Is it enough to just understand financial management?

[Vaculin]

Everyone can understand how financial management works especially that different learning resources are all over the internet but not everyone is capable to make it realized and make it happen the way its supposed to be done.

Financial management should be applied from our day to day spending and saving activities and not just meant to be understood because that would remain useless if left not applied or performed.

However, good application starts from high understanding on financial management. Read and understand it first, and application comes next.

[Botnake]

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.

That is true. Its always a difficult task when it comes to application or implementation, the reason why a lot fail on financial management and end up struggling on their finances.

But as much as we can understand how financial management works, then it should be a must also not to cross the line and stay align with the rules so that financial management at its utmost will be achieved.

Discipline and contentment are the key two factors that should be prioritized. If you can't adapt them, you will never be good enough in managing your finances.

[Yamifoud]

One can only be real understood if you learn it by doing, which means good understanding comes with good application as well.

But we all know this is one of the challenges of any person, either high-paid or low-paid. Financial management does not matter if you are rich or poor, but the way how you manage your finances and navigate it will determine if you are a good financial manager or not.

[kotajikikox]

One can only be real understood if you learn it by doing, which means good understanding comes with good application as well.

But we all know this is one of the challenges of any person, either high-paid or low-paid. Financial management does not matter if you are rich or poor, but the way how you manage your finances and navigate it will determine if you are a good financial manager or not.

Even though they understand financial management, it’s hard to actually put those thoughts into action. It’s easy to grasp the concept but once they actually have to do it they find it difficult.

[yhiaali3]

Theory often differs from application or practical reality, so simply understanding financial management is not enough to make you a financial expert or capable of sound financial management.

No matter how intensive and extensive theoretical study, it is insufficient to encompass all the circumstances that arise during the execution of any project. It examines difficulties and obstacles in general and attempts to identify possibilities, but it cannot cover every detail. Many small details that emerge during your management practices can significantly alter theoretical calculations.

[michellee]

Learning financial management is a must managing budget or salary. But the lesson will not 100% applicable in real life because you must adjust to the real situation.

That is challenging for you to improves your skills so you can manage your funds better.

We can't use the lessons without understand the situation. The lesson will be different than the real situation that we face. It is why we must modification with our strategy managing the budget.

Besides understand financial management, we must learn how to discipline, controlling, and modify the strategy just in case the situation changing.

[Oluwa-btc]

Financial management is possible with intentionality,bold streams of income and understanding of the financial territory.The fact that you earn alot of money is not enough for you to consider your finances properly managed.To me this is what financial management means How much money do I have?
How can I grow my money?
How should i spend it?
How can I save or invest it?
How do i avoid losses and debt problems?Trust me,if you can't answer these questions for yourself,then you needs to undergo a series of practical efforts or go back to the learning stage(financial literacy).You can start from your little payments and upscale from because that's what financial management is for.But before then indulge in financial literacy as the case may be.

[el kaka22]

No matter what happens, life will throw something at you that you will not be able to calculate and saving will become harder. Unless we are making way more than most people, then it's hard to do this. Sure people who make 10k dollars a month can save, those are unique, in fact if you have just 400k networth, you are in the 1% of the world, and I do not even mean income, I mean networth. That probably went up a lot since I last checked, but most likely still similar.

Overall, those people are capable of saving, but if you are making 500 dollars a month, it's a marvel that you can even live like that, let alone be able to save and most of us just end up making bigger debt to survive, pay current debt, and make a new one for later to pay instead.

[programmer3666]

understanding financial management alone is not just enough! Because having good knowledge without exercising the possible action does not magically change outcomes financially, your bank account will still read same figures no matter what. Many of people are very familiar with the rules budget, save, invest and try to live below your means but yet they still struggle because they lack the basic discipline, because at the root of it all, financial management only works when it is consistently put into practice.

[9ja Amaka]

Understanding financial management is different from putting it into practice. It looks very easy on papers, but you need more than just theory to put it to practice.  You need to be discipline, focus and willing to do it before you can make it work. There are a lot of people that understands the whole theory of financial management,  but still can't but it to practice. It's just an individual thing, you need to make a lot of sacrifice for you to be able to put financial management into practice.  You need to understand that the only thongs you need in your budget are your needs and not your want. Can you overcome the temptation of letting your wants go for just your need? This is a question you need to ask yourself and if you understand it and you are discipline enough then you can put financial management into practice.

[slapper]

Discipline is a resource. It depletes.

You can know all there is to know about financial management and still not be successful because willpower is not infinite. Every time you make a decision you get worn down a bit.

Why are you in the position where you have to have constant heroic self-control just to manage money? If you've budgeted that every single day and you have to do this, you don't have a problem with you, though. It's the budget. Or the income. Or the difference between what you earn and what life costs.

Most people already know that they need to spend less than they earn. That's not secret information. The problem is execution occurs in context. When everyone around you is spending, when your job requires certain appearances, when your mental health is falling apart and buying something is the cheapest relief that is available.

Discipline becomes complex very quickly.

[Ishicryptic]

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.

I agree with you that financial management should be taught children at tender age by parents in the home, not only teaching their kids they should also guide them to practicalize it. Example is when you gift your child money for doing something excellently well like having a top grade in exam, you need to teach and encourage the child to save since you're providing for their needs, if you don't that child can waste the money. If children understand the importance of savings at a tender age they will become better financial managers when they grow up, most habits are learnt from the tender age.

[Fakhrulenclix]

understanding financial management alone is not just enough! Because having good knowledge without exercising the possible action does not magically change outcomes financially, your bank account will still read same figures no matter what. Many of people are very familiar with the rules budget, save, invest and try to live below your means but yet they still struggle because they lack the basic discipline, because at the root of it all, financial management only works when it is consistently put into practice.

At first, we must understand it before we eventually put it into practice, and I do admit that practicing it is more difficult than just learning the theory. There are many obstacles when it comes to applying it. I have personally experienced this, which is why I say so. However, the positive side is that we can continuously make improvements once we have the knowledge.

[SUPERSAIAN]

While what you learn in financial management may be important in theory, it's meaningless if you don't apply it in practice. Understanding and applying financial management are all skills. A person might have excellent theoretical knowledge and insights, but if they don't apply them in their own life, it's natural for them to experience financially difficult times.

You need to apply what you've learned to understand it it's difficult to understand without applying what you've learned.

[Mate2237]

Knowledge without practice amounts to wastage and it applies here when it comes to financial management the most important factor is discipline because, almost everyone is aware of financial management to a certain level but the problem lies the fact that people are not disciplined enough to implement the things that they have learned and come to understand.



Financial discipline is what should be practiced if one is to be free from financial mistakes because the truth is that having understanding of how financial management works doesn't matter that much what is most important is financial discipline.

[LastKiss]

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, ~snip~

Theory will remain just theory if we don’t have direct experience with financial problems, we will never truly understand the reality. It’s easy to say we should save money, have emergency funds, and only buy what we need, etc. If we keep saving until we die, we may never achieve financial freedom and the cycle will remain the same, get paid > save some > spend on something > repeat.

However, when we understand the theory we also understand the reasons behind the decisions we make. Financial management is essential if we want a bright future. By learning it, we’ve already taken the first step and then we need the next step to achieve financial freedom.

[GiftedMAN]

Financial discipline is what should be practiced if one is to be free from financial mistakes because the truth is that having understanding of how financial management works doesn't matter that much what is most important is financial discipline.

Yes I agree with this, it is not enough to have all the understanding about finance without the practical aspect of it which is trying it yourself and see if you can put the things you have learnt into practice. Don't be a scholar who only teaches whet they can not practice in real life if anyone is to have the understanding of financial management give them finance and see if they can maintain the discipline to manage it as expected if they can have the discipline then it's ok for them to say the have a good understanding of financial management.

[Makus]

One aspect of financial management one needs to learn is investing more than what you spend, a lot of people might say saving more but investing is better than saving but this makes you multiply what you already have. financial management goes a long way to improving how well you deal with money but it is not enough to understand it, if you don't actually practice it then knowing it isn't really going to do much. Another aspect of financial management is having a budget this also goes a long way to keep you guided on what you spend.

[Jody.Drummer]

Money management is very important in life, whether you have an income or not. When you don't have a steady income, money management plays an important role. You must be able to manage your money well because your income is uncertain, so you don't know when you will earn money. And when you do have an income, money management is still important. Here, you must be able to allocate your income properly, for example, some for economic needs, some for pocket money, some for savings, and so on. But in terms of prioritizing, it seems that meeting your needs should be the priority, followed by saving.

[X-ray]

Its true, financial management is more than just theory but applied practice, you gonna need discipline for that, but at least knowing the theory and tracking your budgets based on that theory, you will get visualization of what these financial management really do.

When you able to visualize on that and figure out the benefit you're more likely to have the discipline since you realized you could've made your financial situation a lot better by just sticking to the theory.

It's just like any other disciplines of knowledge, you going to have the knowledge and the will to execute that knowledge to your lifestyle.