We believe personal finance is one of the most important
You can have all the educations in the world from well-known universities but if you lack personal finance, then you lack a fortune. Ever seen doctors, engineers or professors accumulating large sums of money. The answer is always “NO”.
The reasons for above is lacking in very basic skill of life that is financial literacy or personal finance.
Most of us know how to where to earn money but doesn’t know how to manage money. Read our article rich vs poor mindset for further knowledge.
What is personal finance?
Personal finance is what individual plans all his income, analyze the income sources, take all into account the expenses and then starts to budget all the stuff, taking into account
How personal finance can help you lead to successfull live?
Starting with quote “It doesn’t matter how much money you earn that matter, but how you manage and save is all that matters”
As a human being, personal financing along with financial literacy is one of the most important live skill you will ever learn. Managing your cash flow efficiently,, building up the asset column and getting rid of all the liabilities will turns out to yield a fortune for you.
AN EXAMPLE WILL TELL YOU HOW WITH LESS MONEY YOU CAN BE RICH
Once upon a time their were two individuals naming john and adam. John was earning 8k per month and adam was at 20k per month. Both of them were nearly the same age and with
But there was one basic difference between both, that John was financially literate and Adam lacks in that skill.
So john starting focusing on assets and starting minimizing the liabilities thus minimizing the expenses. He started learning about investment due to this he invested in mutual fund shown down below
At age 20: John invest 2k per month from his salary in mutual fund and expected a minimal return of 12% per anum.
At age 30: John accumulated 4.6 lakhs.
At age 60: John managed to collect to 2.4 crores.
This is power of compound interest. John only invested in single mutual fund all his time of living and he still managed to accumulate great wealth.
Imagine investing in multiple places like stocks, bonds, real estates and reinvesting the profits from previous assets into further assets. The amount of money you will earn will surely become out of your control.
On the other hand,
Thus ending up in credit card debts. Hence, paying up money for things that he doesn’t need. At last, blaming his luck, surroundings and people for his misfortunes.
Sources to learn personal finance for free
A youtube channel providing information about investing in mutual funds, stocks and much more.
Online youtube channel providing stuff regarding personal development and personal finance.
Best books on personal finance
Rich dad poor dad
One of the best book that has ever written personal finance and financial literacy.
The richest man in babylon
It tells its readers about personal finance with a great story, so that it is easy to understand and very engaging for the readers.
Author: George s clason.
Think and grow rich
One of the best books that
Author: Napoleon hill
The millionaire next door
This is another great book on personal finance in which the author compare the behaviors of both rich and the poor mindset and gets amazing findings.
Thomas J. Stanley and William D. Danko
The 4 hour work week
It throws light on the topic such as what people do all the hard work with all their sweat and blood in their lifetime just to accumulate money for their retirement.
A masterpiece by tim ferriss
At the end all we can say is if you want to be rich, then you have to start thinking like riches, develop habits like riches, managing life like riches, thinking about personal finance like riches. Finally, start doing like riches.
All we can say is live below you means, save more, invest more. Dont’t try to become rich very fast, becoming wealthy takes time.
In this way, you will see drastic changes in your life both financially and mentally.
DO READ THESE AMAZING ARTICLES: WHY PERSON DEVELOPMENT IS SO IMPORTANT TO BE SUCCESSFUL
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