Once you get all the basic concepts of personal finances you’ll discover that handling your finances in a correct way is as easy as any other regular activity you do every day such as putting your clothes on or driving your way home each day.
Practicing good financial habits without making any mistakes can make your budget stretch farther regardless of your income. Actually, having a low income is a huge reason for you to take care of your spending and make the most of your income as you don’t have a big check next month to save you.
Right now in the middle of this global crisis there’s more and more job instability and every day industries are cutting jobs everywhere. So you need to be financially prepared now more than ever. Don’t think these days you can put 20 or 30 years of hard work for one company and expect to retire with a lifetime pension and a gold watch.
Nowadays, where there’s a high probability that your employer makes you save for your own retirement instead of providing a pension for you is when you have to be the most financially aware as never before.
But there’s not only investing and managing your money, you have to integrate all your financial life together. The best way to do this is by having a plan to help you make the best out of your hard earned dollars and your limited time. It’s just like planning a wedding or a vacation trip with your family.
Everybody needs to manage his personal finances wisely. It’s not a matter of age, gender, ethnicity or marital status. The principles of personal finance are the same at all points even when some aspects of financial management acquire more importance at different times in your life.
Financial health is a question of habits just as any other matter such as exercise or food habits. You have to practice and be disciplined on these issues to succeed on your goals. Having all the theoretic answers is just not enough. I know you may not like to be told you are doing something wrong and even more I’m aware what you do with your money is your business but you have to understand all the options you have and analyze the pros and cons. From now on, please don’t make easily avoidable mistakes or ignore the basic financial strategies.
If you’re young, you have an advantage for taking care of your finances at your age and you’ll see the benefits for decades. Congratulations for that! But if you’re not so young don’t be disappointed, I’m sure you have many years to make the most of your hard earned money and the money you are still going to earn in the future. Keep the good work and remember to practice good habits as that are the only way to have a healthy financial life.