At the elementary school, people are not taught how to manage money. According to Council for Economic Education, about 17 states in the US require students to go through a personal finance course at high school level, however, just a few need tests on the topic. When it comes to matters of money, it is wise to learn from the mistakes of others than making mistakes yourself. Here are some of the tips to prepare you for a better personal financing:
Enroll in a college or University
- 1 Enroll in a college or University
- 2 Identify your purpose
- 3 Put value on money
- 4 Use your credit card sparingly
- 5 Follow the golden rule
- 6 Choose who you work with wisely
- 7 Always prepare for the unexpected
Maybe you are interested in jobs that don’t require a degree like golf. Anyway, you must consider enrolling in a college or a university since this is like an investment. If your parents are not able to support you, find a way to make it happen. Get a loan and enroll in a community college and after two years transfer to a 4-year university to save costs. While borrowing a loan, take an amount you can pay during your first year after graduating. With the knowledge, you are in a better position to handle and manage any funding you could get for business or other courses.
Identify your purpose
If you are finding it hard to figure out what your purpose in life is, just relax and look within. At least every human is born with some natural abilities and talent. Identify the subjects you can excel in and the ones that give you a hard time to understand. When you finally get a career which enables you to maximize your ability, makes you fulfilled and also helps others, major on that because it’s the purpose. In this manner, you have trained your mind to understand what you need to do and what not to indulge in. For personal financing, such a person can utilize funds in a better way since they have a sound knowledge of what they want to achieve.
Put value on money
Even if money cannot buy happiness, it can make you live comfortably. It’s important to understand what money is worth. It is what you get in return after investing your effort and time in a particular productive pursuit. Let’s take it that you work for $10 per hour, and you want to buy a mobile phone worth $100. You can work for 10 hours to earn that money. However, there may be other significant demands for the same money. You must be able to consider important things first and luxury things to come later. When you learn to prioritize your needs and practice it, then you can handle a personal funding in a more decent way.
Use your credit card sparingly
You may be able to spend a lot with a credit card but paying it later becomes trouble. It is advisable to use any credit offered to you in a responsible way. What you purchase today using a credit card, you will pay for it in the future using your income. In any case, you be running a balance on the card, you will pay interest which could be high in terms of rates. When you learn to manage your income and the small credits you get, then you are better off if trusted with a personal financing to start a business or so.
Follow the golden rule
If you treat others fairly, you will get a fair treatment yourself. You don’t look good when you try to make others look bad. It’s all about being responsible. Unlike everyone tends to believe, the craftiness and duplicity of Machiavellian tactics will not help you survive but instead engender mistrust in your relationships. While working, do not gossip. If you become this responsible with yourself and the people that surround you, it becomes easy to handle your finances. Humble and responsible individuals can make a good use of personal financing that disrespectful, irresponsible and arrogant ones.
Choose who you work with wisely
If you have to choose a business partner, ensure you pick someone who has same values as yours. Again, it’s not just when it comes to issues of money, choose a trustworthy person with good morals and ethics. This way even if you do business together you can prosper, and your business will flourish. Picking the right business partner helps you handle funds in a right way and also helps you come up with investment ideas such that if you get funding, you don’t misuse it.
Always prepare for the unexpected
You better learn how to handle the funds in good times before the unexpected happens. Be saving part of your income because you never know when you will lose your job. Just in case you lose your job and you can still get funding from various creditors, you should be able to use the funds appropriately.
Learn about investing
This is not science or engineering; all you need to get started is overcoming your fears. Try out 1 or 2 affordable personal financing. If this works out well for you, then you can consider taking larger amounts and expand your ventures and even hire someone to help you with the work. When you have a good idea about where and how to invest, possibilities are that you can manage a funding quite well.
Be grateful for what you get and make use of it
Learn to appreciate every single thing life serves you. As an entrepreneur, you need to be grateful for every portion of funding you get because it can make a change. Some creditors want to give you small funds at the beginning to see how you use them and later on increase the amount. So whichever amount you get as personal funding, be grateful and use it wisely because you never know what’s waiting ahead.
Always stick to a budget
You cannot tell where your money is spent if you didn’t spend with a budget. Before you even apply for personal financing, you need to have a precise budget showing exactly what you are getting the funds for. Whether you make a hundred, thousands or millions, a budget is something you must always have.
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.