3 Tips for Personal Financial as a beginner

Personal Financial Planning is such a topic of our life that everyone should understand in today's time. Depending on how we plan our finances today, how much money we will have in the future.

One who has learned to manage money has a lot of guarantees that he will be successful and happy in his life.

Personal Financial Planning Tips:-

Today I will give you three such Financial Planning Tips which are also Personal Finance Basics i.e. You can use these tips as a strong foundation if you decide to get into Personal Financial Planning.

Please read these “Personal Finance Tips” carefully which will give a perfect start to your “Personal Financial Planning” and you will be able to do a good “Financial Planning”-

1. Pay Yourself First:-

Pay Yourself First is one such rule that can speed up your financial planning. Whatever your income, the Pay Yourself First Rule says that you should save for yourself first before spending the rest.

The Pay Yourself First Concept recommends that you out of whatever you earn, set aside a certain amount for savings and then spend the remainder. Whenever you earn a certain amount, you divide it into two parts. You spend one part and then save the other part.

For example, if your Earning is Rs 20,000 per month and you want me to save 20% of the money, then the rule of Pay Yourself First tells you that you should put 20% of your Earning i.e. 4000 Rupees in your Savings first. Give which you can also invest later. And take the money left (Rs 16000) for your expenses.

Those who make a mistake, instead of saving what's left after spending the first month, this is a bad strategy. Pay Yourself First Concept tells you to "save first, then spend" and not "spend first, then save". With this method, you will find that saving money every month is quite easy.

The concept of Pay Yourself First was first seen in the book The Richest Man in Babylon which was later explained by Robert Kiyosaki in his book Rich Dad Poor Dad.

I've seen a lot of positive changes in my life after adopting the Pay Yourself First rule. You should do the same to successfully plan your finances.

2. Invest in different places (Diversification in your Investment):-

The Pay Yourself First rule will allow you to save money when it comes to personal finance.

In order to plan your finances better, you don't let your savings money sit like this. You invest it where it is needed the most.

That's why you are advised to invest your money in different places. By doing this, investment gets diversified and your risk is greatly reduced. If you lose in one place, then your money remains safe in other places. If a loss happens then you will not be able to survive and all your dreams will be shattered. When you lose, your dreams will be shattered and you won't be able to survive.

In other words, you are advised to spread your money across several different investments. This will diversify your investments and reduce the risk. If you lose in one place, the money stays protected in other places.

The risk of investing all your savings in one mutual fund would be extremely high, for example, if you saved Rs 4000 every month. Diversifying your investment here is imperative.

If you give, if you invest in two good mutual funds, you also open an RD of 1000 rupees to invest elsewhere with the remaining 2000 rupees. This way you reduce your risk a lot by investing in different places.

Share market magician Warren Buffett also adopts the same method. You must also follow this method.

3. Must have more than one source of income:-

If you rely on only one source of income for your income, then you cannot do a successful financial plan. That is one of the most crucial tips of Personal Financial Planning.

This will be because you are earning money from only one place. Therefore, if you will not be able to earn more money, then you will not be able to do more money-saving. And when you will not be able to save more money, then you will not be able to invest more money.

Therefore, you should not adopt the path of Multiple sources of income, that is, you should make ways to earn money from many places instead of earning money from only one place. It is recommended that you earn income from active sources for this and use passive sources for the rest.

If you work, then it is a source of income for you. Now you can do YouTube videos as well as blogging. You can also start a small business if you like. This will all be your other source of income.

Multiple Sources of Income provides you with the potential to earn very good money, today many people are becoming rich by using this method of financial planning. You can also use this method and work towards a better financial future.

Note:-

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