• Skip to secondary menu
  • Skip to content
  • Skip to primary sidebar
  • About
    • Privacy Policy
    • Terms of Use
  • Contact
    • Advertise
    • Guest Post
  • Subscription

Agatha Singer

  • Business & Finance
    • Business
      • Small Business
      • Business Management
      • Making Money Online
        • Blogging
    • Finance
      • Business Finance
      • Family Finance
      • Personal Finance
    • Real Estate
  • Health & Fitness
  • Beauty & Fashion
    • Beauty
    • Fashion & Style
  • Family
    • Parenting
    • Relationships
    • Family Finance
  • Home & Garden
  • Travel
  • Education & Career
    • Education
    • Careers

What Are the Basic Principles of Finance (And Why You Should Know Them)

August 7, 2021

Share
Tweet
Pin

Finance is not everyone’s cup of tea but it is one of those things that we all need to know about. How we treat our finances can have a massive impact on our day-to-day lives. This is why we should learn about some of the basic principles and ensure that they impact our life for the better.

Woman looking at a jar filled with money.

Budgeting

If there is one topic in finance that has become exciting over the last few years, it is budgeting. You might scoff at this idea but it is true. The last recession has left many people struggling with money, and many people were forced into bankruptcy in the years that followed. And this is where budgeting can come in. As people, especially mums, tried to adjust, the budget became a tool that would stop them from sinking. Now, there are thousands of tools, guides, and inspirational stories about the people who budgeted like their lives depended on it and came out the other side feeling good.

Cash Flows

Managing funds and cash flows may sound like budgeting, but it is kind of different. Cash flow is about being aware of the money that goes in and out of your household. The budget then determines how and what gets paid. Cash flow can be anything from benefit payments or wages coming into the house, to the mortgage and internet bill going out. The cash flow coming in must always be more than the cash flow going out. If there is too much cash going out, you will need to revamp your budget to get it in order.

Credit and Finance

Some of the biggest purchases that you will ever make will likely be done with finance or some type of credit. Unfortunately, a lot of us do not have a lot of savings to fall back on for making exceptionally large purchases. Your first house may be paid for with a small deposit and a mortgage. Your car is likely paid for every month with a finance agreement. And these are fine. What you do need to be aware of is the amount of finance and credit that you are using at any given time. If you find that you are relying on credit for a lot of things, you may need to go back to your budget and cash flow to see if there is an issue that needs to be fixed.

Savings and Insurance

Savings is one of those things that we know we should have but rarely get a chance to build up. When it comes to savings, you should have three different accounts for pooling money in. Yep, you read that right, three savings accounts. One is for emergencies such as damage to your home or you are out of work. The second is for major purchases such as a car or house deposit. And the third is for fun things such as vacations and buying presents during the Holiday Season. If you discover that your cash flow and budget won’t allow for a lot of savings, insurance with miami insurance public adjuster can help cover you so you don’t have to cover any major or sudden expenses with a credit card.

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Looking for Something?

About Me


Hi and welcome to my blog! I’m Agatha Singer, a former 9 to 6 business & finance consultant and current work-from-home mom of two awesome little nuggets. Join me in my journey to a perfect balance between my family and personality.

Areas of Expertise

Most Popular

  • Growing Your Business with Transportation Factoring 8 comments
  • Woman taking off makeup. 7 Tips to Look Beautiful Naturally: Be Stunning Without Makeup 7 comments
  • 3 Online Shopping Tips to Protect Your Finances 7 comments
  • Beauty of Corfu Island 10 Prettiest Places in Greece Beyond Athens and Santorini 6 comments
  • Mother having fun with her little son Parenting Tips for a 2-Year-Old Boy: Raise a Happy Child 6 comments

Disclaimer

AgSinger.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.

  • Home
  • Advertise
  • Contact
  • Guest Post
  • Privacy Policy
  • Sitemap
© 2020 Agatha Singer. All rights reserved.
By using this site, you are agreeing to the site terms of use.