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Personal Finance Tips

Many people do not create enough time to read about personal finance yet they desire financial independence. Here are 6 personal finance tips that will change your life. In a subsequent article, I will illustrate how to attain financial freedom.


The starting point is to know current financial position. What does your personal balance sheet look like? What is your net asset position? (Assets minus Liabilities).

Example of personal assets:

  • Cash
  • Savings
  • Real estate properties
  • Retirement savings accounts

Examples of personal liabilities:

  • Vehicle loans
  • Personal loans
  • Unpaid taxes
  • Credit cards payable


It is imperative you set short and long term financial goals . They should be SMART {specific, measurable, achievable, realistic and time bound)

What will you like your personal balance sheet to look like by the end of the year, in five years time, at retirement? Answering this question will guide you in setting your goals.

In addition, set financial milestones and monitor your progress.


A budget is an essential tool for planning your finances. It helps to prioritize spending and manage money.

A typical budget indicates how much you earn, what expenses you intend to incur, how much you want to save/invest.  It makes you more aware of where your money is going to which makes it easier for you to identify expenses you need to cut down or stop entirely.

Always endeavor to live within your budget.


No matter how much you earn, make it a habit to put something aside every month.

Some reasons you why you need to save money are:

  • To build a emergency fund which should be equivalent to your 6 months living expenses
  • For retirement
  • To make Investments
  • For mortgage down payment
  • For projects
  • For the purchase of household items
  • To buy a new car

As a matter of principle, always try to save at least ten percent of your income monthly.


For your finances to grow, you need to invest. Investments also serve as alternative sources of income

Some avenues to invest your money are:

  • Equity stocks
  • Government treasury bills and bonds
  • Real estate
  • Mutual funds

At all times seek professional advice before making any investment.


Do not be contented with your current income as you can always earn more.

In a bid to increase your income you may require you doing one or more of the following:

  • Taking up a an addition job
  • Changing jobs
  • Working longer hours
  • Starting up a new business
  • Learning new skills
  • Upgrading your education

Furthermore, constantly strive towards having multiple streams of income as it acts as a buffer against financial uncertainty.


Financial freedom is not attained by chance. You have to have adequate knowledge on how to handle your finances and also be disciplined enough to stick to the principles of financial freedom.

Author: Aguolu Kenechukwu

Krystalcee Integrated Resources Limited offers training on Personal Finance for individuals and organizations. Email: Website:


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