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The aim of personal finance is to efficiently manage money to achieve financial goals and ensure a stable and sustainable financial future.
This process includes evaluating one’s financial status, setting financial goals, creating and following a budget, making wise saving and investment choices, and continuously monitoring and adjusting financial activities as life circumstances evolve.
Why Micro Monies Combines Personal Finance and Micro Business Know-How
At Micro Monies, we get that good money habits are key to making any small business thrive. Knowing how to handle your personal finances—like budgeting smartly and making informed decisions—sets the stage for running a successful business. That’s why we focus on both personal finance and micro-business education.
A strong foundation in personal finance not only helps you maximize resources, plan better, and tackle challenges but also gives you greater flexibility and mobility in your business and personal life. We’re here to help you build a solid financial base so you can grow your business with confidence and set yourself up for long-term success.
Personal Finance Review
Track Your Money
- Know where every dollar is going
- How much money are you making?
- Where is your money going?
- How much money are you spending?
- Where are you spending it?
- How much are you investing?
- How much are you saving?
This is great to understand where you are financially.
There are apps you can use to help you track your money. This helps you optimize your financial plan/system.
Build an Emergency Fund
- 3 - 6 months to start
- 6 - 9 months
- 9 - 12 months
Life happens. We want to avoid high interest credit card debt and payday loans. Building a financial shield so that you have a cushion in case of any emergencies is a safer position.
This is money that is just sitting there to protect you in case something happen.
Not for large luxury purchases.
Placing this in a high yield savings account is a good idea.
Pay Off Your Debt!
- Many Americans are in credit card debt of over 20% interest
- Credit card companies get a consistent return of over 15% - 30% per year from consumers like you
- Many people take 5 - 10 years to pay off their credit card debt
- If you invested $1,000/month, at 20% for 10 years, this would have grown to over $420K. This is opportunity cost - the value of what you lose when you choose from two or more alternatives.
Put Your Money to Work for You
- Your most precious asset in life is time
- We only have so many hours in the day
- Your money does not need sleep, vacation, take bathroom breaks, etc.
- Put your money at work so your money can earn you more money
Simplest way to immediately keep more money per year is to pay down your debt. If you are paying 10% in interest per year, and you pay off that debt.
That is a 10% guaranteed return on your money per year already because now you are keeping that in your pocket, instead of paying the lender.
No risk, if you pay down your debt early, this is interest you do not have to pay.
- Education: Invest in yourself and your mind. You are your best investment. If you know how or gain more knowledge to invest your money better, you can use your money to make smarter investments/more money. Takes time and money but is very valuable. Can mean reading books, taking classes, going to seminars, etc.
- Assets: Buying an asset/investment because you think it will make you more money. This can be in the form of appreciation or cash flow. Now this asset is a new income stream. This is a slow and gradual wealth process. The more money you put in and the more time you have, the better your returns.
Earn More Money & Get More Aggressive
- Once you know how to use your money, put fuel on the FIRE!
- Make more money to invest more.
- Save more, invest more.