Now a day’s finance management is essential aspect of everyone’s life irrespective of which profession you are in. Both employer and employee are managing their financial expenses for growth and profit. If you know your earnings and expenses, you can manage your budget well. The few things which you can do to take control over your personal finance right now:
1. Get organized
Use a single email address through which you can pay your utility bills, e-statements and online banking and regular check the bank account and credit balance, so that you’ll always have a clear understanding for your financial situation.
2. Make a budget for month
Every month the major portion of expenses goes for home essentials like rent/mortgage, groceries, bills, kitchen stuff and transportation. Make a proper budget as per your earnings by keeping monthly expenses in mind.
3. Know your income sources
You should have clear understanding about monthly income sources and the amount of money you take home after taxes and other benefits like the expenses on rent, travel, utility bills, food groceries and entertainment.
4. Regulate your expenditure
Sometimes you think yourself as a high earner, but if your salary account doesn’t back up that statement, you’re shooting yourself in the foot acting like you are. The magical rule of spending money is the only spend money that you have.
5. Keep emergency fund
To make sure you have money to cover any unexpected costs, make it habit to save 5 to 10 percent of income for emergency because problem never comes with invitation. Health problem, broken water heater, car repairing or electric gadget replacement can make a burden. If you had an emergency fund, so you can avoid the burden of debt.
6. Plan for retirement
If you will get retire with good handsome amount in bank, so it will make your old age happier and easy. In market there are many good retirement investments, where you have to deposit money monthly or quarterly and after maturity it will generate good money.
7. Purchase health insurance
We need to live a healthy life but we never know when we have to go for hospital service and in that case health insurance can save a large amount of money. After a major medical crisis hospital bills are one of the reasons to get into debt, but you can prevent it by purchasing health insurance.
8. Small deposit
For earning some more profit through interest rates you can go for fixed deposit, mutual fund or any other secure service offered by financial institutions.
For finance management you don’t need any degrees or special finance background to become an expert at managing your finances.
