Introduction to personal finance
Welcome to the first installment in the Finance 101 series. Throughout these posts, we'll explore the basics of personal finance, starting from scratch. If you've never been interested in the topic before, or find it daunting to get started because everything seems so overwhelming, this is for you. If you're already a veteran, it'll be a refresher on topics you probably already know. Take this opportunity to think about your current situation and plan, making sure you have all bases covered.
What exactly is personal finance? It's a subset of the wider financial domain, focused on the planning and effect of finances applied to an individual's life. It includes topics such as budgeting, savings & debts, retirement planning, and other such topics that make me the life of any party. Although it may sound boring to some of you, the end goal is worth it: personal finance is all about making sure you get live the life you want. It's a poorly understood topic in our society, and our education system does little to improve this situation. Financial literacy is in the sewer all across the country. I barely remember the (only) economy class I've had to take in high school, but as students, we didn't learn how to plan our financial lives. And just by talking with people anywhere, whether that's with colleagues, family, friends, or strangers, one can easily see the void that would help everyone make better choices for themselves.
If there is one goal I'm looking to achieve with this blog, it's to help people live their best life.
The most impactful way for most people to achieve this is to take a handle on their finances. It's a topic I love, which is why I talk about it so much, but you don't need to like this topic to benefit from it. Learning, and applying these concepts to your situation will help you reduce stress, live through events life throws at you, and give you independence. It's the best kind of investment: investing in yourself. There is no other investment that will give you as many results like that.
If you're new, start with the basics and read the rest of this series. In other blog posts, we'll dive in-depth into all kinds of related topics, some deeper than others. Don't feel discouraged if it's a lot to take at the same time, learn at your own pace. Any improvement you can implement, and bring to your life, will improve it. While it's fun to compare ourselves to others, this is a personal path. Ultimately, you'll be the one having to live through your decisions.
What's next?
Step 1: Introduction to personal finance (this)
Step 2: Income + expenses = budget (upcoming)
Step 3: Debts (upcoming)
Step 4: Savings (upcoming)
Step 5: Make a plan (upcoming)