As an individual who is keen to manage your own personal finances successfully, there are a number of simple, but important steps to take.
Talking to a certified financial planner can be a great first step to take towards finding ways to manage your own personal finances.
Start by establishing your income figure. This is money you get to take home.
Work out how much you spend in a given year. Write down everything you spend on. Be patient and diligent.
Set up your savings accounts. Ideally you should have four savings accounts, in the form of a contingency account, retirement account, vacation account and a rainy day fund.
Set up a budget-tracking system. In order to create an efficient budget, it’s important that you provide as much detailed and accurate information as possible. You could also use a budgeting app. There are numerous options available, such as Mint, Mvelopes and others.
If you are intent on successfully managing your own personal finances you need to be clear about where your money goes. You need to know how much you are spending on a monthly basis as well as how much you are bringing in every month. This way you can plan ahead in terms of achieving specific financial goals.
Review and reduce your debt. It’s important to make sure that you reduce the amount of debt that you have. Pay off your credit cards and any loans you may have. If you have a store account, make sure that you pay the instalment every month on time diligently. This will go a long way towards establishing a healthy credit record.
Handle your payments. This means making sure that you allocate savings towards your retirement.
Reassess your financial standing annually and make sure that you track your spending.