Personal finance is a subject that you don't need to learn how to manage. It is more behavioral and based on a person's common sense.

Since we don't go to a school to learn how to manage daily finance, we often make some mistakes.

Though committing financial mistakes is common as most of us don't have a financial background, yet we should be aware of financial insight to avoid the financial mess in life.

Here are 12 things about personal finance every common fellow should be aware of.

1 Review your income

At first, calculate how much do you need to live comfortably? Make sure there is some excess money in your hand after meeting necessary expenses.

2 You should set financial goals that are realistic

The extra money is the net worth that you need to save to achieve your financial goals. Try to set easy and achievable financial goal if the net worth is small.

3 Spend money meaningfully

Don't spend your hard-earned money meaninglessly. Visit the grocery shop when you truly need to buy something. Don't just visit the grocery store to accompany your bestie and buy things that you don't need right now.

In addition to this, if you buy a costly gym membership, then you should take its advantage.

4 Live within your means

Why pay so much money for a morning latte from the Starbucks when you can make on your own that taste as good as the Starbucks.

Buy the Starbucks coffee from the grocery store and make on your own.

It will probably taste better because you are not burning your pocket.

5 Follow 50:30:20 budgeting rule

Budgeting is important to achieve financial success.

What is it?

50% of your income is for your monthly bills including utility, debt groceries, housing, health insurance, and car insurance.

30% of your income is to fulfill your wants like trip planning, shopping date, planning a party, etc.

And 20% of your income is for saving to secure your financial future like a retirement account and emergency account.

6 Invest your money

After meeting your small financial goals, if you are able to save more, then you should try to achieve long-term financial goals like investing.

Thus, invest in mutual funds, ETFs, or other potential sectors to make most of the money.

7 Expand your financial knowledge

Remember, to get success in your financial life, you should gather financial insights. For example, making investment decision is not easy; you should have sound knowledge on investment, otherwise, you may lose all your money.

8 Minimize your tax load

You should try to loosen your tax load by growing your money tax-free.

9 Say "No" to debt

We all know that credit card can give us anything we want. But, do you know that not paying the credit card bill on time can invite painful debts?

Thus, don’t plan an expensive trip only because you have a higher credit limit on your card.

Set aside money to meet your desires.

By doing so, you will feel more pleasure from your materialistic wants.

10 Nurture a solid emergency fund

Emergencies are painful but they are the truth. You can't avoid a hurricane, an earthquake or a flood. In addition to this, you have to have some money to fix a sudden car issue to reach your office on time.

Thus, it is important to build a solid footing to back up your sudden financial need.

11 Take care of your health

The phrase is a truth- "Your health is wealth".

If you don't take care of yourself, you will definitely lose your hard-earned money to fix it.

12 Secure your retirement

When you are earning, you are living with the help of your paycheck. But what about those days when you don't have a job.

Thus, it is important to save as much as possible when you are earning.

Take help of a retirement calculator available online. You need to save money consistently to secure your retirement.

Lastly, I would like to suggest common people, who have no financial background, that,don't freak out, stay calm even if a financial crisis comes in your way. You just need to believe in your ability. You will surely overcome any intense financial crisis.

Good luck!