8-Tips for Personal Finance and Money Management

One of the highest favor a person can do to him/herself is managing personal finances wisely especially when one is in job. It hadly matters whether one is on a small post or big post. One is forced to spend according to status. High status carries high responsibilities and high expenditue in management too. You needs to manage personal expenses to avoid going them out of your control.

In the present economic scenario, it has become all the more critical to manage finances. It becomes personal responsibility of everyone to spend money as wisely as possible. While tons of complex information and software is available on the internet to teach how to manage personal finances, the ACTION starts from you only. Unless you take action, nothing can happen.

This is what you can easily do and manage at your own level:

1. Set a convenient level of monthly saving say 10 per cent, or 5 per cent, whatever convenient according to your situation and stick to it.

2. Next tip is use crdit card wisely and rarely to avoid credit card debt. That too, only when you are sure that you can esily repay the balance within the prescribed period. Once you use a credit card, make sure to repay the amount within prescribed time limit. At the same time, resist the habit of keeping too many credit cards. Two cards should suffice.

3.Instead of frequenting grocery store every now and then, we can stock things of everyday use for two to three months, barring perishable items.This way we get lot of discount and save lot of money.

4. We can put a tab on monthly pesonal expenses and adhere to that limit at the same time avoiding the temptation of credit card use.


5. Avoid the habit of driving to small distances where we can walk easily. This way we can inculcate the habit of walking and benefit from the same.

6. Avoid the habit of impulse purchase for instant gratification. This habit is very dangerous. While you are ready to make an impulse buy, immediately postpone it to the next day.

7. Think at home before going to bed whether acquisition of such an article, was absolutely necessary. If it is necessary, you can acquire it next day.

Note: I also used to buy on impulse and temptation and amassed large number of books, CDs and toys. Now I finding a way to dispose them off.

8. The greatest mantra is never buy a thing unless it is absolutely necessary to buy for yourself or family.

This is very important that you take control of your money now and make a budget right today. Once you have a tab over your spending habits, bad economy can never impact you.

There is no doubt that when financial worry is there, several health problems also creep in. With budget control, you and your family will always remain happy and healthy.