Is it enough to just understand financial management?

[Bluedrem]

For financial security, money management is also important along with earning money. People earn money and spend it, but unplanned spending can make people poor, so every person should develop the habit of spending in line with their income. And from this concept, the issue of money management basically comes to the fore. That is, how a person earns money, how much money he will use in which sector and how much money he will spend in which sector, these things are basically determined by money management.

[Ishicryptic]

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.

It is fine to learn from anyone who is making sense about how to plan finance and apply it practically but if you want to investigate whether they are actually being financially disciplined in practical you might be disappointed. Some people are gifted at lecturing or preaching but it doesn't mean that they have the discipline and stamina to practice what they teach so the point is that we shouldn't have high expectations regarding how far lecturers and preachers practice what they teach. Learn everyday from people and materials then take what you believe will benefit you and practicalize it, don't worry if those that thought the lessons are perfect at what they teach.

Every adult knows good and bad and if all of us choose to practice only good things there won't be any bad in the world but some people know what is good but choose to do bad. In the same sense most people understand financial management but lacks the willpower to practicalize it.

[Cgrexp]

For financial security, money management is also important along with earning money. People earn money and spend it, but unplanned spending can make people poor, so every person should develop the habit of spending in line with their income. And from this concept, the issue of money management basically comes to the fore. That is, how a person earns money, how much money he will use in which sector and how much money he will spend in which sector, these things are basically determined by money management.

In financial management, it is necessary to have the ability to make conscious decisions. If there is no ability to make conscious decisions, then it is necessary to be aware of how much money a person is earning and based on that, how much he is able to spend on necessary expenses and save for the future to determine the budget in these areas. Financial planning or management does not mean that you have to reduce your expenses, but rather how much money should be used in which sectors, this is planned through financial management. Own income, expenses, investments, savings are all part of financial management.