Archive for category Personal Finance

Recommended Personal Finance Books

Introduction:

Most people in today’s world work really hard to earn their bread and butter or to sustain their livelihood. Even after working so hard we do not have a lot of extra cash and so we need to efficiently manage the money we earn. However, not too many people can do so and in fact, many people end up spending their entire salaries in a short period of time, even before the month ends.

Thus, it is necessary to have a good understanding of personal finance so that we can find out better ways to manage our money and stay within our budgets every month. There are many personal finance books available in the markets that help us in doing so; these books can both be purchased online or from any bookstores. Here are few of the finance books that I have personally read and would recommend people to do so as well, to get a better grasp of personal finance:

The Richest Man in Babylon by George S. Clason

This book is about applying common sense in monetary transactions, he says that we all have this quality but we tend to forget it when it comes to money matters. The author also teaches us how to save money effectively so that we can make a good capital out of our savings and retire early in life.

Rich Dad Poor Dad by Robert T. Kiyosaki

This is a very good book which I’ve read several times. The book may seem a bit extreme in the examples but it does explain the differences in approach to maintaining finances between ‘rich people’ and ‘poor people’. The examples given in the book can be impractical at times, but they do teach you the importance of saving and investment. It also gives us an insight on how money works for some people and makes them rich.

The Total Money by Dave Ramsey

The author of this book talks about how to manage money more efficiently, and does an excellent job in teaching debt management. Here you will find many tips on how to reduce or eliminate your debts so that you don’t have to be dependent on them to live a prosperous life. Read the rest of this entry »

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Personal Finance Strategies for Newlyweds

You had your dream wedding and you have become a couple with dual incomes and mutual responsibilities. Financial strategy is not the most romantic top that you can discuss as a newlywed but it’s definitely a top priority. You both want to enjoy your lives together and plan for that comfortable retirement.

Unfortunately many newlyweds set themselves up for failure. Financial hardship is a leading cause of divorce so to increase the harmony in your lives by talking about financial choices. Plan to merge your financial lives and stop any bad money habits before you bring them in the marriage.

Figure out where you both stand financially. Review all your debt obligations together. Sit down and plan out a way that you together can pay off the debt. It would be ideal to eliminate all debt prior to getting married not to burden your spouse with your debt. If this is not possible then you both must work hard at making your marriage and your family life debt free.

Have a budget. You are now merging two spending and saving habits into one. If you had a budget while you were single, it’s time to draw up a new one as a couple. You should first write down your fixed expenses like mortgage/rent, car payments, insurance premiums etc. Then write down your flexible expenses such as groceries, phone bills and utility. If your budget permits, try to contribute to a savings account as if it was a fixed expense. Track your spending for a while and then work together to identify and fix any common bad spending habits.

Optimizing Insurance. Now that you’re a couple, you need to change your insurance coverage. You should examine the different insurance plans and premiums and decide where the combination should occur. Get an umbrella package which will enable you to save while having all insurance under one package. Read the rest of this entry »

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4 Tips To Organize Your Personal Finances

Regardless of what experience you have organizing your personal finances, it’s important to have a straightforward system to help. Take a look at these great tips to organize your bills and personal finances.

1. Take paper out of the equation.

Today, almost every bill you have can be paid online which means everything can be handled digitally. It may seem like a bit of a challenge at first, but it makes managing your personal finances a lot easier to do down the line.

The concept of going paperless may be a bit confusing. All it really means is instead of getting your bills through the mail you’ll go to the websites of your service providers and set up online accounts. Once you do, you will be given the option of going completely paper free, which means your service providers will stop sending you paper statements, bills and promotional offers that you’re used to seeing in your mailbox. You’ll receive email alerts when your bill is due and can pay your bill on their website instead of writing a check and mailing it in. When it comes to your household and financial accounts, you’ll never have to lick a stamp or seal an envelope again.

The two major reasons to pay your bills online and go paperless are:

A. You’ll help protect the environment by reducing your use of paper.
B. You can reduce the clutter of paper in your house and help save your sanity.

Not only does getting rid of the stacks of paper they send each month going to relieve a lot of stress but it helps to save the environment as well.

2. Pick an organizational system that fits your needs.

When it comes to organizing your personal finances, one size does not fit all. Even though many believe that paying your bills online is the only way to go, that’s only the first part of this four-step process. Even though you have all of your accounts set up electronically, you’ll still have to find a way to make sure they’re all in one place. Otherwise, you will have to go from site to site, and with that many usernames and passwords, you are bound to forget a few. Read the rest of this entry »

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