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Monday, April 14, 2014

Become stress-free by managing your personal finances

Managing personal finance
Effective financial management helps reduce monetary stress
Is money causing you stress? It’s high on the ‘worries’ list and is a massive contributor to our stress levels. When it comes to managing your personal finances it’s not uncommon to feel like you’ve hit a brick wall. Do you feel like the task is too great, and there’s just too much to take into consideration? Are your efforts time-consuming and ineffective? Well, it doesn’t have to be this way.

The first step in managing your personal finances is to understand the necessity of doing so. Good personal finance management is not just for today, but it is for your future. Those who understand and manage their finances secure themselves a more stable and carefree tomorrow. With our few easy steps, you too will be able to begin managing your personal finances and be able cross them off your worries list. 

First – Clarifying personal finances

Let's get the basics out of the way. Before you begin to understand how you can manage your personal finances, you need to know what personal finances are. Essentially, your personal finances are your budget, insurance, savings, mortgages, credit cards, and the like. Right now, since you are reading this article, it is safe to assume that they must not be in the best state. Managing your personal finances means being aware of your finances and managing them properly. Those with good management skills are able to create and follow a budget, pay their credit cards on time, they don't miss a mortgage payment, and they add a fixed amount of money to your savings every month. Yes, it may seem a bit difficult, but it isn't impossible. The following info is going to give you the tools you need to begin your journey into a safer and more carefree financial world.

Save money to finance emergency expenses
Financial goals help direct budgeting decisions

Beginner's guide 

When it comes to organising and managing your personal finances, there are a number of creative tactics that you can employ that will make the process much more enjoyable and easier for you.

Keep goals in mind

Budgeting and paying off necessary bills are never easy. It takes diligence and strength to pass up splurging on your favourite items. However, try looking at it from a different angle. Make your money management into a goal system. For example, create goals to save a certain amount of money, or to pay a percentage of a particular loan, and once you have reached those goals, you can reward yourself with one of your favourite, expensive items. You will feel much more accomplished for managing your money properly, and you will also value what you've spent your money on much more than you had before.

Know where your money is

Another vital aspect to money management is to know exactly where all your funds are, or where they are due. This means that you know what funds you hold in your bank account, how much you owe on each bill, and also what money is coming in from your salary. Smart money managers are able to keep track of their finances in an organised manner, and the best and most simple way to do so is through an excel table. Create yourself a table of your funds, where red should mark what you owe, and black or green should refer to what you own. Many people also endorse professional help when it comes to implementing some successful techniques in Financial Planning.

Overall, managing your personal finances does not need to be difficult. It is a rewarding experience that will give you the tools you need for a better future. Use our beginner's tips today in your daily life to begin a positive money management journey. And by doing so, you’ll undoubtedly reduce all that unnecessary stress.

About the author: After having an array of personal financial problems, financial planning is now top of Sarah’s list. She recommends Francis Clark Financial Planning  for those looking for expert financial advice.

Image licenses: 1. Philip Taylor , CC BY  2.0;  2. Images Money, CC BY  2.0