1. Thinking:

For VUS, thinking about the supremacy of the law is paramount. For legal professionals like you, you think that no matter how difficult it is, you can still stick with it. If you think it's terrible, you won't want to do it. But if you think you are working in the best career development place, no matter how difficult it is, it will be a passion and you can overcome it. Each time you overcome difficulties, you grow in your job. When making choices, you are happy with that choice.

You don't think there is a perfect harmony for everything in life. You can do your job well but still need time to play, spend time with family, or do other work. It's impossible.

Initially, you thought simply that your expense management was not effective so you wanted to find a better way. Upon investigation, you realized that the reasons came from two factors: one is incomplete knowledge thinking, and two is the lack of tools. Personal financial management depends on each individual, each person has different circumstances, conditions, and habits, it's hard to demand that everyone has the same thinking and habits.

Therefore, you wondered how to approach effectively. You decided to see how others, those who are successful in personal financial management, think and how to learn and adapt to your conditions and habits. You learn from videos of Mr. Hieu on the Hiếu TV YouTube channel, free and easy-to-understand content.

What is personal financial management? The scope of this knowledge is quite broad, cannot be fully explained in one video. Therefore, I will briefly mention a few key points to lay the groundwork for the following parts.

Step one, restructure personal financial goals. Financial freedom goals are good goals to pursue, requiring a long-term vision of 10 to 20 years or more. There are clear goals at each stage to avoid getting lost, such as financial security by multiplying minimum monthly expenses by 12 and then by 25, financial independence by multiplying standard monthly expenses by 12 and then by 25, financial freedom plus a mindset about financial freedom.

2. Finance:

Step two, assess your own financial health. Know yourself, know your enemy, a hundred battles, a hundred victories. Each person has different starting points and positions, so it is necessary to clearly define your minimum and standard monthly expenses.

Step three, manage and adjust spending habits. Good spending habits help reduce the pressure to earn money, make it easier to plan and build financial goals. Maintaining good spending habits helps avoid increasing costs when income rises and makes it easier to achieve financial milestones.

Step four, improve income and increase savings. Once you have established good spending habits, you can focus on improving your income. There is active and passive income, but in the early stages, improving active income is easier and more effective.

Step five, build a passive income stream for investment. You must ensure control of cash flow, fill emergency funds and funds for large plans before the surplus money is truly idle. Without emergency funds, it is easy to withdraw investment money to solve daily life problems.

This will greatly affect many plans and calculations in investment. Step six is to evaluate and improve the above five steps. When it comes to personal financial management, many people focus on investment and see it as the main goal because they are facing many financial problems and want to quickly escape from difficulties and get rich quickly. However, information on the internet often encourages investing as early as possible, and that is also the advice of many financial experts. But I think differently. I want to focus on the management factor, ensuring both income, spending, saving, and investing.

Notes when starting out: When I started, I had a lot of questions that I didn't know who to ask, so I did it myself, asked others if possible. Therefore, I actively recorded issues to share. First, do everything as simply as possible. When starting out, I often had high expectations: a lot of income, a lot of data, many reports, more information, trying to grasp the issues quickly, covering all aspects. But I realized that thinking was hasty and difficult to implement, not very effective. It's like a weak person trying to exercise a lot to get healthy quickly, it sounds absurd. Doing so only makes you more tired.

When changing your mindset, you have to stretch to think, remember, and digest new knowledge. Just that alone is tiring, don't try to be creative and demand to do well right away. There may be a lot of information, but exploiting information is weak. Just a few basic figures are enough: total income, total expenses, minimum expenses, standard expenses, amount saved each month, total current assets. That's a lot for a newcomer. Each moment has different management needs and goals. Once the above six steps are clear, you need to take it slow and steady step by step. If a step is not certain, go back and improve it immediately, don't rush forward.

3. Improvement:

Second, regularly take notes to manage spending habits. Taking notes is very important. I realized that I couldn't remember the expenses that happened two days ago, I forget quickly. So how do you know your spending habits for a month if you don't record them in detail? Small expenses like parking fees, iced tea that seem insignificant, but when added up for a month, it's not insignificant at all, because that's our habit. These things are no different from shrimp on the small dike but have a heavy destructive power. If left unchecked, just a little check and correction can improve many issues. We easily waste small things, few waste big things. And waste is waste.

This will greatly affect many plans and calculations in investment. Step six is to evaluate and improve the above five steps. When it comes to personal financial management, many people focus on investment and see it as the main goal because they are facing many financial problems and want to quickly escape from difficulties and get rich quickly. Information from the internet often encourages investing as early as possible, and that is also the advice of many financial experts. But I think differently. I want to focus on the management factor, ensuring both income, spending, saving, and investing.

Notes when starting out

When starting out, I had a lot of questions that I didn't know who to ask, so I did it myself, asked others if possible. Therefore, I actively recorded issues to share. First, do everything as simply as possible. When starting out, I often had high expectations: a lot of income, a lot of data, many reports, more information, trying to grasp the issues quickly and cover all aspects. But I realized that thinking was hasty and difficult to implement, not very effective. It's like a weak person trying to exercise a lot to get healthy quickly, it sounds absurd and doing so only makes you more tired.

When changing your mindset, you have to stretch to think, remember, and digest new knowledge. Just that alone is tiring, don't try to be creative and demand to do well right away. There may be a lot of information, but exploiting information is weak. Therefore, just a few basic figures are enough: total income, total expenses, minimum expenses, standard expenses, amount saved each month, and total current assets. That's a lot for a newcomer. Each moment has different management needs and goals, once the above six steps are clear, you need to take it slow and steady step by step. If a step is not certain, go back and improve it immediately, don't rush forward.

4. Management:

Regularly take notes to manage spending habits

Taking notes is very important. I realized that I couldn't remember the expenses that happened two days ago, I forget quickly. So how do you know your spending habits for a month if you don't record them in detail? Small expenses like parking fees, iced tea that seem insignificant, but when added up for a month, it's not insignificant at all, because that's our habit. These things are no different from shrimp on the small dike but have a heavy destructive power. If left unchecked, just a little check and correction can improve many issues. We easily waste small things, few waste big things. And waste is waste, no matter big or small. If you don't improve small waste, how can you improve big waste.

Taking notes can also become a habit. To form a habit, discipline and perseverance are needed in the early stages. Creating a good habit and reducing a bad habit is something that should be done, even though it may be uncomfortable and you don't want to maintain it at first. To easily record income and expenses, we should use simple and convenient tools.

Third, don't be hasty. Personal finance is associated with us throughout our lives, so it is necessary to determine that this is a lifelong job. When starting out, we are eager for everything, expecting results immediately. But after a long time, the desire to start decreases, emotions stabilize, and we begin to see changes happening too slowly, no longer interesting. This can lead to frustration and giving up halfway.

I liken the journey to financial freedom as a marathon. How others run is up to them, but you must have a firm stance and determination to reach the finish line. To run such a long distance, you need to train your health, train your mind, prepare well in terms of knowledge, and equip yourself with tools to help you run better. Usually, when learning, I am most excited in the first 3 months, then it gradually decreases. But in reality, the first 3 months only help me take steps one and two. The next steps are steps three and four, it takes from 6 months to 1 year to improve income and accumulate emergency funds. The time varies from person to person, but the initial stage is usually the most difficult and unstable. Therefore, determine your mindset from the beginning and don't be hasty.

I have a principle: unstable emotions are easy to make people lose money, whether happy or sad, rushed or not. The most important thing in keeping money is to keep emotions stable, have a firm and stable mindset. Above is the entire article "How to Start Learning Personal Financial Management" by author Dương AQ. With this introductory video on personal financial management, I hope you can somewhat imagine a clearer path to managing your finances.

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