The best GUIDE how to make $ 5000 A Month

The best GUIDE how to make $ 5000 A Month | 6 Money management tips | Principles of personal finance and budgeting

One of your top priorities this year should be to learn how to manage your personal finances and budgeting independently of your specific financial situation. I mean, it should be one of your priorities for the rest of your life, but if you haven’t started yet, this year is as good as any to get more involved in the world of personal finance.

Personal finance is a ridiculously vast world of advice, different rules, and experiences that is completely impossible to convey in one simple article; all of the recommendations I may make about the subject based on my personal experiences as well as what I know and have read about the subject.

The best GUIDE how to make $ 5000 A Month

I think that most of all the purpose of this article is to spark your interest and motivate you to research and study more about this subject. Also before you start diving into the world of excel spreadsheets and budgeting plans however; I recommend a more casual approach listening to podcasts like listen money matters, how to make money; the financial diet or two cents they’re all great ways to start slowly getting accustomed to most financial terms and habits.

There are numerous approaches to personal finance, and I believe there is no correct approach; it all depends on your personal experience, financial situation, preferences, money mindset, and so on.

The first and foremost I think it’s important to take what you hear about personal finance with a grain of salt, and secondly studying more about personal finance much like most self-development topics should be done in a very guilt-free environment. Everyone makes mistakes and may let things slip by; if you are in that situation you’re not alone and we’re all in the learning process together.

Usually if you’re starting out with personal finance there are three recommended goals you should prioritize building an Emergency fund starting, Budgeting and tracking your expenses and Getting rid of debt.

The emergency fund | Money management tips

The emergency fund a full emergency fund should vary between 3 to 6 months of expenses you need your emergency fund; because life is unpredictable and there are sometimes incredibly large and unforeseen expenses that may throw you out of financial plan. For many specialists on personal finance the emergency fund should be your first goal if you’re started on this path.

Budgeting and Tracking | Money management tips

This is a fun section, and I have a lot to say about it. Budgeting and tracking are habits that should be strengthened and implemented early on, rather than specific goals that must be met.

If you’re unsure where your money is going, I strongly advise you to keep track of your expenses on a regular basis. At first glance, this may appear to be completely useless because you’re probably just copying your expenses from your banking extracts or manually filling in where you spend your pocket money.

But tracking your expenses is more than just adding up numbers; it’s like scanning your spending habits; you’ll discover how frequently you’re spending money and whether or not you can cut back.

Believe me, when you start doing this, most of you will be taken aback. Implementing the habit of simply tracking your expenses on a simple excel or Google spreadsheet every single day is a good way to ensure you’re doing it without the overwhelming task of having to do it monthly or weekly; because those numbers add up quickly.

The best GUIDE how to make $ 5000 A Month

Personally, I track my expenses on a daily basis, and I use Google Spreadsheets because I can access it from anywhere without worrying about the file’s integrity. In terms of expense tracking, don’t stop at listing expenses; one step further in terms of your financial situation analysis can really make a difference in the end.

For example, make sure you’re categorizing your expenses, so you can really dig in and see which categories are representing the biggest slice of your budget, add comments and set reminders signal which expenses were unnecessary and which you want to avoid in the future, and signal which expenses

Also, instead of passively accepting your expenses, develop the habit of asking questions such as, “Can I live without it? Do I need it? Can I afford it? Can I lower or cut back on this expense?” These questions will help you reduce your expenses bit by bit, just as they will in other areas of your life.

Personal finance can also be a mindful process that assists you in prioritizing your money management in this case; what do you prioritize in life? and what should you cut back on? There are some interesting budgeting rules of thumb that you can test or even implement if they make sense for you and your situation.

Get rid of Debt | Money management tips

The 50:30:20 rule is a well-known general budgeting rule that states you should spend 50% of your income on necessities such as housing and bills, 30% on ones and personal purchases, and 20% on financial goals such as retirement savings and debt repayment.

Another variation is the 70:20:10 rule, which states that you should save 70 percent of your income for living expenses. 20 percent for net salary savings and 10% for debt payments In this case, the recommendation is to pay off the most damaging debt first, then focus on paying off the rest as quickly as possible.

Rule no 1: Each dollar needs to be assigned a job

States that you should prioritize how you’ll use your money and that regardless of how much you earn, as soon as you get your money, you must decide what to do with it. If, after paying your bills and other necessary expenses, you still have a hundred dollars remaining in your account, assign each of those dollars a task. For example, you may decide that you want to spend no more than dollars dining out that month, twenty dollars on new books, and thirty dollars on your fitness equipment.

Rule no 2: Big bill prevention rule

The big bill prevention rule is used to avoid large payments such as annual car repairs or revisions, Christmas or birthday gifts, annual weekend outings, and so on. Once a year, take a look at all of your expenses and decide how much money you want to set aside for gifts. regular car or house repair expenses and divide it by the 12 months of the year; your goal is to fund those extraordinary expenses monthly so that when the bills arrive, you already have the money and can avoid additional debt or expenses.

Finally, the 24:10 car loan rule clarifies how you should allocate your money when purchasing a car, stating that you should make a 20 down payment to avoid owing more than the car is worth with a loan of less than four years..

This will help you reduce the amount of interest you pay over the life of your loan, and your car payment should ultimately be less than 10% of your gross monthly income. If you currently have a specific financial goal in mind, you may want to consider creating accounts for different goals.

This, of course, depends on where you live as well as the rules in your country, but there are cases where you can create an account without having to pay regular commissions. In that case, it may be a good idea to create a new account and set up automatic transfers.

When my fiancé and I were saving for our wedding, we opened a new bank account, set up a monthly automatic transfer, and never asked for a credit or debit card associated with that account; that money became virtually unreachable for regular expenses unless I transferred it over to pay the vendors and caterers..

Taxes and Financial Calendar | Money management tips

Unfortunately, personal finance isn’t just about saving, budgeting, and cutting costs. Tax planning is also essential; again, this is entirely dependent on where you live, but you can most likely find a tax calendar for your country on the internet.

Aside from organizing your expenses while keeping your tax bill in mind, you should also organize and track the receipts that you can use to offset your tax bill. You can also use different types of software, as well as a paper planner, to schedule when your bills are due.

If you can try to pay all of your bills on the same day of the month, for example, if you have ten bills to pay and they are spread out across your monthly calendar, schedule to pay the ten bills on the due date of your first one, even if you are anticipating your payments, you will pay everything on time and avoid thinking about it for an entire month.

The benefit of paying all of your bills and saving transfers on the same day is that whatever is left in your account is for your personal spending, making it much easier to manage until the end of the month.

Regular finance Housing | Money management tips

Finally, develop the habit of regular financial housekeeping; imagine managing your own and your family’s expenses as a drawer. One of my friends was the first to mention it to me, and I believe she is correct. Tracking budgets and remembering when to pay bills may be something that only one person thinks about, and it’s essentially a chore like any other; that shift in mindset may allow you to regain some control over your personal finances.

The best GUIDE how to make $ 5000 A Month

Schedule these financial housekeeping sessions in your planner to check your accounts, ensure payments are arriving, file receipts, ensure you’re paying your bills, and schedule to pay in advance of any other payments.

So I think this article will be helpful to achieve your financial freedom in your life. Comment your experience below.


— Susanna tips and tricks

Default image

What is financial freedom?  This is a question that many people ask, but it is not always easy to answer. Financial freedom means different things to different people. For some, it might mean being able to quit their job and travel the world. For others, it might mean being able to provide for their family without having to worry about money.

Articles: 97
error: Content is protected !!