Archives September 2023

Dubai Sovereign Wealth Fund is a sovereign wealth fund located in Dubai, United Arab Emirates, Middle East. The Dubai Sovereign Wealth Fund, also called as Investment Corporation of Dubai, was founded in 2006. It has a total assets value of $305 million and Dubai Sovereign Wealth Fund was established with the mandate of managing the Government of Dubai’s portfolio of commercial companies as well as investments. Dubai Sovereign Wealth Fund is the chief investment arm of the United Arab Emirates government. It takes care of a wide portfolio of assets that support United Arab Emirate’s growing economy.

The vision of Investment Corporation of Dubai is to secure a prosperous future for Dubai through a world leading professional organization. They are armed with a mission of investing in attractive opportunities to achieve appropriate risk adjusted returns over the long term. It is learnt that Investment Corporation of Dubai provides strategic oversight by developing an investment strategy. The ultimate focus of Dubai Sovereign Wealth Fund is on diversifying assets and portfolio management and capital deployment are other thrust areas of Dubai Sovereign Wealth Fund. The sovereign wealth funds of UAE is an important  source of capital for hedge funds.

Best GCC Sovereign Wealth Funds

It is quite interesting to note that UAE sovereign wealth funds with combined assets of $1.4 trillion dollar top GCC. Abu Dhabi Investment Authority has been ranked fourth globally with $697.86 trillion. Five sovereign wealth funds from the UAE including Abu Dhabi Investment Authority, Investment Corporation of Dubai, Mudabala Investment Company, Abu Dhabi Developmental Holding Company and Emirates Investment Authority are ranked among top 20 in the top 100 list of Sovereign Wealth Funds. Dubai Investment Corporation has come second with $301.6 billion under its management. Norway Government Pension Fund Global, China Investment Corporation, Kuwait Investment Authority, Abu Dhabi Investment Authority, and Hong Kong Monetary Investment Authority are among the top five sovereign wealth funds.

The surge in the asset values of sovereign wealth funds is influenced by robust gains in equity values across the market. Oil price recovery paves the way towards big gains in terms of government revenues for GCC countries like Saudi Arabia, UAE, Kuwait and Qatar. 2023 has witnessed new sovereign wealth fund boom and it is unquestionably petrodollar fuelled. GCC sovereign fund activity has picked up in 2023 and it has a huge number of prominent sovereign wealth funds. The number of sovereign wealth funds operating in the GCC has grown significantly in the past decade.

Sovereign Wealth Fund Boom in Gulf

Sovereign wealth funds like Dubai Sovereign Wealth Fund have pulled out money out of global stock markets. The sovereign wealth fund boom has been noticeable in GCC countries especially in Saudi Arabia. Dubai Sovereign Wealth Fund is one of the most visible sovereign wealth funds in the universe. World believes in the growth story of UAE sovereign wealth funds and Dubai Sovereign Wealth Fund has invested in renewable energy, telecom, road infrastructure and startups. World countries trust the growth story of UAE sovereign wealth funds, especially that of Dubai sovereign wealth fund. The growth of Dubai sovereign wealth funds provides lots of precious opportunities for businesses based out of UAE.

Distribution of wealth and income refers to the way in which the wealth and income of a nation are divided among its population. It also refers to the way in which the wealth and income of the world are divided among nations. Patterns of wealth and income distribution are studied by various statistical means and wealth is an accumulated store of possessions. Wealth is often given a monetary value if prices can be determined for each of the possessions. It is a very well known fact that income is a net total of the flow of payments received in a specific time period.

Some world countries seek statistics on wealth from legally required evaluations of the estates of deceased persons. In many world countries, annual tax statements that measure income provide more or less reliable information. Classification basis should be determined to classify patterns of national wealth as well as income. One classification system categorizes wealth on the basis of labour, land, capital and entrepreneurship. It has been pointed out that personal distribution statistics categorize wealth on a per capita basis.

The Effect of Inheritance on Earned Incomes

Gross national income per capita showcases a measure of annual national income per person in different countries. Developed world countries have a much higher gross national income than less developed countries. According to World Bank statistics, the per capita gross national income was approximately $10000 for almost all developed countries in the early twenty first century. There is huge variation among industries, regions, rural and urban areas, females and males in a high income country like the United States of America. A huge chunk of the US population has a middle income derived from earnings and wages vary depending on occupation.

A major portion of an economy’s higher income is often derived from investments than earnings. The ability of individuals to retain their fortunes and pass them on to descendants lead to the existence of a class of uber rich people. Inheritance affects earned incomes and access to well paid jobs and social status is largely the byproduct of education. Well educated children of rich parents retain their parent’s status and earning power. A dynamic economy like that of USA is helpful in increasing the likelihood of attaining wealth and status through individual effort alone.

Estimation of Wealth Distribution Using Household Wealth

The richest 10% of adults in the world own 85% of global household wealth and the average person in the top 10% owns 3000 times the wealth of the average person in the bottom 10%. The distribution of wealth in global countries is estimated using a comprehensive concept of household wealth. Wealth can be defined as the value of all household resources, both human and non human. It represents the ownership of capital in larger perspective and wealth has disproportionate impact on household wellbeing, economic success, economic development and economic growth. Household wealth is concentrated, both in size distribution and geographically, globally. Global household wealth in the year 2000 was estimated to be $125 trillion and mean wealth in USA was $144000. New Zealand, United Kingdom and Denmark belong to the list of high-income countries.

Deutsche Bank, the fabled global financial organization, offers an extensive range of wealth management services. They provide wealth management services to clients located across the length and breadth of the globe. Deutsche Bank has been helping entrepreneurial families to achieve their financial goals for a very long time. The Deutsche Bank Wealth Management is one of the biggest wealth managers in the world with luminary reputation. They are valued partners of individuals, family offices, entrepreneurs and foundations.

Wealth management services of Deutsche Bank provide advice across wide range of asset classes. It is an elegant mix of their core discretionary solutions and advisory solutions. Key services offered by Deutsche Bank Wealth Management include discretionary portfolio management, fund solutions, strategic asset allocation investing, capital markets, currency services and deposit services. Deutsche Bank Wealth Management helps investors to build a portfolio that ensures wealth is invested in line with financial objectives as well as particular ESG goals. Investors passionate about investing in capital markets, real estate, lifestyle assets, or any other commercial assets can get benefitted from the services offered by Deutsche Bank Wealth Management.

Structured Financial Solutions Offered by Deutsche Bank

Deutsche Bank Wealth Management provides liquid asset financing, real estate financing, equity stake financing, private aircraft financing, structured financial solutions and fine art lending. They take care of estate planning, trust planning, philanthropy, life insurance, and selling our business. Sophisticated solutions tailored to the needs of investors is the unique selling proposition of Deutsche Bank wealth management services. They have eventually become a synonym for corporate finance and bank for entrepreneurs. Deutsche Bank is known for business, corporate, private and investment banking expertise.

Deutsche Bank Wealth Management has redefined wealth management in a splendid way. Their online wealth management tool helps investors to manage their investment and finance as per their convenience. It empowers investors with a single interphase for all investments and investors are saved from the hassles of tracking their investment separately. Deutsche Bank Wealth Management is a part of Deutsche Bank’s International Private Bank, which has 513 billion euros in assets under management. The Deutsche Bank ensures that the management of client’s wealth creation and protection is done through a comprehensive product platform.

Presenting a Diversified Portfolio of Mutual Funds

Its flagship products include mutual funds, third party referral products, and banking solutions. The product mix of Deutsche Bank, the German multinational banking tycoon, include bonds and insurance. Investors can build a diversified portfolio of mutual funds with the wealth management services offered by the one and only Deutsche bank. Mutual funds offered by Deutsche Bank is a professionally managed and diversified portfolio that offers the benefits of liquidity as well as transparency. It offers wide range of mutual funds from leading asset management companies in the world. Individuals can purchase mutual funds online at zero fees with the wealth management services of Deutsche Bank. Competitive investment expense ratio is the striking feature of banking services provided by Deutsche Bank. Deutsche Bank private wealth management does not charge fees associated with investment expense ratio. They offer a well balanced investment portfolio including stocks, bonds, real estate, and other investment vehicles. Money market accounts and savings accounts are other leading products of Deutsche Bank.

Learning how to build wealth demands knowledge of making an investment plan and adopting a long term mindset. Steps to build wealth include starting by making a plan, making a budget, building emergency fund, automating financial life, managing debt, maxing out retirement savings and staying diversified.

Starting by Making a Plan

It is a well known fact that making a financial plan is the very first step of building wealth in the contemporary digital era. According to prominent personal finance experts, building wealth begins with a vision and plan. Seeking the services of a financial advisor is an excellent way to begin making plan for building wealth.

Making a Budget

Making a budget and sticking to it are essential as far as building wealth in the contemporary era is concerned. Budgeting is a vital part of wealth building strategy and it leads to achieving financial goals effectively. Investors can understand where their money goes each month with budgeting and it is helpful in preventing behaviours that can endanger our goals just like overspending.

Building an Emergency Fund

An emergency fund is helpful in protecting credit and reaping the attractive benefits of earning interest on an online savings account.

Automating Financial Life

It is a great idea to make saving, investing and bill payment automatic. Automating financial life is helpful as far as saving and investing are concerned. Investors can resist the temptation to spend rather than invest with automating saving, investing as well as bill payment.

Managing Debt

It is a fact that not all debt is created equal and mortgages are often considered as good debt due to its low interest rate and wealth building potential. Mortgage payoff is often considered as a kind of forced savings account because we will see a portion of our monthly payment back when we sell. High interest credit card bills jeopardize our financial goals and it is quite important to have a plan for repayment. Debt snowball and debt avalanche payoff methods are recommended for people who are not sure about getting started. It is to be kept in mind that saving money and paying down at the same time is possible.

Maxing Out Retirement Savings

401K and individual retirement accounts are best options for retirement planning and the power of compounding helps us to make small amounts of money into big amounts of money. Why can’t you consider a target date fund or robo advisor that manages a custom portfolio of funds based on the number of years until our retirement?

Staying Diversified

Wealth can be protected by having a diversified portfolio with different types of investments and it has been pointed out that a diversified portfolio includes a mixture of assets that don’t necessarily move in the same direction. Staying diversified is important to reducing volatility over time.

The perfect opportunity to building wealth starts with living comfortably on our current salary and receiving an increase. Employees can consider taking up a side hustle or creating passive income through ways like blogging, Kindle publishing and affiliate marketing. Building wealth from nothing requires taking a deep look at our current situation and our spending and income for several years should be evaluated before building wealth from nothing.

A sovereign wealth fund can be defined as a state owned investment fund comprised of money generated by the government. Sovereign wealth fund provides innumerable benefits for a country’s economy and its citizens. Some of the biggest sovereign wealth funds include Norway Government Pension Fund Global, China Investment Corporation, SAFE Investment Company, Abu Dhabi Investment Authority and Kuwait Investment Authority.

Norway Government Pension Fund Global

70% is the 2022 allocation of Norway’s sovereign wealth fund in equities and Norway Government Pension Fund Global is the largest in the world. The initial objective of Norway Government Pension Fund Global was creating a fund to hold surplus revenues from the country’s oil trade.

China Investment Corporation

China Investment Corporation is a $1.35 trillion Sovereign Wealth Fund and this fund is used for managing a portion of China’s foreign currency reserves. This sovereign wealth fund was established by the Chinese finance ministry in 2007 by issuing special funds. China Investment Corporation sovereign wealth fund invests on a long term basis in global public as well as private assets. The China Investment Corporation operates three subsidiaries with two international offices and it is the largest sovereign wealth fund in the world followed by Norway Government Pension Fund Global, the Abu Dhabi Investment Authority, the Kuwait Investment Authority, and Singapore’s GIC Private Limited.

SAFE Investment Company

The SAFE(Safe Administration of Foreign Exchange) is the Hong Kong branch of the Chinese sovereign wealth fund. SAFE Investment Company is a private company now and the Chinese State Administration of Foreign Exchange officials serve on its director board. It functions as a foreign currency reserve and the ultimate objectives of SAFE Investment Company are to gain investment returns, increase diversification of holdings, and to reduce the country’s exposure to fluctuations in the value of the US dollar. This sovereign wealth fund is currently overseen by the people’s Bank of China. SAFE Investment company was opened in 1997 and it focuses on maintaining foreign currency reserves.

Abu Dhabi Investment Authority

Abu Dhabi Investment Authority is an investor invests on behalf of the Government of Abu Dhabi to generate long term value. It has been ranked as the third largest in the world in 2022 making it one of the world’s biggest institutional investors. The Abu Dhabi Investment Authority has over $708 billion in assets. Little is known about the investment methodology or portfolio of Abu Dhabi Investment Authority since the organization prefers not to disclose its specific holdings. The vast amount of wealth managed by Abu Dhabi Investment Authority is sourced from Abu Dhabi’s large oil reserves.

Kuwait Investment Authority

Kuwait Investment Authority is a sovereign wealth fund located in Kuwait City, Kuwait, Middle East. It was established in 1953 and Kuwait Investment Authority is one of the oldest sovereign funds in the world. Kuwait Investment Authority was established with the unique mission of managing the assets of Kuwait. The Kuwait Investment Authority manages two main funds: the General Reserve Fund and the Future Generations Fund. Kuwait Investment Authority is an asset manager and it does not own any of the assets it manages. The Kuwait Investment Authority is ambitious about becoming a world class investment management organization.

Choosing a wealth management firm is a vital decision and selecting best wealth management firm is often a hard decision since there are so many excellent options. It is important to find the best wealth management firm as each person has their own specific financial situation. Navigating the world of wealth management is a hard task and some of the best wealth management firms include Morgan Stanley, JP Morgan Chase, UBS, Wells Fargo, and Fidelity Investments.

Morgan Stanley

The history of Morgan Stanley dates back to 1935 and the company boasts of a robust wealth management division. Morgan Stanley offers wide range of services and it will be a better option for a self directed investor seeking the lowest trading costs. They are unquestionably uncrowned global leaders in financial services and the company helps people, institutions and governments raise, manage and distribute the capital.

JP Morgan Chase

JP Morgan Chase is a diversified wealth management firm with glowing reputation and it offers all types of financial services. This wealth management firm features traditional banking division, private client advisors, and commission free online trading. The best thing about JP Morgan Chase is that it has solution for every wealth management needs. JP  Morgan Chase is an American multinational financial services firm headquartered in New York City. It is the largest bank in the world by market capitalization as of 2023 and JP Morgan Chase is the largest bank in the United States of America.

UBS

UBS is one of the largest wealth management firms in the universe and uber rich individuals and institutions in need of high end wealth management services are the customers of UBS. The UBS charges per trade commissions and other options too are available. It has been pointed out that UBS might not be the best option for independent investors making frequent trades on their own. UBS is a multinational firm offering financial services in more than fifty countries. It holds the distinction of being the largest Swiss banking institution and the largest private bank in the world.

Wells Fargo

Wells Fargo was founded in 1852 and it showcases huge banking business and it has branches in most of the largest markets in the United States of America. The wealth management division of Wells Fargo provides three advisory choices for clients including working one on one with a dedicated advisor, using a team through its private banking division, and running our own online account with zero commissions. This renowned wealth management firm offers other services including low cost robo advisor. They offer bank accounts, loans, mortgages, investing, credit cards and banking services. Wells Fargo is a USA based financial services tycoon with a large global presence and the company operates in 35 countries.

Fidelity Investments

Fidelity Investments has made its elegant entry into the market as a top tier mutual fund firm. It depicts a full blown wealth management division and its flagship products include robo advisory services, zero commission trading, and personal wealth management. A wealth management firm like Fidelity Investments can take care of estate plan and holistic wealth management. This wealth management firm is the leading provider of financial planning, retirement plans, trading services and brokerage services.

Best books on building wealth help us become financially smarter and they are rich in practical advice, relevant information and inspiring stories. Some of the best books on wealth include Rich Dad Poor Dad by Robert T Kiyosaki, Money: Master the Game by Tony Robbins, The Barefoot Investor by Scott Pape, The One Page Financial Plan by Carl Richards, and The Intelligent Investor by Benjamin Graham.

Rich Dad Poor Dad by Robert T Kiyosaki

Rich Dad Poor Dad by Robert T Kiyosaki depicts the story of a boy with two fathers: one rich and one poor. It focuses on developing the mindset and financial knowledge we need to build a life of richness, exuberance, luxuriance, wealth and freedom. “The main reason that over 90 percent of the American public struggles financially is because they plan not to lose. They don’t play to win”, says Robert T Kiyosaki. The all time personal finance best seller is based partially on Robert T Kiyosaki’s life, who learned different ways of handling money from his dad and best friend. Rich Dad Poor Dad concentrates on accounting, budgeting, investing and managing money. It teaches investors to use their money to acquire assets, managing risks instead of avoiding them and working to learn.

Money: Master the Game by Tony Robbins

Money: Master the Game by Tony Robbins describes seven simple steps to financial freedom, based on the advice of investors who are rich among the rich. It includes everything like mindset changes, saving tips and asset allocation. “You either master money, or on some level, money masters you”, is the favourite quote of Tony Robbins. The transcripts of the interviews are really worth the price of book and it advises investors not to underestimate the power of compound interest. Money: Master the Game tells us that financial freedom including basic expenses, basic + fun, and financial independence is within our reach.

The Barefoot Investor by Scott Pape

The Barefoot Investor tells the story of an Australian boy who took charge of personal finances with a simple system to eradicate debt, live in the present and retire in peace. “You can continue living in the past, beating yourself up about the money mistakes you made when you were younger, telling yourself you have left it too late….or you can rise up and make yourself proud”, says Scott Pape, the author of the Barefoot Investor. Scott Pape is Australia’s renowned personal finance expert with illustrious legacy and impeccable credentials. His book has sold more than one million copies and it makes use of simple life as a metaphor for managing money. Planting, growing and harvesting money has become quite simple with the release of The Barefoot Investor by Scott Pape.

The One Page Financial Plan by Carl Richards

The One Page Financial Plan by Carl Richards makes financial planning very easy and it is an ultimate guide on managing personal finances. It advises investors to turn budgeting into a game to make saving fun and paying off debt as an investment for future. Carl Richards is an influential  financial writer and his book helps people to develop a simple and actionable plan. The One Page Financial Plan by Carl Richards was well received and Carl Richards is a certified financial planner who gives precious financial advice. It is an excellent book for understanding financial planning and the book’s conversational tone is loved by readers.

The Intelligent Investor by Benjamin Graham

The Intelligent Investor by Benjamin Graham elaborates value investing, which is focused on generating steady and long term profits. “Those who do not remember the past are condemned to repeat it”’, says the book’s author Benjamin Graham. The Intelligent Investor by Benjamin Graham is one of the best books on investing ever written. It has been regarded as a true and timeless classic on personal finance. According to Benjamin Graham, there are three principles to intelligent investing, analyze for the long term, protecting ourselves from losses, and not going for crazy profits.

We should learn personal finance since it is essential to live a healthy, happy and secure life. Our understanding of budget, saving, debt and investing will affect every part of our life. Personal finance skills are very important in our life and many of the American states require students to take a high school course in personal finance. It is an unquestionable fact that personal finance is a necessary skill that should be taught in schools as well as colleges. Lives of youngsters are affected by their financial knowledge and money management skills.

Money plays a vital role in career decisions, buying house, getting married and having children. Personal finance is a part of everyday life in 2023 and beyond and many of the young adults lack personal finance knowledge today. A large chunk of Americans want personal finance taught in schools and some people believe that personal finance education should be started in elementary schools. Many Americans believe that school sponsored personal finance education should be put on the political agenda. It is a great idea to add mandatory personal finance education to the public school curriculum.

Understanding the Importance of Personal Finance

Many of the financial problems can be alleviated with a comprehensive knowledge of personal finance. Young adults should understand the importance of personal finance and they can learn the importance of not borrowing more than we can afford through personal finance education. Learning the dangers of credit cards, high interest rates and importance of paying credit cards off are essential. The important rule in saving for retirement is to start early and youngsters of today are not taught the importance of compound interest as well as time. It has been pointed out that financial literacy leads to a healthier life and the plus points of learning personal finance are huge.

Having personal finance education promotes good savings habits and budgeting teaches awareness along with responsibility. Smart financial decisions affect an individual’s credit score which impacts every sphere of their life including getting a job, applying for a credit card, renting an apartment, buying a home, buying a car, signing up for power bill and getting insurance. More jobs, more money and less debt are good for the global economy and it can be achieved through personal finance education. Understanding money management leads to financial health and positive attitude towards money. Many American citizens prefer alternative sources of money advice as well as information.

Personal Finance Education as a Priority for Higher Education

There are Americans who are self taught about personal finance and many of them were taught by their teachers. School and college going children should have a clear knowledge about applying for financial aid for college, housing costs, transportation costs, insurance costs, food expenses and everyday expenses. They should master the art of living on their own, credit, credit cards and taxes. It is fact that high school students are underprepared for their financial future and personal finance education should be made a priority for high school education today. Many college students don’t have an idea of how payment of student loans will affect their budgets. Personal finance education provided in high schools and colleges leads to successful life free of financial difficulties.

Personal finance philosophy makes a person wealthy in net worth and it is all about being intentional with money. Personal finance is not always about money and it is more about the relationship with money and life goals. Looking at personal finance philosophy from all angles is quite important and personal finance philosophy is a person’s viewpoints, opinions and goals related to money. It is a fact that personal finance is personal and everyone has their own philosophy around money. This is a vital point that should not be overlooked and personal finance philosophy is often weighted to making more money.

Personal finance philosophy of some people is focused on work life balance and different people require different personal finance goals. Value based spending is the first and foremost philosophy of personal finance in 2023.  

Value Based Spending

It is a well known fact that value based spending is highly intentional and there are two areas where money is spent: necessities like food, shelter, clothing and expensive things like travel and experiences.

Part of What We Earn is Ours to Keep and Pay Ourselves First

Part of What We Earn is Ours to Keep and Pay Ourselves First comes from the all time personal finance bestseller The Richest Man in Babylon. When we pay ourselves first, the money is invested first thing each month and we learn to live on the rest.

Automation

Automation is directly related to paying ourselves first and it is helpful in achieving personal finance goals. The unique selling proposition of automation is that it solves challenges associated with paying ourselves first. We should be disciplined when we first set it up and when our income increases with automation.

No Consumer Debt

One of the major personal finance philosophies is to avoid consumer debt and it is worse than zero net worth.

Using Leverage Wisely

Although leverage can amplify wealth, it can also get people into trouble if cash flow is very tight. Leverage means using a percentage of what an asset is worth to purchase it and it comes with its own risks. It is recommended to use leverage wisely, understand the risks and have sufficient cashflow.

Personal finance philosophy is associated with money mindset, life goals and risk tolerance. Wise personal finance philosophies help investors to optimize and generate wealth to pass on to future generations that they are really proud of. It has been pointed out that financial optimization is not always the best move for everyone. Recognizing lifestyle creep is an important personal finance philosophy and it is helpful in building long term wealth. Albert Einstein, the luminary scientist, has referred to compound interest as the eighth wonder of the world. Although compounding starts off slow, it becomes an unstoppable force, once it gets going. Dollar cost averaging over several years produces amazing results and compounding is dependent on money contributed to investments.

Tracking Our Money

Tracking our money is an important personal finance philosophy and it makes a big difference in personal finances. Unwanted spendings can be avoided with tracking money and becoming intentional with our money is important.

Keeping an Emergency Fund

Keeping an emergency fund belongs to the most important personal finance philosophy in 2023. The emergency fund is the pile of money sitting for the unexpected and having an emergency fund helps investors sleep better at night knowing money is there.

It is a very well known fact that personal finance is more than merely earning and spending money. Individuals can adhere to financial plans that are suited for individual life goals with personal finance. Personal finance can be described as the art of managing money effectively and it includes preparing a budget, making financial plans, saving, and most importantly investing. It may seem that personal finance management is an easy task and it is not that easy as many of us may think. Commitment, dedication and effort are required to cultivate excellent personal finance practices.

The greatest advantage of personal finance is that it ensures that money is spent in the best possible manner. Personal finance is more than saving money and it includes assessing our goals, tolerance for investment risk, and expectations for the future. It is an unquestionable fact that personal finance is absolutely essential for individuals and personal finance need is multifaceted. Personal finance offers variety of benefits including making money management very easier. Another great benefit of personal finance is that it streamlines investments and financial plans.

There are several reasons behind why personal finance is important and personal finance requires to look at questions like what is our monthly budget, how much money do we want to spend on luxury products, and what are our future requirements. Understanding finances better is the foundation of personal finance and it enables us to plan our investments. Coming up with personal finance plans that streamline investments is important and individuals can invest smartly thanks to personal finance. It is easy to manage debt if we have a steady stream of income and personal finance is helpful in multiplying money by allowing us to choose the right investment options. Personal finance is essential since it ensures that our future is financially secure.

Employees can retire comfortably and live a life of their dreams with the right personal finance plan. Investors should essentially prepare a budget and understand where their money is going. Reducing our debts or paying them off entirely requires special attention. Employees should make use of tax benefits and most of our wealth may get eroded by taxes if we don’t make use of tax benefits. Personal finance experts suggest creating an emergency fund that is equal to at least six months of our regular income.

It is to be kept in mind that we should invest as early as possible in life and prioritization, assessment and restraint are three key principles of personal finance management in 2023. Investors should prioritize areas that bring in money and they should make sure that they sustain those income streams. It has become essential to constantly assess our earning as well as spending habits. Restraint ensures that we don’t spend more money than we make and it is of great importance in the contemporary age where credit is easily available. Investors should understand various aspects of personal finance like tax, insurance and investment. Personal finance principles keep us away from taking on unmanageable debts and it is a mix of evaluating our income and allocating money accordingly. Budgeting refers to keeping track of income and how we save and spend money in the contemporary digital era.

The ultimate mission of Next Gen Personal Finance is that every American high school student will graduate having taken a one semester course in personal finance by 2030. Their small team of educators is passionate about creating engaging curriculum and they look forward to bring financial education to every single high school student in the American subcontinent by 2030. The curriculum of Next Gen Personal Finance includes investing, taxes, saving, behavioural economics, and paying for education. Their turnkey courses include trimester, semester and full year courses for high school and middle school students. NGPF(Next Gen Personal Finance) makes use of hands on, real world applications that build student financial capability.

The curriculum at Next Gen Personal Finance is provided at no cost and educator participation in NGPF Professional Development move them closer to the goal of having a confident and qualified personal finance teacher. They provide professional development including one hour virtual workshop, asynchronous on demand modules, as well as in-depth certification courses. The main focus of professional development offered by NGPF is on building teacher content knowledge, modeling various NGPF resources, and encouraging teacher collaboration in an effective way. Professional development is offered through NGPF academy, a program that rewards and recognizes the 17000+ teachers who have actively participated in the NGPF professional development.

Increasing Access to Financial Education

Next Gen Personal Finance is armed with a unique mission of increasing access to financial education by partnering with teachers, schools, districts and states. The objective of NGPF Mission 2030 Fund, is advocating for personal finance education in state legislatures across the country. It is quite interesting to note that the Next Gen Personal Finance Community of Educators is 80000+ and growing. According to the available statistics, 84% of US high school students attend a school with at least one teacher with a NGPF teacher account. Saturday conferences and virtual professional development are the majestic features of professional development offered by Next Gen Personal Finance.

The curriculum at Next Gen Personal Finance sheds light on buying a car and buying a house. The Semester Course, the flagship NGPF course, was revamped in 2022 with up to date resources and increased accessibility. Personal finance dictionary, defined in student friendly language, is another best attraction of NGPF curriculum. Weekly content, regular professional development, and expansive curriculum with videos, activities and assessments are the pros of program offered by Next Gen Personal Finance. NGPF is one of the best resources for relevant and useful materials for personal finance education.

The Availability of Ready to Implement Resources

Nine week, semester and year long courses are offered by Next Gen Personal Finance. Its regularly updated content and compelling topics give students practical information. Hands on activities with real life situations is the splendid feature of curriculum offered by Next Gen Personal Finance. Next Gen Personal Finance is based in Palo Alto, California, United States of America. NGPF is a place where teachers can easily find ready to implement resources. The mission of Next Gen Personal Finance is to connect educators with free resources and equip students with the skills to lead a fulfilling life. Teachers find NGPF as a one stop shop for free curriculum, free professional development sessions, and free advocacy.

Our smartphones are synonymous with our wallets nowadays and some of the best personal finance apps of 2023 include Mint, Albert, You Need a Budget, Oportun, and Qapital.

Mint

Mint is undoubtedly the best free personal finance app of 2023 and it is everyone’s go to finance app. Investors can get started with a free version of Mint and they can pay down debt, save money and track goals with Mint. It showcases credit score, net worth and ton of FAQs. Seeing all our financial information in one place is a great idea and Mint makes it a crystal clear reality. This app belongs to the breed of most popular US personal finance applications.

Albert

It seems that having Albert is like having a financial advisor in our pocket and it analyses debt, accounts and spending. Albert suggests innovative ways to optimize our portfolio and it helps individuals organize money into categories, track spending, and receive real time alerts on unusual transactions. This US personal finance app tracks income, analyses spending habits, helps users save money, and earn cash bonuses. Albert savings app is the one stop shop for all of our financial needs and it combines secure banking services, savings account, budgeting and investing in an innovative fashion. This personal finance app scaled heights of popularity due to cash advance solutions and wide variety of savings account tools.

You Need a Budget(YNAB)

You Need a Budget(YNAB) is the perfect US personal finance app for anyone who needs to make a significant change to their spending habits. YNAB offers a free trial period and the motto of You Need a Budget is to “give every dollar a job”. You Need a Budget provides extensive educational resources and customer support to keep investors on track. YNAB is a privacy first finance app and it makes use of top grade encryption for all data. You Need a Budget is not just a US personal finance app, it is just another lifestyle that has won accolades.

Oportun

Oportun is an amazing personal finance app that analyses spending habits and tracking expenses and managing budget has become easier than ever with the advent of personal finance apps like the one and only Oportun. It is easier to use and this budgeting app has lots of elegant features including budget setting on a daily basis, determining income, storing fixed expenses, and categorization of expenses. Individuals can make better financial decisions with the Oportun personal finance application. According to the information available from Oportun website, Oportun offers loans with affordable and fixed payment. It is an undisputable fact that Oportun is the best budgeting app for beginners and it is very easy to setup Oportun.

Qapital

Qapital is the best personal finance app for setting finances and Oportun and Qapital have similar features. Investors can pay down debt and start a general savings account with Qapital. The ability to save, invest and spending money aside the moment we get paid made Qapital quite popular among investors. They can customize a budget that fits their spending habits and income with a novel personal finance app like Qapital.

A financial plan should align with the financial goals of an individual and an investor should address each aspect of finance including income, taxes, insurance, debt, expenses, savings and retirement.

Income

It is a good idea to look at all sources of income including fat pay cheque and handling money itself is an art and science.

Taxes

Everything we earn is going to be taxed and investors should get familiar with state taxes. An individual can take advantage of any possible tax relief or personal deductions.

Insurance

We should necessarily have insurance including car insurance, home damage insurance, injury insurance, illness insurance or disability insurance. Investors can’t predict what will happen in the future and insurance is an indispensable safety net.

Debt

It is to be kept in mind that not all debts are bad and we can incur debt for many reasons. Housing loans and education loans are investments that are absolutely essential for financial future. Bad debt comes from buying things that are not necessary and it can be added up very fast. Knowing the difference between bad debt and good debt is very important and debt should be paid off in a timely manner.

Expenses

Investors should ensure that expenses never exceed income and expenses higher than income often paves the way towards bad debt. Investors should keep a close eye on spending so that they can identify areas that need a cutback.

Savings

Savings are often viewed as an expense in the contemporary digital age and saving a part of our income will yield the best results. It has also another benefit of earning interest.

Retirement

It has been pointed out that it is never too early to plan for retirement and the savings accounts and benefits available to us will vary by location.

Investments

The best option is to invest if we have saved enough amounts of money and personal finance professionals will be of immense help to find out the best investment opportunities.

Ourself

It is an undisputable fact that the most important element of our financial wellbeing is ourselves. A typical investor should necessarily have to invest in education, experience, skillset, and health. Keeping ourself healthy is helpful in saving thousands of dollars in medical expenses and keep us earning for a very long time.

There are many ways to make a financial plan including doing ourselves, using a robo advisor, or working with an ace financial planner. The list of financial goals contains both short term goals and long term goals. Examples of short term financial goals include paying off debt or buying a new premium car and financial goals that can be achieved within the next five years come under the umbrella of short term goals. Medium term financial goals can be achieved within the next five to ten years and best examples include down payment on a home and starting our own business. Long term financial goals are financial goals that can be achieved within a timeframe of ten or more years and college education and retirement are classic examples of long term financial goals. There are lots of online tools that can be used to design a good financial plan easily sitting at the comfort of our sweet home.

Basic principles of personal finance include organizing finances, spending less than we earn, putting money to work, limiting debt to income producing assets, continuously educating ourselves, understanding risk, maximizing employment benefits, paying attention to taxes and planning for the unexpected.

Organizing Finances

Organizing finances is the first step of creating wealth and it is important to track credit cards, bank accounts, personal loans, mortgages, brokerage accounts, car loans and retirement accounts. Budgeting software is helpful in tracking all such accounts, making on time payments and more.

Spending Less than We Earn

Powerful tools associated with personal finance software helps individuals to track and budget their spending.

Putting Money to Work

Investors should necessarily take advantage of the time value of money in the contemporary post Covid world.

Limiting Debt to Income Producing Assets

According to personal finance experts, credit cards used to buy household goods and clothes are bad bargains. Individuals in debt can opt for financing items that retain their value over time just like real estate and education.

Continuously Educating Ourselves

Comprehensive knowledge of basic personal finance principles is on our fingertips thanks to the advent of internet. It is a great idea to read periodicals, books and blogs associated with personal finance.

Understanding Risk

Investments like stocks and bonds that offer higher returns have risk. Certificate of deposit and money market accounts with a lower rate of return have a lower risk of losing principal. Diversifying investment is absolutely important in the current internet age.

Diversification is not Just for Investments

Investors should find creative ways to diversify their income and it is an innovative idea to convert our talents into a money making opportunity. Making money from home is a great idea. Why can’t we start a home based online business and reap rich dividends? The extra income from home based online business can supplement full time income or result in an exciting job switch.

Maximizing Employment Benefits

401K plan, flexible spending account, medical insurance and dental insurance yield some of the highest rates of return. Investors should try their best to save money by reducing taxes and out of pocket expenses.

Paying Attention to Taxes

Individuals can manage their tax information with financial planning software and popular financial planning software analyses taxable investments and provides feature rich organizing tools.

Planning for the Unexpected

We should save money for unexpected events like unemployment, accidents, medical care, car repair, house repair and natural disasters.

Books on personal finance provide wealth of information on basic principles of personal finance. The real trick is understanding personal finance basic principles and applying them. Basic principle of personal finance is not just about increasing net worth or saving for retirement. It is to be kept in mind that money is for living.

Spending less than we earn means living within our means, not overspending, not getting ourselves into debt, and start saving. Creating a budget and sticking to it is the first step of basic personal finance management. Lots of people believe that buying a home is a very good investment and owning a home on our own may be a distant dream all over the world especially in the United States of America.

There are hundreds of companies in personal finance startup space and this article lists out fast growing personal finance startups that have top tier venture capital funding. Some of the very best personal finance startups include Wealth Simple, Unison, Trustworthy, River, Nirvana Money and Money World.

Wealth Simple

Wealth Simple is a personal finance startup with offices located in New York City, London, Toronto and Brooklyn. They invest our money in a diversified portfolio of low cost index funds and investors can get the best possible return with the personal finance services offered by the one and only Wealth Simple. Wealth Simple provides services including automatic rebalancing, dividend reinvesting, and tax loss harvesting. High interest savings and commission free trading are exquisite features of services provided by Wealth Simple. Wealth Simple has won multiple Webby Awards as their “best financial service/banking website”.

Unison

Unison is a USA based company that is pioneering s smarter and better way to buy and own homes. It is a team of financial and real estate professionals helping homebuyers get the home they always cherished. Unison is a highest rated equity sharing company and it was founded in 2004 with offices in 29 US states. This personal finance startup invests up to 15% of home’s current value and gives investors that amount in cash. Our agreement with Unison is settled by either buying them out or selling our house.

Trustworthy

Trustworthy is located in Canada, Europe, South America, United States and Central America. It is a family operating system, an online service that helps modern families protect IDs, finances, properties, insurances, taxes and emergency planning. Families are completely prepared for all of life’s moments with the advent of Trustworthy. Trustworthy helps us to organize, protect and optimize important information in one place. They offer secure and collaborative experience for families as well as advisors.

River

River is headquartered in San Francisco and they are passionate about building financial solutions that power a transparent and efficient global economic system based on Bitcoin. They are makers of leading Bitcoin brokerage, mining and custody products. Their Bitcoin solutions offer clients a wide variety of financial services and they serve industries of financial services, finance, personal finance, finance technology, Bitcoin, Fintech, blockchain and cryptocurrency. River gives investors an opportunity to invest in Bitcoin with confidence and it lets investors securely buy and mine Bitcoins. Investors can instantly send and receive Bitcoin with River.

Nirvana Money

Nirvana Money features financial services for the digital age and it is headquartered in Miami. They serve financial services, personal finance, banking and finance technology industries.

Money World

Money World has made saving fun and it has offices in New York City and Toronto. The Money World serves the industries of financial services, video games, personal finance, banking, finance technology and financial technology.

FinTron

FinTron has accelerated personal finance for the mobile first generation of the contemporary age. It is located in Connecticut, Stamford and Fairfield County. FinTron is one of the fastest growing fintech startups and it is SEC registered. This personal finance company has more than 12000 clients and nearly $10M in funding.

Personal finance sites provide wide range of information about diverse financial and investing topics. They cover saving, budgeting, debt management, investing tactics, and retirement planning. Personal finance sites are helpful in increasing financial literacy and making wise financial decisions. There are numerous personal finance sites where certified experts provide sound financial advice. Some of the best personal finance sites include Wise Bread, The White Coat Investor, Financial Samurai, Money Under 30, The Millennial Money and The College Investor.

Wise Bread

Wise Bread is a personal finance site helpful in making wise investment and financial decisions. It has received several prestigious awards including About.com’s “PC Magazine’s Top 100 Websites”, “Personal Finance Blog of the Year”, and “Kiplinger’s Best Financial Blogs”. Wise Bread stories are syndicated by renowned media outlets including Yahoo, US News and World Report, Entrepreneur Media, Reader’s Digest and The Huffington Post. The focus of Wise Bread is on personal finance and frugal living.

The White Coat Investor

The White Coat Investor is a personal finance site that showcases independent advice on personal finance and investment for the uber rich. It is designed exclusively for doctors, dentists and other wealthy individuals. The White Coat Investor was established with the unique purpose of educating and empowering medical professionals to make informed financial decisions. This personal finance site features articles, blog entries, podcasts and forums.

Financial Samurai

Financial Samurai was launched by Sam Dogen, after the well known financial crisis of 2007-2008. It is an undisputable fact that Financial Samurai has completely changed the personal finance landscape in an elegant way. Financial Samurai is unquestionably America’s number one personal finance site with glorious reputation. It is perfect for people passionate about financial independence in the post Covid world.

Money Under 30

Money Under 30 offers advice to individuals on a variety of topics including how to begin investing, how to save the initial $1000, and how to pay off school loans. It is best for individuals looking for information rich personal finance website. Money Under 30 focuses on wide variety of financial topics like mortgages, savings accounts, credit cards and auto insurance. Financial advice for young adults is the unique feature of Money Under 30 that makes it stand apart.

The Millennial Money

The Millennial Money is a personal finance site started by The Motley Fool and it was created by Grant Sabatier. The site is aimed towards younger generation and it covers topics including saving, investing and borrowing. The Millennial Money is all about saving, investing and borrowing. The information provided in the Millennial Money helps individuals to gain financial independence sooner.

The College Investor

The College Investor, the prominent personal finance site, focuses on student loan repayment, money management and wise investing choices. It is a personal finance site for beginners and individuals can achieve their financial objectives with the solid advice given on The College Investor. The College Investor offers wealth of information on passive income and it features news, product reviews and comparisons. This personal finance site is a leading resource for helping people get out of student loan debt and start investing for the future.

Objective of personal finance is a target to aim for when managing money and it involves saving, spending, earning and investing. Creating a list of personal finance objectives is important to creating a budget and our personal finance goals should be measurable, specific and time oriented. There are different types of personal finance goals: short term goals, mid term goals and long term goals.

Short Term Personal Finance Goals

Short term personal finance goals are financial targets that can be reached within a year and it includes things like laptop, television or family vacation.

Mid Term Personal Finance Goals

It takes five years to achieve mid term personal finance goals and mid term personal finance goal is expensive than everyday goal. The list of mid term personal finance goals include paying off a credit card balance, loan, and saving for down payment on a car.

Long Term Personal Finance Goals

More than five years is necessary to achieve long term personal finance goals and saving for college education, retirement or new home are best examples of long term personal finance goals.

Examples of Personal Finance Goals

Starting an Emergency Fund

Saving for emergencies is one of the most important personal finance objectives and there are different situations that come under emergency fund including medical expenses, job loss, accidents, broken appliances, and car repair. How much we will save towards emergency will vary and we should roughly save nine months’ worth of income for emergencies.

Paying Off Debt

It is a well known fact that paying off debt is one of the most common personal finance goals and paying off debt can be easily converted into a financial goal. It is quite important to stay strong and diligent as far as paying off debt is concerned. Paying off debt is a mid term goal in some cases and there are numerous ways to get out of debt fast.

Saving for Retirement

It has been pointed out that saving for retirement is the very best example of long term personal finance objectives. Starting 401K or retirement plan is the profitable way to save for future.

Striving for Home Ownership

Buying a home is a very common long term financial goal and home ownership is one of the biggest personal finance goals. Saving up a sizeable downpayment is the smart way to get a reasonable housing loan. Individuals can avoid the cost of private mortgage insurance if they save enough.

Paying Off Car Loan

Paying off a car loan is one of the finest examples of mid term personal finance goals and it is very important to know the best time to sell or trade in our car to make the most of our investment.

Investing in College Education

Paying off student loan has eventually become a long term personal finance goal due to the increasing cost of education. College education fees is a substantial goal to base our budget on.

Planning for Fun

Fun personal finance goals should include vacation, big screen TV, or a boat.

Healthy savings account is absolutely essential and building credit, investing retirement savings and compiling retirement savings are important for personal finance.

Saving for retirement is a vital part of any financial plan and paying with cash instead of credit card is often a better option. Credit card is helpful in building a good credit score and it can be used for emergencies only. It is a good idea to read books on personal finance and expenses should not exceed income. Personal finance experts recommend budgeting and creating a personal spending plan. Tracking expenses will often provide a valuable wake up call and small changes in personal expenses can impact financial control.

Expenses like rent should be kept as low as possible and it can save money over time. ‘Pay Yourself Must’ is a mantra in personal finance and it is quite important to save money for future and emergencies. High yield savings account, short term certificate of deposit, and money market account offer higher interest rate. It is ideal to save for retirement now and company sponsored retirement plans are always a great choice. Contribution limits are higher for 401Ks than for individual retirement accounts and low income learners are taxed at a lower rate than higher income earners in the United States of America.

The Relevance of High Deductible Health Plans

It has been pointed out that high deductible health plans save on premium and it qualifies us for a health savings account. Fee only financial planner is a great choice for young adults and they will give unbiased advice to individuals. Compound interest is a powerful force in finance and it grows money exponentially. It has been reported that compound interest can supercharge our savings over time. We don’t need a MBA in finance or specialized training to become an expert at managing finances.

Loans with highest interest rates should be paid first and net worth is the difference between assets and debt. Setting a budget is the starting point of any personal finance management plan and 20% of interest should be set aside for financial priorities. Choosing federal loans over private loans is always recommended and federal loans have higher interest rates. Employees should save their retirement savings when they get a raise and credit report should be reviewed regularly. According to personal finance experts, our credit score should be kept below 30% of available credit.

Getting Renters Insurance

A secured card is often helpful in building credit like a regular card and we don’t need a good credit to get secured card. Getting renters insurance is a great idea and it covers robberies, vandalism and natural disasters. Savings should be made part of our monthly budget and it should be kept out of checking account. Credit unions are best for better customer service, loans and better interest rates. It is an excellent practice to rebalance portfolios once a year and opening a high yield savings account is recommended. Bank accounts are often referred as the building blocks of financial stability and opening a checking account is a great idea. 3% is the average annual percentage yield and investing in stocks offer excellent returns. One of the most important goals of personal finance is starting retirement savings. Some people can handle financial plan on their own while some others need help.

Personal finance apps connect individuals with their bank account and it is helpful in keeping up with our spending. The best personal finance apps offer several features like email reminders, bill due dates, track subscriptions, and shared wallets. Mint is one of the best personal finance apps of 2023 and the app ‘You Need a Budget’ is best for debt payoff. Empower is rated as best for wealth management and Prism is best for bill payment. Spendee is unquestionably the best app for shared expenses and Every Dollar is best for budgeting.

Mint

Mint is one of the best personal finance apps of 2023 since it is packed with powerful features and it is absolutely free. Simple bill tracking and handy spending categorization are the exquisite features of the one and only Mint. Mint is a popular personal finance management app that provides complete financial picture in one place. It provides access to credit score for free and we can track our investments in Mint.

YNAB

YNAB is designed for budgeting and free trial version of YNAB is available. Detailed budgeting and spending report is the key feature of YNAB that makes it stand out from other popular personal finance management apps.

Empower

Empower is the best personal finance management app since it looks at entire financial picture including investments. Investment component and access to financial advisors make Empower a popular personal finance management app. Managing assets and investments has become very easy with the advent of Empower, the best personal finance and wealth management app. Empower helps individuals connect to their bank account to track spending and optimizing investments. It provides registered financial advisors who can provide us with customized advice tailored to our financial goals.

Prism

Prism is the best option for bill payment and handy payment due date reminders is the best feature of Prism. It showcases full picture of our accounts in one app and Prism shows all bills and financial accounts in a single app. The Prism app has more than 11000 billers comprising larger banks and even smaller utility payments.

Spendee

Spendee is designed to be shared by multiple members of a household and it is best for shared expenses. Couples who need to keep track of joint accounts can make use of Spendee and handy spending categorization is the elegant feature of Spendee. Spendee is easily accessible by family members or roommates. It is free with optional paid upgrade and bank synchronization is available with premium plan of Spendee.

Every Dollar

Every Dollar features a popular approach to managing money that gives a purpose to each and every hard earned dollar. It is an undisputable fact that Every Dollar is the best app for budgeting and intuitive spending tracker is the unique selling proposition of Every Dollar. Access to money management experts is another great feature of Every Dollar that makes it stand out from the rest. It makes use of the zero based budget method recommended by renowned personal finance expert Dave Ramsey. Built in monthly expense tracker available in Every Dollar allows us to connect to bank account. Users can connect with money management experts through Every Dollar.

Personal finance management is the process of planning and managing money. Financial activities like budgeting, spending, banking, insurance, loans, savings, investments, tax planning and estates planning come under personal finance management. Better money management means reducing spending, improving ability to invest, and achieving financial goals.

Tracking Spending to Improve Finances 

It is important to track spending to improve our finances and better money management starts with spending awareness. Money management app like Money Track can be used to track spending across categories.

Creating a Realistic Monthly Budget

It is ideal to use monthly spending habits and monthly take home pay to set a budget. Budget is a better way to encourage better habits.

Building Up Savings

Creating an emergency fund is absolutely important and it can save us from risky situations. We should make general savings contributions to strengthen our financial security in case of job loss.

Paying Bills on Time Every Month

Paying bills on time is an easy way to manage money wisely and it comes with excellent benefits. A strong on time payment history is helpful in lifting credit score and improving interest rates.

Cutting Back on Recurring Charges

It is a good idea to review spending for charges like monthly subscriptions to streaming services and mobile apps.

Saving up Cash to Afford Big Purchases

Certain types of loans and debts are often helpful when making major purchases and cash is the safest and cheapest buying option for other big purchases.

Starting an Investment Strategy

Employees can find out whether their employer offers 401k matching and it is worth considering opening a retirement account or other investment account. The path to better financial management starts with changing our own habits and great money management skills will serve throughout our life. It is to be kept in mind that the foundation of good money management is a rock solid budget. Our hard earned money should be saved, invested and spent judiciously. Money can be saved through effective money management.

A vital aspect of money management is keeping a track of expenses and reviewing them periodically. Making a budget is the first and foremost step of money management. Creating a budget has been used for centuries and saving first and spending later is important. It should be ensured that we are prepared for future contingency and the chances of overspending or exceeding budget should be eliminated. Having a financial goal allows individuals to stay focused and avoid overspending.

It is an elegant idea to start investing in financial products in order to achieve long term financial goals like dream house, child’s education, retirement and much more. Saving should be started as early  possible and it should be started from our first pay cheque. Wealth creation plans are best for long term savings and financial protection is the striking feature of wealth creation plans. Equity funds, balance funds, and debt funds are better options. Taking on multiple loans affect credit scores and it is important to limit debt as much as possible. Being dependent on credit cards and taking too much debt can adversely affect budget. It is better to stay financially prepared for any kind of uncertainties in life.

Teaching kids about money is an integral part of being a good mom or dad and the piggy bank is a great idea to teach children the value of money. A research study indicates that money habits in children are formed by the time they are seven years old. If parents are arguing about money, children will notice that and setting a healthy example for kids is important. It is quite important to show children that every stuff costs money and small kids should understand that money is earned. Children knows how to capitalize on the impulse buy especially when it uses someone else’s money.

Children can setup a bank account as soon as they become teenagers and it takes money management to the next level. Starting a bank account will prepare teenagers for managing a heftier account when they become older. College going youngsters should be aware about alternatives like going to community college, going to an in-state university, working part time while in university, and applying for scholarships. It is important to teach kids the danger of credit cards and most teenagers of today make use of simple budgeting apps like Every Dollar. Parents can introduce their teens to the magic of compound interest at an early age and they should help their children to become entrepreneurs.

Introducing Kids to Safe Digital Spending

Starting up their own business is a great idea for teenagers of today and one of the very best ways to teach kids the value of money is to give them a chance to make money some of their own. It is a great idea to introduce teens to safe digital spending using financial tools like debit cards. Small children have grasped the basic concept of using money as a medium of exchange and parents can take their kids to a physical bank and allow them to deposit their money. Dad and mom can explain their kids that banks hold both hard currency and virtual money. Teenagers can setup a joint checking account and kids in elementary school should be ready to understand electronic spending.

Parents can explain their kids that ATM cardholders get a secret personal identification number that allows them to deposit and withdraw money. Teens can understand digital money and personal finance experts advise that teenagers can begin with a debit card. Interactive financial websites make talking to kids about money easier and more fun with games, activities and quizzes. A child’s money habits are learned by the time they reach high school and financial websites offer financial literacy in an entertaining way. Some of the best interactive financial websites for kids include The Mint, Practical Money Skills, Rich Kid Smart Kid, US Mint Coin Classroom, Sense and Dollars, and Warren Buffet’s Secret Millionaires Club.

Learning about Personal Finance as Early as Possible

Parents should teach children about opening a bank account, paying bills on time, managing a budget, understanding debt and saving money for retirement. It is important to learn about personal finance as early as possible and kids can learn important skills like budgeting, saving, investing and managing debt by learning personal finance early. A strong foundation of financial literacy will help kids make informed financial decisions throughout their life.

It is a well known fact that there are numerous ways to save, invest and grow money. Many of the personal finance habits can be followed by all of us and not leaving money sitting idle is important. Money needs to be working for us at all times and the habit of wealthy families is maintain a top down view of their personal balance sheet. It is to be kept in mind that financial freedom is a function of cash flow and monitoring sources of income consistently is a best practice. Creating a financial plan is critically important and wealthy people use insurance strategically.

The uber rich makes use of insurance as part of their estate planning and tax strategy. Wealthy people meet with their financial advisors more often and accountants, financial advisors and estate planning teams help them make better financial decisions. Understanding the tax basis is important as far as a wealthy individual is concerned. The uber wealthy engage in habitual investing and investing an amount that is comfortable for our circumstances. Personal finance experts say that habit and consistency are important in investing of the contemporary age.

Setting Realistic Financial Goals

Automating deposits directly from our earnings into our investment account is a great idea and setting realistic financial goals, assessing them often, and building a plan to achieve them are very important. Everyone should establish short term and long term financial goals and wealthy people ensure that money is working for them. We should consistently identify lazy money and put it to work. Acquiring the right financial skills is important for personal finance management and getting financial knowledge paves the way towards building a life of sustainable wealth. Understanding risk tolerance is important in personal finance management and a financial investor can guide investors in taking incremental risks based on level of comfort.

Creating a Blueprint for Achieving Financial Goals

Financial freedom refers to having enough savings, investments and cash on hand to afford the lifestyle we always cherished. It is ideal to create a blueprint for achieving financial goals and credit cards should be paid in full. Personal finance experts advise investors to create automatic savings by setting up an emergency fund and contributing to employer’s retirement plan. Being financially independent is the final goal of a long term financial plan and making a monthly household budget is the smart way to guarantee that all bills are paid. It is a fact that credit cards and high interest consumer loans are toxic to wealth building. Student loans, mortgages and similar loans have much lower interest rates.

Ontime payment of loans will build a good credit rating and we should enroll in our employer’s retirement plan. It is recommended to have an automatic withdrawal into an emergency fund and automatic contribution to a brokerage account is a great idea. The amount required to save in an emergency fund depends on individual circumstances. Opening an online brokerage account is recommended and achieving financial freedom is difficult due to growing debt, cash emergencies, medical issues and overspending. It is quite important to get a credit report at regular intervals to ensure that there are no erroneous black marks ruining our good name.

Creating healthy financial habits like regular budgeting and building credit are important for teenagers. Parents should discuss financial matters with teens and they should learn how to build strong financial practices. Teenaged boys and girls can increase their financial literacy through money management principles, spending practices, saving practices, and understanding credit. Many teens spend money on buying gifts, food, clothing, accessories, personal care items and visiting places with friends. Majority of the teens learn about personal finance from their families and school and social media channels are other learning resources.

Many of the teens lack the financial knowledge to handle money matters properly and understanding where our money goes is a vital aspect of proper money management. Teens spend great amount of money on cosmetics and a solid foundation of financial knowledge allows teens to build good credit standing. Teens can build a healthy relationship with money by learning about smart financial practices. Many teenagers spend money on video games, movies and room accessories. Differentiating between needs and wants is helpful in making better spending decisions.

Influence of Peers in Money Spending

The spending habits of most teenagers are influenced by their peers and discussing money matters with family members develop a healthy relationship with money. Time value of money is absolutely essential to financial literacy and customers can apply to different areas of money management including savings, investments and purchasing power. Some of the main financial concerns faced by teenagers of today is not earning enough money or spending too much. Having effective money management skills will help teens handle his or her finances better. Understanding where their money goes will help teens to analyze their spending habits and make necessary adjustments.

It is a brilliant idea to set money aside for unforeseen circumstances and emergencies and it serves as an additional savings that we may need in the future. Teens can opt for Individual Retirement Plan and three out of four teens are not confident about their financial knowledge. Budgeting helps teenagers to plan for short term and long term expenses. It is an undisputable fact that budgeting is a proactive approach to managing our finances and budgeting will take time to get setup. Maintaining budget is key to financial success as far as teenagers are concerned and understanding the income is very important for a teenager.

Starting a Savings Account for Teenagers

Teens should make their expense list as detailed as possible and putting expenses in bucket like food, entertainment, and health is a great idea. Starting a savings account is great for teenagers and building good credit is a part of teenager money management. Teens can start a savings account and they can ensure that they put something in that savings account every month. Setting up an automatic transfer to move a specific account from checking to savings account is recommended. Teens can get a part time job or summer job and earn some money. Teenagers should get familiarized themselves with income tax brackets and it is also important to determine if income is tax exempt. Some debts like mortgages and student loans will help teenagers achieve a better quality of life.

Financial planning is very important for college students and financial decisions we make in college will reverberate throughout our life for years. Smart students turn the financial pain to their advantage by learning money habits and a student needs to spend wisely even after getting their dream job. College life is the perfect time to take control of personal finances and college students will reap the rewards of today’s financial decisions years from now. If we start saving $100 a month at age 18, we will have $4800 in four years. An employee based in the United States of America will be eligible for fair pay, overtime pay, benefits and employer paid taxes. They will receive extra perks beyond their pay and Starbucks offers health coverage, retirement benefits, and tuition assistance to employees who put in 20 hours a week.

It is quite important to spend less than we earn and save for the future as an employee. Mini action plan for employees include opening a checking account, opting out of overdraft protection, tracking spending, paying bills on time by enrolling in auto pay, and defining financial needs vs wants. Many banks and credit unions in USA provide no fee checking account to college students. $35 is the typical bank overdraft fees and it is to be ensured that our debit card declines purchase if we lack sufficient funds in order to avoid overdraft fees. It is a good idea to setup a budget spreadsheet in Microsoft Excel or on Mint.com and record what we have spent every night in that Microsoft Excel or Mint.com.

Automating Credit Card Payments

We can reduce the risk of incurring late fees by automating credit card payments and other monthly bills. Food, clothing and shelter come under the umbrella of financial needs and most other things are wants. A credit card will be an excellent tool for making purchases conveniently and for building credit score when we have steady income. Credit card will become a hazard if not managed properly and it often paves the way towards debt trap. According to personal finance experts, a great goal for a student is to leave college without credit card debt.

Interest rates on credit cards for college students is 24 percent and it is higher than the interest rates on student loans. A college student can use cash for big purchases and it is important to think whether a college going student really needs a credit card. Credit card without annual fee and low interest rates are recommended for college students of today. Soaring college costs make saving unrealistic for most college students and it is important to save a little each month. Some personal finance tips for college students include creating a budget, tracking spending, building an emergency fund, taking advantage of college’s resources and skipping full price textbooks. College going students should slash their spending and stash away the savings.

The Importance of Student Loans

Student loans make perfect sense and college students can look for scholarships, grants, and work study programs. Federal loans come with lower interest rates and more generous forgiveness provisions. Health insurance coverage is an absolute must for college going students and many colleges offer student health plans. The premiums of student health plans are  affordable and financial discipline, financial independence, prudent borrowing, and long term planning are the lessons we learn while in college. Learning to spend wisely instead of impulsively is a skill that can be mastered and learning financial responsibility is a vital part of growing up.

It is a well known fact that personal finance is a process of planning and managing personal financial affairs. Personal finance deals with saving, investing, spending, banking, insurance, mortgages, investments, retirement planning, estate planning and tax. Understanding the essentials of personal finance is necessary for making smart decisions with money. Personal finance for beginners is a roadmap to financial security and freedom in the contemporary age. It helps us to prepare for life’s unexpected events like job loss, illness or disability.

Income, spending, saving, investing and protection are the vital aspects of personal finance. There is no one size fits all solution for personal finance and the best way to manage personal finance is dependent upon individual circumstances. We should make sure that our income never exceeds our spending and it is important to save as much money as possible after paying for essential expenses like mortgage, rent, insurance, and utilities. It is an elegant idea to invest in well established and low cost mutual funds.

The Importance of Mutual Fund Investments

Mutual funds are investment vehicles that raise money from investors and invest it in the stock market or bond market. Diversifying assets form the basics of personal finance for beginners in the post Covid world and enrolling in 401K and 403B are excellent options. There are three types of different mutual funds: growth funds, income funds and hybrid funds. The selection of mutual fund depends on individual needs as well as goals and it has been pointed out that a growth fund only invests in stocks. Investing in growth fund for a lengthy timeframe is recommended and growth funds will return lucrative benefits compared to income funds and hybrid funds.

Income fund invests in bonds and dividend paying stocks and they are less risky than growth funds and hybrid funds. They pay interest and dividends once a month or every three months. Hybrid funds are mutual funds with features of both growth funds and income funds. They are less volatile than growth funds and more volatile than income funds. The basics of personal finance include the power of compounding money and the most common types of insurance include automobile insurance, homeowner’s insurance, umbrella insurance, disability insurance and life insurance. A typical automobile policy plan covers bodily injury, liability for property damage, bodily injury caused by uninsured motorists, property damage caused by uninsured motorists and medical expense benefits.

Buying an Umbrella Insurance

Homeowner’s insurance policy coverage includes home construction supplies, personal properties, loss of use, and personal liability for each incident. Buying an umbrella insurance policy will be beneficial if a person has numerous assets and it is also known as additional liability insurance. Disability insurance benefits can be paid for work related illnesses or injuries in special situations that are outlined by law.  In a nutshell, personal finance is the financial planning that an individual or a family undertakes to earn, save and spend money. Having a clear knowledge of concepts in personal finance like setting financial goals, budgeting, investing, saving, retirement planning and insurance planning help an investor to make sound financial decisions. Investors should ensure that they have an emergency fund to cover unexpected expenses and investing money wisely is important.

Renowned universities in USA like Texas Tech University, University of Missouri, The University of Arizona, Western Michigan University and Western Kentucky University offer personal finance courses.

Texas Tech University  

PhD(Doctor of Philosophy) in personal finance, Graduate Certificate in Personal Financial Planning, Graduate Certificate in Tax Certificate for Personal Financial Planners, MS in Personal Finance Planning, and Master of Science in Personal Financial Planning are the personal finance courses offered by the coveted Texas Tech University. Texas Tech University is often called as the headquarters of personal financial planning education. It is the first American University that offers PhD in personal financial planning and completing PhD degree in personal finance offered by Texas Tech University guarantees career excellence. The PhD program of Texas Tech University in personal finance is known for excellence. It is unquestionably an august initiative known for world class faculty, outstanding career achievements, and practical training in research.

University of Missouri

BS in Personal Financial Planning, Graduate Certificate in Personal Financial Planning, and Master of Science in Personal Financial Planning are the courses in personal finance offered by the famous University of Missouri. University of Missouri continues its invincible journey of excellence through the corridors of academic world. Financial advising and financial management services are the specialization areas offered in BS in Personal Financial Planning of University of Missouri. BS in Personal Financial Planning of University of Missouri comprises departmental core requirements, supporting coursework, professional foundation, communication and professional specialization courses. The tuition fees of BS program in Personal Financial Planning of University of Missouri is $30142.

The University of Arizona

Students can get a crystal-clear idea about financial planning and wealth management with the personal finance program offered by the University of Arizona. It includes courses in law, ethics, personal dynamics, family dynamics, retirement strategies, and risk management. The BS program in personal financial planning offered by The University of Arizona requires an internship too. Students can gain on the job experience with the internship associated with the BS program in Personal Financial Planning of the University of Arizona. They can build a star studded career as financial planners, wealth managers, estate planners, tax advisors and retirement planners after completing this course.

Western Michigan University

Western Michigan University’s personal financial planning program focuses on securities valuation, insurance, estate planning, retirement planning, and employee benefits. This program has been certified by the Certified Financial Planner Board and it is nationally recognized by Financial Planning Magazine. Enrolling in personal financial planning program of Western Michigan University paves the way towards strong foundation in financial planning. Completing BBA course of Western Michigan University in personal financial planning guarantees a successful career. The ultimate focus of personal financial planning program offered by Western Michigan University is on wealth management and interpersonal skills.

Western Kentucky University

The personal financial planning program of Western Kentucky University provides students with knowledge, skills and technical expertise to become top rated financial planners or financial counsellors. It is one of the first undergraduate personal finance planning programs in the United States of America. Their undergraduate personal finance planning program is registered with the Certified Financial Planner Board of Standards.

Obtaining personal finance certifications can enhance our knowledge and demonstrate value to an employer. Choosing the right personal finance certification is dependent upon career specialization and career goals. Personal finance certifications are designations that demonstrate expertise and knowledge in a specific field. Personal finance certifications like CFP(ertified Financial Planner), CFS(Certified Fund Specialist), CGFM(Certified Government Financial Manager), CIIA(Certified International Investment Analyst), and CIMA(Certified Investment Management Analyst) will strengthen the resume of a personal finance professional. Now let us delve into the details of various personal finance certifications that will help personal finance professionals scale heights of excellence in career.

CFP(Certified Financial Planner)

CFP(Certified Financial Planner) certification is intended for professional financial planners and it is a certification coveted by personal finance professionals. It showcases a personal finance professional’s competence, integrity, honesty and diligence regarding financial matters. The CFP exam contains 170 multiple choice questions and prerequisites include 6000 hours of professional experience, 4000 hours of apprenticeship experience, bachelor’s degree from an accredited college, passing a background check, passing the CFP exam, general finance principles, professional conduct and risk management.

CFS(Certified Fund Specialist)

The duty of a Certified Fund Specialist is to  advise clients about investments and buy and sell funds for them. This certification is from the Institute of Business and Finance and it demonstrates knowledge in mutual fund and the industry. Accountants,  bankers, brokers, money managers, and personal financial advisors are the major beneficiaries of CFS certification. The Certified Fund Specialist certification process includes three proctored online exams and a case study.

CGFM(Certified Government Financial Manager)

Personal finance professionals looking for a career in federal, state or local governments can enroll in CGFM(Certified Government Financial Manager). It features financial reporting, internal controls, auditing, and accounting for government organizations. Bachelor’s degree, professional experience in government financial planning, and passing three CGFM exams are the prerequisites involved in CGFM. Governmental environment, governmental accounting, financial reporting, budgeting, government financial management, and government financial control are the examination topics of CGFM.

CIIA(Certified International Investment Analyst)

The CIIA(Certified International Investment Analyst) tests the knowledge of economics, corporate finance, portfolio management, equity analysis, equity valuation, fixed income valuation, fixed income analysis, derivative valuation and derivative analysis. This personal finance certification is provided by ACIIA(Association of Certified International Investment Analysts). Its requirements include three years of professional experience in portfolio management, investment or financial analysis, membership in a participating national society and passing all CIIA exams. Foundational level exams covering core topics like corporate finance, economics and portfolio management is the major feature of CIIA.

CIMA(Certified Investment Management Analyst)

Financial analysts, investment consultants, wealth management experts and financial planners can immensely get benefitted from CIMA(Certified Investment Management Analyst). Prerequisites of CIMA(Certified Investment Management Analyst) include at least three years of experience, completing the CIMA education program, holding the CIMA certificate in relevant qualifications, and passing a background check. Its computer based exam covers ethics, asset allocation, due diligence, risk measurement and investment policy. CIMA qualified personal finance professionals should sign an agreement indicating that they adhere to the Investments and Wealth Institute’s code of professional responsibility. They should complete at least forty hours of CE credits every two years and the compliance requirement should be completed annually.

Personal finance basics covers all the decisions we make with our money throughout our life and basics of personal finance involves easily manageable steps.

Creating a Budget

Budgeting is the very foundation of personal finance and it is all about making a plan for our precious money, every dollar coming in and every dollar going out. Listing income is the first basic step of personal finance and it includes take home pay and side hustle money. Planning for food, utilities, accommodation and transportation are vital aspects of personal finance basics. Tracking our expenses is an important component of personal finance of the contemporary era. We should essentially track the money that goes in or out of our bank account and it is a good idea to keep away from overspending. Personal finance experts recommend creating budgets for each and every month.

Investors should save for large purchases or semi-annual expenses and a sinking fund is the splendid way to save up for large as well as semi-annual expenses. Building an emergency fund is essential and it is ideal to begin with $1000 starter fund. A typical investor will have to save enough to cover 3-6 months of emergency expenses. It is to be kept in mind that emergency fund is not a long term investment and it needs to be ready when we need it. Emergency fund can be put in a money market account and it can be deposited by writing a cheque or going to an ATM.

Saving for Retirement

Having a fully funded emergency fund guarantees personal finance security and retirement investment is not so complicated as many of us may think. Investing in 401K or 403B is a splendid retirement investing idea and individuals with IRA can open Roth IRA too. Roth IRA gives big tax advantage and it allow investing $6500 in 2023 and our money will spread across growth mutual funds, growth and income mutual funds, aggressive growth funds and international growth funds in 401K and Roth IRA. Diversification is very important as far as personal finance basics are concerned.

Getting the Right Insurance

The list of must have insurance includes term life insurance, auto insurance, homeowner’s insurance, health insurance, long term disability insurance, long term care insurance, identity theft protection, and umbrella insurance. Everyone of us need a 15- or 20-year term life insurance policy and auto insurance includes liability, collision and comprehensive. It is a great idea to speak to an independent insurance agent for getting the best insurance rates. Typical homeowners insurance includes dwelling coverage, flood coverage and earthquake coverage. Renters insurance will help us replace our stuff if it is lost in fire, burglary or other disaster.

Investors can consider a high deductible health insurance plan combined with a Health Savings Account. Long term disability insurance will help customers replace their income if they can no longer work because of sickness or injury. Typical long term disability insurance is about 60-70% of our income and short term disability insurance is not at all recommended. It is an excellent idea to get long term care insurance that covers in-home care and identity theft protection is an absolute must. Identity theft protection includes both protection and recovery services.

Personal finance and planning are a roadmap that helps us achieve our financial goals very easily. Financial planning can be done on our own or we can seek the services of qualified personal finance professionals. Personal finance and planning are a mix of current finances, financial goals and strategies to achieve our financial goals. Good personal finance planning consists of cash flow, savings, debt, investments, and insurance. Financial planning can be defined as an ongoing process that looks at our financial picture to design strategies for achieving short term as well as long term financial goals.

An ideal financial plan reduces our stress about finance and support our current monetary needs. Creating a financial plan is very important in the post Covid world since it makes the most of our assets. Financial planning has become more affordable with the elegant entry of online services like robo advisors. It is an undisputable fact that financial planning has become more accessible than ever in the contemporary digital world. Personal finance and planning include setting financial goals, tracking money, keeping a budget for emergencies, dealing with high interest debt, planning for retirement, optimizing finance with tax planning, investing to build future goals, growing financial wellbeing and estate planning.

Setting Financial Goals

A great financial plan is inspired by our financial goals and we should try our level best to make our financial goals inspirational. Having concrete financial goals is helpful in identifying and completing next steps in financial planning.

Tracking Money

A good financial plan reveals ways to direct more to savings or debt pay down and investors can create immediate, medium term and long-term plans seeing where their hard earned money goes. Developing a budget is a conventional immediate financial plan and 50% of the money can be put for needs like housing, transportation, utilities and recurring payments. 30% of the money should be set aside for expenses like dining out with family, entertainment and buying clothes.

It is an innovative idea to use 20% of the money towards savings and debt repayment. Reducing credit card or other high interest debt is a common medium term plan and planning for retirement is a long term plan.

Keeping a Budget for Emergencies

Putting away cash for emergency expense is the basis of any well designed personal finance plan. $500 will be enough for covering small emergencies and repairs and the next goal should be $1000, living expense of one month. Building credit is another smart way to shockproof our budget and good credit paves the way towards getting a car loan. Excellent credit boosts budget by getting cheap rates on insurance schemes.

Dealing with High Interest Debt

Paying down high interest debt such as credit card balances, payday loans, and title loans is an important step in any financial plan.  A debt consolidation loan or debt management plan is helpful for persons struggling with revolving debt.

Planning for Retirement

Considering 401K as a part of retirement planning is really worth and IRA(Individual Retirement Arrangement) is another savings option for retirement planning. Investment accounts availing tax benefits can build retirement savings up to $6500 a year in 2023.

Setting short term goals and long term goals are important as far as personal finance and investing are concerned. Creating a master list of financial goals is the first step in personal finance and planning. It is quite important to build an emergency fund that can cover at least three months of emergency living expenses. Investors should keep their new credit card charges limited to what they can pay off easily and paying off existing credit card balances is required. It is an intelligent idea to start saving at least 10% of gross salary every year for retirement.

Investors can save for child’s education in a tax advantaged 529 plan and creating a budget paves the way towards making financial goal reachable. Excel or Google Docs spreadsheet can be used to create a budget and track progress. Budgeting apps synchronized with banking accounts make the whole task of tracking spending very easy. Making an emergency fund starts with setting a goal for how much protection we want to build. It is ideal to open a separate bank or credit union savings account as emergency fund and keeping emergency fund in regular checking account introduces the temptation to use the cash for non emergencies.

Paying Off High Rate Debt as a Smart Investment Strategy

Highest yields are paid by online savings banks and individuals can open a high end savings account and setup an automatic transfer from checking account into savings account. Paying off high rate debt is a smart investment move and the average 17% interest rate charged on unpaid credit card balances adversely affects building financial security. Individuals with a solid credit score can think of checking if they can qualify for a balance transfer deal to a new card that will waive interest payments for an initial period. The very best way to save for retirement is to utilize special accounts that give us valuable tax breaks. Retirement accounts like 401K and 403B are immensely popular in the promised land of United States of America.

A person with earned income can contribute to their individual retirement account and many brokerages provide IRA. Investors can avail an upfront tax break with 401K and 403B accounts and traditional IRA accounts are eligible for upfront tax break. Roth 401K and IRAs offer the tax break in retirement. People in their 20s can start saving at least 10% of their gross salary as soon as possible and independent contractors and gig workers qualify for SEP IRA. SEP IRA stands for Simplified Employee Pension Individual Retirement Arrangement. Only traditional format of SEP IRA is available and there is no Roth version of SEP IRA.

Consulting with a Certified Financial Planner

Roth 401K and Roth IRA are beneficial for individuals coming under lower tax bracket and there is no income cutoff in order to become eligible to save in Roth IRA. Individuals in their 30s can save 15% of their gross salary and consulting with a certified financial planner to work through retirement savings is highly recommended. Personal finance planners charge a flat fee or hourly fee for a specific assignment and Roth retirement savings can be used to create tax diversification. It is a great idea to invest for retirement with a very long term focus and stocks deliver high returns than bonds. The right stock bond mixture is dependent upon personal goals, willingness for risk, and the number of years we hold our investments.