It`s important to manage your personal finance correctly, especially if you have low income. As a student, I need to budget my costs precisely if I want to save any money. So let me introduce you four good tips, how to manage your personal finance successfully.
- Start to follow your expenses and income
Once you know how much money comes in and where you use it, you’ve gone a long way in managing your personal finance. If your goal is to save or invest, you must know where your money goes. The most important thing is the difference between income and expenses. The more money that you left “over” every month, the more you have the freedom to use your money.
- Save or invest your money
Don`t just let your money lie on your normal account. Put it somewhere where you can get interest for your money. If you don`t want to take any risk, then the saving account might be the best place. Nowadays, saving accounts have a low interest. If you are willing to take some risk, you may consider the shares or funds to get much higher profits.
- Keep some money available
You never know what happens in life, so It`s wise to make emergency account. If you suddenly have lost your job, there is good to be an account that covers your necessary expenses. Always there are unexpected costs to cover.
- Spend your money wisely
If you need something just once or twice, rent/borrow it rather than buy it. For example: school books, tools, etc. Think hard before you are buying something, do you really need it. Avoid buying unnecessary things.