Personal Finance Basics

Many people struggle with personal finance. Because not enough schools teach personal finance, most of us learn by trial and error.   Understanding the most common personal finance issues and how to fix them can help improve your financial standing. Taking action now impacts your financial position in later years.   The following are common personal finance issues and how to resolve them.   Lack of a Spending Plan A spending plan  is a guide for where you want your money to g

Financial literacy is essential for lifelong success. Understanding how money works increases the likelihood of achieving your financial goals.   Now is the time to begin establishing good money habits. Educating yourself in the following areas helps you make effective financial decisions and attain your objectives: Banking Budgeting Saving Using credit Creating good debt Investing       What Is Financial Literacy? Financial literacy is the ability to understand and apply div

The 70-20-10 rule is a framework for directing your income to spending, saving, and debt repayment. These guidelines suggest earmarking 70% of your after-tax income for essential and nonessential expenses, including debt payments, 20% for savings and investments, and 10% for additional debt payments or donations.   How to Apply the 70-20-10 Rule The framework for the 70-20-10 rule is broken down as follows:   Allocating 70% for Expenses The 70-20-10 rule places your cost of l

Like most people, you might struggle with money. Because personal finance was not taught in schools until recently, most people lack an understanding of money and how it works.   I learned about money and financial planning while working as a licensed financial coach. Fortunately, you can improve your personal finance skills without working in the industry. The following strategies can help.   Develop a Spending Plan Your spending plan  directs where your monthly income goes,

Many people are paying more attention to their personal finances at the start of 2026. They want to increase their savings, pay off their debt, and improve their financial picture.   Understanding which personal finance activities to focus on helps narrow down what you spend your time and energy doing. Starting with one area and working your way to other areas can make a substantial difference in your net worth. The following guidelines can help.   Setting Financial Goals Dev

One of my goals for 2026 is to increase my net worth. Setting strong objectives and breaking them down into actionable steps helps attain them.   If your goals for 2026 include paying down debt, increasing your savings, and enhancing your financial position, take action today. Establishing small money habits now can have a significant impact over time. The following tips can help.   Develop Your Spending Plan A spending plan allows you to track where your money should go thr

Happy 2026! The new year is an ideal time to improve your money habits.   We all could do better financially. Taking small steps makes a significant difference. The following guidelines can help.   1. Understand Your Financial Picture Know exactly how much money is coming in monthly and where it’s being spent: Determine your monthly take-home pay. Figure out how much you spend on living expenses, such as your mortgage or rent, insurance , utilities, groceries, transportation

Starting a new year is the perfect time to evaluate your financial habits. Making changes to your spending and saving plan helps you reach your financial goals.   Everyone has room for financial improvement. Regularly making small changes to your financial habits can make a significant difference.   Implementing these tips can help you enjoy the new year without financial strain.   Save Before You Spend Have part of each paycheck automatically sent to your savings accounts ,

Before training to become a financial coach, I knew little about how money worked. Now, I have a more comprehensive understanding of how to earn, save, invest, and spend my income. I make educated financial decisions, resulting in additional savings and retirement investments.   Understanding the basics of personal finance provides many benefits. Managing your spending plan, saving for emergencies, and investing for retirement lead to long-term financial stability, security,

Financial stability is important for everyone. Having adequate income to cover expenses, save for emergencies, and invest for future...

I didn’t really understand how money worked until I started training as a financial coach. My then-husband and I had substantial debt and...

During my time as a licensed financial coach, I educated clients on the responsible use of credit. Knowing how credit works helped my...

Personal finance is the management of financial activities and decision-making. The areas include budgeting, saving, insurance,...

When I was in my 20s, I knew little about investing. Fortunately, I found a licensed financial coach who taught me the basics of...

The 50/30/20 rule in finance is a budgeting framework that divides your net income into three categories: 50% for needs, 30% for wants,...

Personal finance was not a subject taught in the schools I attended. Perhaps you had a similar experience and are struggling...

When I worked as a licensed financial coach, I enjoyed teaching my clients about the five main areas of personal finance. Educating...