Personal Finance, not a new term for years. In 80 decade, people managed their money by saving. In 90 decade, other than putting money in banks, people start investing in stocks market and build another of wealth fairy tales.

Personal Finance is a life knowledge that we must learn in our life time. And maybe, I think, sometimes it is quite confuse and difficult for us to start our first steps. So today, I make a short explanation on 5 beginners’ steps that we should take as the first action step for our Personal Finance Journey.

1. First Step : Have a look at your balance sheet. Grab an initial information about your financial status such as your assets, liabilities, debts, incomes and expenses. I think knowing how much money you have for managing is the most basic step.
2. Second Step : Your personal finance goal. You see, being a success people is always start from a goal. So you must know what you want in your life? what is your future? what is the living standard for your future? Financial Freedom? So once you have your goal, only then you know your direction to take action.
3. Third Step : Make yourself clear with how much risk you can take. Investing is part of your personal finance and investing always comes with risk. So you must know your “habit” on risk taking. Please don’t take any risk until you cannot sleep and affect your health! Be reasonable to yourself.
4. Forth Step : Have a strategically investment plan. According to many investing experts, making a formation of investing tools or diversification is a basic step to protect yourself. Here you can set how much money to put in saving account, how much for stock, how much for retirement and etc.
5. Fifth Step : Pay attention on market. Our world is changing everyday. So there are no such thing that we can stay on our personal finance plan for a long time. So please be ready to change our plan according to market. In this part, internet does help us a lot.

Basically, my 5 beginners’ steps is concentrating on planning rather than taking action and go into the money market. I believe, by making a good plan and focus on it is much easier to be success than without a plan.

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