Business & Startup

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<p>There is an opinion that with a low income or a tight financial situation, it is not possible to achieve the goal of financial freedom. In fact, anyone can start to master their finances from zero or at a low base.</p><p>Here are two methods to help you gain your financial target.</p><p>&nbsp;</p><h3>What is Personal Financial Management?</h3><p>Personal financial management is the application of financial principles in managing personal finances. This is the process of planning and allocating spending to items: Living, saving, investing,....</p><h3>&nbsp;</h3><h3>Why do you need a personal financial plan?</h3><p>Everyone needs a financial plan to manage their spending effectively. A detailed and specific plan will help you manage your spending effectively: Where does the money come from? What items did you spend on? In what categories can you cut costs? ….</p><p>&nbsp;</p><p>Effective personal finance management helps you define clear goals and achieve them quickly. Here’s some methods of personal financial management for individuals.</p><p>&nbsp;</p><h3>2 Method of finacial management</h3><figure class="image"><img src="https://storage.googleapis.com/circo-coworking--1550040568856.appspot.com/images/happy_young_asian_couple_realtor_agent_64ada9b21a.jpg"></figure><h4>&nbsp;</h4><h4>Rule of 6 jars:</h4><ul><li>The principle of 6 jars was established by T.Harv Eker and is widely applied around the world. Each jar represents a personal expenditure:</li><li>Essential needs: 50% - ensure essential living needs: food, housing, travel, electricity and water,...</li><li>Education: 10% - used for buying books, attending courses, training, seminars, meeting successful people,...</li><li>Enjoyment jar: - you should also reward yourself for working hard and achieving certain results.</li><li>10% for financial freedom - this is money you can use to invest, accumulate to create passive income</li><li>Long-term savings: 10% - long-term savings for emergencies.</li><li>Giving away: 5% of this is a personal charity fund, helping family, friends, and difficult situations.</li></ul><p>&nbsp;</p><figure class="image"><img src="https://storage.googleapis.com/circo-coworking--1550040568856.appspot.com/images/front_view_finance_business_elements_assortment_f5daa5e154.jpg"></figure><h4>The rude: 50/20/30</h4><p>This can be understood as the rule of dividing personal spending by a percentage of 50/20/30, specifically as follows:</p><ul><li>50% for essential expenses: food, housing, transportation, utilities, etc. If your spending exceeds this 50%, find ways to cut down on possible items or increase your personal income. core.</li><li>20% of personal spending needs include: travel, shopping, entertainment or other spending items according to personal needs.</li><li>30% for financial goals: debt repayment, accumulation, investment,... If this fund is larger, you will limit financial risks in the future and soon achieve your financial freedom goal. .</li></ul><p>&nbsp;</p><p>Hopefully the above personal finance methods will help you manage your finances better. Choose the method that works best for you and achieve your personal financial goals soon.</p><p><br>&nbsp;</p>

Many people believe that, with a low income or a tight financial situation, it is not possible to achieve the goal of financial freedom. In fact, anyone can start to master their finances from scratch or from a low base. Here are a few methods to help you do this.