Here is how smart people manage personal finances

Everyone has a different financial scenario altogether. So, the personal finance planning is also different for different people. However, there are certain things that are generic in nature yet smart enough to help you push through your financial life. So, following are some of the things that smart people do when they deal with their personal finance.

Make most of the bonus
Everyone likes that extra earning over and above the regular pay. When people receive the same, they already make different plans on how to spend it. But smart people defer their impulsive spending to future date and make most of that bonus by investing for financial needs rather than splurging it out immediately.

Emergency fund
Whether you earn income or not, you have to pay for your fixed expenses at the least. But when you face an income loss, an emergency fund can help you tackle such situations easily. To control such situations, smart people plan an emergency fund, where they keep aside at least 3 to 6 months of their fixed monthly expenses. This fund not only helps them to avoid disturbances in overall financial plan but also helps them to handle such situations like a pro.

Saving and spending
Saving and spending are the foundations of financial planning. If your savings and spending are not in order, then, there is no meaning in doing investments as you would not be able to do complete justice to it. Smart people strike perfect balance between their savings and spending. They save at least 10 per cent to 20 per cent of their monthly income and then spend the remaining. This habit helps them to be disciplined towards their investments, which, in turn, helps them to create wealth.