If you want more money, become friends with it.
When I look back at my high school and college education, I’m amazed at how little I learned about personal finance. Ironically, understanding personal finance is the only way to become financially savvy.
Go figure.
Although this last recession has curtailed consumer spending, many people continue to incur “bad” debt. In fact, college students continue to carry credit card balances of $5000 or more prior to graduation. With credit card debt like that you’re finished before you start!
Just because you rent an apartment rather than own a home, or have nominal expenses (lucky you) doesn’t mean you can turn a blind eye to taking control of your personal finances.
I’m about to give four of the most foolproof tips for managing your personal finances.
1. Save 50% of your income. (Invest it somewhere that it can work for you.)
2. Give 10 % of your income. (It is in giving that you receive.)
3. Spend 40% of your income. (Create a budget and stick to it. Then play with the leftovers.)
Obviously, I’m no personal finance guru. There are many other resources that can guide you in this arena much better than I can. The bottom line is: you need to take control of your personal finances if you’re going to build sustainable wealth in your lifetime.
Some of my personal favorite personal finance resources you might like:
Mint.com – the resources here a limitless!
Dave Ramsey – Dave Ramsey offers some of the most practical personal financing teaching available. His courses are worth your investment!
Get Rich Slowly – a blog devoted to sensible personal finance
Wise Bread – Living large on a small budget
Frugal For Life – Tips on spending less, wasting less, and saving more.
photo credit: leodelrosa…
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I like the way how you demonstrated your language on your post, Budgeting and Money Management.