Personal finance is not a mandatory subject in high schools and colleges, is it? And the lack of basic financial education leaves a lot of young adults clueless on how to manage the money, apply for credit, and stay out of debt. That is why you need a segment in your life that contributes to managing life financially. 

Steps you Can Adopt for Strategic Financial Planning

Master the Art of Self Control

If you are lucky enough you have already mastered the skill from when you are a kid. If not, the sooner you learn, the better and the more you would keep your personal finances in order. It might seem effortless to buy something on a credit card the minute you want, but it’s better to wait until you’ve actually saved up for that purchase. So tell me, do you really want to pay interest on a pair of jeans a box of cereal. It’s always easier to make money from your checking account than racking up on interest charges.

“Self Control is the ability to do the important thing over the urgent.”

– Timothy Keller

Outline your Financial Future

Managing money is not as easy as you think. Do you know who you are relying on for advice? Read a few basic books on personal finance, do more research on how you can control your financial future, and once you have done this, you are guarded with knowledge. This means you can never be caught off guard when it comes to finance and financial planning in your life. You wouldn’t be a young adult who is blowing of tons of money every weekend, and you’ll also be someone who is financially secure.

“Don’t forget to think ahead.”

– Jeff Bezos

Find the Routes of your Money

Knowing where your money is going is one of the most important factors of financial planning. Once you’ve gone through some personal finance books, you will know how important it is to make sure that expenses are not exceeding your income. The best way to do this would be through budgeting. So once you know how much your morning coffee adds up to the overall course of a month, you would realize that making small manageable changes in your everyday expenses can be a big impact on your financial situation.

So how are your monthly expenses exceeding your income? Do you know where your money is going? To create a route map to where all of this money is flowing and know which stream you want to block and which one you want to let flow.

“A good financial plan is a road map that will show us exactly how the choices we make now will affect our future.”

– Alexa Von Tobel

Always have an Emergency Fund

It is a mandate for personal finance management to have an emergency fund. No matter how much you got in loans, credit card debt, and no matter how low your salary may seem, it is always wise to find some amount, any amount for that matter, to stock away in an emergency fund for every month. This can help you keep out of trouble financially and help you sleep better at night. If you get into the habit of saving money and treating it as a non-negotiable monthly expense, you would soon have more than just an emergency fund saved up.

“All the days aren’t the same, so save up for a rainy day. When you aren’t working, the saving would work for you.”

– unknown 

Save up for Retirement

Financial planning also means prepare for retirement quite early. Because of the way compound interest works the sooner you start investing or saving, the less principal you will have to invest to end up with the amount that you need for retirement. Don’t wait to save for retirement and start as soon as possible to make up your financial goals. Start some new investments such as stocks, mutual funds, FDs and others.

“Spend what is left after saving.”

– Warren Buffet

Don’t Take Taxes Lightly

You might overlook the fact of taxes, but income tax is work even before you get your first paycheck. When you getting your starting salary, the need to know how to calculate whether your salary will give you enough money after the taxes are deducted to meet your financial obligations. Fortunately, there are plenty of online tax calculators, so you do not have to set and do the Math by yourself.

“Beware of the little expenses because a small leak sinks the ship.”

-Benjamin Franklin

A Cliche – Your Health does Contribute to your Wealth

Don’t make health negotiable. If meeting monthly health insurance premiums seems impossible, just imagine what you would do if you have to go to the emergency room, even if it was a minor injury. How much would you be spending on it? Do not wait for the perfect date of life for Health Insurance. It is easier than you think to wind up in a car accident or fall down from a flight of stairs, but when you are financially prepared for it, it’s much better.

“Health care is far more serious, immediate and a destructive problem than social security.”

-Henry Simmons


Financial planning for beginners is very easy; you don’t need a fancy financial degree to be an expert with your personal finances. All you need is some of the good techniques and some good financial knowledge, and you will be set to go.