How Do You Manage Risk in Personal Finance?

[Suba]

We also need to manage personal financial risks well, so that we can make more certain financial plans in the future. But financial risks can occur at any time, such as job loss, inflation, investment losses, medical costs, natural disasters. business/investment losses etc. Personal financial risks can also occur due to our own actions, such as liking to shop or be consumptive, having a lot of debt, etc. So how do you manage risk in personal finance?

 

[Starmix]

Though it's hard to manage finances this time, but I have to. There's extended inflation rate this year, so I need to live in frugality. I avoid spending much. I avoid shopping which I did before the pandemic and the more this time. I need to be practical.

 

[Suba]

Our goal in managing personal finances is to protect personal/family finances from uncertainty or risk of loss that could disrupt our financial stability. For this reason, we need to carry out activities to identify risks, evaluate risks and control risks.

 

[Starmix]

There is a risk if we never plan. We have to put our plans into writing not just imagining. What we plan may be set aside. I also check the possible expenses and what to spend next related to my business, my salary from work, and personal expenses. Before I joined a forum, I never bothered myself about budgeting. I always have money and savings but this time, I own a business and am thankful to RIF the first forum site that I joined and learned many things about business. I have had businesses in the past but different like playing rock music in hotels with my band group.

 

[neku]

I try to diversify my investment and ensure that I have regular income from my savings. A decade ago government agencies robbed my savings without a court order and since the deposits were cumulative I could not access my savings causing great hardship.

 

[Suba]

I try to diversify my investment and ensure that I have regular income from my savings. A decade ago government agencies robbed my savings without a court order and since the deposits were cumulative I could not access my savings causing great hardship.

I don't understand why your government can rob your savings, but maybe it would be better if you save and store crypto in a non-custodial wallet, so that no one can access your wallet except you.