Are you looking to get a handle on your money? Want to achieve your financial goals?
To manage your money and create wealth, you’ll need a strong grasp of personal finance basics. This guide will help you strengthen your money skills.
Personal finance is the use of financial management principles with respect to individual finances. The area of focus is on managing money, budgeting, saving and spending while taking various future risks and life events into consideration.
Your Mindset & Money
Knowledge is power. Financial knowledge is life changing.
The lack of understanding of money and finances impacts overall wellbeing. Making informed financial decisions will help you achieve your financial and life goals.
- Start Here: Financial Knowledge is Life Changing
- Understanding Your Money Mindset
- 5 Common Personal Finance Tips Explained
Setting your financial goals
Personal finance means you get to choose and set your personal financial goals. For example, everyone needs a place to live, but you decide where you’ll live or if you’ll rent or buy.
Creating a spending plan (budget)
A big part of personal finance is creating a budget or a spending plan. A budget allocates your resources accordingly to achieve your financial goals. Budgeting is the process in which you create your plan to track your income and expenses–how much you save and spend. Learn more >
- How to Start a Budget
- Reasons Why You Should Have A Budget
- 6 Budgeting Mistakes You Didn’t Know You Were Making
Banking and Financing
Banking is a service that handles cash, credit, and other financial and monetary transactions. When you are banking, you’re performing financial transactions such as writing a check, depositing cash, using a debit card.
Banking services are offered by banks and credit unions. There is also a growing number of financial services companies that offer banking services through websites and apps.
Your primary banking relationship is typically a bank or credit union you deposit and store your cash. Many banking institutions offer savings accounts, checking accounts, certificates of deposits, debit cards, and other financial instruments. Learn more >
- How to open a checking account
- What is a credit union?
- How to determine if your bank or credit union is right for you
We all know how important saving money really is to achieve financial wellness. But how many people are saving money to meet their future needs? If you look at headlines, you’ll come to discover some startling statistics.
- How to Start Saving Money Today
- Save Money Early and Often
- Emergency Fund: Why You Need It and How to Start Saving
Spending means paying money for things and experiences. Habits are regular practices often hard to give up or change. We often make purchase decisions without paying much attention to the thoughts that run through our minds. Learn more >
- Bad spending habits that are hard to break
- Why You Shouldn’t Struggle Keeping up with the Joneses
- Are You Unconsciously Spending on Likes Not Loves
Credit is an important tool and you must learn how to build, manage, and use credit wisely. If credit is misused it can lead to debt and prevent you from achieving financial goals. Credit is any type of borrowed funds that you pay interests on and must repay under an agreement. Credit is offered by banks, credit unions, and other financing companies.
Make it a priority to understand how credit works. Create a practice to pay credit cards in full each month and make loan payments on time.
How you handle credit is reported to credit bureaus. Credit bureaus and credit scoring companies (such as FICO and VantageScore) generate credit scores used by lenders to determine your creditworthiness.
We can’t ever feel at peace when debt is in our life. Debt is a ball-and-chain that prevents us from living our dream lifestyles. Whether you have a mountain of student loans or credit card debt being shackled to these obligations is a frightful one. Debt can cause stress impacting your health and wellbeing.
Investing is the act of committing money to an endeavor with the expectation of earning additional income or profit. There are a number of ways you can invest such as with stocks, bonds, mutual funds, real estate or your own business. There are many pros and cons to investing but depending on your risk tolerance one may be a better fit for you. Learn more >
Retirement is leaving one’s position or occupation from active working life or have chosen to leave the workforce. The concept of retirement is a relatively new concept in developed countries. There is no mandatory retirement age in the United States however specific government benefits required federal minimum age must be meant before benefits are paid. Learn more >
Recommended Book Reading to Grow Your Money
Broke Millennial by Erin Lowry – a great book that gives you the money basics everyone should have
Why Didn’t They Teach Me This in School by Cary Siegel – an easily read book that gets right to the point about money.
You Only Live Once: The Roadmap to Financial Wellness by Jason Vitug – improving your relationship with money and challenging your money beliefs