Is it enough to just understand financial management?

[abhiseshakana]

From my experiences, financial management is not too complicated but very difficult emotionally in controling our behavior and our lifestyle. Discipline is foundation of financial success but we need system automation, so no need to forced discipline everytime. In some point we need to be realistics that not all people who fail because they are not disciplines, rather economic condition din't give them room for investation even they fail to increase their income and widening their skill which can magnifies their success opportunity.

If you see budgeting as center of financial management, i rather see it as plan or map for daily strategy, and for me, cashflow management is more important, because it is the living machine of financial management. Without healthy cashflow, budget only plan or theory and can not be applied, saving only a wish and will not run, we can not do consistent and stable investation and the worst thing we live from paychecks to next paycheck.

[Accardo]

Successive managers are students to professors who thought them with courses from the 20s, that era has the best work on detailed management with farseight speculations, in actual figures, the economic status of today's market, kinds of approaches that overshoots and collapses, blooming informational structures, and general growth sustainance, if you've been reading managerial works or course from recent days, there's probably a lot of fluffs in it, if no impact is made on the reader.

[MinMan]

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.

They are like schoolteachers who will be guiding us from the textbooks only and will have very less or no real-world knowledge. These people might be able to read a couple of books every day and attend a few wealth management lectures or seminars which makes them feel confident that they will be able to guide others. They get so busy in guiding others that they almost forget about their own wealth management.

They will still struggle at the end of the day even after giving million-dollar opinions to others. Is trusting and taking guidance from these people really worth? I don't think so. We can instead learn from someone who has real-world experiences and has spent couple of years struggling at the initial stage because only then they will be able to learn the hard lessons taught by life.

[AmaGold70]

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.

You are very correct, knowing financial management without putting it into action is like faith without work and of course there will be no positive outcome. When you have good financial management skill, the right thing to do is to put it into action, any money that is not invested does not grow. When we look around the world or different environment where we found ourselves, we will see people who are doing well financially and they grow in their wealth from season to season,  they didn't dump their money in the bank or rely on paid jobs, they are investors utilizing their financial management skills.

[justdimin]

to some extent you are right. Probably everyone has heard that you should set aside part of your income, and create capital for investments. In theory it all seems very simple, and in practice there is actually nothing complicated about it. The most important thing is to do it consistently, from every salary, without skipping, so that it becomes a habit. After that everything will work out. But I do not know why, maybe because of laziness, people do not even try to start saving and instead spend everything they earn. Most of them say they do not have enough money to live on. But no matter how much such people earn, they will still spend everything because they do not have the habit of saving.

Not everyone can do this because we just do not have enough money. People think that we spend our money on matcha tea and new phones but that is not the reality, some of us live a very poor life and even with that we still can't afford to put money aside. I am one of those people, back in the day I made some debt, and I do not earn much enough to pay it all off and start saving.

Right now I have less debt, and I am paying it very well every month, in a few months I will probably be done and will start to save, but it was logical for me to fail to save because instead of saving I paid off my debts instead. So, it is not possible for everyone to do it and nothing about this is "simple" as you claim because we are not all rich.

[Jateng]

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.

The financial system is one of the most important systems because all our things depend on the financial system. Everyone knows that if you have knowledge you will not be of any use without using it. Focus on what you are good at only then you will be of benefit because financial difficulties come in everyone life. Therefore to deal with it you should have a good network mental and physical strength and patience. by doing this the financial system will improve. If Mahana spends more than the budget then his bank account will remain the same and his financial life will not improve.

[Obulis]

It's a common saying that practice makes perfect. This is not necessarily about perfection but about usefulness of already gained knowledge. What you know but you don't apply or practice is like not knowing it in the first place. Haven't learned financial management, the next best thing that follows it is the application of these knowledge without which the gained knowledge is as good as nothing.

[MinMan]

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.

Someone who is disciplined, and habitual when it comes to saving and investing, will of course get richer with time and that person will not have anything worry about in the future. However, not everyone is like that and not everyone can even do it even if they wanted to. So, the sad reality is that most are just chasing big wins for quick returns because that is what they can afford to do right now. I mean people who are buying lottery tickets have higher chance of winning than most who trade memes for example, but they still try their luck.

[Sarah_Jannat42]

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 important to have financial management knowledge but practical knowledge or skill of how to implement it will drive you towards your goal. It can be called a kind of family knowledge, because discipline is one of the family knowledge of a person. The more discipline a person has, the more successful he is in life. So along with having knowledge of financial management, he must have practical habits, otherwise that knowledge will never be of any use.

[Royal Cap]

In the context of your budgeting theory, I would like to add a popular rule that i heard from my teacher can help many and that is the 50 30 20 rule. Here 50 percent of the income is kept for essentials, 30 percent for hobbies and at least 20 percent for savings or investments. However as you said when you add something new to the budget, you have to remove something old. This is actually a great example of opportunity cost. When a person learns to understand that an unnecessary expense is ruining his opportunity for a big investment in the future, he can only become truly disciplined.

[Rabata]

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.

Someone who is disciplined, and habitual when it comes to saving and investing, will of course get richer with time and that person will not have anything worry about in the future. However, not everyone is like that and not everyone can even do it even if they wanted to. So, the sad reality is that most are just chasing big wins for quick returns because that is what they can afford to do right now. I mean people who are buying lottery tickets have higher chance of winning than most who trade memes for example, but they still try their luck.

Investing with discipline is certainly not easy. Because people always have financial needs. When someone starts investing regularly for the purpose of investing, financial pressure will increase. He will not be able to do anything according to his wishes. In this case, investing with discipline is certainly much more difficult. There are some people who try very hard but despite their desire, they cannot become disciplined investors because their income is too low to implement any plan. On the other hand, there are many who, despite having money, cannot complete it through that chain.

[Finestream]

I don't think its hard to understand how financial management is done, everyone can explicitly understand it but the hardest part is putting it into real life application, though everyone can manage their funds but not in a smart way.

This is the reason why majority are still struggling on their finances, not because financial management is not there, but because financial management is done the opposite way, or its done not the smartest way possible.

But how can be good financial management be possible, when there is no good flow of income, or when funds can even hardly make ends meet.

[Makus]

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.

it is always easier when it's said or drafted out but it is really hard to keep up with or practice, a lot of people lack discipline to control their finances. financial management is very important to making sure thayt.rhe profits you make.are properly utilised. People don't feel the need to understand this that's the reason why they mismanage their finances. like you said, a person that lacks financial management cannot achieve financial goals that's a fact. every investor should take out their time to learn this .

[YOSHIE]

Is it enough to just understand financial management?

The meaning of the words understanding financial management is not enough, behind that all a series of activities must be carried out so that they run effectively and efficiently, to achieve the goals of all understanding financial management.

Behind all that, optimizing all economic decisions and business value is also very important and ensuring liquidity must be maximized in both the short and long term.

We all understand that steps to carry out financial management are very necessary and implemented.

[Agbe]

Understanding financial management without practicing it isn't going to produce any results, it is always important to apply the knowledge of what we know into a particular thing for us to get the required results, having the knowledge of what it takes to manage our finances is only going to help when you practice those things that you know. Having it on paper isn't enough you must practice it to get results.

[Ishicryptic]

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.

Someone who is disciplined, and habitual when it comes to saving and investing, will of course get richer with time and that person will not have anything worry about in the future. However, not everyone is like that and not everyone can even do it even if they wanted to. So, the sad reality is that most are just chasing big wins for quick returns because that is what they can afford to do right now. I mean people who are buying lottery tickets have higher chance of winning than most who trade memes for example, but they still try their luck.

Being very disciplined about savings and investment will help us not to spend unwisely, as money comes in you have already made plans on what to do with it keeping in mind about how much you can save and invest. It is a pity that some people are expecting some miracle to happen where they will come into huge amount of money and instantly invest it but the reality is that you can live your whole life without having that luck to win or be gifted huge amounts. Still a person without the discipline to apply financial management practically will still missus such once in a lifetime money opportunity. Money doesn't have a permanent owner, what you spend is gone so it makes sense not to spend everything, remember your retirement when you won't have energy to work hard like when you're young.

[ChocolateBitcoinK]

Understanding financial management without practicing it isn't going to produce any results, it is always important to apply the knowledge of what we know into a particular thing for us to get the required results, having the knowledge of what it takes to manage our finances is only going to help when you practice those things that you know. Having it on paper isn't enough you must practice it to get results.

It is necessary to have knowledge about financial management, but if that knowledge is not applied in practice, it does not bring any effective results, when we do not implement any decision, we cannot expect any positive results from it. Just making a decision in our mind never brings any change for us, rather, the decision we make has to be applied in reality, only if we take practical steps will we start getting results and changes from it. Therefore, we have to first take our thinking towards reality, and this is very necessary in the field of financial management, keeping a monthly income account, controlling unnecessary expenses, saving according to specific goals and making consistent decisions in the long term, we have to be realistic in everything.

[Cheema02]

Successive managers are students to professors who thought them with courses from the 20s, that era has the best work on detailed management with farseight speculations, in actual figures, the economic status of today's market, kinds of approaches that overshoots and collapses, blooming informational structures, and general growth sustainance, if you've been reading managerial works or course from recent days, there's probably a lot of fluffs in it, if no impact is made on the reader.

Your thoughts explain that a long time ago management ideas are still useful for current era for many managers and these ideas have strong details. If we see today's business world, its completely different from previous time due to advancements in technology and adaptive market strategies. If we research modern management courses then we observe it has many unnecessary theories which have not connection to real bussines. But a good management course should contain the old but strong principles and also have practical knowledge of present era. So its proves useful managers to make better decisions according to real challenges they face. If the course have not such standers to put practical impact then ite totaly useless. So the learning point is that management education should focoused on creat solutions according to real world skills rather then repeating theories.

[junder]

I don't think its hard to understand how financial management is done, everyone can explicitly understand it but the hardest part is putting it into real life application, though everyone can manage their funds but not in a smart way.

This is the reason why majority are still struggling on their finances, not because financial management is not there, but because financial management is done the opposite way, or its done not the smartest way possible.

But how can be good financial management be possible, when there is no good flow of income, or when funds can even hardly make ends meet.

I agree with what you said, friend. Everyone can understand it, but not everyone can apply it effectively. Some people fail but try again, while others fail and abandon it. There's a saying that goes, "People who are used to little money are ready to handle a lot," which, in my opinion, refers to financial management. Because some people aren't ready to handle large sums of money because they don't know how to use it well, they probably only use it for what they want.

[TheUltraElite]

Understanding and applying are two different things.

One might understand the methods by which they can save and spend properly but still take a 100$ phone over a 50$ one with same functionality because their next door guy got one and is making reels on it.

Surely financial management is important and learning it is always encouraged. But only if you are applying it in real life, not otherwise.