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In simple words, finances mean your monetary resources. Hence, finance is how you manage your revenue or income.
Finances is the full package of what you earn, how you earn, when you earn and how you spend. That is why it needs to be taken seriously.
Investopedia defines finance as a term for matters regarding the management, creation, and study of money and investment. Finance can be broadly divided into three categories, public finance, cooperate finance, and personal finance.
I love the definition by Investopedia. Finance is not all about managing your income but also creating an income for yourself and that’s that category for personal finance.
Take your Finances Serious (personal finance)
Without a proper principle to help you manage your money, you will remain broke even if your paycheck is good.
The secret to wealth and financial stability lies in your ability to take your personal finance seriously. If you can manage less then handling a big income will be easy.
Key factors to a good finance management
Planning your income and expenditure. Deliberately making efforts towards growing your income and making the most out of it. Plan how to spend the little you have and how to invest what’s left of it.
Creating a budget that will help guide your effective use of your income. Without a budget, you will definitely mismanage your resources. Budgeting is pretty simple, it’s like making a wish list but in order of importance.
Saving is my favorite aspect of personal finance. It is the number one way to gain financial freedom. When you save you are secured and secondly you can invest or start a business. All of this will grow your income. No matter the size of your income you can save, learn how to. Also, there are many ways to save that are effective.