When it comes to personal finance, spending less and earning more are the foundations for a financially sound life. Earning more can be achieved through a variety of means, including asking for a pay raise or side hustle, or learning how to price services fairly. Earning more is often easier than cutting expenses, but it is important to remember that adding more work to your schedule can cause you to feel mentally exhausted. That can affect your budgeting and impulse spending.

One of the most popular personal finance strategies is called velocity banking. Using a home equity line of credit, you can spread your money across different debt products to minimize interest payments and maximize mortgage principal. This strategy is best for individuals who are able to spend less than they earn and who are comfortable with taking risks. Some people may also find it useful to utilize some of the ideas presented by the “Bogleheads,” which refers to people who practice Vanguard Group founder John Bogle.

Personal finance requires a philosophy and skill set. While there is no specific “personal finance” skill set, many basic principles of success can be applied to the practice. Three main principles are prioritization, assessment, and restraint. Prioritization means focusing your money-generating activities over non-money-generating activities. Creating a budget allows you to focus your time and effort on the activities that will bring you the most money.

As mentioned, personal finance involves planning for the future and managing money. It can include budgeting, saving, and investing. It can also involve tax planning and retirement planning. Ultimately, personal finance should help you achieve your financial goals. As such, it is vital that you understand personal finance and have a sound financial game plan. But how do you plan for your future? Personal finance is not about getting rich overnight; it’s about making wise decisions to make your financial life better.

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