Everyone is affected, directly or indirectly, by personal finance dynamics. Virtually all of our pursuits are aimed at making our personal finances healthy. That is why it is always important to refresh your knowledge of personal finance priority areas. Personal finances are important. No wonder some resort to criminal activity to build them. Not a week goes by without hearing of money laundering, fraud, tax evasion, and the like. This happens daily in many parts of the world. There is a better and more virtuous route though. It pertains to applying the following personal finance advice:
Deal With Debt First
You can never build your personal finances well with debt hanging over you. Debt should be the first thing you should address. This is because debt holds you back. In most cases, the debts people have to accrue interest over time. This means the more the debt is still unpaid the more it increases. That is why clearing your debt should be the first priority. Make a plan for it and stick to it. Never resort to or normalize dodging debt; that gets you nowhere. If you have considerable debt, a year of consistency can see you clear all your debts. It may be inconvenient now but the long-term benefits will be priceless.
Start From Small (When Eliminating Debt)
When getting rid of the debt you must appreciate that you do not need to strain yourself. Of course, you have to push yourself but be systematic about it. The idea is to start clearing the small debts. You can also break down the bigger debts into smaller bits. Then you consistently pay the small bits over time. This approach primes you to not feel overwhelmed. Plus it also conditions you to stay motivated on your journey to being debt-free. Even the people you owe appreciate such efforts from you.
Prioritize Your Emergency Fund
Many people still do not prioritize their emergency funds. It does not matter how little you get. You must strive to set aside something for your emergency fund. I have noticed some build their emergency fund in the form of livestock. For instance, you put money aside and purchase may be cattle or pigs. The idea will be for them to reproduce. Then when there is an emergency, you can sell at least one of the livestock. That is just one creative way of doing it. The general approach is to put aside at least 6 times your average fixed monthly expenses. If you can have that in your emergency fund you are good to go. You can face almost any emergency that comes your way.
At Least 15 Percent Of Every Income Belongs To Your Future
This may include both your emergency fund and general savings. The bottom line is that whatever income you get; channel at least 15 percent to the future. It could be money you ultimately invest; many things you can do with it. Just ensure when you get money, at least 15 percent goes to your future. Remember that principle of spending after saving; saving comes first! Generally, you must work with percentages when it comes to apportioning any income you get. That way you have workable routines you adhere to every time.
Do Not Spend Unnecessarily
Spending unnecessarily gets the best of many of us. However, it is something that can be avoided. There are so many easy and creative ways you can apply to not spend unnecessarily. For instance, making your visits to shopping locations minimal can be a strategy. I have also observed that carrying only the money you need to use helps as well. The other thing is to only spend money that is truly there.
This means you should avoid borrowing or taking things on credit. Schedule every expense than to spend on impulse. Whenever you are presented with a decision to buy something, muse on it for a bit. It is even recommended to delay making the purchase. If you sleep on it you might realize it is unnecessary. Do not spend unnecessarily!
Leverage Technology In Saving
Saving is a fundamental part of your personal finances. We have reiterated that many times. No genuine and honest path to wealth creation is devoid of saving. After debt is cleared the launch pad is always saving so you must save. To make the whole endeavour smooth you must leverage technology. There are many apps or software specifically designed to help you save money. Mostly such applications are anchored on helping you track your expenses. There is so much in the world of technology today that can streamline your personal finances.
Budgeting Is Not Outdated
Budgeting will never get out of style. There are many people who think that budgeting is old-fashioned. Some of us were raised by parents who would budget every income; they still do. I remember seeing my parents do this when I was growing up. Every payday I would see them spend some time in their bedroom. I always knew it was budgeting time.
The crazy thing though is that on the same payday, I would see others impulse buying. Thus we have always had those who shun budgeting. Budgeting has stood the test of time; it is beneficial. After all, whole governments do budgets so who are you to think it is not important? Every other effort in building your personal finances is premised on your budgets.
The other thing you should always remember is to engage professionals where needs be. The world of finances can be intricate at times. Especially in a country like Zimbabwe, some things may be complex. This is due to the atypical economic and fiscal policies mostly at play in Zimbabwe. Plus it is not all of us are adept at interpreting and managing financial aspects. If you need help always engage professionals who can help you.
