Personal Financial Management
Let’s face it – there is a 100% that you’ll face a major financial concern in your life. You might experience it in your work, business or even in your personal finances. Managing your personal finances is surely not easy- and definitely stressful. Personal financial management helps an individual to manage their finances and expenses on their own like budgeting, savings, retirement planning etc.
The good news is, you can overcome it and personal financial management will be easier than ever.
Financial Concerns and Financial Solutions
Every individual nowadays go through some financial concerns and start finding their solutions. Here are 5 common financial concerns and financial solutions for a hassle-free and manageable personal financial management. Let’s get going!
Problem1: You can’t find a reliable and trustworthy financial planner
Experiencing this is such a pain, especially if you are running a large business and you mostly rely on your financial planner. Instead of making things easier for you, your financial planner makes it worse which could lead to a major financial problem.
You can ask your family, friends or colleagues if they could refer someone or search the Financial Planning Standards Council’s database. Be sure to ask potential candidates a sample plan in finance and how they can help you manage your finances. Remember, a trustworthy and reliable financial planner is someone who will assist you in setting up financial goals, create plans and help you to become consistent in financial management.
Problem2: Overspending like crazy
Overspending is somewhat our guilty pleasure. We promise to ourselves that we will save money but once we knew that there is a big sale in the mall, or a release of a new gadget in the market, the temptation is strong. The next thing we knew, we can’t pay our bills anymore- which should be prioritized before shopping like crazy.
Create a budget! It can be weekly or monthly, as long as you follow it. For an organized budget, you can create it in an excel file and sort them- budget for food, clothes, rental fee, mobile plan and so on. Creating a budget is a great start to overcome overspending.
Problem3: You don’t have an emergency fund
Some of us may think that having an emergency fund is not that relevant, I mean you don’t get to face accidents or experience calamities every day- unless you know that you are a danger magnet yourself.
Start having today! Financial experts suggest saving up three to six months’ worth of living expenses somewhere like a tax-free savings account, where you can earn interest without sacrificing accessibility. Also ensure if your life insurance coverage is enough to care for your family if not, check with your employer to see if you’re eligible for group coverage, or check with private providers.
Problem4: Financial management for married couples
It’s a sad reality that money and financial issues are one of the reasons for divorce nowadays. This might be because most couples didn’t save enough money before marriage, or even discuss it.
Your love for each other is not just all about romance- you must include preparation for your future. Having a financial plan in place or finding a financial advisor that may help you is a great start for a successful married life.
Problem5: Retirement fund
The future is bright- however, some fear it. Many are worried about their money for retirement. Is it enough to support themselves once they stopped working?
Getting a financial advisor is a good way to know if your money is enough for retirement and you can ask for ways on how to prepare your financials for the future.
“We can’t avoid financial problems in our lives, but we can overcome it by planning our financials ahead and give importance to them.”