How Can I Improve My Personal Finance and Start a Successful Business in 2024?

What is personal finance?

Personal finance is the process of managing and planning personal financial activities such as income generation, spending, saving, and investing. The process of managing one’s personal finances can be summarized in a budget Or financial plan.

There are some golden rules to get your money right.

Golden rules for personal finance

1. 3 must-have things before every investment

a. Emergency fund

If your income stops then it takes care of your cost of living. This emergency fund should be of 6 months or ideally 12 months and where to keep it? 70% in an FD. 20% in your bank account and 10% in cash. So that whenever or wherever if you need money you can deploy this emergency fund.

b. Life insurance plan

You should have a life insurance plan for you and your family because if something happens to you and your income stops or you die then your family should not be burdened with generating that income. Whatever your yearly salary is, ideally life insurance covers 20-25× of your annual salary which means if your annual income is 5,00,000 then your life insurance cover will be a minimum of 1 crore.

c. Health insurance

It is a must so that if something happens to you or your family and it requires hospitalization then you should not have to pay it from your pocket. The insurance company will pay for it. For this, health insurance for your parents and health insurance for you must be kept separate because your parents are old, their health insurance will be expensive, and if you go along with them then for no reason your own insurance will be expensive.

2. 20% of salary to investment

Whatever your monthly salary is that hits your bank account, invest at least 20% of your monthly income. If you are a freelancer then whenever you receive a payment, at least 20% of that must be your investment. This investment is for your future. The future comprises all the big things you want to do in life.

It could be studying further, buying a car, buying a house, getting married, education for your kids, your retirement expenses, all of that is something that is a part of your future. If you don’t start investing at a young age then you will unfortunately be left with no money, when you actually need money.

3. 30% of salary to your needs/desire

Whatever monthly salary you get or when the freelancing income is credited, only 30% of that and not more towards your desires. If you want to buy a phone, buy a car, buy clothes, spend on partying, spend on vacations, all that should come out of this 30%, and in this, there is a very important condition. Whenever you spend on this you must have the money at the time of making expenses towards your wants.

Let me give you an example if your monthly salary is 50,000 rs. then it’s 30% is 15000 rs. And if you want to buy a phone costing 45,000 rs. Then you will not make the mistake that as soon as 50,000 is credited, you go and buy that phone on zero EMI. No, for 3 months, with full dedication you will save that 15,000, and after 3 months, when your savings will finally be 45,000 rs. You will buy that phone.

Two things while spending on your desires:-

  • Never take a loan.
  • Never buy them on an EMI.

You can use a credit card and you must have the entire amount even then. That is the smart way to use your money.

4. No budget for personal growth

No limit on anything for your personal growth. For anything you need, it could be books, it could be courses, it could be your own health. For all these things, don’t set a budget. Any amount of money you can spend on these, because all these things will lead to your inevitable growth which will result in your value per hour, per month, per year will keep on increasing because your mind is growing for these things.

5. Know the value of your time

Know the value of your time because a lot of us think that our time is free. We feel that our time has no dignity, no value and due to this, we make a lot of decisions that we shouldn’t.

For example:- let’s assume you watch Netflix for one hour every day and you earn Rs. 50,000 per month. The amount you spend on Netflix every month may be Rs. 299,399 or 499 whatever your plan is. But in reality, you spend nearly Rs. 9,000 on Netflix every month because your one hour if you add its cost in this as well then that comes to nearly Rs. 9000.

Now you will say that one hour was your free time, you were not earning then. But that one hour that you spent on Netflix, had you spent it on your growth by reading books, by taking courses, by doing something through which you could have raised the value of your time then you would have the best way of thinking about this.

6. Spend money on the best things

Spend money only on the best things because they will work the best for you, and that is why you need to invest in the best courses. You should invest in the best gadgets and you don’t need to save money there because all those things work the way you expect them to and for that if you need to pay a little more, you should do that. In order to save pennies, you should not spend pounds.

What is Entrepreneurship?

Freedom, courage, and passion, these are things that lie in entrepreneurship. Entrepreneurship refers to the process of starting a new enterprise and operating it with an aim of making a profit. So as to create a product, that has value for people by giving time and effort and bearing all the financial risks, with the intention of making a profit.

To start your own business, you can get inspired by a lot of things. Maybe you are passionate about something and it’s been your dream since your childhood. Maybe you wish to be your own boss. The reason could be anything.

How to start a business?

The first step to starting your business or start-up is that you must know what exactly do you wish to do. Many people think that I need to think of an idea that no one has ever thought of. But, it is a wrong thinking.

There are two reasons for this, The First is that there is very little chance of thinking of such an idea that no one has ever thought about because there are more than a billion people in the country. Hence, there is a very low chance of it.

And the second and more important reason why you shouldn’t do this is that to start a business where there is no customer base established, no source of revenue, and no one has done trial and error, no experiment that to do this business, such kind of revenue comes or problems arises, then it’s a very thing and a very risky work. Don’t think of an idea that no one has ever thought of. In fact, you have to think about what do you like to do.

Idea and planning

Focus on two things, first, what is your passion, your interest, and what do you like to do? Second, how can you give value to people from your work and how can you benefit people and give value that they will give you money in return? When these two things are clear, you can see which business already exists which coincides with these two things. Then study what kind of such businesses are already in the market and how do they run.

Create a business plan. Suppose of you are starting your business from tomorrow, then prepare the budget report for the full one year from tomorrow to the year’s end, how much capital and investment will be required, and how much money will you need to start the business? And in the whole year, what will be the profit that you will gain and how much will be the expenses and where will be the money that you will need and where will you get the required capital? Will you ask your family or take a loan from the bank?

Start a business where you don’t need to take a loan from the bank Or any third person. Start a business where your family is able to afford the investment.


Always think about how can you give value to the people, to give value to the customer, client, or to the people or society. If you are going to focus on the value then your businesses will run well and somewhere value can be given only when you enjoy working.

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