4) Wise Investments –

It is sometimes harder to invest money wisely than earn it. This is the standard problem faced by many people. So, one need not feel alone in this aspect. Having a financial advisor or following market analysts regularly are good options here. Though hiring a financial advisor might seem costly, it is way better than burning huge sums of money as a result of bad financial decisions. A rule of thumb given by Johnson is to subtract one’s age from hundred and invest the resulting number in stocks. This is definitely not advisable for people who are too young and want safer investments. However, only people who are old enough to take risks in investments can follow this formula. Moreover, investing is more about proper timing than anything else. So, do watch the market, apart from the skies.

5) Curtail Over-spending –

This is extremely difficult for people who are addicted to shopping and literally battle with their credit card bills. However, there is hope for everyone in managing personal finances. This might seem more difficult for shopaholics but it is way better than losing hair and sleep over credit-card bills. One is not saying to stop all lavish spending at once because this might hurt the psyche of people. Such people need to do this nice and slowly. Reducing 1 to 2 pricey items per month will not tax the sentiments of people. Do remember while shopping, that utility outweighs certain status symbols at any given time. One might have to face people for a long period of time but we need to answer ourselves at the end of the day. Splurging once in a blue moon is not a sin but going bankrupt most definitely seems like one. Remember that baby steps taken can traverse a long distance. Also, one can compare prices of items online on various websites to go for the best deal among many options. In this tech-savvy era, hooking to the internet is no biggie as mobile websites are just a click away.