much you should be saving every month, and it will take a few weeks to see how much you can realistically save every month.


The later years


For many of you, personal finance probably isn’t something you think about until you are facing a financially-related decision. For me, personal finance didn’t even enter my mind until I started trying to calculate my monthly living expenses after I graduated. That’s not something anyone ever wants to do when they are twenty-three, so I immediately jumped into reading personal finance blogs. You can’t afford to think about personal finance for a long time. Your finances shouldn’t be an afterthought, but rather something you actively keep in mind every day. Step 7Investing and Saving Once you start thinking about personal finance in a more proactive manner, it’s important that you don’t put it off any longer.


Conclusion


Personal finance is a huge subject, one that requires the right mindset. By spending just five minutes per day on reading this post, you’re already off to a great start. Keep up with the latest on the topics of your choice with The Business Book.

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