7 Secrets that nobody will tell you about managing personal finance

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By: Good Nelly
on 4th Dec,2015

You might be aware of some strategies to manage your personal finance efficiently. However, there are certain secrets, behind managing your finances.
7 Secrets that nobody will tell you about managing personal finance

You might be aware of some strategies to manage your personal finance efficiently. However, there are certain secrets, behind managing your finances. If you follow those, you know that you're on the right track to build a good financial future.

1. Decide how much you want to save

It helps when you have a definite financial goal. Therefore, at first decide about the milestone you want to reach. For example, you might want to save $50,000 within a certain time period. When you decide about the figures, you can chalk out a plan. However, the secret to achieve it is you should have a realistic goal. If required, take help of a financial adviser to set a realistic goal and work towards achieving it.

2. Believe in yourself that you can do it

You need to believe in yourself to have control over your finance. You can read biographies/ autobiographies of millionaires to find out how they've made it big. Researchers have found out that there's one thing common among millionaires, and that is, 'self-belief'. If you believe in yourself, you can surely do it.

3. Think about your money positively

Be positive regarding your attitude towards money. Do not always think that you don't have money or managing finance is so stressful. Instead, believe that you can do it with ease. The secret to have a positive mindset is to appreciate how much you have and enjoy managing it.

4. How to stick with your budget plan

It is quite important to stick to your budget so that you can plan your monthly savings correctly. The first rule is to not spend more than what you earn. It seems easy to follow, but actually it may not be so. Firstly, you need to keep track of your credit cards. Failing to do so may lead you to debt problems. Therefore, have a proper budget and plan it as realistic as possible. Doing so, you can stick to it with ease. Here's another secret which probably no one will tell you. That is, you need to reward yourself from time to time. Plan a reward and fit it into your budget as a monthly allotment so that you're motivated. Another secret of efficient financial planners is that they always keep room for unexpected spending. Doing so, you can minimize the impact on your budget plan.

5. Have required insurance coverage

It has been found that most of you either do not have adequate insurance coverage or pay more for it. However, having insurance coverage is a must. You never know when an emergency situation will be hard for your finances. Therefore, shop around and buy suitable insurance policies to get an adequate coverage at an affordable rate. Purchase car insurance, life insurance, home insurance and medical insurance, etc. so that you don't have to worry about any emergency situation. You can save significant amount by buying insurance coverage from one insurance provider. Usually, the insurance companies offer discount when you do so. But, make sure you check the strength rating of the company. It should be able to provide you with the required coverage if you need.

6. Have a money date weekly

You need to date with a person in order to know him/her. Similarly, you need to have a date with money in order to know it in a better way. Set a day every week when you (with your partner if you have one) will review your budget and financial situation. Utilize this time to pay the bills that are due for that week/following week. Review your budget to check whether or not you're within your allocated budget. You should update your plan if required. Doing so, you'll come to know about any financial concern which needs your attention. You can make this a fun-time activity and pat your back for your hard work and efficient finance management. You should always remember that you need to have a good relationship with your money. So, give it time and nurture it in order to have a lifelong sweet relationship with it.

7. An additional secret tip

If you're now at the crossroads of choosing a career, then choose something you really enjoy doing. For example, a career in finance sector might seem to be very lucrative in terms of the paycheck. But if you don't enjoy doing it, you won't be able to excel yourself. On the other hand, if you enjoy doing something, you won't be stressed out easily. You can also continue doing that for a longer period of time. The result? It can probably help you earn more. In turn, it can help you build a secure financial future.

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