Living life with financial freedom is a major peoples’ dream/hope/desire. But, you know what, most of us never have financial freedom in our whole life.
Or, we achieve financial freedom at a time, when we can’t enjoy it, right!
This is the story of significant peoples around the world. Only a handful have different stories.
Notable peoples are having this problem because — they don’t have a good personal finance plan.
So, what is personal finance?
Any individual or personal Financial activity is personal finance. Family financial planning also part of personal finance.
Saving money for the next trip with friends? Planning to use next months’ income to do buy something? Safeguarding yourself with savings in a bank? Insuring for unexpected events?
You know what! all these are part of the personal finance.
Therefore, basically anything a person or household does related to finance is part of personal finance.
Now, Why personal finance is important/essential?
Well, personal finance won’t make you rich, but it certainly will lead to a better life. So, here’s why I believe personal finance is important for everyone-
12 Benefits of learning Personal Finance:
01. Personal Finance will teach you about Money and Security you need.
First of all, it will teach you or inform you about the money and security you need. Personal finance will help you to decide whether you should go for buying a new house or rent it.
It will also help you to understand which insurance you need the most.
02. Budgeting
Personal finance will teach you how to prepare or create a personal budget and follow it to the end.
Budgeting will help you to meet all the essentials in your life.
03. Staying Out of Debt
When you prepare a good budget and follow it everywhere, you will be staying out of debt. Falling in debt is a serious problem in our life.
Whenever we feel the need, we try to manage it anyhow. But, personal finance covers all the areas. So, you won’t fall into unnecessary debts.
04. Saving
There will be a time when we can’t earn a regular income. Like — at our old age, Corona Pandemic Situation. Savings will help us to overcome those situations.
Personal Finance will teach you about — how much you need to save from today’s income.
05. Money Spending
We spent lots of money on things we don’t need in our life. Here we will learn-What is a need and what is a want.
Needs are essentials in our daily life, while wants are just a temporary requirement.
Although money spending and savings are part of the Budgeting, I put them differently for better understanding.
06. Manage the Income
Personal finance will tell you about the income you need now for a better future. How much earning will lead you to the desired future, the amount you should save and spend now.
07. Increase in Cash Flow
Managing your income and spending in a better way will lead to more cash flow. Since you have cut down the unnecessary expenditures, the cash flow will definitely increase.
08. Family Security
Everyone wants a happy family, who doesn’t have to suffer from any financial problem. Most of the people live their lives for this.
Better money management and planning will create a secure future for you and your family.
09. Financial Understanding
You will learn about the money you need to spend and the money you have to save. What financial activity is better for you is a part of personal finance.
You will have a better financial understanding like- where to spend, when to spend, and how much to spend, etc.
10. Investing
Personal Finance will teach you about the investment you needed to make today. How much to invest and where is the best place to invest your money.
It will give you a better investment guide.
11. Managing your Loans
What are the best ways to use to get the optimum support from your credit cards, how you can manage your debt better, periodical or contemporary which payment method is better for you, and much more.
These all you can learn in personal finance education.
12. Improve your Standard of Living
Personal Finance will definitely improve your standard of living. It will teach you about how to lead a better financial life, which obviously will improve the standard of living.
Well, these are all I can come up with you right now. There are a lot more benefits to personal finance education.
