I think personal finance is a cycle of events and actions:
- Identify your Financial Goals.
- Outline a Strategy to achieve your Financial Goals
- Pick Financial Instruments that execute this Strategy.
- Monitor and take preventive/corrective actions when necessary.
Financial Goals => Strategy => Financial Instruments.
Any other sequence and the result is almost always financial disaster.
What do you think?
Tip Tuesdays is my initiative to share practical personal finance tips â€” every Tuesday. I’d be delighted if you could share a tip or two from your own experiences. Drop a comment to submit your tip. And, as always, do spread the word if you find this useful.