Managing Personal Finances

Eshaan Chauhan

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As everyone knows, personal finances are well, personal. You know it is really strange that we can share our deepest and darkest fears with someone, but when it comes to finances our lips are sealed!

Well, as they say sharing is caring, and that includes information too. So today we will talk about Personal Finances. It encompasses not only managing your money but also saving and investing.

So, first you need to learn how to manage the money to be able to save and invest it. The first step towards it would be budgeting. Prepare a monthly budget, so that 50% of your take-home pay is for essentials (like groceries, transport, rent etc.), 20% is for entertainment (like shopping, eating-out, travel etc.) and 20% is towards investments for future. This would absolutely ensure that you save some amount of money every month.

Once this plan is made, the next is having an emergency fund. The 10% missing in the above scenario is your emergency fund; this does not mean only a medical emergency, rather any other kind of emergencies like running out of cash some month, a car repair or even a really unexpected outing! After all, all work and no play makes Jack a dull boy! ;)

However, the most important would be limiting your debt. This also includes using your credit card only up to 30% of the limit, so that you can pay the full amount when it is due. This is not a jaw drop moment, and it is possible, since I have a friend who actually manages her finances without a credit card! If she can do it, you surely can limit the amount you spend on your credit card! So what are you waiting for? Go ahead and start managing your personal finances with these tips!