March 4, 2015 Having knowledge of personal finance helps you to save more and secure your future. It also helps you avoid incurring debt, paying off your financial obligations. So, you need to follow some basic formula of personal finance to manage your money. How to manage personal finance effectively You can create your own way to manage your finances. Thus, you need some knowledge regarding personal finance. You may seek help from financial experts to gather more knowledge. Here in my article you can find some basic mantra of personal finance. Frame a budget Create a budget in order to place your finances in a perfect box. Once you create a budget of your income , it will help you to keep track of the money. You can track of your expenditure and saving as well. It is a wise decision to plan your expenses. Thus, you can balance your income and expenditure, and determine your savings. But sticking to the budget is as important as formulate a budget. Be sure about your net worth Your net worth is the total money that you get after subtracting financial liabilities. Once you get the financial worth, you can determine your expenses accordingly. Pay off financial obligations timely You need to pay off your debts in order to get a smooth financial life. Paying it off is not easy unless you you sacrifice much. Try to make a list of all the unpaid credit card bills . You should also try to make more than minimum payments on your credit accounts. Think about retirement If the employer offers you a 401(k) account. You should accept it and start contributing to that account. This account helps you achieve tax benefits. You’ll get a lump sum amount as you retire from the job. You can even withdraw money from your retirement account. And you don’t need to pay any penalty fees after your retirement. Moreover, you can use this money toward paying off your financial obligations as well. Conclusion Other than the above 4 tips you need to maintain a savings account and put money into it each month. All these are very basic tips. Though these are very important part of your personal finance. Remember, at first, you need to learn the ABCs of personal finance.