Personal Finance Management is the management of your own finances. It includes all your financial decisions, your investments, your savings, your debt and your lifestyle. These all-form part of your own, unique personal finance.
One goal we have at Once A Week Blog, is to empower you to make your own decisions confidently in the financial world. With so many scammers and unethical people, it is a huge asset to your personal finance if you can understand and make sensible decisions around your personal finance. The ability to take others input and use it to formulate your own plan. At the end of the day, you are responsible and will live with your results. So, you should be a part of your personal finance management.
But what should you learn? What do you need to know?
The personal finance system in South Africa is complex, but we have come up with 3 points that have helped us navigate the financial world.
One: Understand what Personal Finance Is
Knowing what personal finance is, is a vital part into dominating your personal financial management. Knowing what it includes and why it is important is also crucial. You can learn this by watching YouTube videos, reading blogs or even doing courses.
Two: Understand Investing
Investing is referred to as a necessity to building wealth. But it can look confusing from the outside, and some professionals like to make it sound even more confusing than it is. But as Easy Equities has shown, investing does not have to be hard!
Do some research onto the different types of investments, their risks and returns and who they are suited to. This will help you in choosing which investment suits you and discussing these opportunities further with your financial advisor.
Three: Understand Loans & There Uses
Loans and debt make up a large part of personal finance. They can cost us money every month and can at times be a burden. Understanding what loans are good and what loans are bad will help you to make better decisions going forward.
Personal finance management is not easy. If it was, none of us would have financial problems. But if you work through and understand these three points, you should be on a path to greater knowledge understanding and hopefully wealth.
Research and learn so when you consult a professional again you are prepared and knowledgeable!