What is personal finance?
Personal finance management is required to fulfill present and future requirement of any individual and family. Personal finance is must for catering any emergency situation in our life.
There is always a first time for everything so also for investing. To invest you need capital free of any obligation. If you are not in the habit of saving sufficient amount every month, then you are not ready for investing. There are some habits by which you can save money
- Save to at least 3 months of your monthly income for emergency.
- Do not invest from saving made for this purpose. Hold them in a liquid state and do not lock it up against any liability or in term of deposits.
- Save to at least 30 % of your monthly income. Stick to this practice and try to increase your saving on regular basis.
- Avoid unnecessary expenses as they add up to your saving. The pleasure of avoiding it will be far greater if the amount is saved and invested.
- Try to gift a bundle of share, mutual fund, fixed deposit or bonds to your birthday/ marriage anniversary or to your love one on their birthday etc.
- Clear all your high interest debts first out of the saving that you make
- A retirement benefit is an ideal saving tool.