An Introduction to Personal Finance

By David Parfrey

People have the right to know how to look after their hard-earned money. This eBook aims to do just that by helping people become better money managers.

The eBook is written in a simplified and concise yet effective manner to ensure readers can remember what they read in order to take immediate action for lasting change.

The eBook includes:
- Lifestyle impact on spending as well as behavioural methods to reduce your spending.
- Insights into personal budgeting and approaches to adapt this – with a free personal budget template included!
- Useful tips to improve your savings, with a focus on psychology and behavioural economics.
- A clear and simplified layman’s explanation of investing in the stock market, including where and how to get started.

The time is now to get on top of your personal finances.

• Language: English
• Publisher: David Parfrey
• Release date: Oct 4, 2022
• ISBN: 9781005357146

David Parfrey

Proudly born and raised in Cork, Ireland.Keen interest in all sports, travel, writing, personal finance and business.Management Consultant at Accenture. Don't hesitate to reach out!

Book preview

Simple changes can lead to extraordinary results

An Introduction to Personal Finance

A concise ebook to help you become a better money manager

David Parfrey B. Comm., M.Sc.

Contents

Chapter 1: Introducton.

Chapter 2: Spendng.

Chapter 2 objectives.

Personal lifestyle assessment and mindset for spending discipline.

Ways to reduce your spending.

Chapter 3: Budgeting.

Chapter 3 objectives.

Budget approaches and mindsets.

Chapter 4: Saving.

Chapter 4 objectives.

Behavioural approaches and mindsets to saving.

Where you can save.

Chapter 5: Investing.

Chapter 5 objectives.

Investing approaches.

Different types of investments.

Key investing principles.

Chapter 6: Close.

References.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical, photocopying, recording or otherwise without the prior permission of the author.

First published on 27th September 2022

© David Parfrey, 2022

Chapter 1

Introduction

"Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver."

Ayn Rand, author and philosopher.

What you are about to read and why?

In June 2022, inflation in Ireland hit 9.6%, the highest on record in 38 years. Energy prices in Ireland increased by 46.2% from May 2021 to May 2022. Inflation in the UK hit 10.1% in July 2022, its highest level for more than 40 years. The U.S experienced a 41- year inflation high of 9.1% in June 2022.

Now more than ever, people need to look after their money.

In school and especially University there is great emphasis and focus on how to become employable, how to get a job in the ‘real world’ and earn a 9-5 salary. But what good is that if you don’t know how to manage that salary and get the most from it? In my opinion, there is not enough focus on personal finance and educating on how to better manage your money.

This is a concise eBook with the aim of simplifying a topic that is often over-crowded with information – personal finance.

It’s not aimed at any specific demographic but is for anyone who is interested in becoming a better money manager.

There are numerous ways to effectively manage your money; to build on your wealth and your typical 9-5 salary. These include spending, budgeting, saving and investing.

Over the years I have set myself a goal to become more financially literate with a main focus on investing. I intend to share my learnings and insights with you to help you do the same.

As a young working professional I understand how difficult it can be to get started and figure out the financial jargon. I passionately believe that everyone has the right to understand how to best manage their personal finance, and for that reason I aim to break it down in an easily digestible way.

Effective money management is heavily linked with both your behavioural tendencies and psychology. With that in mind, the eBook includes:

• Chapter 2 covers lifestyle impact on spending as well as behavioural methods to reduce your spending.

• Chapter 3 includes insights into personal budgeting and approaches to adapt this – with a free personal budget template included!

• Chapter 4 provides useful tips to improve your savings, with a focus on psychology and behavioural economics.

• Chapter 5 outlines a clear and simplified layman’s explanation of investing in the stock market, including where and how to get started.

"Formal education will make you a living; self-education will make you a fortune."

Jim Rohn, American entrepreneur and author.

My approach

Whenever I have sat down to learn, be it in a classroom, a lecture hall or online courses, the one