Is it enough to just understand financial management?

[MarjorieZimmermanGinger]

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.

The practice may not be as easy as it sounds because without the discipline to consistently adhere to the concept of financial management, all your carefully laid plans will be ruined. Some people think financial management is enough to manage their financial resources, but without a measurable plan for how to manage the money properly, it will never be optimal. Managing finances properly means taking concrete actions and how the money we have will be allocated to the things that have been planned properly. This theory may sound easy to implement, but at the level of consistency, it is sometimes very difficult to apply and usually people who have failed in managing their finances will learn to perfect it so that in the future they can use it much more carefully and accurately.

[lovesmayfamilis]

Understanding the basics of financial management will be an important step towards your development, but it is not enough for effective financial management in practice. The basics provide a basic understanding of the principles, but successful application requires additional skills, time-based experience, and knowledge. Practice is always necessary, but everyone understands that theory and practice are different concepts.

For example, the theory may not cover the specific problems that a business may face in an environment of economic instability. Everything will be mastered gradually, and experience will accumulate. Similarly, experience will help to develop intuition and teach you how to make quick decisions. In short, the fundamentals of financial management are a good foundation, but they are not enough for successful work. Constant development is required, that is, practice.

[armanda90]

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 fully agree with this your opinion, not matter how your understand well about financial management without have income how to manage it? Firstly to understand well about financial management you have income and should be bigger income, if get smaller income how smart you manage it still not enough yet to back up daily needed, allocated for investment until have allocate few percent for saving fund.

The theoretical is easily for saying but you can't practice it before having good income I don't sure someone can manage well with financial although understand well about financial management. Most important to apply about financial management you must have large income from salary and easily for later to spent for investing, saving and emergency fund.

[Hanadawa]

Good financial management can be effective if you have a substantial income. You must have sufficient income to cover daily needs, monthly expenses, and the needs of your family. Furthermore, with financial management, you can discuss emergency funds, children's education funds, investments, and business capital. I believe good financial management is still necessary. Many people go bankrupt because they don't manage their finances when they have a large income.

[Oasisman]

Is it enough to just understand financial management?

NO. understanding or gaining knowledge about something will do you nothing if you don't execute it. Knowledge should always be accompanied by actions, for you to gain experience, which is very essential moving forward.
Financial management may sound like, hey, you just need to list down your budget for the month, pay your bills, and then save some. However, the reality is, it ain't easy to execute it. There are a lot of factors that could mess up your budget plan. If you're emotional, you spend to make yourself better. If you're craving, you'll spend to satisfy it. If you feel alone, you go on a hangout with friends, and again, you will spend. The worst thing is that when there's a health emergency, it will surely drain your savings.
I believe financial management includes your well-being and your overall health. It's not just all about money, but you need a healthy body to sustain your financial status. Yes, you may have a life insurance policy, but that won't be enough to cover all the days you missed in trying to make an income.

[KiaKia]

This is just like reading about martial art in the script and not practicing it, or learning how to handle a gun through movies or reading about it online until THE DAY where you have to shoot a gun for the first time, it's surely going to be different.

This is why I always like practical than theory, many people knows about financial management, they have read about it in the books or online but putting it to work is where the impossible begins.

Someone who isn't very used to saving money won't find it easy when they try it, they might like it when others use savings to take some steps but since they are not used to it already it's going to be hard at first.

[Ishicryptic]

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.

The practice may not be as easy as it sounds because without the discipline to consistently adhere to the concept of financial management, all your carefully laid plans will be ruined. Some people think financial management is enough to manage their financial resources, but without a measurable plan for how to manage the money properly, it will never be optimal. Managing finances properly means taking concrete actions and how the money we have will be allocated to the things that have been planned properly. This theory may sound easy to implement, but at the level of consistency, it is sometimes very difficult to apply and usually people who have failed in managing their finances will learn to perfect it so that in the future they can use it much more carefully and accurately.

Talk is cheap that is why after learning and gaining knowledge about financial management the next phase will be implementation and that is where matters the most, to actually practice it. It's not as if people don't know that they should be prudent about their spendings but they cannot control themselves, they get carried away by irrelevant spendings that won't add any value to their lives in the future. When you have money no matter the amount there are always enticing things to spend everything on and if you are after only immediate comfort you will lavish all your money without having a discretionary funds from where you will plan your secondary expenses. There's nothing wrong with enjoying yourself but you need to plan all your expenses and that is the financial management.

[coin-investor]

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.

Knowledge is power when it's properly applied. We live in a time when information is readily available with just a click, so there is no excuse for you not to learn what you want to learn, but learning is different from applying what you've learned. I have seen people earn a degree in financial management but fail to apply it to their jobs and lives.
You can only succeed in how you apply it and not in how you know it.

[rachael9385]

There is a difference between understanding something and actually practicing it. There are lots of about financial management and they are setting a budget, discipline, tracking expenses, saving and investing. knowing all of these isn't really enough, if you don't practice any of these principles then it's almost the same as not understanding financial management.

[Die_empty]

This topic reminds me of some developing nations. Some of them have vibrant economic policies that would alleviate the country from poverty. But the problem is the implementation of these policies. An example is my country, which has several development plans that were designed by some of the best local and international economists. But the implementation process is the problem because of corruption and other factors.

As individuals, it is a waste of time to map out sound financial management plans without the willpower to implement it rigorously. It is even better not to have a plan than having one that will never be followed.

[Promocodeudo]

There is a difference between understanding something and actually practicing it. There are lots of about financial management and they are setting a budget, discipline, tracking expenses, saving and investing. knowing all of these isn't really enough, if you don't practice any of these principles then it's almost the same as not understanding financial management.

You're right on this but it all starts with understanding it, the practical aspect, i mean putting into actions should be the secondary aspect, ma not saying it is not the important aspect, you'll agree with me that for someone to understand that a system through exist, such person might want to practice it someday, may be when he might have learn his lessons, although individuals are full of excuses, some persons may fully understand the term financial management but choose to do things they way it pleases them because of reasons best know to them, but the fact here is that, understanding financial management is like the starting point of growing wealth.

[Renampun]

Financial management is so easy if we just read about it on paper, but when we apply it directly it often feels much more challenging because financial management will practically change how we use money, and this will affect our habits and the financial decisions we make. and because of that, there are wise people who say that managing finances is not just about numbers, but about self-discipline, because people may have read about financial management, but in practice it is something else.

[uneng]

Financial management is so easy if we just read about it on paper, but when we apply it directly it often feels much more challenging because financial management will practically change how we use money, and this will affect our habits and the financial decisions we make. and because of that, there are wise people who say that managing finances is not just about numbers, but about self-discipline, because people may have read about financial management, but in practice it is something else.

It's hard to implement it on practice, because it takes only one lapse of memory to spend money you shouldn't spend in order to follow the financial plan. And it does happen every month, especially when you face events which have emotional meaning to you. For an example, you are so happy to be with your wife and family that you can't deny going out to have dinner, or you can't resist purchasing them a special gift.

On that short timeframe, your financial management strategies leave your mind, and you are taken by the impulses of pushing happy moments to the fullest. The thing is that, it doesn't happen only once, but several times every month, so the impact over finances are huge after all.

[Uhwuchukwu53]

Knowing financial management is just a guide, because management without money or capital to invest is just a mere joke, because most  investor don't even consider financial management but are doing great some time this financial management is mostly consider most by some medium investor. What financial management only do is to guide in some losses as it limit in harnessing some risk before venturing in. I happen to see a greater contractor area me who don't know about financial management but is doing well in his field taking all risk without considering the loss of the investment though it's very risky, I see financial as a tool that helps to limit certain risk. But it can be of no meaning if investor lack capital to invest wisely.

[snowpega]

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.

It is a very important role that everyone should follow. And if I have to share my own opinion, then I would like to say that one should divide his earning in three parts. The first part he should use to fulfil his daily basic needs, and the second part of his earnings he should use to invest so that he can make more money, and the third part he should use as savings funds for future purposes. Other than this, I really know that everyone has and follows their own way of fund management that they feel best and set best according to their financial condition.

But those who don't consider fund management, then I believe that they are doing worse, in my opinion. Other than this, it is very important for one to not spend their money on useless things if they have limited resources and a way to make money. This is just my opinion, not any financial advice to follow. Well, what do you think about it? CMIIW!

[sunsilk]

Understanding, knowing and applying financial management are different things. If you know it and yet you're not doing it, that's still a different kind of thing.

You'll have to apply that to yourself to show that you truly understand it and that's why you're doing it.

Because one's knowledge isn't enough if you just got it on your head without properly doing and proving to yourself that you solely knew it.

[AVE5]

Financial management centeres on having budget for your total income, what is not in the budget is either carried forward or cancelled.

It's as simple that the essence of financial managements is to secure the future which is either for your little incomes to serve you for a long term or you're chasing a goal of increasing your net worth in the future.
So managing your finances such that you don't spend above your incomes and also the ability to increase your incomes are key terms of preparing ahead.
So if we must buttress on the centers of financial managements, we must admit it's a conscious lifestyle that doesn't only care about the immediate or short term needs but also concerned about the long term goals.

[Fortify]

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.

Knowing it is one thing, but it does not make you rich merely from understanding these concepts. You need two other elements, firstly it is earning enough money and staying out of debt which is often peoples first hurdle before they can reach the next stage. It's very easy to get sucked into borrowing money, especially when you are young and don't know any better, but it makes it harder to reach that financial freedom because you need to hit break even before making any profit. The next part is applying what you have learned, I've lost count of the amount of times that I've explained things like the stock market or how to evaluate companies to people who then claim to want to dive right in, but they never make a move and you can have the same conversation ten years later like de ja vu.

[eightdots]

Financial management centeres on having budget for your total income, what is not in the budget is either carried forward or cancelled.

It's as simple that the essence of financial managements is to secure the future which is either for your little incomes to serve you for a long term or you're chasing a goal of increasing your net worth in the future.
So managing your finances such that you don't spend above your incomes and also the ability to increase your incomes are key terms of preparing ahead.
So if we must buttress on the centers of financial managements, we must admit it's a conscious lifestyle that doesn't only care about the immediate or short term needs but also concerned about the long term goals.

Financial management allows you to take sensible steps for your economic future. One of the benefits of financial management is that it enables you to plan and act with a view to the future, optimizing your finances.

In fact, as you said, financial management is a lifestyle. Adhering to this lifestyle prevents many unnecessary expenses and allows for smarter decisions. The benefits of financial management for individuals are immense, and individuals need to know how to manage their finances in order to achieve their goals.

[Cheema02]

Good financial management can be effective if you have a substantial income. You must have sufficient income to cover daily needs, monthly expenses, and the needs of your family. Furthermore, with financial management, you can discuss emergency funds, children's education funds, investments, and business capital. I believe good financial management is still necessary. Many people go bankrupt because they don't manage their finances when they have a large income.

Your point is very realistic for real life and its compulsory to carefully manage the finance even when income becomes healthy because with high earning We focoused on spending it. If we have not clear idea about our budget then may be we struggled instead of earning well. If we planed properly then we have ideas how much we spend on education, health and other monthly bills and some sort of money can be saved for future. On the other hand when a rich guy ignore discipline they face troubles in financial way. So we uses money carefully and wisely because its help in long term stability and helps to achieving personal goals. And in current time all the wealthy families can manage there income professionally.