Personal finance is who you are financially; it is your financial brand, and instinctively we would all rather have our financial identity be a designer brand than a generic brand. Investing consideration time in a wide array of your personal and/or family finance topics is what increases security and wealth.
The quality of the following tools is what increases the end value of one’s personal finance:
- Record Keeping. This is the foundation that every other aspect of personal finance is built on. Record keeping is documenting all financial transitions: earning, spending, savings, insurance and taxes. Find a comfortable time frame to record, whether daily, weekly or monthly, because it is important to the success to stick with it and not get overwhelmed.
- Budgeting. While record keeping is tracing money spent, budgeting is planning based on estimated future income and expense. Compare your monthly cash flow to your monthly expenditures and use to determine future investments or cuts.
- Financial Position. Knowing your financial position is key because it is where you currently stand. It is a document that lays out assets and liabilities and a starting point for figuring how to grow assets and eliminate debt.
- Credit and Personal Debt. Debt is practically. There is a variety of debt from mortgages to student loans to credit card debt necessary to maintain a living standard. When agreeing to different forms of loans consider whether the money is to finance an investment, which may generate wealth, or to further extend escalating debt with payday loan borrowing.
- Saving and Investing. Everyone should save, whether for emergency, children’s education or that dream fishing boat. Once a nest egg has been saved, investing is the best way to grow those savings into future wealth. Investing is risky, it is safest to enlist a professional unless confident in personal knowledge in the investment.
- Insurance. Maintaining all these elements of finance requires time, commitment and money and insurance is what protects that hard work from being wiped away.
- Tax. Taxes are a fact of life, but with well-organized personal finances and professional advice, tax debt can be minimized.
- Retirement Planning. A low-stress retirement is the goal of responsible personal finance for the majority. Proper attention to detail in the above strategies leads to comfortable old age.
- Estate Planning. Death is morbid, and discussing what will become of the estate left behind can be a sore subject for all involved. Knock out these unpleasant plans as quickly as possible to ease the situation for all involved.
Reference: What Is Personal Finance?
Her political science background helped her fine tune her research skills, while her advertising focus gave her a deeper understanding of the importance of branding. Branding is not just for companies; everyone projects their own personal brand, the image interpreted by the world of who you are and what you stand for. Financial responsibility plays a large role in an individual’s personal brand, and Lacy hopes to help readers develop the financial skills that lead to remarkable personal brands.