Managing Personal Finances Essay - 787 Words

Managing Personal Finances Managing personal finances is an important skill to acquire. However, no where in school is this subject taught. As a result of a lack of preparation, our society is subject to a high percentage of people who lack financial success. Those who are successful at managing their personal finances will find that they are successful in many other areas as well. To learn how to manage personal finances there are books and web sites that provide a step by step guide to successfully managing personal finances. Those who lack financial success often possess many of the same traits. The first reason most people lack financial success is because they lack knowledge, or better yet, a desire to gain knowledge.†¦show more content†¦This is similar to goal setting in respect to that one must dream to make a dream come true. A big mistake commonly made by the financial failures is conforming. Listen to the advice of mother’s: â€Å"If so and so jumped off a cliff would you?† Don’t do what everyone else is doing; dare to be different! Don’t be afraid to take calculated risks. This does not mean that you can actually jump off of a cliff, because that would be a foolish risk, this means again to foresee the results and consequences of your actions. The successful people in society are the ones who don’t do the same thing as everyone else. For example, look at the modern art. This type of art is so profitable because it is so different from any other art created. It is also important to beware of credit. Don’t borrow excessively, because it will soon become debt, which has interest and other consequences. Instead, set a budget and stick to it firmly! Attitude is also an issue in financial success. If a person has a poor attitude, he will only get what he deserves! If the worst is expected, the worst will happen. It all comes down to the power of one’s mind. Think positively! When setting goals, focus on the positive aspects, and don’t include any negative words. Everything can be rephrased to be positive. Successful people are optimists! In order to be an optimist, only associate with optimists. TheShow MoreRelatedIndicidual Assignment for Managing Personal Finances2570 Words   |  11 Pages1 FIN4901EF Managing Personal Finances Unit 2 Analysing and Evaluating Personal Information FIN4901EF.Unit 2 2 FIN4901EF.Unit 2 Learning Outcome 1. Explain the interlocking network of financial plans and statements. 2. Prepare a personal balance sheet. 3. Draft a personal income and expense statement. 4. Develop a good record-keeping system and calculate ratios to interpret personal financial statements. 5. Construct a cash budget and use it to monitor and control spending. 6. Apply time valueRead Moreassignment brief1179 Words   |  5 PagesFirst Diploma Business Unit 20 Managing personal finances Assignment title Unit 20 Managing personal finances Assignment 1 of 1 In this assessment you will have opportunities to provide evidence against the following criteria. Indicate the page numbers where the evidence can be found. Criteria reference To achieve the criteria the evidence must show that the student is able to: Task no. Page numbers P1 Outline ways of managing personal financial planning and accurateRead MoreTraditional Methods Of Managing Personal Income1641 Words   |  7 PagesThere are three traditional methods of managing personal income. 1. Budgeting, 2. Keeping a spending history, and 3. Doing nothing (also known as living from paycheck to paycheck). Budgeting involves setting what percent of future income is to be spent on which categories of expenses, and then recording all purchases in order to track how well spending is staying within the predefined limits. The process sounds very simple, however, it is difficult, in my opinion, to stick with a budget for veryRead MoreArticle Review : 3 Steps Toward Financial Freedom Essay771 Words   |  4 Pagesto assume these individuals do not have savings. They also have a considerable amount of indebtedness. Another report I read from Learn Vest, 2011, stated seventy-six percent of people feel that their personal finances are out of hand. Basically, three quarters of people feel their personal finances are uncontrollable and that they do not know how to make their money work for them. If you are in this group, reading this should decrease your isolated feelings. Actually, the majority of people rightRead MoreWhat Family Offices Are All About And The Services They Provide1604 Words    |  7 Pagessurprised to hear that family offices have their roots in the sixth century. Then, the steward of the king had to take responsibility of managing the royal wealth. The concept has since developed, with the Rockefellers setting up a family office famously in 1882. Family offices are essentially private companies, which have been set up to look after the finances of wealthier families. A family office is therefore a private wealth management advisory firm dealing with high net-worth individuals andRead MoreCareer in Finance and Mathematics1137 Words   |  5 PagesCareer in Finance and Mathematics An B. Nguyen Grantham University BA550, Finance October 27, 2015 Abstract There is many job opportunity for individual with the career in finance or mathematics background. According to Careers-in-Finance.com, the lowest entry level related to finance start from $35K-$50K annually in small firms and can reach as high as $260K-$390K for large firms. The income can variable depended on the level of education and experiences. Around the finance corporate,Read MorePersonal Financial Management1641 Words   |  7 Pagesthings. Unfortunately with accumulation of money, come additional problems and responsibilities alike. Creating a balance of spending and saving is the key to a successful financial life. According to Sharon K. Zoumbaris, author of Teen Guide to Personal Financial Management, It really can be summed up in the most elementary equation: if your expenses are less than your income, the difference represents potential savings and investments. The more you can save, the better your financial foundationRead MorePersonal Financial Plan1082 Words   |  5 PagesPersonal Financial Plan Part 1 Laura Grundowski Abstract This paper will discuss the beginning of my personal financial plan. It will also outline said plan into a budget that will be put to use throughout the next few months. Budgeting is a vital part of managing one’s personal finances. When beginning to budget one must pinpoint the sources of cash inflows and cash outflows. Having knowledge of your personal financial situation is also necessary in managing personal finances. If doneRead MoreFinancial Literacy Is The Key For Managing Money895 Words   |  4 PagesFinancial Literacy is the key to Managing Money. Financial literacy is much more than learning of how to count your money when purchasing a gallon of milk at the liquor store. Financial literacy at times is mistaken for Economics, and it’s easy to understand why. Yet, financial literacy is the understanding of how money functions in this world, how to properly manage it, how one would properly invest their money, and how to donate your money to help others. Sounds like a perfect curriculum to teachRead MoreHelloWallet 21031 Words   |  5 PagesNCCU Behavioral Finance Fall, 2014 HelloWallet 1. How do the concepts of behavioral finance create opportunities for HelloWallet? The followings were few concepts regarding to behavior finance that created opportunities for HelloWallet: ï  ¬ ï  ¬ ï  ¬ â€Å"Stress point†Ã¢â‚¬â€œwhen they realized they had debt they could not manage or found they were unable to create a sustainable and effective budget. â€Å"Everyone wants a simpler way to manage their finance these days. People get engaged when we them that the site allows