Tips On How To Manage Your Money

Tips On How To Manage Your Money

2019/09/26

You may have more than what you usually need, but one thing that usually leads a person to total bankruptcy is through mismanagement.Tips On How To Manage Your Money

Personal financial management is quite complicated so to speak; however, if you don’t want to end up dead broke you might as well spend time in learning how to do it.There are three known pillars in personal financial management you should learn and be aware of, they are:

Protection
Growth
Safety

You don’t have to actually have all of them, but you need to be covered by any of these main categories. You need to be protected, that’s why you need to apply for protection in the event of any unforeseen bad happenings that may occur.

You can usually avail such services once you purchase an insurance policy. Through the said policy, you’ll have the total protection your money can afford with.

You can avail from all sorts of insurance policies, depending on what you intend to apply for.  There’s Life insurance, Total disability policy, Critical Illness and Hospitalization plan as well as income and Accident policy.

You may not realize it but this is one of the best ways in having the right kind of personal financial management for your money, which will certainly turn you into the losing side of life.

Growth of your financial standings or of your wealth, of course the only way for you to maintain with whatever you got today. Growth is all about giving extra care on your accrued wealth and not about gaining more income or profits.

It is in a way gaining profit during inflation which in a form of passive income, meaning you invests your money during inflation to prevent it from de-valuating but make profits instead.

Among the three known personal financial management categories, safety is mostly done in two extremes. Some people tend to neglect their safety funds and live their lives relying on their policy and daily wages. However, when some people overdo it by keeping more money just to be sure that they’ll have something to rely on when worse comes to worse.

Keeping more money than what is stipulated in your safety fund may lose you wealth due to inflation, bear in mind that you don’t need to keep a large amount of money just to pay for your hospitalization bill when you already have an insurance policy which covers even your hospitalization.

Learning and keeping in mind all these three categories will fully equip you as to which category you would like to fall unto, in undertaking your personal financial management.

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