Nowadays there are tons of investment opportunities to invest in. But each of them has some pros and cons. Due to this, it become essential to teach youngsters how to manage their money. But the scenario is very different we are living in the era of social media where we make investment decisions based on what other people are doing.
Take cryptocurrency for an instance we had seen what happened in the last two years. The social media influencers were promoting cryptocurrency and asking everyone to invest in it. And now we all know what is the situation. Due to this huge number of people lost their hard earn money because lack of knowledge. So it’s high time for us to educate ourselves on how to manage our finances.
Now When it comes to personal finance, there are many things that people need to know to make the best decisions for their money. However, for beginners, the whole process can seem a bit overwhelming. That’s why we’ve put together five personal finance tips for beginners that will help you get started on the correct note.
- Start tracking your spending.
If you want to get a handle on your finances, the first step is to start tracking your spending. This will help you see where your money is going and identify the areas where you may be able to cut back. There are a number of ways to do this, including using a budgeting app or simply writing out your spending for a month to get an idea of where your money goes.
You can also use credit cards to track your expenses since nowadays credit card companies provide you with an application to track all your expenses. And also some credit card companies provide you the option to convert your bill into no-cost EMIs.
But since you are a beginner I assume that you might not have a credit card and also you might not have a credit score. Then you can go for BNPL(Buy now pay later) credit cards like Slice card, UNI card, and many more.
- Create a budget.
Once you’ve started tracking your spending, the next step is to create a budget. This will help you make sure that you’re not spending more than you can afford and will help you identify areas where you may be able to save money. When creating a budget, be sure to include both your fixed expenses (like rent or mortgage payments) and your variable expenses (like food and entertainment).
- Set financial goals.
It’s important to have a goal in mind regarding your finances. Whether you’re saving for a down payment on a house or simply trying to get out of debt, having a specific goal will help you stay on track. You should also make an investment plan like starting a SIP which will help you to secure your retirement.
Once you’ve set a financial goal, be sure to create a plan for how you’ll achieve it. This may include setting up a budget, cutting back on spending, or finding ways to make extra money.
- Invest in yourself.
One of the best things you can do for your personal finances is to invest in yourself. This may include taking courses or finding other ways to improve your skills. By investing in yourself, you’ll not only make yourself more financially secure, but you’ll also be more employable and likely to earn more money.
- Seek professional help.
If you’re feeling overwhelmed by your finances or don’t know where to start, seek professional help. This may be in the form of a financial planner or advisor, but there are also a number of resources available online and in libraries. Getting professional help can be a great way to get your finances on track and make the best decisions for your money.
Personal Finance as the name suggests is a very personal topic i.e. it varies from person to person. You have to decide what is right for you based on your risk profile don’t make your decision based on social media. And keep educating yourself about personal finance. I hope you will do very well in managing your finances.