Personal Finance Tips to Abide By In 2019

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Once one enters adult life, it’s a must that he or she becomes financially literate. Being financially literate is important because it just not affords one the opportunity to lead a life that is comfortable but it also affords one the opportunity to plan for the future and beyond (future of one’s children and family). As imperative that at all times, one makes sound financial decisions so as to guard against financial ruin and bankruptcy. In this article, we are going to share with readers the top personal finance tips to abide by this year.

Preparing a budget

The most important tip for 2019 is for one to devise a budget that he adheres to strictly at all times. A budget is crucial for two main reasons. First, it ensures that you live within your means hence you are able to avoid things such as bankruptcy. Secondly, a budget helps one to plan ahead and save for long-term goals such as saving money for acquiring a home. While it’s up to you to prepare your own budget depending on your monthly/annual income, as a rule, it’s advisable to reserve 50 percent of your net salary for living essentials such as groceries and transport. 30 percent of the net salary should go for lifestyle expenses such as shopping for clothes. The remaining 20 percent should be money for the future i.e. you should keep it in your savings.


Create an emergency fund

To be safe when unfortunate events come your way, it’s advisable that you create an emergency fund. Your emergency fund during your first years of work can be the same as the money you keep in your savings. This, therefore, means that if you get laid off (as is a common feature nowadays), you know you will be able to afford rent and other living essentials at least for a few months as you look for other sources of income. While still on this, it’s important to stress out that everyone nowadays should also seek to engage in one or more side hustles. Side hustles help you to earn some extra cash when you are working and they help you to stay on your feet when you have been laid off. One of the most effective side hustles to engage in is online gambling and if you want to join the online gambling bandwagon, you can simply register here.


Limit debt

At times, even if you devise a budget, you will realise that you need to borrow. Borrowing is not an entirely bad thing more so if your borrowing leads to accumulating an asset such as a house. However, when borrowing, it’s very important that you borrow an amount that you can afford to pay without ‘breaking’ yourself. As a rule, it’s advisable not to have a debt that exceeds your net salary for three months. While on this, it’s also important that you check your spending when using credit cards as credit cards can get you into huge debts if you are not careful.