Your Finances Suck

Maintaining good personal finance is a key component of any successful life plan. I hear the phrase "I've got more month at the end of my money" a lot where I'm from. Basically what it means is that the bills are still due and the money is all gone. That should never happen. I do understand financial hardships happen and to an extent some crisis may be unavoidable, but it doesn't have to be a way of life.

It is the practice of budgeting, saving, investing, and protecting your money and assets that helps you to stay out of those crisis situations, or navigate them if they do happen. It's also important to budget and save in order to create a financial foundation and meet long-term goals.

Budgeting

Budgeting is an crucial part of personal finance. It involves creating a plan for how you intend to spend, save and invest your money. Budgeting helps to identify their spending habits and ensure that you are living within your means and don't have "more month at the end of your money". For example, tracking spending and setting up a budget can help people avoid overspending and ensure that they are living within their means. You may find that you have many subscriptions or other expenses that you really don't care for and immediately start saving some of your hard earned income.

Savings

Building a saving is also an important part of personal finance. It involves setting aside money for a rainy day and for long-term goals. For example, setting up an emergency fund can provide financial security in the event of an unexpected expense. Additionally, saving for retirement can help people achieve their financial goals in the long term, and if you are smart and fortunate enough perhaps bring that retirement date a little closer.

Investing

Investing is an extremely powerful component of personal finance. It involves risk, but offers a potentially greater reward than simply saving. Putting money into stocks, bonds, starting a business, or whatever your risk tolerance allows can be a great way to make your money work for you.

For example, investing in dividend aristocrat stocks such as Coca-Cola, or Proctor and Gamble have historically generated their shareholders a small income which has increased year over year. Additionally, investing in real estate can provide a steady source of income and appreciation of value.

No investment is without risk however, so if you do invest I encourage you to do your research and talk with a financial adviser, which I am not.

Security

Finally, protecting your money and assets is an often overlooked, but important part of personal finance. It involves being proactive in the safety of your financial assets and information. For example, if your password to every financial account is the same then anyone who cracks one has access to everything you've worked so hard for. Additionally, having sufficient insurance can afford you financial protection in the event of an accident or other unforeseen circumstance.

I'll admit, insurance is another bill that you will have to worry about, but to say it another way, Insurance is just another bill until it isn't. It's another bill until you need it, then it can be a game changer. It can be the difference between losing everything or just facing a few bumps in the road.

The Whole Package

Most of our lives touch our finances in some form or fashion. We are either earning income, spending money, or dreaming about what we would do with more money, but most of all stressing about money.

Getting your finances straight may not be the easiest thing in the world, but nothing worth while comes easy. You are already working hard to earn your money, how about you make your money work the way you need it to so that maybe you can have some peace of mind and financial freedom.