Basic essential subjects like personal financial management aren’t taught in any education system. Don’t be surprised if you feel like a deer in headlights when you’re suddenly expected to behave like a responsible grown up adult who knows everything about managing money. That’s a tricky section of life to fiddle with.
Are you fresh out of college not knowing the head or tail of personal finance management? Don’t you worry. We’ve got you covered on this. Sit back, read on to find out and ponder over some of these simple ideas on how you can make money with your side hustles and smartly manage your financial life.
Your hobbies can be your side hustles for that extra income
Although you might have a fantastic well paid job, there are times when you might have been a bit reckless and impulsive with your spending, landing you in an ‘I am broke’ situation. We know how terrible that feels. Your side hustle/hobby can come to your rescue. Dedicating an hour every day to into your side job will guarantee you some pocket money which isn’t a bad idea.
Consider looking up on the internet about paid online surveys that pay well and are trusted, freelance copy-writing jobs etc. that you can enjoy doing and earn money from. Do you have a lot of ideas in your head? Then why don’t you meddle with writing and take up freelance writers’ jobs like content-writing, blogging etc. and earn some more cash?
Self control is the key
Once you’re out and about into the real world, it becomes imperative for you to hone your skills in financial management, the most important lesson being ‘self-control’. Impulsive spending for instant gratification is a crime that all of us commit often, only to regret later. The earlier you master the art of mindful spending, the easier will it be for you to keep your finances in order. As tempting as it might seem for you to swipe that credit card and buy those favorite pair of limited edition shoes, it is essential that you reconsider the thought of paying an interest for it.
Be aware of getting into the habit of purchasing everything on credits, irrespective of whether you can pay your bills on time. If you get into this pattern, you may be ending up clearing the expenses of your purchases for the next five years. Another profound advice, if you cannot handle more cards, then don’t carry so many of them.
Think about your financial future
If you do not understand personal financial management then people with bad intentions will take an advantage of it. Or even those who mean well but have no clue of money management will mess your mind up. Quit relying on anybody except you and take charge of your financial life by reading up on a couple of books on finance management. Once you have sound knowledge on finances, no one will be able to take an advantage of you in terms of money. To make your money work for you, you’ve got to first understand its basic principles of working.
Be aware of your expenditure
It is essential for you to ensure that your expenditure doesn’t cross your basic income. Making tiny changes here and there in terms of spending money will make a huge difference in your financial life. Figure out your recurring expenses and assess what’s important and worth spending on and what isn’t. Instead of buying everything expensive, look out for cheap offers, discounts that would help you save up on that extra expenditure. Keeping your recurring expenses to a minimum will ensure that you have enough money saved up for the future.
No matter however huge your debts might be, it is important that you keep some money for emergencies, always. Maintain a savings account and develop a habit of saving a small amount of your salary every month. This will ensure you a better sleep every night knowing that you have some money saved up for emergencies. And before you know, the money might exceed your saving amount and you may have that extra money for vacations, future expenditures, etc.
Taxes? Yes, Taxes
Even before you get your first payment, it is essential for you to understand how taxes work and the theory of income taxes. This will equip you with the knowledge of tax deductions and help you assess and take charge of your expenditures and help you plan better.
Take care of your health
Your monthly health insurance payments will all make sense when you unfortunately break your leg or fall sick. Instead of paying a million dollars for it, you might just recover from it stress free with the health insurance taking care of everything else.
Think about your future and take charge of your life by getting a grip on your financial life. Not only will it ensure a secure future but it will also help you lead a stress free and a happy life.