Personal Finance Series #1: Money Management 101
Hi there,
Based on recommendations by many, I thought it would be a good idea to start a new series regarding Personal Finance.
So what is it all about? Personal finance is simply money management, which includes your income, expenses, and savings. An effective personal finance should provide a summary of how you are spending your money. But if done right, it should also provide details on what types of actions that need to be taken NOW in order to reach your FUTURE financial goals.
Before I continue, a little bit about my background. I am a U.S. Certified Public Accountant with over 15 years of experience in accounting, taxation, and finance. I have designed personal financial plans for many individuals and families, and helped them to track their finances to achieve their dreams, whether it is saving for a down payment on their dream house, or taking that much-needed family vacation.
Personal finance can benefit everyone so let's get started with these 3 basic steps:
- Create a personal financial plan
- Sooner you start the process, the better
- Keep track of your finances and stay the course
Create a Financial Plan: without planning, it is hard to know what to do and where to go. First, create a budget for the essentials such as food, clothing and shelter. Second, plan on how much you would spend for non-essentials such as eating out, entertainment, etc. Also, how are you going to save a portion of your income for your future needs (such as college tuition for your kids, or a family vacation). If you are not sure, just estimate amounts and refine as you go.
Start the Process Early: I cannot emphasize how important it is to get a head-start on personal finance. For example, it is much easier to save for retirement if you start the process early, which will give you plenty of time to save up and allow the magic of compounding interest (where interest is paid on prior accumulated interest) to work.
Track Your Progress: Having a financial plan is not enough. You must follow it with discipline through thick and thin over the course of time. This is where many can experience difficulties, because it entails certain sacrifices to stay the course.
I will be sharing more information and advice on personal finance as we move forward in this new series.
If you have any questions in the meantime, feel free to reply with your questions and I will try to help in any way that I can. Thanks for reading!
If you are also interested in learning more about taxes, please check out my tax education series below:
Tax Education Series #8: Child Support vs. Alimony, and Why it Matters!
Tax Education Series #7: Top Tax Tips to Save Money
Tax Education Series #6: Tax Benefits for Students
Tax Education Series #5: Do you need to file an income tax return every year?
About the Author : I am a cryptocurrency enthusiast and a U.S. Certified Public Accountant with over 15 years of experience in accounting, taxation, and finance.
If you like this series, please follow me @qwesttexas. I am here to help the Steemit community with personal finance and tax questions, and break it down into simple steps so anyone can benefit from it. Let's go Steem!