>> Saturday, November 27, 2010
A trouble free financial situation is essential for a happy life. Unfortunately, we are not taught to handle personal finances in our schools or colleges. Everyone expects others to learn handling personal finances by making mistakes with investments, savings and even marriages. Some people learn early and some are fairly clueless and keep making mistakes after mistakes. People avoid learning about personal finances assuming it is too complicated. You have to begin with simple things, only then will complicated things get simpler.
The first thing that you need to learn is to control yourself. Your parents might have taught you about this when you were a child. Learn to differentiate between your wants and needs. Go for needs, only at that time will you have learned self-control. So stop flashing your credit card for the smallest of purchases in the name of necessity. Keep control of your future through your finances. Avoid relying on financial planners and friends for advice for handling your personal finances. You need to keep track of where your money goes. Keep track of unnecessary investments and try to slowly reduce these expenses. Keep the monthly expenses way below monthly income. Instead of thinking for now, think about the future. One very significant thing you need learn is to save some money for emergencies. When a teenager starts earning, she forgets this vital part of personal finance. One can depend on emergency cash loans for time being, but it is recommended that you save every month for emergencies. No matter how many credit card minimum payments you have to make, or debts you will have to repay, save some for yourself. Everyone gets old, if you really do not want to spend the final years of your life constantly worrying about medical bills and domestic expenses, prepare well in advance.