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Understanding Personal Finance

posted on Aug 23, 2019 |   211 likes


What is Personal Finance?

At the center of our daily affairs is our personal finance. A typical day is made up of a series of activities directly or indirectly designed to make our personal finance rock solid to be able to withstand any financial turbulence that may arise.

If you have been paying attention to the news or any discussions relating to finance and wealth building, then you would have heard/seen the word personal finance several times, but what does it really mean? We’ll find out soon.

…just before that, if you need a quick personal loan to sort out pressing issues, rent, car, vacation, etc. then you should visit pagefinancials.com/loans.html to apply for up to N5Million now.

Personal Finance Definition

In a very precise definition, we say personal finance covers everything that has to do with how you manage your money – basically; your earnings, spending, savings and investing habits.

Note that “you” and “your” are highlighted, that is because personal finance like the name implies is indeed a personal thing. It is unique to you.

For emphasis, that means it has nothing to do with the economy, it has nothing to do with what’s in vogue.

It also means that what your friends, coworkers and family members do is going to look different from what you end up doing.

Generally speaking, your personal finance is hinged on four pillars:

·         Earnings: How you make your money

·         Savings:  How you save your money

·         Spending: How you use your money to buy things

·         Investing: How you let your money grow

A closer look at the pillars

#1. How You Earn

This is the top pillar and somewhat the determinant of how the rest are treated.

There might be a limit to how much you save or invest, but there is definitely no limit to how much you can earn.

You have the power to earn as high as you desire, and set yourself up for an enviable personal financial status.

We’ve realized that the power of earning more is one which most people don’t often realize they have.

People would rather pinch their savings or even investments in order to meet simple obligations – this shouldn’t be so.

Instead of trying to pinch every penny and cut out the things you love in order to save your money, you should focus on making more money so you can spend guilt-free.

How Do I Earn More You Ask?

One of the best ways to earn money is negotiating a good salary at your place of work, starting a business, or adding a side hustle to your paid job.

Negotiating a good salary is a great way to secure big wins monthly and get the funds needed to keep the other three pillars afloat.

However, you need to only negotiate based on the value you offer to your organization. You should also have a number in mind before approaching your employer to avoid falling for anything and everything – when you could get exactly what you deserve.

Side hustles are great because they are flexible. That means you can work on them in your free time once you’re done with work.

Have something you really love? A side hustle is a great way to get it kicking.

The best part: You can scale them however you want. That means how much you earn simply depends on how much you want to work at it.

In a nutshell, how much you earn contributes to your financial strength hence your savings and investments, which is why it is really important to get this right by getting in as much money as possible.

#2 How You Spend

To so many people, spending is seen as a black sheep when compared with the other pillars.

However, while there are plenty of people who take spending too far, it’s not spending that’s led to financial downturns — it’s not being conscious with your spending that can lead to unhealthy financial situations.

You see, the idea of living a good life is not hinged on cutting your spending. As a matter of necessity, we advise people to ensure that they spend their money on the things they desire.

 Not doing this, has defeated the whole essence of building a strong personal finance.

The wisdom in spending is in what is called Conscious Spending.

When you practice conscious spending, you’ll be able to save money purposefully by avoiding the mindless spending that can come from disorganized shopping, trips, etc.

This is often where most people get it wrong and they just splurge at the slightest thought of owning something without consciously planning and considering how that item will sync with the other pillars in their long- and short-term goal.

#3 How You Save

This pillar speaks to all what you do in order to save some money.

It’s a dicey member of the pair, especially if your earnings are not so great. People struggle to save and still can’t.

You’ll hear lots of savings advice like; cook your own food and don’t eat out, spend from card and don’t always carry cash, keep a strict budget, etc.

These things just don’t work because it depends solely on human will-power.

That means we only have so much of it we can devote to one action before it runs out.

Instead you can use tools to automate your savings and make available to yourself only the money you are willing to spend.

This way, you worry less about exchanging one need for another.

#4 How You Invest

Investing is undoubtedly the most important thing you can do today to secure your future financially.

Like the old adage: the best time to plant a tree is 100 years ago. The second-best time is now.

That’s why you need to invest early enough and as often as possible.

Investment looks at using the money you have already made to make more money without necessarily being involved in the process.

Although a lot of people know this already, not many people know exactly how to invest, or understand the technicalities involved in day to day trade and investment markets.

Well just like automated savings, investment has evolved.

You can now invest with a Trusted Financial Service Provider who handles all the other technicalities and gives you ROI for your money.

If you truly want to build a superb financial personality, then you should pay more attention to investing.

It has the power to build your personal finance faster than your regular earnings and savings would.

Yes, many people have been duped while trying to invest with shady organizations.

Which is why we recommend investing with only organizations that have the Nigeria Deposit Insurance Corporation license (NDIC).

One of such organizations is Page Financials. Having the NDIC license means that investors can freely invest with the company and not worry about losing their money because funds are fully insured and secured.

So if you are looking for a trusted financial service provided to deposit your money securely and earn competitive returns, then you need to visit www.pagefinancials.com/investment.html. If you prefer to talk, you can also call 016317243.


Personal finance is great, it’s a way to know your financial wellbeing at any given point in time.

Amongst the uncertainties that surround our day to day activities, if you are able to tell how much you earn, how much you spend out of your earning (consciously), how much you save and how much you invest, then congratulations you are on your way to mastering your personal finance.

If any of these pillars is/are still missing in your finances, then you need to do something fast, because your personal finance is important not just to make you feel good, credit facility providers are also interested in it.

If you ever need a loan, they will check your profile and ascertain your personal finance status before considering you.

If you need help getting yourself together on personal finance, or you need to start an investment plan, call Page Financials on 016317243 to get Free help.

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