Yeah, a need is more of a pressing issue and wants is not so much pressing issue. if you want to manage your personal finances it is important to make scale of preference.
How to Manage Personal Finances
- Thread starter Suba
- Start date
Management of personal finance is a very important thing that must be pulled into consideration by anyone who wants to make success.
For one to be able to manage their finance properly then they have been earning from a very good source of income and not for those who have not been doing good jobs that will give them the courage to try and mange their funds in such a way that they will have a good savings which can help them in case there is any sort of issue that comes up as an emergency.
- Thread starter
- #44
Managing finances does not depend on the size of one's income, many people already have large incomes but they are very wasteful, so they do not have savings and investments but many people only have moderate incomes but because they have the discipline to save and invest they can achieve more financial freedom fast.
- Thread starter
- #46
In theory you are right that a budget can control someone's spending but if that person can stick to the budget they have made. but many people lack discipline so that their budget always fails or is unfavourable.
Yeah, there is no doubt about that. If you want to achieve financial freedom you must know how to manage your finances well.
This is a crucial aspect for all the people who earn some income. This entails the budget making, prioritizing on the basic necessities, Saving and investment disciplines. When you are in a position to manage your personal finances without problems then you are good to go.
One thing is acquiring wealth or rather money, but it is a whole different to keep and manage that money very well, not everyone have that adequate knowledge for proper money management, some people even go as far as getting trained just to manage their finances very well.
I manage my personal finances through proper budgeting. I make sure that I have planned for all my needs and some wants. I also identify those things that I don't necessarily need so that I can control my urges to buy them.
Managing one's personal finances hinges on having an understanding of how your income streams work. And then adapting your life and budgeting to match up with that.
Before, I did not have good financial knowledge and often spent money on unnecessary things. However, I have made improvements. I now make a conscious effort to save money every month. In addition, I have started investing money, hoping to improve my financial situation in the future.
