Is it enough to just understand financial management?

[HONDACD125]

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.

I don't understand. One can or will apply what they know, right? So if someone has knowledge of financial management, they will surely be able to manage their finances properly by creating a budget based on their income and then spending what they earn based on that; one will not be able to keep up with the budget they have created if they lack financial knowledge or have zero financial management skills, but if you have gained enough knowledge and understand how things should be done, you should have no problems at all.

Most of the time, it's actually not a lack of financial knowledge that makes a budget not manageable, it's actually a lack of funds, because most people are usually employed, and they get a salary at the end of the month which is not more than enough, obviously, so it becomes very difficult for them to run the month with a fixed budget because if you don't even get to fulfill the basic necessities of your household properly with your income, you can't make and follow a budget and expect the things would get better.

[Japinat]

It's a good point you understand financial management, but simply understanding without good application remains pointless at the end of the day.

We can say everyone understands what is financial management and how it could give an advantage for us, but majority are still suffering from financial crisis, which certainly means that these people failed to apply financial management on their finances.

Understanding without real-life application, still remains a pointless theory after all.

[Mr_Brilliant$]

If knowing every thing about financial management is enough, plenty people who have been rich by now haha.. The truth is that, knowledge alone will not change anything, it is your action plus discipline that will make the effect..

Yes you may know how to budget, how to plan money, how to live below your means, but if every month your money use to still finish before time, then nothing is really changing.

Financial management is not just meant to be theories.. You gats consciously decide how every money g will be spent.. If money is not inside your budget, then it isn’t suppose to be inside your spending..

[Hypnosis00]

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.

Even if you have no substantial income, then the more that you have to be serious on managing your funds, because a single wrong move or mistake will surely ruin your budget. But that would be a headache managing your small funds when you can't even afford to make ends meet and give what your family's basic needs.

Financial management will always be a necessity, that's why just understanding it alone is never enough, you have to make good practical application to make it work and succeed on your funds management.

[ChocolateBitcoinK]

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.

Even if you have no substantial income, then the more that you have to be serious on managing your funds, because a single wrong move or mistake will surely ruin your budget. But that would be a headache managing your small funds when you can't even afford to make ends meet and give what your family's basic needs.

Financial management will always be a necessity, that's why just understanding it alone is never enough, you have to make good practical application to make it work and succeed on your funds management.

.Even if our income is small, we must maintain financial management, but in the case of limited income, we must maintain more strict management, the main purpose of financial management is how we can survive well even with limited income and continue to save for the future, our financial management is most important to maintain balance in all aspects. And for this, we must first understand the importance of these and then spend full energy to implement it in practice. There are many who only want to manage their finances but fail to implement it in practice, nothing good can be achieved in their case, so we must be careful.

[Pablo-wood]

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.

Investment is the topmost discipline when it comes to financial discipline. Its easier to make money and very strenuous to save especially if we aren't use to the process. This financial management is a habit on its own and needs to be inculcated and developed before one can make wise decisions regarding their finances. If investment is prioritized the bulk part of financial decisions and management is already solved because it even makes one spend responsibly and grow their income over time.

[Versatile_choice]

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.

You should know that everybody is not the same, I agree with you when you said that people barely save especially those who are still dependent for example. those that get paid every month without performing any task, when the money comes they won't think of something important to do with it or even save because they believe that they will keep earning until the end, But as for those that is struggling to get the money once they get paid they will look for something important to do with it knowing fully well that they work their ass up before they were able to get the money, so for these reason they would want to put it in a place where it will keep adding or even save it for the future.

[Mame89]

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.

Financial management isn't as easy as it sounds. That's why it's important to start practicing good financial management early so it becomes a daily habit. Even if you're late in realizing the importance of good financial management you must have a strong determination to make it a habit.

You must have a mindset: Money plays a vital role in maintaining stability and meeting family needs. However, it's not the ultimate goal but rather a means to achieving life's needs. Therefore, money must be managed and invested wisely, with sound financial management, which will ultimately lead to long-term financial stability.

Talking about finances can be complicated at first, but it can be simplified if you have a strong desire and can resist excessive desires. There are many methods for smart financial management the key is intention, determination and a clear goal. When you have these in place you can realistically assess whether you want to save, invest, or prepare for protection everything becomes more manageable.

[bhadz]

It's a good point you understand financial management, but simply understanding without good application remains pointless at the end of the day.

I have encountered people who were good in giving financial advices. They've told how to invest, where to do it and how much can be put at risk. But I've seen them when being asked what are their investments, they can't answer that. It's all theoretical to them and they can't apply it to themselves. They're like teachers in good faith but they can't apply it to their lives. So, that's true that it is going to be pointless if after learning financial management and you don't apply it to yourself. You'll be good in life advises but can't actually do it in your own.

[MarjorieZimmermanGinger]

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.

The implementation phase is crucial because we will immediately face a much more complex situation. If we aren't disciplined in following the initial plan, everything will fall apart. Managing finances isn't as simple as it seems in theory as we sometimes deviate from the plan without realizing it. Worse yet, we often fail to adjust our financial management methods weekly and monthly. Almost everyone has experienced this, but we have matured through past failures and slowly evaluated them, gradually improving our financial management. Enjoying life doesn't limit us from managing our finances effectively, provided there is proper and coordinated planning. It's impossible to avoid enjoying life with family because life isn't just about wealth, investments or financial freedom.

[Samlucky O]

Without discipline you cannot save and invest, no matter how much you earn you can blow everything if you don't have focus.

To every good planing begot a good ending and vise versa bad planning for bad ending. All boils down to self decipline, focus, determination and consistentcy. The truth is that everyone that succeeded, make a sacrifice which deprive them of Many things that made them achieve their goal. A person that wants to succeed does not involve in many things that are not necessary. He should know the difference between need and want which is scale of preference. If you don't know these things then you may not succeed.

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.

Financial management is to master the attitude of setting budget and exercuting them accordingly without being biased or being moved by less important things. You must set your priorities first and not settling for less priority. Which of course doing that will ruin one financial planning. Spending wisely and setting budget and working on them without being carried away is what makes a person good in financial management.

[tygeade]

Financial budgeting is a really important concept for everyone who has an income source. Just earning money is not enough but we should also know how to keep the money safe and spend wisely.

People with poor financial management skills will most likely be broke by the end of the month and will desperately be waiting for the next payroll before they can start thinking about any more expenses. I myself was one of those and would use to struggle after every mid-month even if I maximize my earnings or have multiple income streams.

The more money we earn, the more will be the spending. The only way to keep the money safe is to learn proper financial management and restrict our budgeting. This learning comes the hard way only if we struggle initially. Especially every student who has just graduated and landed up in a well-paying job needs to learn financial management so they could save something for their future without spending everything on useless parties.

[Altryist]

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.

Budget management is a very important skill, and I believe parents should teach it to their children from an early age. When children already have their own pocket money, it’s important to explain to them why they should put some of this money aside. Over time, they should also be taught how to invest that money. Because if you learn from a young age to spend everything you earn, it becomes much harder to change that habit in adulthood. You may understand that financial management is important, but if you keep spending everything and think that you’ll start saving more once you earn more, that moment may never come.

[demonica]

You're right. Financial management can be learned and taught in school. However, not everyone knows or understand the importance of applying in our lives. Those who were able to learn and attend course related with financial management are lucky to be able to have access to this learning. But financial management doesn't just end with learning and understanding it. What really matters is on how you'll apply these learnings.

Self control and knowing where to allot your funds properly can help you achieve financial freedom. Although it's not that easy, it still plays a big role when it comes to handling our finances. 

[Ishicryptic]

It's a good point you understand financial management, but simply understanding without good application remains pointless at the end of the day.

We can say everyone understands what is financial management and how it could give an advantage for us, but majority are still suffering from financial crisis, which certainly means that these people failed to apply financial management on their finances.

Understanding without real-life application, still remains a pointless theory after all.

I'm really thrilled about the groove of this thread being that the agreement is massive that financial management theory is not enough if you don't apply it to your finance. It takes self discipline to practicalize prudent spendings, if you don't have control over your money it wouldn't matter what you know about allocating funds to more important expenses. I have seen educated people even so called management graduates who lavish money on irrelevant things that they cannot easily afford, that was my reason for starting the topic. What you know doesn't matter so much as what you do with the knowledge, if something will impact your life positively you should priotize it in your life.

[Maslate]

The short answer is NO. Understanding alone is never enough, but its the first step towards good and effective application.

If you clearly understand all the advantages of applying proper financial management, then you will know why some people always mess up with their funds and experience financial crisis often despite being highly paid from their job.

Financial management is not just a necessity, but its certainly a must doing.

People do spend and save, but most of the time expenses are bigger than the amount they saved. If its left uncontrolled just because people can afford to spend, then they might experience financial struggles in the future once their savings are not sufficient enough, or when they realized they have not saved at all because of overspending.