Personal finance, the financial management which an individual performs to budget, save, and spend monetary resources over time, taking into account various financial risks. Portfolio management is making decisions about investment and policy, matching investments to objectives, asset allocation for individuals, and balancing risk against performance.  Managing portfolio normally tends to reduce the risks involved in investing and also increase the chance of making a profit. I personally feel finance management is more important than portfolio management. So will provide some of my personal financing rules.

1. Salary and Savings are not SAME
Having high Salary will not automatically make you rich or having low salary will not automatically make you poor. All that matters is how much you save out of your salary. The things that matter in last is your net worth rather how much you make money.

2. Save first then Invest
Best investments decision is setting some high Saving rates because it will give you a huge margin of safety in life. If you can save some amount from your salary, you can then plan for investing.

3. Live in Limits
The only way to get ahead financially is to stay behind your own earnings power. Never try to use Credit Cards for some low priority things, use when needed.

4. Using Credit Wisely
Biggest expenses costs are the interest rate on car loans, mortgage, educational loans, etc. So using credit cards in such situation can save you lots of money. So use credit cards wisely when needed and always pay your dues the same month itself.

5. Note down your spending
Always have a track of your spending. The goal is to spend money on things that are most important rather than some low priority stuff. You have to understand your spending habits if you wish to control your finances.

6. Automate
You can save more if you automate everything. Automating will avoid paying late and save you more and makes your life easier.  It takes me only and a couple of hours a month to track down my expenses.

7. Saving Accounts
Saving accounts are not some kind of investments options. You must have something in liquid assets to take care of things when life inevitably gets in the way. don’t even like calling it emergency saving account anymore because most of the time these “emergencies” are things you should plan on happening periodically.

8. Little More
Always increase your saving rates every time you get a raise. Use some percentage from your salary to save rather than some fix random amount. Avoiding lifestyle creep can be difficult, but that’s how you build wealth.

9. Choosing FRIEND Wisely
Trying to keep up with spendthrift friends or neighbors is a never-ending game with no true winners.

10. Make more money
Saving and/or cutting back is a great way to get ahead, but it’s an incomplete strategy if you’re not trying to earn more by enhancing your career. Too many people are stuck in the mindset that there’s nothing they can do to get a better job, take on more responsibilities or earn a higher salary.

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