Tuesday, November 20, 2007

Good Reason For Personal Finance

By this time we all are familiar with the term ‘Personal Finance Budgeting’. This budgeting helps you to stop going into debt. Knowing what your income is against your outgoings (including everything from rent to mortgages to nights out etc.).People know that they should be managing their money, but millions somehow keep putting it off.

There are a few good reasons for personal financing which will help in managing your wealth.

  • First and foremost it guides you in the right direction regarding your financial matters. Any goals and dreams you might have are doomed to failure unless you have guidelines for reaching them and ways of measuring your progress.

  • It tells you if you’re living within your means, because due to easy availability of credit it has become easy to live far beyond your mean .And when you realize it’s too late.

  • It helps you to meet a goal as well as in saving money at the end of the month. With this savings you can make further investments.

  • While making a budget you can imagine how you spend your money, it allows you to focus on the things that really matter instead of frittering it away on things you don't really want.

  • You will be better prepared for emergencies or a surprise expense such as any family member suddenly needs to be admitted in hospital or car repair etc.

  • Seeing where you spend too much money allows you to refocus on your most important goals.

  • Due to proper planning it keeps you out of debt, as well as it helps to get you out of debt.

  • If you really be careful about the money, it creates some extra money which you can use in some thing that matters a lot to you.

  • Finally managing your money keeps you tension free because you don’t need to worry about the debt. It keeps you healthy because you sleep better at night without worrying about how you're going to make ends meet!
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2 comments:

Anonymous said...

Hi Darla,

Your points prove why personal finance is so important and why we should be seriously dealing with personal finance budgeting. Budgeting is a huge aspect. It helps us stick to what we decide to do. Haphazard expenditure and out of capacity expending leads to excess debt and of course a completely devastated credit rating.

anindita said...

Very true. Personal finance is of great help always. Thanks for explaining this to us in such a simple way.
Good post.