This may seem like a silly question to some people, but to most of us it’s a very good one. For me, I learn everyday about how I can improve my financial situation.
So… “What does it REALLY Mean to Manage your Finances?”
- The First step is leaning what Compound Interest is or Time Value of Money. Basically, Time Value of Money is the fact that a dollar is worth more today vs. tomorrow because we can earn interest on that dollar today.
- Next, is knowing the importance of creating a budget. A budget helps with knowing how much to spend AND how much to save each month.
- Speaking of savings, retirement is a big part of your financial life. Basically, the earlier you can start saving the more money you will have when you decide to retire.
- Understanding credit is very important. The credit card companies will help you understand but keep in mind most of them are in the business of making money at YOUR EXPENSE.
- Lastly, learning some basics in investing is always a good idea. Whether you have goals of investing in the stock market or would like to set up a retirement account, knowing where your money is very important.
The great thing about finance is the cost of educating yourself is WAY LESS EXPENSIVE vs. the cost of being ignorant.