Money is needed to survive –So, You should set up your Personal Money Goals. This is the rule of the world today. In the past, human needs were much less but in the present human needs are much higher. And it will take a lot of money to meet this huge demand. People now more need other things than food.
In 2022, money management needs to be very good. It doesn’t have magic, but it wants to be strong enough. Otherwise, the ongoing or potential impending global recession could endanger the lives of you and your loved ones.
Our idea is that the personal income target in 2022 can include 5 things. These 5 topics we will discuss in this article. Think about it.
Create a reasonable budget
Is there a need to create a budget? Many people do not know the answer to such questions. Don’t hesitate to say. At one time I also thought what would happen with such a budget, economic life will go according to the rules of life.
But today I realize that creating a budget is not just a necessity. It is necessary and must be followed. A career without a budget will at some point ridicule you, bringing you closer to danger. Create an excellent budget to protect yourself from ridicule.
Identify your various expenses and sources of income well within the budget. Many people use notebooks or new diaries to create budgets. You can use it too. You can also use the mobile phone budget app if you want. You will find budget apps with different names in the Play Stores.
Anyone can install one to record their income and expenditure. But beware of viruses while downloading. And verify that the app is reliable.
Looking for secondary source of income
Those who depend on a single income are at greater risk of becoming poor. Start looking for at least one alternative source of income today.
Or find a few options in this case. If necessary, increase your efficiency on a few tasks. Be prepared so that your life does not stop even if your main source of income is closed.
The year 2022 has come before us so brutally that businesses are treating their employees like strangers. The arrogance of capital has increased all over the world. Aggressive trade has brought misery to low-income people.
In poor countries, medical services, food, shelter, education are all very difficult to get easily and naturally. Find at least one option. Engage yourself in some part of the day in various activities including internet marketing, software creation, video creation & editing, graphics design, clothing or fashion design.
So, it can be an alternative source of your income. You can also work as a technician for oil-gas, electricity etc. If you are a North American and reader of the financeclout.com, you may have to go through a lot of competition to find a suitable job that matches your academic degree.
The same thing could happen on other continents. Some people can even think of a good idea startup. A good startup can bring you a bright future.
Save more than 30% of income
Earlier experts used to say that save 10% of income. Then we are listening about saving 25% of income in 2022. But what percentage of income should actually be saved? I think it should be at least one-third of the income.
Simply put, 30 percent of income should be saved. If you don’t save, you will have unwanted problems in the future. The problem is that in some countries businessmen and entrepreneurs are currently paying workers in such a way that they cannot save.
They are even just paying for food, forcing workers to take 10 to 12 hours. The growing practice of oppression in the name of cheating and employing people can destroy the businesses involved as because people are together able to reject irrational businesses.
In the age of information technology, it is very difficult to hide a crime. This could take the country’s GDP growth downwards all of a sudden. If you do work for such an employer, plan to move away quickly.
Break 50/30/20 rule
What you see above is not a complex number. This is a widely used formula, which is used as a standard rule for money management. The 50/30/20 formula-what is this?
Let’s not look at the explanation of this rule – 50 percent of the income should be spent on food, housing, education and other necessary sectors. Thirty percent of the income should be spent on other necessary sectors such as clothing, education, medicine, internet bills, gift purchases, etc.
And 20 percent of income should be spent on savings and investment. This is an explanation of the above rule. But we can break this rule a little bit in 2022 by spending 50 percent of our income on food, housing, education and other necessities. Spend 20% of your income on other necessary sectors like buying clothes, education, medical, internet bill, gift buying etc.
Moreover, spend 30 percent of your income on savings and investments. Savings will lead you to prosperity.
Making a good portfolio in stock market
Get out of the old notion of capital markets. The capital market is not a gambling market. Although there are risks here, this market is not a gambling market. If you want to be a partner in different businesses, you have to come to this market.
This is what is happening all over the world. You can invest by reducing the risk. Make your investment portfolio beautiful and standardized to reduce risk. Buy shares in several sectors. Like you bought shares in the medicine sector.
Now buy the shares of the tech company. Also buy some shares of financial sector companies. Buy some oil, gas and some factory shares. All sectors can suffer at the same time only in case of any major problem or in case of major disaster. A good portfolio will help you stay stress free.
When you get a profit at the end of a certain period, you will see that the reason for your profit is that a good portfolio was created.
Conclusion
In this article, I have discussed 5 aspects of setting personal income-expenditure target. I believe that this article has taken the economy of ordinary people seriously enough and has given the necessary guidance to the readers to enrich their personal accounts in its light.
The main point of this article is that you have to make a written budget of income and expenditure. If you want to get economic freedom in 2022, you have to save and invest.
Read: What Needs to be Included in the Personal Financial Plan?
In addition to the main source of income, one or more alternative sources of income must be sought. Lastly, I would like to say that you should patiently control your spending, but never avoid the responsibility of others. You cannot live alone. You just have to be more discriminating with the help you render toward other people.
You may have more worries about personal income and expenditure calculations. You can share those thoughts in the comment box that other readers may find useful.