Managing Your Personal Finances as a Professional
If you have completed your graduation and if this is your first job? Or are you finally earning your goal amount? Maybe you are just trying to find a better way to budget your expenses and looking for someone to guide you through this process.
This is Not a Loot Deal or Offer Just a Guide For Some People Who Just Started Earning or Started a Job
Finding the best way to manage your finances is not the easiest thing to do, especially if you have no previous experience in financial planning.
If a planner is not within your budget, this easy-to-follow guide might help you find a financial strategy that works for you.
The Blog will help People who have Just Started their Earning Money After graduation.
Set Your Financial Goals
The most important part of financial management is bringing about a shift in your attitude towards your money. Number crunching and complicated mathematics come only second to it, if at all.
The trick is to start with easy, short-term achievable goals that would prepare you for bigger savings goals. It could be something as simple as Rs.60000 in 6 months for a trip across South Asia.
With correct budgeting, saving up this amount would barely be a huge task. And this will precisely show you how easy it is to save and motivate you to work harder and put in more money towards bigger goals.
It is, in fact, easier to save money for a tangible goal with a real amount as opposed to saving an undetermined amount for an unspecified reason for an undetermined amount of time.
Making Your Financial Plan And Following It
Financial planning goes well beyond a frugal lifestyle and denying yourself of entertainment or indulgences. You cannot be happy if you are always worried about how you can cut costs.
The whole point of a financial plan is to create a sustainable way to slot your after-tax income to give you a space to manage your expense, allow you to indulge and save money in the process.
Use Senator Elizabeth Warren’s 50/30/20 budgeting rule to slot your income into needs, wants, and savings. According to this theory, 50% of your income should go into paying for your necessities such as groceries, utilities, insurance, credit cards, etc.
30% of your income should supplement your wants. Your wants can include your online subscriptions, shopping, eating out, or entertainment expenses. The remaining 20% should be going into your savings, emergency funds [ You Can Use Upstox and 5Paisa For Trading], debt repayments, and investments.
By following a financial plan, you create a more secure financial future for yourself and can avoid payday loans bad credit and much more.
Pay Off Your Debts
Whether it is a student loan or credit card debt, you need to start paying more than the minimum amount per month. But before that, assess the current amount of debt that you have on your plate.
This would help you plan out a repayment plan which would take unnecessary stress off your plate and help you slot out your payments in a more organized manner.
A bigger problem than debt, especially with respect to loans, is the interest that you accrue every month on your amount. The best way to tackle these charges is to pay a little extra per month, thereby reducing your interest rates over the years.
You can also start by paying the smallest loans off using any extra amount that you might have to spare. This would reduce your debt stress to a great extent.
Invest Your Money Wisely
With the money that you earn, you can create investments that would help you essentially generate more money in your sleep. Find the best schemes to invest in.
You can look for reliable insurance schemes, pension funds, and fixed or recurring deposits. If you are feeling especially brave, you can invest in mutual funds and watch your money grow much faster than expected.
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Diversify Your Income
If you are doing well in your full-time job and are looking for a way to earn some extra money, this is where monetizing your existing skills come up. Your day job will only allow you to grow as much with a certain level of income per month. That’s Why You must have a Website, Blog, or Some Youtube Channel. If You are Looking for Hosting You can Try Interserver
Having a side hustle can help you in more ways than you can imagine. It can help you pay off your debts, invest more money, or save for a future major purchase or education.
You can diversify your income in several ways, but here are four categories to make the most of it:
Take Advantage Of Your Skillsets
This would essentially include doing something you are really good at to earn some extra cash. You can sell your designs, Start Website, write codes as a freelance contractor, set up a Patreon for your skillset, and/or license your photos.
Build A Personal Brand
Being an influencer is all the rage these days. You can create your own blog and write about something you are passionate about, monetize your YouTube channel, or take on growing your Instagram following.
The key is to create relatable content that a certain section of the platform’s audience will seek out from you and then presenting it aesthetically. This way, you do something you like and earn well on the side.
Teach A Skill
Are you a great writer? Do you know Photoshop like the back of your hand? Guess what; there are a bunch of people out there who are looking to learn from you.
Create a profile in one of the online education portals Like Udemy and make your own lesson plans and tutorials that you can post and monetize. Even if you start small, depending on the response, you can definitely scale this up!
Best Utilise Your Existing Resources
If you have a lovely home or know your city inside and out, you can rent it out to tourists. You can also rent out your car or drive for one of the cab-hailing apps in your spare time to earn extra income and further your financial plan!
The best way to manage your personal finances and UK loans are to start with it first. It is not easy to create a sustainable approach to manage your money and might require you to give up some luxuries. But it is also not impossible.
With careful and sensible planning, you can make the most of your current financial condition and go from struggling to thriving in no time!