Arya was among the few from her college who managed to land a dream job after her MBA. With a sudden inflow of money, she lived her life to the fullest. But she forgot to save or invest and when she had a rainy day in her life, she was lost. She realised too late that it was important to save and invest money. 

Once she was able to get back on her feet, the first thing she invested was her time in learning how to improve her financial management skills. Let’s join Arya in her journey and learn the principles of personal finance and see how she will be able to improve her financial health.

• Rule 1 - Setting aside money every month

  The most obvious rule of learning how to improve financial management is the most obvious and yet the most difficult one – learning to set aside some money every month to invest or save. For this, calculating your monthly inflow and outflow is most necessary. When you have this calculation, you will get to know from where exactly your pocket is leaking and you could fix those leaks to make sure you have money to invest every month. Once you take this first step, you will get to know how much exactly you can save monthly and it could lead to a healthy money-saving habit. 

• Rule 2 – Choosing the right place to invest

Each investor has their own needs and apprehensions when it comes to investing, and more often than not, a template might not be the best thing for your money.


Hence, it is important to talk to a financial expert when you are learning how to improve financial health to know what suits you the best and create a portfolio based on that interest so that your investment is in alignment with your needs and ideologies. 

• Rule 3 – Sticking to your plan

When a person comes across a situation similar to Arya’s, they will have a sudden realisation and often, that will make them learn how to manage money and save it. But the difficult part here is to stick to your plan. Setting aside a part of your income could mean that you can no longer afford some luxuries and this could hamper your savings habit. What helps here is revisiting what happened and talking to your financial advisor to find the right balance. 

• Rule 4 – Creating an emergency fund

Life is unpredictable and while you can hope that nothing of untoward happens to you, the best thing that can be done to make sure you stay financially afloat if it happens is to keep an emergency fund ready. This will not only help you financially but will also give you the confidence to deal with the tough situation as you might only need minimal help from others. Here, its ideal you learn how to manage money before it is too late, like in Arya’s case. 

• Rule 5 – Being flexible

Often, people will figure out an investment or savings plan and stick to it regardless of what happens in the market. This could stagnate your investment in the long term. Thus, it is prudent for you to learn to be dynamic as you learn how to manage your finances.

• Rule 6 – Let math be your friend

Math isn’t hard anymore, thanks to the number of calculators available online. While you learn how to manage your finances, befriend these calculators to make sure your investments are well planned out.

How to manage your money?

The key is to being considerate to your future self. Saving money today is investing in your future self. If you have not started yet, don’t be ashamed. Get invested in learning these details or reach out to a financial advisor to manage your personal finances and improve your financial health today!