Personal finance
Three way of managing finance
Introduction
Personal finance managing our money as well as saving and investing. It includes banking, budgeting, insurance ,etc. In the 21st century finance becomes more complex. When we start managing finance we will have a better perspective of where and how you are spending your money. This can help you to keep within our budgets and even increase your savings. Another Hand , when we learn how to save money we will achieve our goal and live happily. Now days money is very important because if we don’t have money there won’t have anyone to help us. But if we have money unknown people will also come and talk .Even they will ask did you need any help. Therefore, we need to manage finance .From now on, if we manage finance very well, in future you will have more sources of income. So, three ways to manage finance are one. assess your current financial situation. Two set the financial goals and three create a plan to reflect the present and future.
1 Assess your current financial situation
If you want to manage finance firstly you need to assess your current financial situation.
By collecting all our current financial documents such as credit ,loan ,shopping etc. Then calculate your need .After that, list all of your source income and amount. Then categorize your expenses ,such as housing, transportation ,shopping ,entertainment ,etc. Also reflect on any upcoming change in your life that could affect your financial situation such as job change, married and for children. We should know where expenses go unnecessarily so that we can control that.
2 set the financial goals
We you want to manage finance you need to set the financial goals so that you can mange. For instead if you are getting 30 thousand per month you need to divide your money to different necessary things .You need to specify how much you want to save and by what age. and determine when you want to achieve it. Whether it’s within a year ,three years or more. even you need to know how much you need to save and invest to achieve your goals then divide your goal into small so that you will progress more effectively . If you have children you need to divide the money how much you have to spend.
3 Create your plan reflect to present and future
If you really want to manage finance you need to create a plan to reflect the present and future .for example if you are working in private company, you need to give house rant and electric bill, water bill etc. so if you have child and continued further study you need to reduce debt and save even though we need to spend less in unnecessary things. For instead if you spend 500 per day eating junk food you need to reduce 300 per day so that you will save 200. For the future you need to make a plan on that right now if you are working as a teacher but you will resign from that post one day .After resigning you will not get any salary. Then you need a house to live in so you have money. That is why you need to manage finance very precisely . Again if you are getting problem in financial in future you need to money to solve the problem therefore, you need to manage finance from right now. If your parents are old you need to take care and give a house to live therefore you need to manage your money.
Conclusion
To conclude , managing personal finance is saving, investing , budgeting ,loan ect. To manage finance you need to assess your current financial situation and also you need to set a financial goal and you need to create a plan that reflects the present and future . If you want to fulfill your goal you need to know how to manage money and utilize it. To achieve your goal you need to work hard and learn how to manage money. And also you need to think about your future and manage your finances.
If you want more information on managing finances you can contact me at 17942749 and even go through the website www.norbuchachen.com. And you can even go through email nornuchachen@59.com.
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