Aarav, a young professional in Mumbai, initially enjoyed financial freedom but soon struggled with unsustainable spending on dining and luxuries. His friend Nikhil introduced him to a platform that taught the importance of personal finance, prompting Aarav to take control of his finances and manage his expenses in a better way. 

Why Bother with Personal Finance? 

Personal finance is all about making smart choices with your money today to achieve your dreams tomorrow. But where do you start? 

Getting Started: The Basics Creating Your Money Plan 

Arav has begun evaluating his income and expenses. He has allocated 50% of his income to essentials like rent and food, 30% to discretionary spending on things he wants but doesn’t need and is saving the remaining 20%. He has also clearly defined his financial goals, which include purchasing a car, travelling, and retiring early, to aid in his planning. Arav finds budgeting crucial, and the 50/30/20 rule offers him a straightforward approach. Additionally, he is setting aside savings for emergencies and future goals, ensuring he is prepared for unexpected expenses and can work towards achieving his long-term aspirations. 

Debt Doesn’t Have to Be Scary 

Arav is reconsidering his approach to debt, recognizing its potential to become unmanageable. He avoids overspending, has a plan to pay off existing debt, and believes in managing credit wisely. Recently, he checked his credit score, viewing it as a financial report card, and aims to maintain it to save money. 

Aarav’s Escape from Debt: Overcoming Financial Challenges 

He realised that to break free from debt, he needed to take proactive steps:  

• Aarav created a strict budget, cutting down on unnecessary expenses and allocating more money towards paying off his debt.  

• He also explored additional sources of income, such as freelance work or selling unused items, to accelerate his debt repayment. 

Planning for the Future 

With his debt under control, Aarav could focus on planning for his future.  

• He started saving for emergencies and long-term goals, such as buying a home or retirement.  

• Aarav also prioritised building an emergency fund to avoid falling back into debt in case of unexpected expenses. 

Get Your Finances in Shape 

Arav recognises that by mastering personal finance, he is setting himself up for success. He understands that it’s not just about money; it’s about freedom. Arav is committed to learning and implementing strategies that will lead to financial independence and a secure future. 

• Freedom to live life on your terms 

• To chase your dreams 

• To secure your future 

The platform Nikhil suggested was Nergy Vidya, India’s first tech-enabled platform for commerce education. Nergy Vidya’s Personal Finance Course helped Arav to enhance his financial knowledge and planning for a secure future. Start managing your finances like a pro today with Nergy Vidya. If Arav can do it, so can you!