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The 3 P’s of Personal Finance

With any influx of additional money, be it a work bonus, a pay increase, a stock dividend or tax return, it makes sense not only to follow your monthly spending plan as normal, but also use these three P’s to aid with better managing of your personal finances.


This is the number one mistake many people make when they get an influx of additional cash. How many lottery winners, entertainers and athletes have we seen through the years make the same mistakes over & over again, blowing through thousands, and sometimes millions of dollars as if the cash flow was a never-drying fountain. When you realize your windfall is coming, you must plan out what to do with it and give very dollar an assignment as to how it will be used. Are there bills to catch up? Do you want to pay off some of your debt? Was there an amount you wanted to save or an investment you wanted to make? Even if it’s a trip you were saving for, or getting that big ticket item, the key is planning out the destination for every dollar you spend. Split up the funds among the most pressing issues, but always put most of it toward your emergency fund/savings account.


This is another word that many people find hard to connect with their finances. Money can flow through people’s hands like water because there is a desire to spend whatever comes into your hands as soon as it is received, like it will waste away if it doesn’t get used right away. It is the easiest to make a financial mistake by making a rushed or emotional decision. Part of planning out how or when you spend the money you make requires you to be patient, especially if the purchase you make will eventually pay you back, like with a stock, a rental property or a business partnership. Money can be a taskmaster that makes you work hard for it, but being patient helps turn the tide, allowing you to make decisions that can cause your money to work for you.


The final P that we will address is persistence. What does this have to do with the 1st two P’s? Everything. Once you have made your plans and established your patience in working your plan, you must stay persistent and diligent in sticking to the plan. That includes your monthly spending plan as well as the plans made for any increase in finances that comes your way. When you stay persistent and stick to your plans, not only will you decrease any debt that is in your financial DNA, but Planning, Patience and Persistence are vital keys to Debt Not Being in Your DNA.


Founded in 2015, DNA Financial Services LLC has pledged to Educate, Empower and Equip the financial DNA of its’ clients now and for generations to come. The company offers a number of financial services including tax preparation, bookkeeping, personal and business financial coaching. These services have been designed to bridge the gap in wealth building and functional money management, while promoting financial literacy for people from every walk of life.


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