Monday, 4 January 2016

4 good things to do for managing your personal finance better

Personal financial management is a matter that almost everyone has to deal

with at some point in our lives. Your money and the way you manage it are the

two most important things in life. Since these are the factors that influence the

way you live, the people you meet and almost all other things you do.

Therefore, it is very important to know about the factors (both external and

internal) influencing money management, personal as well as corporate.

Building wealth is a continuous process that can be achieved not with haste,

but gradually with time. Let us understand some of the very significant steps

that can largely increase one’s likelihood of gaining success in financial


1. Habits:

One’s daily-life habits largely influence the growth of his financial skills. Thus,

build and incorporate new habits into your life, such as read good books on

investment, listen to educational CDs, and attend lectures or seminars on

finances. Developing such habits will help you grow your financial portfolio,

respect to your savings, research and regular investing.

One must have the commitment to effortlessly prioritize his financial habits,

and stop dawdling over his future finances. Keep in mind that success is all

about how one kicks-off his journey to attain financial freedom, and advances

in the same.

2. Environment:

Creating new environments, will provide support to your new wealth building

habits, thereby pulling you towards achieving financial freedom. Being pro-

active at building new relations or networks, and brainstorming are examples

of a few tools that can persistently support your efforts to reach your goals.

Build an environment that can help you focus your resources (both time and

money) on attaining financial freedom and eradicating energy-wasting mess.

In addition, this will also help one arrange his life in a manner that external

forces can no longer hold him back, but push him towards his financial

freedom dream. Thus, increasing your perseverance, endurance and

consistency will accelerate you on the road to wealth.

A professional financial planner will be able to create a positive environment

for your personal finance success.

3. Risk Management:

Although expensive, but committing mistakes is an imminent reality of money

management. Here, let us remind ourselves of the old adage that “It is human

to err”. A perfect investment is a myth only meant for people who are self-

deceiving themselves. Therefore, to climb up the ladder of profitable financial

investment, one must prepare himself for greater monetary risks.

Due to the unfamiliarity in the domain of financial Risk Management, one just

cannot assume immediate success at each level in the curve of learning

financial skills. An intelligent investor on committing and finding his mistakes,

will plan a strategic Investment Risk Management Plan.

Managing or controlling risks of your investment will surely reduce your

anxiety, as you will be aware that even in case of a disaster occurrence, the

damage caused will be under control. This is like keeping your losses under

control, by preserving your capital during difficult times. This lets you invest

in the game for longer, and eventually realize your plan to achieve financial

freedom. The process of investment risk management, thus allows one to

advance with confidence and contentment to the next higher stage of

profitable investment.

4. Avoid Shortcuts:

Do you think there can ever be any shortcuts to achieving financial success?

The answer is a definite ‘NO’. Always remember there is no royal road that

leads you to gaining the desired financial security. Advancing up the levels of

financial ability requires good knowledge, experience and guidance.

It is a proven fact that there are no shortcuts in the process of expanding your

financial intelligence. The road to attaining strong financial knowledge, is not

at all smooth, rather one that requires a lot of effort to put. A golden rule

states that the earlier you get over the myth of going with oversimplified

solutions, and impractical ideas to “get rich quick”, the sooner you can get on

the path that leads to attaining true wealth.

Are the above-mentioned steps enough to learn financial management? I, as a

financial planner, believe that there is a lot more to learn and adapt in

profitable financial investment. What do you think as an investor?

One must set their wealth plan based on investment techniques that are

grounded in principle as well as proven. One must also ensure that their plan

is congruent with their goals and values. Determine yourself as you are not

the first person to take this path. With proven and workable strategies, lead

you step-by-step to the process of becoming a consistently performing

profitable investor.

The author is Ramalingam.K an MBA (Finance) and certified financial planner.
Management. He Can be reached at and

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