Do you know that more than 64% of adults cite money as being one of the major causes of stress in their life? To be honest, that statistic isn’t that unrealistic, especially when we take the current global recession into consideration. Making money and getting ahead in life have become two very different things. And bridging the gap between them is personal finance.
Simply put, personal finance is all about managing the money matters of your home. This includes budgeting, tracking, and analyzing the income, spending, savings, investments, and safety expenditures- both short and long-term, of your personal self and family.
Today, we’ll take a detailed look at why personal finance is important and how you can better educate yourself in this regard.
Why is Personal Finance Important?
Better Mental Health
Making and managing money can be stressful at best and a cause for depression at worst. So, the best way to get ahead of this issue is by giving your personal finances the attention it deserves. By properly budgeting your expenses, you’ll have a clearer sense of where your money is going, which in turn will result in peace of mind and help alleviate all that anxiety about money matters.
A Secure Future
From inflation to the recession, there’s a lot of uncertainty that encircles our global economy. A single negative economic indicator can mean the loss of your source of livelihood. Well, your mortgage payments and credit card bills won’t care whether you have a job or not.
Fortunately, personal finance will help you maintain your future expenditures by creative independent sources of income and making your spending patterns more transparent.
Freedom of Time
We can all agree that money management is an arduous task. But the rewards are unimaginable. By knowing where your money is going and having a financial organization you have the ability to create true freedom.
This means that you place enough attention to your personal finances that your money is being allocated in the right places and most importantly it is growing and working for you. Organizing your finances will give you the freedom of time to do what you love to do because you have allocated your money so it is working for you.
Thinking about the future from a financial perspective can be overwhelming. We get it! But only by taking action can you get true financial freedom. If you’d like to know more about personal finances, and building generational wealth, consider taking one of our financial education courses on our Residual Education online education platform.
One of our coaches, Mei Jing is an industry expert whose Financial Accelerator Excel is the talk of the town these days. For less than a price of a book, this personal finance course will help you manage your money, analyze your spending patterns, create financial mental programming, and chart your path to financial freedom in real-time.