Wondering how to start managing your money as a student or beginner in personal finance? It can get pretty overwhelming when you don't know where to start. This video is part of a series of comprehensive guides that aim to help you understand the basics of personal finance and wealth building in 2021. Managing your finances is an important skill to nail in adulting, so strive to develop it as early as possible! I'll guide you through the steps to take, which will hopefully help you in figuring out how to approach your own finances. This is a simple step by step personal finance guide for students and beginners.
I've divided personal finance into a four part framework of Budget Money, Save Money, Make Money, and Grow Money. Before diving into anything money-action related, we'll first start out with the fundamental building blocks in this video: mindset and financial goals.
0️⃣Level 0 (Mindset and Financial Goals) 0️⃣
This level aims to build a solid foundation that guides and supports your decision-making processes with money as well as in life. I strongly believe that this is key to successfully building your own wealth. Before making any financial decision, take the time to evaluate the reason behind why you're doing this in the first place. Do you want to become more responsible with your finances? Are you saving up for something big? Are you pursuing financial independence? Let these reasons help you stay committed to developing responsible money habits.
Another important thing to remember is to prioritize investing in yourself.
You are your biggest investment. Making the time to invest in your learning, your education, and your skills sets you up for future success. This helps you create better and better value for the people around you. You'll never lose this investment. It's powerful and it pays you dividends moving forward.
1️⃣Level 1 (Budget Money and Save Money) 1️⃣
We're done with level 0, so now we'll proceed to level 1. Personal finance at its core is ridiculously simple. If you're only taking away just one thing from this video, let it be: "Don't spend more than what you make." It's that simple. Once you understand that, strive to cut costs where you can and save as much as you can. Do your future self a favor and do your best to fight the impulse to buy things you don't need!
Afterwards, work to build an emergency fund to prepare for large unexpected expenses. Wondering how much you should keep in your emergency fund? As a rule of thumb, you should aim to build around 3-6 months worth of expenses. Given the current circumstances we have, however, it wouldn't hurt to stretch that to number to 12 months. Also, it's a large chunk of money, so I suggest to keep it in a high interest savings account to earn additional interest.
Track all your transactions. It doesn't matter what you use so long as you stay consistent with tracking every single peso or dollar that moves in and out of your accounts. I personally started with a google sheet because of its customizability and I still use it to this day!
📌Useful Resources:
➜ Emergency Fund Calculator by u/Michael Ignacio: [ Ссылка ]
➜ r/phinvest:
[ Ссылка ]
➜ r/phmoneysaving:
[ Ссылка ]
➜ r/personalfinance:
[ Ссылка ]
[ Ссылка ]
➜ Enjoy your free money 💰⬇️
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[ The links above are affiliate codes/links and I may get a reward at no additional cost to you if you use them. ]
✅WHAT TO WATCH NEXT
➜ 🤑 Best High Interest Savings Account Philippines: [ Ссылка ]
➜ Personal Finance 101: [ Ссылка ]
🕰TIMESTAMPS
00:00 Intro, Featured Comment
00:40 Overview
02:20 Level 0: Mindset & Financial Goals
07:00 Level 1: Tracking, Budgeting, Saving, Emergency Fund
12:33 Outro
➜ My Blog: Wow I Made This [ Ссылка ]
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How to Start Managing Money for Students and Beginners (BUDGET & SAVE) | Personal Finance Guide 2021
#BeginnerPersonalFinance #ManageMoney
