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"Basics of Personal Finance "
- Neelam Tandon
- Oct 21, 2023
- 2 min read
Updated: Oct 23, 2023
Practice Budgeting
Divide your salary according to your needs and wants. Follow the 50-30-20 rule which states that 50% of your income should be diverted for your needs and 30% towards your wants and the remaining 20% should be saved or invested.
Create Emergency Funds
Take measured risks in life and create emergency funds to have enough funds to suffice for 6-12 months of expenses. It is recommended to park the emergency fund in a debt mutual fund that beats inflation and not in a bank FD because the rate of return there is usually less than real inflation.
Learn Debt Management
Avoid impulsive purchases and be mindful of our expenses. It is said that one should only buy expensive items when you have twice the amount saved in your bank account, then only it is considered a smart decision to take debt.
Invest For Future
You can invest in the Stock Market to create wealth. But assess your risk appetite first and then make informed decisions and practice the principle of not putting all your eggs in one single basket” which is applicable in investments too. Stay informed about the stock market and continuously monitor and analyze relevant financial news, company reports, and market trends.
Think about Retirement Planning
Retirement planning is the process of setting financial goals and saving/investing to ensure a secure and comfortable retirement. It involves estimating future expenses, determining how much to save, and selecting appropriate retirement accounts and investments to achieve those goals.
Well Being Shiksha Message
It is important to keep yourself updated with the latest news so that necessary steps are taken to reduce the risk in your portfolio. Remember, learning about finances is a lifelong journey, and the more you know, the more control you have over your financial future.
Feel free to ask questions, and share your experiences. Together, we can all become financially savvy and prosperous individuals. Happy learning! 🚀💰
Author: Abhay Sharma
Avid Investor at a young age
Editor : Dr. Neelam Tandon
Well Being Shiksha Foundation
Founder and Managing Director
Thanks for this clear and practical guide on personal finance! Your tips on budgeting, emergency funds, debt management, investing, and retirement planning are truly helpful for beginners. Great work making money management simple and actionable! Beatriz Barata
Amazing post on personal finance basics! Clear tips on budgeting using the 50-30-20 rule, building emergency funds, smart investing, debt management, and retirement planning. Informative and practical—great guide for anyone starting their financial journey! Luiz Antonio Duarte Ferreira
Hi — thank you for this insightful post on the basics of personal finance! 🙂 I found the way you explained budgeting using the 50-30-20 rule, emergency fund creation, and sensible investing very clear and practical. Especially the pointers on debt-management and retirement planning — it feels like a great starting guide for anyone wanting financial stability. Looking forward to more such helpful posts! Veronica Dantas
Great post! The way you’ve broken down the essentials of personal finance — budgeting with the 50-30-20 rule, building emergency funds, managing debt thoughtfully, investing wisely, and planning for retirement — makes money management feel accessible and realistic. Your clear, practical advice is a solid foundation for anyone starting their financial journey. Thanks for sharing! Luiz Gustavo Mori