Everyone wants to be financially secure or free from financial crisis.We may see that people with higher education and good positional status in profession struggles with the financial crisis and it may wipe out their entire life effort. Some of the reasons could be lack of education on personal financial management right from childhood, myths about money and not giving focus on learning and improving the art of financial management. The earlier we start this art of learning in life, better will be our financial freedom.
Most of us think that personal finance is about earning through profession and savings. Actually it consists of four elements viz Earning, Spending, Saving and Investment
It is about earning in line with our potential, skill and knowledge.It is about increasing the competency to earn more through profession.
It is about the expense management, awareness of our lifestyle, spending and accounting. It is about the consciousness of our behavior on spending.
It is excess after spending. It is about awareness on savings consistency.
It is about investing the savings or excess in right asset allocation like real estates, deposits, metals and stock markets etc..It is about awareness on right asset allocation, periodic checking of returns, and taking corrective actions on time.
Planning and consistent execution of all four elements may assure the financial success.Even any one of the element does not give attention much, it may result into financial crisis. As said, it is an art, continuous learning process and can be learned at any age. Hence aware of your financial management behavior and action, you attract good things in life!