Many People surprisingly lack in personal finance and do not try to understand the basic personal financial principles that should be followed while managing their money. Let me tell you some do’s and don’ts in personal finance which are not taught to you in schools or colleges. These personal finance tips will help you make sure that you are prepared for whatever may come on your way.
Do Live within your means: It simply means to live a lifestyle that is in tune with your current earnings and not in comparison with your neighbor or relative. Your desires and needs must not be restricted but can be accomplished in proportion to your income only after saving some surplus amount.
Do Make Money Work For you: Saving or investing is an excellent beginning towards financial security. There are different types of investment options which give better returns on your investment. Investing early is the best way to make money work for you.
Do Prepare For the Unexpected: Build an emergency fund, by saving some amount of surplus regularly to protect yourself from unexpected financial emergency. Save enough for at least 3-5 months for future expense.
Don’t Invest without proper knowledge: If you are planning any investment decision, do study and research the financial product. Don’t invest in an asset blindly that you don’t understand. Seek the help of a personal financial adviser who can explain and suggest an investment depending on your financial priorities and ambitions.
Don’t Try to Predict Future: Invest for the long-term and do not invest in an asset class just because the price is less or do not sell as price goes up. Invest but don’t speculate, thinking you are investing. Thus don’t try to predict future while investing.
Follow the above do’s and don’ts, these will help you keep your finances on track and manage personal finance.