Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24
How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - 17th Feb 24
Why Rising Shipping Costs Won't Cause Inflation - 17th Feb 24
Intensive 6 Week Stock Market Elliott Wave Training Course - 17th Feb 24
INFLATION and the Stock Market Trend - 17th Feb 24
GameStop (GME): 88% Shellacking Yet No Lesson Learned - 17th Feb 24
Nick Millican Explains Real Estate Investment in a Changing World - 17th Feb 24
US Stock Market Addicted to Deficit Spending - 7th Feb 24
Stocks Bull Market Commands It All For Now - 7th Feb 24
Financial Markets Narrative Nonsense - 7th Feb 24
Gold Price Long-Term Outlook Could Not Look Better - 7th Feb 24
Stock Market QE4EVER - 7th Feb 24
Learn How to Accumulate and Distribute (Trim) Stock Positions to Maximise Profits - Investing 101 - 5th Feb 24
US Exponential Budget Deficit - 5th Feb 24
Gold Tipping Points That Investors Shouldn’t Miss - 5th Feb 24
Banking Crisis Quietly Brewing - 5th Feb 24
Stock Market Major Market lows by Calendar Month - 4th Feb 24
Gold Price’s Rally is Normal, but Is It Really Bullish? - 4th Feb 24
More Problems in US Regional Banking System: Where There's Fire There's Smoke - 4th Feb 24
New Hints of US Election Year Market Interventions & Turmoil - 4th Feb 24
Watch Consumer Spending to Know When the Fed Will Cut Interest Rates - 4th Feb 24
Blue Skies Ahead As Stock Market Is Expected To Continue Much Higher - 31st Jan 24
What the Stock Market "Fear Index" VIX May Be Signaling - 31st Jan 24
Stock Market Trend Forecast Review - 31st Jan 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

7 Things You Need to Know About Finances

Personal_Finance / Debt & Loans Jun 15, 2022 - 11:50 AM GMT

By: Steve_Barker


If you are an adult, then you will likely be in charge of your own finances. Most people are. However, if you don’t know a lot about proper financial management, then you won’t be able to make effective and sensible decisions for yourself. Bad financial decision-making can lead to a lifetime of misery and debt. Thankfully, learning to master one’s own finances isn’t as challenging as you might think that it is. All it takes to master them is some dedication and a few helpful articles. This post is one such article, and will tell you six things that you need to know about your finances:

Business Funding

If you are a business owner, then an aspect of your finances that you need to give a lot of thought to is funding. If you don’t have a large pool of savings to draw from and can’t borrow from loved ones, then you might wrongly think that you won’t be able to start (or maintain) your business. There are many alternative forms of funding that you can access, however, like revenue-based financing, and taking out a loan with a bank. Managing your business’s funding efficiently is essential if you want to look after your own personal finances. Bad decisions regarding your business’s funding could cause personal finance issues. For example, if your business gets into a lot of debt, then you could have to file for bankruptcy, which would affect your personal finances and credit rating severely.

Track Spending

Another aspect of your finances that you need to think about is the amount of money that you spend each month. If you use online banking, then you should be able to get a statistical analysis of how much you spend each month and what you spend the most amount of money on. If you do not have online banking and use paper statements, then you can track your spending by going through your statement and categorizing every purchase. Tracking spending will help with budget formation.

Monthly Budget

The formation of a budget is absolutely essential if you want to manage your finances better. Even if your budget is large and you make room for lots of unnecessary and luxury purchases, it’s still good to have a budget to adhere to. The formation of a budget is especially important considering everything that’s going on at the moment, in terms of the cost of living crisis. If you don’t form a budget and track your spending, you could end up overspending and wasting a lot of your money. Make sure to create a realistic budget that’s easy for you to stick to; don’t be too hard on yourself.

Building Savings

Something else that you need to make sure that you do is to build up your savings. If you are a business owner, then you can also build up business savings and hold them in a different account. It’s always a good idea to have a lot of savings dedicated to your business and one for yourself when you own a business. The reason for this is that if you don’t have business savings and something goes wrong, you would have to funnel your own savings into your business account to resolve the issue.

Paying Bills

You need to make sure that you always pay your bills on time. Not paying your bills on time could result in interest being added to them, which can quickly spiral out of control. If you have any debts, it’s also good to clear them off as soon as possible. People who don’t pay their bills and debts on time can get negative credit markets on their credit report, which can then prevent them from being able to take out a mortgage or get credit cards in the future.

Investment Strategy

If you don’t have any existing investments, then it’s time to form an investment strategy. Making sensible investments can help you to increase your savings and will ensure that you have enough money for your future and for your retirement. An investment strategy can be formulated by working with an investment manager, or alternatively, by reading online guides and educating yourself about what you need to invest in, and how you can. It’s always good to invest in precious metals, because they offset against inflation, something that’s becoming very problematic at the moment.

Credit Cards

Lastly, take out a credit card if you can. Once you have a credit card, make sure that for every purchase you make, you make with it. this is because every purchase made with a credit card (that is subsequently repaid on time), adds to one’s credit score, building one’s report, and making one more attractive to lenders in the future. A credit card is especially important if you want to take out a mortgage in the future.
If you are in charge of your own finances, then you need to manage them efficiently. Poor financial management can cause a lot of issues. Good financial management, on the other hand, can set one up for a lifetime of prosperity and success.

By Steve Barker

© 2022 Copyright Steve Barker - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2022 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in