Whether or not you have a financial background, you will need some sort of money management skills in your daily life. Learning finance at the university does not guarantee you to be good at money management. Many people are struggling everyday or during some period of time with managing their money,
Understanding a full picture of your finances will help you have a better plan for your future and ensure your life is secured financially.
1. You will be able to have a better plan for your future:
Some people have been struggling with working on their family plan because they have an unclear picture of their finances. How do you plan for yourself and your family for a big event if you do not know how much you are going to spend and how much you are having in your account?
Having a full picture of your finance, e.g. How much you earn every year after tax, how much you spend a month, how much you are able to save are the simplest financial details that people should know. Furthermore, at a time series level, you should know what your cash flow's situation is, how much is your net savings are over a year, and how much you will be able to accumulate once you reach a milestone (e.g. when you reach 50, when you retire, when you are ready for aged care services)
2. You will feel secure knowing that you are on track with your savings and investment
Your daily working life is probably busy and work-life balance may be hard to achieve. Many people are now living their lives paycheck to paycheck. Many do not understand their current financial situation, whether they are doing fine, or whether they need to push a bit harder in order to have more savings for a comfortable retirement.
All these sorts of worries will make people stressed and feel a lack of security. Knowing how to manage money and having your finances on track is the only way to help your own future and protect your loved ones financially.
3. You will be motivated to earn and save more money naturally.
Once you understand what your financial situation is, you are more likely to be motivated to earn more money and to be more mindful when spending your money. Knowing how much you need to earn and how much your recommended spending is would be a great guidance for your future financial health.
4. You just need some basic skills to manage your money, the point is you must know how to manage it
Learning to manage money is something that you did not learn from your school. Whoever you are, a doctor, a scientist, a psychology lecturer, a trader or a farmer, you did not learn these specific skills at school. So where did you learn? From your father, mother, your friend, your colleagues? The question here is whether your mentors are professionals in financial management? Were the lessons that you learned omitting some important areas that may affect your finance in the future? Therefore, learning these skills from someone professionals is an important step to start helping your financial future. Doing these correctly from the start will save you lots of money, time and effort hence provide you a better quality of life.
Disclaimer: The information provided is general information only. It does not take into account your circumstances. It’s important to consider your particular circumstances before deciding what’s right for you. You should not rely solely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss by or damage to the reader or any other person.