Money Management: Personal Finance Tips to Keep in Mind

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Whether you are single or married, widowed or divorced, one of the most important things you can do is secure your legacy by protecting what you have. This includes residential and commercial property, cars, businesses you might own or be an investor in, and financial assets.

As such, you mustn’t wait until the latter years of your life to speak to a creditable estate planning lawyer. The right individual will not only guide you through the many complexities this process entails but also give you the best advice on what to do. Keep in mind that different states have different rules, and the last thing you want is to lose what you have worked so hard for because of negligence or failing to do adequate research.

But let us not get too far ahead of ourselves. Before thinking about safekeeping the things we have, we must consider the ways of getting them. And like most things in the material societies we live in, it starts by having enough money and making use of it in the best possible way.

If you are not quite sure where to begin, here are a few of the best personal finance tips to explore.

Flexibility in Rule Making

When it comes to saving money, many of the so-called financial gurus swear by the 50-30-20 rule. For those of us not familiar with the term, this means that you should spend 50 percent of the money you make on what you need, 30 percent on what you want, and save the rest. But while, in principle, this is a sound proposition and an excellent place to start, it is not always maintainable.

For instance, what if you suddenly lose your job or get demoted to a position with a lower salary? What if you or another member of your household gets sick? Most importantly, what if your monthly expenses exceed your income or you cannot save at all for one reason or another? What are you to do then?

Naturally, having a rule is better than acting on instinct alone and hoping for the best. Still, it is essential to remember that flexibility is vital to success, be it financial or otherwise. Whether it is the 50-30-20 rule or something else, the key lies in having enough leeway and open-mindedness for when things don’t go as you expected.

What Is Truly Necessary

managing money

In the previous section, we talked about the basics of the 50-30-20 rule. Nevertheless, we did not explore the difference between the things necessary for our survival and well-being and the things that satisfy our cravings and make us happy.

In some cases, knowing how to differentiate one from the other is child’s play. If there is a growing leak on the roof of our house, needless to say, this is something you have to spend money on. Either that or you move somewhere else. On the other hand, if you live alone and already have a car, getting a second vehicle would undoubtedly fall into the category of the things you want.

The problem lies when a specific item falls somewhere in the middle. For example, let us imagine you have been working for months, and you’re exhausted, demotivated, and burnt out. Recognizing the situation, you start pondering whether to take a vacation to a place you’ve always wanted to go and find some time to relax and recover. If that is the case, is the vacation something you want or something you need? Only you have the power to decide.

You Only Have One Life

When we are children, most of the time we can do whatever we want. If we want to sleep, we sleep. If we wish to eat, we eat. And if we don’t want to do our homework, we will not do our homework, regardless of the consequences. But part of growing up and maturing as an adult means you have to do the things that are good for you, even if that entails moments of boredom, disappointment, and a lack of motivation.

Yet, nothing is guaranteed. Choosing a job in a well-known, well-respected organization won’t always give you a lot of money and the financial freedom you crave for. So why not engage in what you are passionate about instead?

When you know your purpose in life and dedicate your energy to it, there is a much greater chance that you will flourish as an individual. And this includes financially.

Final Thoughts

If you want to achieve long-lasting financial prosperity, set clear rules regarding money but be flexible when following them. Also, take the time to decide what you want and what you need. Finally, find out what your gifts are and do what makes you happy.

These are things we can all do for a better, more enjoyable, more rewarding existence.

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