We totally get it—handling money can be a bit challenging. We all aim to manage our personal finances well, but sometimes we just don’t know where to start. No matter how hard we think of ways of getting by, we all just want to find methods on how our own personal finance can be improved. Good thing, there are personal finance online courses that we can turn to in expanding our financial horizon.
Improvement of personal finances should always start with being familiar with financial literacy. With a 75% rate among the American population who handles their finances without any professional help, it counts to know the ropes of proper finances. But unfortunately, the figure for this financial literacy quiz that shows 96% of Americans failed to pass doesn’t lie that we need to solidify our knowledge to improve our finance-handling skills.
Whether you can afford a financial advisor or not, you ought to understand how important it is to be adept in your own finances in order to attain financial freedom.
Personal finance is the management of your money in order to achieve financial goals and plan for your future. It is taking into consideration that all the financial activities you engage in today will affect your financial health in the future. In order to be effective in handling personal finances, you should practice some personal finance strategies.
It is essential to learn how to properly manage your own finances, especially for young earners who are just starting out, as your future will rely on what you do now. A little habit of this and that—if not beneficial to your finances—will throw you to the pits of financial distress. So you really ought to step up your game and be disciplined as ever.
First off, you can’t be successful without understanding how money works and when you are not literate enough in terms of finances. To fully enjoy financial freedom, you ought to immerse yourself in how you can properly manage your finances through continuous learning. Taking up classes about personal finances will definitely gear you up as a responsible individual. Not only will they help you have a healthier financial status, but they will also save you from financial risks in the future.
Here are some classes that will effectively suffice your financial knowledge needs:
These courses will serve as your guide to jumpstart your finances with more responsibility and accountability. These are sure to walk you through the basics of handling your money to more advanced technicalities of how money works. The course contents cover the topics of personal finance strategies, calculating your net worth, setting the right goals, learning to invest, building your credit, understanding macroeconomic trends, and more!
Online courses offer you convenience while getting insight from an expert in the field. Wouldn’t that be better than getting yourself your own financial advisor when you’re just starting out?
Your acquired knowledge from taking up online courses would not be effective if you don’t practice the right ways to improve your personal finances. After all, financial literacy always goes hand-in-hand with the right application of methods you have learned from taking up a personal finance online course.
Aside from the common strategies of saving up, building up your credit score, paying off debts, investing in stocks, and starting a business, we are here to provide an additional list to live by so you can enjoy financial freedom.
Net worth refers to the measurement of your wealth. It can be identified through subtracting your liabilities from your existing assets. This shows where you are at the moment and it helps to monitor it regularly so you can observe what affects it over time.
Tracking your net worth lets you foresee the progress you are making while also warning you of unhealthy habits you should get rid of.
Do you keep tabs on how much you have spent on your utilities, bills, food and other things? You ought to record how much goes out of your pocket so that you can easily manage your money when they come in. Also, identifying your expenses will let you have total control of your spendings because you know what a need is and what isn’t.
One common mistake most people do is prioritizing paying off bills, then saving up what is left of their money. As hard as that may seem, setting aside a portion of your money first will let you implement a stricter approach to handling your money. Instead of letting your expenses get out of hand and forgetting to save some of your money, save first so that you can ensure that your funds are not neglected.
It’s common knowledge to not spend over what you are earning–but when you have a credit card, sometimes it’s just so hard to control yourself when you impulsively want something. If you really are invested in attaining financial security, you should discipline yourself and just spend on things you can afford.
Recognizing the fine line between your needs and wants will let you identify how you can save more because you have just identified what should be prioritized—and that isn’t the wants.
Needs refer to the things you have to obtain in order to survive including food, shelter, healthcare, clothing, and transportation. Whereas, wants refer to the things you like to have but are not necessarily needed in order to survive. Prioritizing your needs over wants will let you off the hook of gathering ways to pay your dues in time because you have spent your money on unnecessary things.
When you keep your savings on the same account you use for your expenses, chances are, you will spend it as well! Save yourself from failing to set aside your extra funds and create another account that is specifically purposed for it. This way, you are steering clear of the temptation to use it on impulse purchases.
It is smart to set aside another savings account that is intended for emergencies only. Any unexpected instances like a broken-down car, trip to your doctor, etc. are common pitfalls to ruining your budget so it’s a good contingency plan to save for these kinds of events. The ideal emergency funding should be able to cover at least 6 months’ worth of your living expenses.
One effective way of saving you time to pay off recurring bills is setting them up to automatic debiting. Not only does this saves you the hassle of paying them every month, but it also saves you from getting hit with late fees when you forget them.
How many credit cards do you own right now? If you have a couple of cards, then you are paying for each of their annual fees and other charges—which means additional expenses for you. If you can cut down the number of credit cards you have, do so as this increases the possibility of more debts and unnecessary purchases.
With today’s increasing lack of job security, you should consider creating income streams that will let you generate money aside from your current job. This way, you have a backup source of income. You can generate this through starting a business, getting another job, or investing in stocks.
Your assets should be protected from any disrupting factors that will lose your hold of them. You can protect yourself from losing them through hedging or buying insurance. Hedging refers to the offsetting of the risk in loss from price fluctuations of commodities, currencies, or securities without having to buy insurance. Whereas, insurance is a policy wherein an individual receives protection or reimbursement against losses from an insurance company.
When you and your partner are living under one roof, you are sharing your finances. You should discuss financial matters with them to align your financial goals and have a harmonious relationship.
Having a partner in managing your finances is beneficial as you have someone who can call you out when you are engaging in unreasonable transactions. Don’t be one of the 12 million Americans who have a hidden account, and start disclosing your financial status to your partner. They are your life companions after all.
Most companies offer competitive employee benefits so ensure you make the most of them. You can totally save some cash using your employee benefits instead of shelling out your own money. These useful benefits include your dental and vision insurance, medical prescriptions, relocation assistance, flexible spending accounts, and so much more.
Given that managing your own finances is way trickier than you think, it’s always logical to find ways on how you can improve your personal finances. We may have different financial goals, but each of us has to instill the same practices if we really want to achieve them.
Now that there are innovated platforms such as learning through online courses, personal finances can absolutey be improved.
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