What personal finance is all about

There are lots of books outside there talking about personal finance. I’ve read several books already regarding these matter. I can conclude that what you need to know in managing your money are

  • How to save money by paying yourself first. Very important because most of the budget you do just don’t work
  • How to manage your credit card. The best way is don’t use any. If you say it is for emergency, use debit card instead. Credit card is the fastest way for you to go into financial disaster
  • How to pay your car fast. Car is huge liability. With all of its maintenance, installment, petrol, parking fee, summons etc etc. The value drop a lot every year after you purchased your car. So go for a second hand car where possible and you can save up to 50%. That’s a lot!
  • How to pay your home financing fast. The financing usually is calculated based on monthly rest. You must pay to reduce balance whenever you have the money – get bonus, increment, side job etc. You can reduce 5-15 years of the financing tenure easily if you do it correctly
  • How to make more money. It is not how much you get but how much you can keep. If you don’t know how to save money, forget about making more money because you will end up not having enough money. So make sure you master the saving money skill first before thinking of how you can make more money.

So that’s all what you need to know and master. In most of the personal finance books, they are talking about the same matters but in different ways. No harm if you read a lot of them because the authors explain will affect the way you behave towards your financial.

Be debt free and achieve financial freedom as soon as you can. All the best!

[tags]financial freedom, debt free, personal finance, make money, how to save, home loan, car loan, financial independence, credit card, debit card, charge card[/tags]

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