Personal Finance: An Illustrated Guide by Ehsanul Hoq
Personal finance is more relevant in 2021 than at any other time in our history.
As the Americans got stimulus checks to survive the pandemic they subconsciously gave more importance to personal finance terms like budgeting, savings and investments.
Why People hate Personal Finance: Because-
- Budgeting is a cumbersome process
- Why waiting for the future when we can spend and enjoy right now
- Personal finance is like rocket science
However, these misconceptions on personal finance might leave us with a broken financial record in our lifetime.
Trust the finance guru’s and try Personal finance. It is very easy.
1. Simple Savings Rule Example
Retired at 54, Saved $750,000
An accountant used this simple rule to make life comfortable after retirement-
"Invest for retirement as soon as Possible."This is a true story of a dad, an accountant and a financial advisor who saved $750,000 very early in his career. So he was fortunate enough to take early retirement at 54.
Breaking down his magic formula here:
- Put 10% of salary into the employer-sponsored retirement fund after graduation.
- Open a Roth individual retirement account.
- Pay off mortgages before your retirement
- Take early retirements
2. Passive income Example
Laid off from a full-time job, Going Passive
It feels bad when you are laid from a full-time job. But having some personal finance knowledge can make sure that you don’t need a job to survive in the 21st century.
"The idea of owning a rental property was out of the question"Going passive without owning a rental property is quite possible nowadays. These passive income streams can provide you more than $1,000 in a month.
Breaking down the passive income formula here:
- Start a side hustle like a freelance gig and convert it to a business.
- Don’t spend on rental properties.
- Make money work for you using high-yield savings account and earn compound interest.
- Teach skills through recorded online courses.
- Sign Up affiliate programs.
- Other Passive options you should checkout are — Ebooks, Dividend-paying stocks, Writing a blog, etc.
3. Self-made millionaire Example
Investing more, spending less
If you study a millionaire you will find many shocking facts about their personal finance methods. We found 3 that should be a great starting point for you also.
"Millionaires tended not to spend on luxury items, instead spending on investments and other things that grow their net worth."Self-made millionaires are people like us but they have very strict financial regulations.
Breaking down the millionaire habits here:
- They never spend on exclusive high-paying credit cards.
- They create funds to support their children when they get adults
- They never spend hours to manage investments.
Bottom Line: Personal Finance can change your life
In conclusion, we can guarantee that personal finance is quite easy and fun to apply. Simply follow the rules that work for and you are good to go for an awsome stress free lifestyle.
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