Is it enough to just understand financial management?

[Ishicryptic]

I know we can learn financial management through management courses or we can learn informally through our experiences or common sense. But applying financial management skills is by choice, it's not enough to know how to plan your finances and how to make feasible budgets for it, what matters is applying it. What you know doesn't matter so much as what you do with it, knowing that you should live bellow your means (earnings) yet you spend everything is poor management. Without discipline you cannot save and invest, no matter how much you earn you can blow everything if you don't have focus.

Financial management centeres on having budget for your total income, what is not in the budget is either carried forward or cancelled. Budget helps you to spend within your planned expenditures, if you must add something to your expenses outside of your budget it means that you have to remove something from your budget. You need to priotize your needs to know what will go into what you earn and what doesn't, it helps you to spend prudently. Yet knowing all this things is just theory if you don't have the self control to practicalize them, you need to be very disciplined about financial matters if you must succeed financially.

[Sim_card]

Financial management is easy on paper but not that easy on practice because you need to be disciplined and make sure that you don't spend more than your budget. Everyone that want to be successful in future needs to have a good financial management so that he can put his resources in the right place at the right time. Investing is part of what will make you understand how to manage your cash inflow properly. A person who lacks good financial management would find it difficult to achieve his financial goals.

[livingfree]

I know we can learn financial management through management courses or we can learn informally through our experiences or common sense. But applying financial management skills is by choice, it's not enough to know how to plan your finances and how to make feasible budgets for it, what matters is applying it. What you know doesn't matter so much as what you do with it, knowing that you should live bellow your means (earnings) yet you spend everything is poor management. Without discipline you cannot save and invest, no matter how much you earn you can blow everything if you don't have focus.

The actual experience still matters, and that's the reason why those who have been broke once or many times, they've learned from that and that's what they use to become better in managing their own finances.

Financial management centeres on having budget for your total income, what is not in the budget is either carried forward or cancelled. Budget helps you to spend within your planned expenditures, if you must add something to your expenses outside of your budget it means that you have to remove something from your budget. You need to priotize your needs to know what will go into what you earn and what doesn't, it helps you to spend prudently. Yet knowing all this things is just theory if you don't have the self control to practicalize them, you need to be very disciplined about financial matters if you must succeed financially.

I agree about budgeting.

It is important to be good in financial management and it's just one of the many financial factors that we need to be good at.

Though, not really good at it but at least learning the basics and that's how you'll be better at it because you're going to gain experience from your own finances.

And @OP, you've some extra character from your signature, the " [ ".

[Findingnemo]

Knowing is different from doing, so it's not just enough to know what is financial management even if they are rich they need to follow it. Budget is something that helps someone to save money but who does that in 2026? Lot of young generation people are just spending all their salary and wait for the next month's to get credited so where they will have the opportunity to save for their future.

[whiteblue]

Money management is certainly not enough, and it doesn't stop there. We need to prepare many tools to achieve excellent and secure finances. While discipline is certainly a must in money management, other factors beyond that are also important. In particular, cash inflow and outflow can influence whether management will end well or not. If you have a constant cash inflow and experience a deficit, it will negatively impact financial management. Money management is just one factor you can focus on.

Theory is easy, but implementation is difficult. However, with theory, we should be able to gain a better perspective than without it.

[AbuBhakar]

The first thing you should probably learn is how to earn more than you spend. When you do that, you will gradually adjust your finances, allowing you to save more. When you have started saving, first consider what your plans will be with your savings. It is also better to use it for things that will provide additional income, as this will make your life easier. Study your monthly expenses and identify what you can cut out that you don't really need. However, you can't do all of that if you don't have self-discipline.

[Fortify]

Yes, the theory has limits and you'll learn about areas of finance that you may never end up needing to apply, but seeing the bigger picture gives you a great advantage. It's like learning about different types of mortgages - fixed, standard variable or tracker, but you might spend your entire lifetime only paying down a fixed rate because you're able to get superior deals on that. There's that old saying that it takes 10,000 hours before you become an expert at any particular field and that is also true when it comes to managing finances - you should never stop learning really and there will always be an extra step that you could take to improve them further if you're willing to put the time in.

[Spaceman1000$]

If you understand financial Management then yyou understanding must be put to test by giving you practical examples and procedures to follow in your own lifestyle. People can understand theoretical methods but the reality of it becomes a different tool. Take for instance there are some persons that are very rich, thye only read about poverty in the books, but they haven't experienced poverty and the excruciating pain that comes with it. So sometimes it is also good to have a practical example of what you claim to understand so you will see how hard it is to execute financial plans.

[Hamza2424]

Financial management centeres on having budget for your total income, what is not in the budget is either carried forward or cancelled. Budget helps you to spend within your planned expenditures, if you must add something to your expenses outside of your budget it means that you have to remove something from your budget. You need to priotize your needs to know what will go into what you earn and what doesn't, it helps you to spend prudently. Yet knowing all this things is just theory if you don't have the self control to practicalize them, you need to be very disciplined about financial matters if you must succeed financially.

Why we have to remove something from our budget if we have to spend more than we have calculated, let's say, a medical emergency or some relatives came, or you have to manage some gifts, or you have to buy something out of nowhere because it is cheap due to some sale.

In such situation, if you are spending more and also trying to remove the same amount from regular budget then how things will be easy in that moment and how it will work in he long run. I did not understand that part.

[Mhizlove]

From what I understand, the knowledge or wisdom of money isn't about you learning many theories rather it's all about yourself and how disciplined you are towards it. So Many people have the ability and mind on how to plan and save, but the only problem which they have is that they don't put it into practice.

If you want to experience real financial growth you have to control how you spend money unnecessarily, just set your priorities like draw a plan on how the money will be spent and stick to that plan even if you're being tempted by want you see that catches your attention. To be on budget is very good it's guides you on how to spend your money and without self control it's useless or holds no value. So I will say that when it comes to understanding how to manage your finances you will need to be consistent and also be self disciplined these are the true builders of wealth and not having the knowledge  or theory of it alone

[aioc]

it's not enough to know how to plan your finances and how to make feasible budgets for it, what matters is applying it. What you know doesn't matter so much as what you do with it,

Your college education is worthless if you can't or don't want to apply what you learned. We are spending a lot of money just to finish a course and get a diploma, and it's a big disappointment if you cannot apply it to sustain your life; it just means you are taking a course for the sake of finishing it, not to improve your life.
If this is the case, then you just wasted money and effort, and you have no direction in life.

[leonair]

Financial management is easy on paper but not that easy on practice because you need to be disciplined and make sure that you don't spend more than your budget. Everyone that want to be successful in future needs to have a good financial management so that he can put his resources in the right place at the right time. Investing is part of what will make you understand how to manage your cash inflow properly. A person who lacks good financial management would find it difficult to achieve his financial goals.

You have spoken a truth, I completely agree with your statement that financial management is very easy on paper but it is very difficult to follow it in real life. I myself make many types of money management plans in the roadmap but in reality I cannot follow even 50% of them. Because different situations force us to do different things. And inflation is a very big threat to us in terms of financial management. So I don't think that very many people can do financial management properly in real life.

[Rruchi man]

I know we can learn financial management through management courses or we can learn informally through our experiences or common sense. But applying financial management skills is by choice, it's not enough to know how to plan your finances and how to make feasible budgets for it, what matters is applying it.

Application always beats acquiring knowledge because there are persons who have been acquiring knowledge for a very long time but they have failed on trying to apply any of it.

I am of the opinion that persons who acquire their knowledge of financial management through practical experience more easily apply the knowledge they have to their own lives than persons who have acquired their own knowledge from just theory. Do you think so too?

[GiftedMAN]

The first thing you should probably learn is how to earn more than you spend. When you do that, you will gradually adjust your finances, allowing you to save more. When you have started saving, first consider what your plans will be with your savings. It is also better to use it for things that will provide additional income, as this will make your life easier. Study your monthly expenses and identify what you can cut out that you don't really need. However, you can't do all of that if you don't have self-discipline.

Is it possible to earn than you spend in this economy where the rate of inflation is very high? If it is possible to make more money than you spend a lot of people would have enough savings now but the jobs you see pay less than what people spend  they get to even start taking loans because the salaries is not able to cover their rent, feeding and transporting to work. If you have a well paying job that is when you can think of getting something that will provide additional income who you keep working to have savings for other things you will be doing I nthe future.

[Alpha Marine]

We always talk about how we should be better when it comes to financial management, but we hardly talk about how difficult it is. It is extremely difficult, especially when you don't earn enough and have a lot of responsibilities. Reality is always very different. There are things that will come up, and you can't just overlook them; you have to fix them. It's a whole different thing in reality. Sometimes a person cannot even understand how the money he made got finished. It's just one bill after another.

I understand that we still need to try to make a budget and make sure we stick to it, but we should also know that with the rate of inflation, we don't need to beat ourselves up too much when we can't stay in thebudget. It doesn't necessarily mean the person is not discipline.

[serjent05]

I do not think just understanding financial management is enough to keep our finances improving.  We need to know how to produce money.  This is one of the most important factors.  Understanding financial management does not make us produce money, yes it can help us improve our knowledge of preserving our wealth but we still need to know skills on how to earn money.  Aside from that, emotional strength is also needed for discipline, motivation, and reaching our goal.

Aside from financial management, we also need to know how to budget our time.  This will enhance our capability to preserve and develop our wealth.  With this, we need to create a system where we can acquire, manage, and stockpile our wealth smoothly.

[Ndabagi01]

Financial management is a very delicate subject that needs to be taught from tender age. It doesn’t have to be taught in school at your tender age, it is something parents also needs to teach their children as they’re growing up and being tasked to manage even little funds at that time. Most of the problem we’re even facing in people not being profitable in business is because of poor financial management. No matter how good you’re able to make your business succeed, if you’re not able to manage your profits well, it’ll crumble and the business will fail. Not only in business, anything that involves management of money when not done well, you’ll not see yourself success in that niche. It is important to actually prioritize your financial management, it’ll help you in many ramifications in life.

[FirmWars]

To understand financial management, to have the management skill and to have the personality of applying it is different thing all together but if you have all in one piece, you will know how to effectively manage your funds and even how to invest and expand your asset to become more rich. Some people know how to teach others about financial management but they don't know how to apply it on their own, funny but that's a true reality. This our economy requires some to have both management skill and the ability to apply it.

[Kelvinid]

There are actually a lot of ways to understand financial management, but that won't stop there. You need to test it, you need to prove it, you need to apply it in your own finances because the outcome will tell if you really understand the whole point, or probably it's easier said than done that's why a lot have been struggling to perform financial management properly.

And in my personal experience, financial management can be easily done if your money is limited, but when you have massive amount of cash, you forget immediately on how to manage your funds, you just spend it on the things you desire of buying for the longest time, and setting aside those needs because you end up prioritizing your wants.

[fighter2627]

I believe that financial management is a huge help to anyone entering the crypto space, especially since this is all about money and profit. It’s not just about making sure we get earnings
in the future, but also about learning how to properly manage the crypto assets we acquire.

It seems like this was the problem for some in my community who started earlier; they experienced earning money here, but because they didn't manage their profits correctly,
it felt like their earnings went nowhere. That’s why it’s really important to learn this.