| Personal finance is something every person has to, at | | | | record, your budget, will list your income and |
| some point in their life, understand. Whether you | | | | expenses. |
| know it or not if you make money or have expenses | | | | 5. Once you have everything written down you need |
| then you have personal finance matters. | | | | to see if your expenses are greater then or less |
| Personal finance is basically the money you earn and | | | | then your income. The goal is that you make more |
| the money you spend. The whole idea of personal | | | | then you spend. |
| finance is to be able to afford what you need and, | | | | 6. Identify problems with your spending, if any. |
| hopefully, what you want. | | | | 7. Develop a plan to allow your income and expenses |
| Good personal finance involves a lot of management. | | | | to even out so you are earning as much or more |
| Without management you end up with financial | | | | then you are spending. |
| problems, like credit damage and even possibly a | | | | These seven steps will help you to get a good grip |
| bankruptcy. | | | | on your personal finances. You will be able to start to |
| In order to understand your personal finances you | | | | plan repayment of debts, see if you are spending |
| have to get them in order. To do this you need to | | | | money wisely and develop a plan to ensure you are |
| do the following: | | | | never overspending and that your personal needs are |
| 1. Gather all of your income information- check stubs | | | | met. |
| or other financial statements of income, gather all bills | | | | Understanding your personal finances is about more |
| - this includes any information on debts. | | | | then making sure all your bills are paid. You will learn |
| 2. Go thorough your financial information and sort it | | | | how to spend wisely and not waste money. You will |
| out. You want all income in one pile and all expenses | | | | learn how to make sure you are responsible for your |
| in another pile. | | | | debts, which will in turn help you keep a good credit |
| 3. Find anything that is missing. If you have debts | | | | rating. In the end you will be more relaxed about |
| that you do not have information on then call the | | | | your finances. You will be able to borrow money |
| companies and get something in writing about he | | | | when needed because your credit will be in good |
| debts. | | | | shape and you will not have to worry about meeting |
| 4. Create a record of your financial information. This | | | | simple expenses. |