If one thing is for sure – this fast-paced world is showing no signs of slowing down, and financial issues are only exacerbated by nationwide concerns like inflation. Having a personal financial management plan can be a life preserver to keep you from sinking, and Max CashⓇ is here to show you the way and guide you to many different financial resources.2 5
You no longer have to be alone in planning for short and long-term financial goals. Keep reading to discover how you can start managing your finances today for a more prosperous tomorrow!
Why is Personal Financial Management Important?
A freestyle, go-with-the-flow kind of attitude can be a lot of fun if it’s date night, but when it comes to your financial future, you need a plan. Even millionaires use strategic budgets along with strict financial management practices – and so can you. Here’s why it’s important:
- Sick of constantly worrying about your money? Personal financial management will help you get better control of your finances and assets.
- Meeting short-term needs is one thing, but having long-term financial goals will help you get where you want to be.
- Learn to avoid financial mistakes like overspending or slipping into high-interest debt.
- Set up a safety net for unexpected emergencies and gradually build your personal wealth. Not having an emergency fund will leave you vulnerable to financial emergencies!
These are great tips for sure, but easier said than done, right? Actually, you can now tap into personal financial insights (PFI) for managing your finances with PFI Verify, a partner of Max Cash. Get your financial snapshot with just a few clicks and start setting your financial goals now!2 5
Key Aspects of Personal Financial Management
A house built on a poor foundation will sink fast, and with personal financial management, the foundation boils down to having effective ways of saving and ultimately growing your money. Here are four vital factors that make up the DNA of personal financial management:
Budgeting
Budgeting is where many fail because it’s really about coming to terms with bad habits, like overspending. Having a clear, concrete budget in place will help you not burn through your money on things you don’t need. Maybe you want to purchase a home someday or a new car. With budgeting, you can begin piggy-banking toward that goal.
You never know when something unexpected will happen–with effective budgeting, you can have funds available to face whatever emergency it may be. You no longer have to try keeping track of these expenses with a pencil and notepad, online platforms like PFI Verify have it all in one place, 24/7.
Saving
Back to the unexpected, having savings in place is crucial, and for reaching future financial goals. Start with setting aside an emergency fund, particularly if you have children, and save enough for twelve months, minimum. Consider the 50/30/20 rule as well: divvy up 50% for living expenses, 30% for non-essentials, and 20% for savings.
It may also help to think about what you’re saving for. Is it that dream home, or a trip to Hawaii? Saving money will be less of a chore if you’re working towards something you really want or are passionate about. But it won’t happen overnight, and if you need cash fast, Max Cash can help you get access to funds quickly if you are eligible for a personal loan, cash advance, or a title loan!2 5
Paying Off Debt
Student loans, credit cards, and beyond – having debt can put a strain on your finances. An effective financial plan would be to try paying off high-interest debts first while managing the more long-term (student loans/mortgages). A great way of managing debt is with the snowball or avalanche methods, or by consolidating loans into one fixed monthly payment. If you need to consolidate your credit card debt, a personal loan or a title loan can be an option to consider so that you can focus on one larger payment instead of several smaller ones.
Retirement Plans
Retiring at the age of 65 (or whenever you want) doesn’t have to be a fantasy, planning for retirement now will help you live the life you want when that time comes.
If possible, increase what you put towards retirement by 1% annually until reaching 15% of your income. If your place of employment offers a retirement savings plan like a 401(k), join up, and the company may match a percentage of your contribution.
You can also deposit up to $6,000 yearly in individual retirement accounts (IRAs), or choose the Roth IRA option–both are great ways to save towards retirement. Make sure to consider the taxes that you may have to pay when taking out your money in the future! That will help you determine which retirement account is right for your financial plan.
With a Roth IRA, you can withdraw your contributions tax free because you pay taxes on the money before it hits your account. For some people planning their retirement, this type of account can be the better option because it requires less planning – meaning that you don’t have to account for paying taxes on your money in the future because it grows tax free.
How Can I Use Personal Financial Management Software?
Managing your personal finances may seem challenging and time-consuming, but there’s personal financial management software that simplifies the process by tracking your spending in real-time, linking your accounts for an overall picture, and offering tools to nurture future financial goals.
PFI Verify, a partner of Max Cash, lets you do all this and more with its curated platform, showing users up-to-date credit and PFI scores to guide them in making better financial decisions. The platform is designed like a social media feed and is super user-friendly, which can make it easier for you to get back on track with your finances.
Financial Management Counseling for Debt Relief
Sometimes you just need help, and if the debt is dragging you down, you can seek out financial management counseling to help steer you in the right direction. Debt relief counselors can:
- Work closely with you to create a repayment plan based on your personal financial situation.
- Communicate with creditors to potentially reduce interest rates and payments.
- Offer financial education and tips to keep you out of further debt.
The National Foundation for Credit Counseling (NFCC) is a nonprofit agency, totally free, and a great place to start if you’re struggling with debt.
Your Personal Financial Management Plan Can Start Today!
Don’t be overwhelmed with starting your personal financial management plan, you’ve read what a vital tool it can be, but are you still on the fence? With a personal financial management plan, you can get closer to your financial goals and be confident about your future!2 5
Consider a personal financial management plan to start taking control of your finances, or you can call Max Cash for help if you need cash fast at (833) 207-9052.2 5
