People lack time in managing their finances
when in fact they should allot more time to the task. Money management helps
one allocate all expenses and incomes to see a bigger picture of their finances
to determine their next financial move.
According to The Hindu, despite the trade
skills one learns in school to earn money, poor money management will result
into an unsuccessful career endeavour. Higher income is never a guarantee,
according to The Hindu. This makes financial management "that one skill
that can help you manage everything.
A good look into one's income and spending
daily helps them prioritise and de-prioritise items according to the needs of
the time. Financing repayments for a house is one -- another would be education
of children. Spending money to satisfy a whim because one does not enjoy their
money is not a good discipline for money.
Spending is a juggling act; priorities are set
forward before any personal spending can be achieved. At least 50% of one's
income heads to priority bills and property concerns. Next would be one's
financing and other bills related to loans, mortgages and credit cards. Last
would be other concerns in the future, such as an emergency fund for personal
money management.
Living with a blind spending budget is an easy
way to find deficits in one's budget and ultimately into personal bankruptcy.
Improper financial allocations -- namely uncontrolled urges to spend -- are
gateways to poor financial management.
