You probably heard about personal finance. For some, you might refer the word finance as things that are related to stocks, broker, etc. While for some, this words seems like a hard and avoidable topic in most conversations (when is the last time you discuss  your monetary situation to someone?)

So here ,we will discuss and explain how you can apply the very best practice of finance to your daily basis. (Well, if everyone has mastered the art of finance, nobody will go into a bad debt in the first place).

1. Determine what you Want. Personal Finance is a way to manage and use money but for what purpose? To live in your dream house, budget to marry your loved one? Be specific.
2. Now that you know what you want, you will need the money to do it. You need to Understand what lifestyle you are currently having and the cost of maintaining it.
3. List out your monthly income and expense (a pen and paper will do)
4. Live Within Your Means. If you can only afford $2.000 per month, don’t go further.
5. Start Saving Early. Did you know that if you save $100 per month every year for 40 years with 2% interest rate, you will have $73.932 later?
6. Pay Your Credit Card on Time. Don’t pay with interest, it is hurting your wallet.
7. If you don’t have the money, don’t buy (there are several exceptions to this)
8. Educate yourself on how to live frugally. This will mean more money to save and more big things you can buy e.g apartment, car.
9. Did you know that your cash will reduce its value every year? Your $100 bill will have less value every year (Thank you inflation).
10.  Understand the concept of “it takes money to make money”. If you want to make your own business, you need to build inventory or website.
11. Have Insurance Ready – Especially Health, you just need ONE situation to happen and all your savings will be gone in an instant to pay off the medical bills.
12. When you buy something for $500 for a $600 item, you just spend $500 instead of saving $100.
13. The best way to save more money is to make more money.
14. Not all debt are bad debt. If your debt is making you money, then it is a good debt (example are students loan, business investment, house investment).
15. Learn about asset appreciation and depreciation. Buying a car vs a house, which one is likely will go UP in value in a year?

We really hope that you have learnt something from this list. If you ended up not doing any of the above points, please make sure you have number 1 done.