Personal finance management is very important if you want to live a healthy life ahead. It creates a financial awareness. You must know where your money is coming from and where you are spending by every penny. Which habit need to be changed in order to make changes in the financials and maintain a balanced life. You can only generate wealth if you spend less than you earn and for that, you need to keep track of everything and stop wasting money on useless or less useful things.

Here I will discuss why it is important to manage your personal finance and how you can do it.

Identify where all your spending goes

To identify your spending issues, you must track every penny you spend. Prioritize your spending goals and spend it accordingly. It is easier to make changes when you realize that you are not reaching your financial goals because you eat out every night. Tracking your spending allows you to see where your money is really going. It is essential if you want to understand your financial habits and make changes to them. It can help you realize when you need to stop spending, so you do not end up with a financial hangover.

Make a budget and try to strictly follow it

If you have a limited money/resource to spend in a particular time frame say in a month or in a week than having a budget is really necessary.

Budget is a big word if you think about it but when you get used to it, then it’s easy. Let’s take an example, say you earn 30,000 INR in a month, you must know how much do you need to pay your bills? How often you go out for dinner? How much you need to spend there? Do you need to save a little for something? Just make a list and try to strictly follow it.

How to track expenses

Today in the world of technology there are lot more ways to track your expenses other than the keeping a notebook with a bookmark and a pen. We all have a smartphone, and I am sure downloading an app won’t hurt much. I personally use Walnut Money Manager mobile application to manage mine. You can track your expenses, bank accounts, credit cards, etc.

Transfer money, split your bills and many more.

There are lot more alternatives to go with like Expense Manager, Monefy, ETMoney, etc. They more or less do the work for you.

Do not stop if it doesn’t work on the first go

At first, you may feel a little bit tricky with all these apps and all the stories of expense management but once you started managing it and using the apps in a daily basis you will get used to it and its fun when you know where is your single penny is going.

Saving makes you stronger financially

When we are young, we really don’t plan much or even think of saving few bucks from the money we make. This is maybe because we don’t have much responsibilities to take care of or maybe we don’t have a post-marriage family to think of.

But at the end of the day if you think about it, eventually we will have a family, and all the responsibility comes with it. Okay, may you are the guy didn’t care all these, but you must care about yourself, an emergency doesn’t knock at your door and waits for you to open it rather it just move in. So getting a bit prepared is a thumbs up.

So it is my sincere advice to all of you who are reading this that please give it a try, it will help you grow and make you stronger financially which is always good.

Stress-free life

Believe it or not but all the stress you have boils down to one reason, i.e., money. So imagine a life where you know where is your money going? How much is it going? How much are you left with for a month?

Also, you have a decent saving for any kind of emergency. So, start working on it today and live a stress-free life ahead.