Personal finance is a term that can be said to mean management of money, setting personal finance goals as well as saving and investing.
Now, having known or having a little view of what personal finance is, in this article I’m going to be covering all aspects or abroad aspect of what personal finance is all about which includes ;
Personal income generation Even,
Budget tracker and planner guide
Personal Finance benefits,
Right money moves,
Bank and loans,
Financial literacy, and
So without boasting I guess or rather I believe this article will teach you all you need to know about personal finance and following this article and applying all that you will learn in it will change your financial mindset and help in all your finances,
Now let’s take this bit by bit, I’m going to take the definition again. according to Investopedia,
Personal Finance means all the financial decisions and activities or action by an individual, planing household that involves budgeting, mortgage, planning, savings, insurance and retirement planning.
Primarily knowing these definitions explain typically what personal finance is all about.
Now let’s talk about the Basics; inarguably money is a very important thing to our lives but having financial literacy is very important thing, though it is not being taught in schools or at homes but through some Media’s like this and it is important that we should know what personal finance is,
lack of Financially know-how or literacy has been a problem especially to young adults like teenagers not saving up enough for retirement there by mismanaging, miscalculating their Personal Finance which might affect them at old age.
kudos! to Personal Finance basics which can solve many money issues, so in this article I will be giving you at least six (6) Personal Finance basics
Build an emergency fund; In Economics, this term is referred to savings for unforeseen circumstances,
you can’t tell when you will fall sick, when you will be stucked in a tight corner or when your car will break down. All you need to do to meet up with emergency fund or unforeseen circumstances is to always set aside a certain amount of money from your monthly income, salary or wages to build up your emergency fund,
you never can tell what life will give to you at anytime, a cool idea and advise is choosing an account where this money will yield an interest as you are saving up and where you can easily access it,
like a cash management account, online savings some good apps are piggyvest, cowrywise, chipper cash and so on
if you can make budget the key to balancing your bank account believe me you will know how to keep up with your expenses thereby making sure that what is going out of your bank doesn’t exceed what is coming in like your expenses doesn’t exceed your income
You know I love stressing this world “Investment” as one of the basics of personal finance, sometimes saving for retirement may not always be the best option or assurance that you would be comfortable at old age,
in as much as Investment comes with risk it is still the best basics of personal finance the best investment plan after choosing a firm or company you want to work with is to open a standard brokerage account then you can start an ancient trade for mutual fund or even pick your own stocks and bond.
4: Get insured!
it is always the best option and a wise decision to get yourself prepared for whatever life will throw at you,
as required by law, you should have your health and car insured!
if you have people who are dependent on your finances you can consider having a long-term disability insurance and life insurance this will help along the way and keep you balance when life shows you the worst of its sides.
5: Check your credit report regularly;
Equifax Experian and TransUnion are credit report agencies that you can get a free credit report,
is a wise thing to periodically request for a copy of your report and check for errors or any fraudulent activities,
the good thing is due to the Corona virus pandemic this agencies are now offering weekly credit report instead of the normal annual report,
to obtain a Live Aid or mortgage or any other type of financing you surely need a clean credit report.
6: Start saving for retirement!
Starting early to save for retirement as a young adult will go a long way to help you save enough to last you through after retirement,
you can also choose savings online with some investment apps like vestpay and piggyvest which in turn will yield interest.
Now having known the basics of personal finance, it is also wise to know some apps that will help you through your personal finance journey.
Some personal finance apps
A personal finance app is a smartphone or tablet app which can help you control every aspect of your personal finance including savings, investments and expenses.
Some of the apps are
which means include personal finance app you can get a complete picture of your finance in one place only by linking your debit and credit card to your means account all for free,
you can get a break down of the factors which contribute to your score and you will also be able to manage utility payment and track your investment.
this app helps you to keep your budget, it is a detailed report app which helps you keep a balanced budget,
It discourages and limits spending and also helps those places you can improve in expenses and the good news is you get to try this app for free for 35 days and then decide if you still going to continue with it.
3: Personal Finance;
This app comes with approved, registered and trusted financial advisors who will provide you with customised advice to help you reach your goals,
the app helps you manage your finance and wealth which includes your investment assets and expenses you can also connect to your bank account to track your spending
Prism tracks your bills and send screen reminder to help you prevent late payments it can be used to pay bills with schedules payment in advance it also shows all your financial accounts using report in one app
5: Every dollar:
There is a built-in monthly spending tracker which can be linked to your bank account and helps in poor transaction to guide your expenses,
the app uses a zero-based budget method which is a good personal finance basics and is recommended by experts.
This is a budget planning app which includes interactions or rather interactive charts that allow you to analyse your financial life it can be used as an adjustment tool for a larger financial goal,
organise your expenses and analyse your finances they also have the free and premium version which works perfectly though the free version have some limited features
7: spendee; spendee unlike other personal finance apps, spendee is not an individual app it allows you create a shared wallet which can be used with families and friends
According to investopedia, mutual funds is defined as a type of financial vehicle made of a pool of money which is collected from many investors to invest in securities like the money market instrument, stocks, bonds, and other assets
With mutual funds when collected by money managers and invested in stocks, bonds and so on helps you in your personal finance as it is paid to foreign donors with interest on yearly basis.
If a phone sell securities that increases in price he generates a capital gain as a fund Holdings, when fund shares increase in price you can sell for profit in the market