Financial management is an important skill which will enable you to take control of your income and expenditure. It includes earning a living, setting a budget, paying bills and saving & investing.
Although the ability to handle money is a key life skill, unfortunately, it is rarely, if ever, taught at school and people are supposed to instinctively know how to manage finances.
Managing Your Finances
It is important to learn how to manage your finances. Being organised financially can reduce stress and enable you to make better life plans.
The first step which will help you take control of your finances is to set a budget. Personal budgeting will give you a clear idea of what money is coming in each month alongside what needs to be paid and when.
Money management also includes looking at how to make money as well as ways to make the most of it through wise investments. Financial planning also includes debt management, saving and borrowing, understanding mortgages, bank loans, credit and store cards.
A sound understanding of finance will help you spot areas where you can make money and save for the future, thereby enabling you to stay debt free.