Personal Finance Fundamentals
Personal finance covers managing your money, including budgeting, saving, investing, and planning for your financial future.
5 Pillars of Personal Finance
Income
Money you earn from work, business, or investments
- • Increase earning potential
- • Multiple income streams
- • Negotiate salary
Spending
How you allocate money for needs and wants
- • Track expenses
- • Reduce unnecessary costs
- • Smart shopping
Saving
Setting aside money for future goals and emergencies
- • Emergency fund first
- • Automate savings
- • High-yield accounts
Investing
Growing wealth through assets that appreciate
- • Start early
- • Diversify portfolio
- • Long-term focus
Protection
Safeguarding assets through insurance and planning
- • Adequate insurance
- • Estate planning
- • Identity protection
Financial Health Checkup
Healthy Financial Habits
Warning Signs to Address
Financial Priorities by Life Stage
Foundation Building
Growth & Family
Acceleration
Pre-Retirement
Essential Personal Finance Tools
- Mint - Comprehensive tracking
- YNAB - Zero-based budgeting
- PocketGuard - Simplicity focused
- EveryDollar - Dave Ramsey method
- Vanguard - Low-cost index funds
- Fidelity - Full-service broker
- Robinhood - Commission-free trades
- Betterment - Robo-advisor
- Personal Capital - Net worth tracker
- Credit Karma - Credit monitoring
- Khan Academy - Free courses
- Bogleheads - Investment community
Common Financial Mistakes to Avoid
No Emergency Fund
Start with $1,000, then build to 3-6 months expenses
Lifestyle Inflation
Save raises and bonuses instead of increasing spending
Ignoring Retirement
Start now, even with small amounts - compound interest is powerful
Too Much Debt
Focus on high-interest debt first, avoid new debt
No Financial Goals
Set SMART goals for short, medium, and long term
Emotional Spending
Wait 24-48 hours before non-essential purchases
Start Your Financial Journey Today
Week 1
Track all expenses
Week 2
Create your budget
Week 3
Open savings account
Week 4
Start investing