@internetofvalue
7 months ago

What are some of the must have lessons for personal finance management?

According to you, what are some good rules to follow when it comes to personal finance management?

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Personal finance is all about discipline and consistency. Follow the below steps and prevent yourself from going into the downward spiral of reckless expenditure and credit default.


  1. Always prefer spending via card over cash. This helps in keeping a log where you are spending and helps in retrospective
  2. Open a fixed recurring deposit scheme. This can be anything like a recurring deposit of bank, or a mutual fund SIP etc. but it is very essential to park a fixed amount per month to provide a shade in your raining phase.
  3. Divide your expenses in different buckets like Health, Shopping, Entertainment and allot percentages more on health bucket items
  4. Don't spend using your credit card for anything other than grocery or utility bills
  5. Save at least 30% of your monthly income
  6. Keep your savings invested in multiple places like bank deposits, mutual funds, PF, long-term company stocks etc.

Before trying to make any budgets, just make a list of everything you spend money on for a month. Do it again for a month making some minor tweaks....I guarantee you will spend less!


Jumping from 0 to 100 with an excel spreadsheet budget simply won't work.

  1. Spend less than you earn.
  2. Put atleast 20% of your earnings into savings.
  3. Compound your capital through informed investments.

Tell your money where to go so you can reach your goals. Set short term and long term goals.

Dont use credit card for small expances

These are some of the must have lessons to follow for personal finance management -


  1. Understand Debt.
  2. Know what you expect to earn before you borrow.
  3. Save, save and save a little more.
  4. Set an automatic savings financial plan and forget it.
  5. Learn how to cut back.
  6. Plan for the unexpected financial problems.
  7. Make your bank work for you.
  8. Work hard.
  9. Find a side hustle.
  10. To Ivy or not to Ivy.