Beginner’s Personal Finance: Do’s and Don’ts

With regards to protecting financial security, there are many fundamental monetary behaviors that you must adopt to assure that you have an adequate amount of money today and in the coming years. Mastering the do’s and don’ts in personal finance will help you learn healthy financial habits and have a stable financial future.



Creating a budget is the first and most essential step. If you fail to create a budget, sooner or later, your finances will result in a mess. Budgeting is the most efficient way of sorting out the whole thing. It also gives you a clear picture of where your resources are. You are able to know how much you can give out and work on saving when possible.

Think of Stock as a Good Investment Option

For a lot of people out there, the stock market is considered a scary thing, especially if you are not sure how everything works. A lot of personal finance gurus and mentors agree that the next couple of years are the chance of a lifetime to think of stocks. So do your homework, and you might find yourself in an extremely favorable situation.

Automate Withdrawal

Automating withdrawals into diverse savings, as well as investment accounts, is considered the easiest way to ensure that you keep leading the right way to a thriving and fruitful financial future. When possible, make automatic disbursement of your money on a monthly basis to the right accounts. This gives you an assurance that your bills will all be paid on time, as long as you keep up with your finances and have the money available. This also saves you time scheduling the transfer; thus, you are able to enjoy your cash elsewhere.

Keep Some Extra Cash Handy

Each one of us has diverse styles of living. On the other hand, it is essential to save for that dreaded rainy day. Business Weeks reported that a lot of traders and investors alike suggest adjusting your personal finances, as well as saving $12,000 for every adult, or six to nine months in living expenses. Either is appropriate but try to do what is suited for you to keep the bills paid.

Create Safe and Secure Investments

Monetary professionals always advise us to invest our money. On the other hand, the trick here is looking something secure to put in your money. Of course, each one of us likes to tie our fund up in an investment that gives amazing results, such as gold or real estate property. You can securely invest your money in these assets, and you can earn a huge return in due course. And you must make many investments rather massive one. Avoid putting your find in one thing, as it is a big risk.

Purchase a Second Hand Car

The costly purchases you make will have a considerable effect on your personal finances. Purchasing a second-hand vehicle can save you a lot of money. Sometimes you are even able to get vehicles that are just a couple of months old. They are available for a more reasonable price than a similar brand or model purchased brand new. Therefore, avoid buying new; always opt to second hand cars and save a considerable amount of money.

Always Use Your Credit Card for Costly Purchases

Credit cards provide us convenience when shopping, but it is also great when you want to make costly purchases, especially if you don’t have the money now, but you will before interest will be applied on the card. Additionally, a lot of credit card providers out there offer insurance and rewards on purchases. Therefore, it makes sense to use your credit for expensive purchases, as you will able to get something out of it, compared to using a debit card that you will not get any reward for using.

Create an Emergency Fund

An emergency fund is very important and will help you take good care of your finances. It is beneficial to save some funds to assist you in times of emergency cases. There many issues and obstacles that may come in our way unexpectedly. If you are not prepared or there is no emergency fund, you will end up in a complex financial state. Therefore, you need you begin saving now and build a sizable fund, ensuring you have some money to fall back during difficult times.


Don’t Make Sudden Decisions

Making sudden choices is a big problem with a lot of people. Always bear in mind that every decision you make needs proper thinking and weighing up. Make sure to check your budge, and then settle on whether or not you can pay for certain things. Once you make sudden decisions without proper thinking and consultation, this will result in messing your personal finances.

Don’t Rollover Credit Card Debt

Most of us view balance transfer or rollovers as a superb way of eradicating our debt. We transfer our debt from one credit card to another. As such, we pay off the credit on the original card. On the other hand, this is not a healthy idea because of the fact that you are not solving the main issue. Still, you are in debt; it only transferred to your other credit cards. So the best thing you can do is to address your debt first. Try and shell it out prior to thinking of a rollover. If you find it hard to do, you need to think of seeking advice from a personal finance expert, but just make use of a rollover when there is no solution left. Avoid using it each time you fall into debt.

Don’t Go Shopping More Than Once a Week

Food is a necessity, and we can’t live without it. On the other hand, some of us ruin our personal finance with wrong or unhealthy food shopping methods. Some of us go to many food stores on a weekly basis. Maybe two members of the family go to different food stores. Or you don’t go to one big shop and take a few ones. However, you must avoid doing this. It is highly advisable to just go to one food shop weekly. Make a daily menu and then go out and purchase the food needed. You get the whole thing in one shop and avoid going out again. When you spend less time buying food, this will save you a lot. If you shop for food three times a week, you will be tempted to purchase things that are not required.

Avoid Gambling

Gambling is prohibited, and it can ruin your personal finance and your life in general. Gambling is an ideal way to waste your money and all of your savings, so keep away from doing it. Instead, save your money for more vital things.  If you stay away from betting websites and online casinos, you will have a healthy and thriving personal finance.

Don’t Stop Making Contributions to Retirement

A personal finance decision during the time of recessions is very important. When everything is going well, most of us are likely to invest more. During hard times, people invest less. Ironically, that is the exact opposite of what we must be doing. Investing when the market is at the lowest will make a high rate of return in due course.

Do Not Invest in Things You Don’t Understand

Do your homework and make sure to do proper research when making an investment. If your friend has this great lead on a sure investment, avoid taking their word for it. You need to research your investments on your own prior to making them. You can never be too sure with your money.

Avoid Making Minimum Payment

Paying the minimum balance on your credit account will delay the unavoidable. You’ll need to disburse your balance in due course. Making minimum payments signifies that you are hardly touching the amount owed, making sure that the credit will be present for many decades to come. So the best thing to do is to pay interest-bearing credits and get the cash out of the red zone. In case you have any interest-bearing credits, pick one at a time to disburse aggressively, and gradually, you will be in control of your funds once more.

Never Ignore your Credit Rating

In the world of finance, a credit score is very important. Credit card providers, loan lenders, banks, and other financial institutions are after your credit rating. If your credit rating is low or bad, it will be hard to find financial support. For instance, a low score means you might be rejected for a loan or cannot pay to purchase a home or a car. You need to be wise and make sure to pay attention to your credit rating.

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