Sep 18, 2015

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Getting to Know the Four Pillars of Personal Finance  


It is tough to live here in Singapore if we do not manage our finances well. In fact, there are numerous indexes telling us that Singapore is the world’s most expensive city to live in. Knowing this, we have to be more careful of our finances if we do not want to get broke or bankrupt.


There are many ways to handle our finances. For instance, we can ask for the assistance of financial experts and consultants to evaluate our finances and help us reposition it. We can also read from articles online about financial matters. However, we have to remember that the success will really depend on ourselves.

We can in this case learn everything we need to know about personal finance. By learning the four pillars of personal finance, we will know what to strengthen and how to manage our money for our financial freedom. So, here are the four pillars of personal finance:

  • Income: As long as we work, we will have an income but how can we manage it? We have to make sure that we have a strong financial foundation. Many people consider saving in the bank but others would rather take the risk and create their own business.
  • Debt: The next pillar is debt. Debts are present and sometimes we tend to consider it because of some money restrictions. Debts should be destroyed and not encouraged. We have to remember that debts will just pull the momentum out of our efforts to build our wealth. So, the next time we think about buying that smartphone and consider credit card, we have to think twice. Debts will only delay our building of wealth.


  • Budget: Mothers are great when it comes to budgeting but we don’t have to be mothers to learn the value of budgeting. We know what we want and need. We can buy anything we want but we have to make sure that living on the street will not follow. If we ignore budgets, we will surely be in deep debt.
  • Invest: The last pillar is investing our money. Now there is a short-term and long-term investment. Both are good but if we want to make sure that our money continues to grow, we have to consider the long-term investment. Long-term investment is difficult if we find it ourselves. This is the time that we employ the help of others especially those that are knowledgeable in the market.

Now that we know the four pillars, here’s to better days!


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