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Personal Finance Advice for Beginners

July 13, 2011

personal finance for beginnersIt takes a long time for people to realize that they are unable to handle efficiently their personal finance. Some people spend all their lives in managing their money but still they fail to spend it wisely and do not save anything for the rainy day. However, if you are not such a person or you are a student just about to step into the practical life then you must know some useful tips of personal finance.

A practical life starts just after your graduation. This life is supposed to be full of worries and tensions. However, it is up to you. You can write your fortune yourself and turn your life into a bed of roses. All you need is to know about some useful steps that should be followed throughout your life. When you pass out from a college, the first thing you need to survive is money and then it is required everywhere. So what you need to learn after completing your education is how to spend money and how to plan your budget. This comes under the category of personal finance. Personal finance, as it is often assumed is not a monster to deal with. All you need to learn are some wise advices that can help you in your life and personal finance right after your graduation.

First of all, it is advisable to share the house. Remember that after your graduation, you are just a beginner and there is a long way to go. It is not advisable to spend a lot of money unnecessarily. So, it is better if you live with your family or other roommate who can share the house expenses with you. Many people do not know that a house takes a lot from your monthly salary. So if you want to be good at your personal finance then you must remember that sharing is caring. Living with others would certainly reduce your expenses like mortgage payment, house insurance, repair and maintenance expenses etc.

Another big challenge to your personal finance which arises right after your graduation is the loan payment. The loan or the amount of money which was used in your education is needed to be paid back. You must have to plan wisely and save for it when you are a student so that it does not become a problem for you later. Loan payment certainly creates a number of issues for some newly graduate persons but if you have a strong and concrete plan regarding your personal finance then it will not be a cause of worry for you.

When you plan your personal finance as a starter then it is suggested to set some short term and long term goals. Short term goals can include the loan payment or starting a new business immediately after your graduation. On the other hand, long term goals generally require saving money for long period of time. This may include buying real estate property or saving for the retirement.

Whatever you do, just believe in yourself. It is not only a tip to be successful in your personal finance but this will help you achieve every goal of life.

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