Is it enough to just understand financial management?

[icebar]

You need to balance everything for you to secure your finances, similar to what you said addressing what you need to fill and cover is very important, it will give you the idea if how you'll going to spend your salary, and the good thing if ever that you have extra source of income, knowing those expenses will give you good hint to budget your salary for your needs, savings and investments.

Knowing how much money we will spend each month is crucial. This will give us an idea of ​​whether our income is sufficient to cover it all. This shouldn't be difficult, as we already know what we need each month, including the bills we have to pay.

This will help us outline our plans for the remaining income, for emergency funds, investments, and so on. This will simplify our financial situation. And even if we have unexpected expenses, having planned everything will be a breeze.

Yes, you are right. If you have a good understanding of financial management, you can track your monthly income and expenses accurately. Many of us think that tracking monthly income and expenses will improve financial management. But this is a wrong idea, because if someone does not learn about financial management properly, how can he understand whether his monthly work is okay?

If there is a proper plan for financial management, then there is proper control over expenses, investments can be increased, and any emergency situation can be handled smartly.

[Mame89]

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.

You're absolutely right. Financial management isn't just about limiting your spending it's the art of consciously allocating your money with everything well-planned.

When managing your finances effectively you must make all decisions consciously. To be conscious, you need to understand what's a priority and what's not, and you need to make decisions calmly, avoiding emotional ones. As you said, financial management isn't just about reducing spending it also means planning where your money will be used for needs, wants, savings and even investments. Essentially financial management isn't just about making the best decisions within limited resources to meet unlimited needs and wants. Financial management also serves as a tool to facilitate conscious decision making.

[ZAINmalik75]

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.

Yes, but saving is not all that matters, earning by hard work also matters, because there is a saying which might be universal that there are two types of people who work hard before their 30s or 40s and the rest they enjoy and the other group spends enjoying and wasting their 30s and 40s and the rest is miserable.

Don't be like the second group, be like the first group because we should never take chances even if we are not sure when our expiry date is  We need to work, and relax but as our national founder said, work, work and work. That's the only way a nation can thrive.
Now how can we thrive if we won't work, or only work and not save that's not going to take us anywhere.

[abhiseshakana]

Yes, but saving is not all that matters, earning by hard work also matters, because there is a saying which might be universal that there are two types of people who work hard before their 30s or 40s and the rest they enjoy and the other group spends enjoying and wasting their 30s and 40s and the rest is miserable.

Don't be like the second group, be like the first group because we should never take chances even if we are not sure when our expiry date is  We need to work, and relax but as our national founder said, work, work and work. That's the only way a nation can thrive.
Now how can we thrive if we won't work, or only work and not save that's not going to take us anywhere.

My understanding, saving is our financial safety defence, earning is our attack tools and investing is our wealth multiplier machinae.  Working hard or working smart to get bigger income is part of earning strategy but its not guarantee we can accumulate wealth if there are cashflow leakage especially on this fast moving era, many people working hard but live poor because lifestyle increases with income, no budgeting plan, consumption debt and they don't ever think about productive investment. I thing the most importnat thing to be rich not working hard but capability to turning income to be productive asset consistently.

[coupable]

You're absolutely right; in financial management, application and discipline are just as critical as knowledge.

When talking about financial stability, money management is no less important compared with earning money which can be in itself considered a part in money management. People earn money without a clear study and spend it in the same way, despite they know that spending in such a way can make them poorer. That's the main reason why anybody should develop the habit of spending in accordance with his income. That is to answer the questions about how to earn money, and how much money to use. Those answers are basically determined by what we call as "money management".

[Fredomago]

You need to balance everything for you to secure your finances, similar to what you said addressing what you need to fill and cover is very important, it will give you the idea if how you'll going to spend your salary, and the good thing if ever that you have extra source of income, knowing those expenses will give you good hint to budget your salary for your needs, savings and investments.

Knowing how much money we will spend each month is crucial. This will give us an idea of ​​whether our income is sufficient to cover it all. This shouldn't be difficult, as we already know what we need each month, including the bills we have to pay.

This will help us outline our plans for the remaining income, for emergency funds, investments, and so on. This will simplify our financial situation. And even if we have unexpected expenses, having planned everything will be a breeze.

Yes, you are right. If you have a good understanding of financial management, you can track your monthly income and expenses accurately. Many of us think that tracking monthly income and expenses will improve financial management. But this is a wrong idea, because if someone does not learn about financial management properly, how can he understand whether his monthly work is okay?

If there is a proper plan for financial management, then there is proper control over expenses, investments can be increased, and any emergency situation can be handled smartly.

Indeed, proper understanding will give you a good hint to balance your expenses and will allow you to allocate excess money for your investment and savings, if you know how to handle your expenses well there's  a big chance that you can minimize your spending capablitiies and maximize your savings which can convert to investment once you already established what you desire to reach for your savings, it's more on proper management and handling of your finances.

[Uhwuchukwu53]

Financial management is important basically in business but I don't see it as the ultimate because if you have it and failed to utilize it wisely and join with others tactics required, it will be difficult to succeed, it's just an edge in line to generate and sustainable financial stability but in business growth smartness and some tactics which involves consistency, or trending and demanding business, that can bring more customer attention. Management cut off certain expenditure but may not increase income if the person failed to invest wisely and be of more strategic, one can still bea good financial manager but runs into poverty.it required diversifying and gathering of experience before proper sustainable of financial is achieved.

[Finebone]

Understanding something is way more deeper than knowledge, because their so many things you may know, but understand very few. So when it comes to financial management, it's what keeps you at the top after getting there, because it's even more easier to get to the top then remaining at the top that is very difficult.
So if you or anyone that wants to be stable and sustainable financially l, you needs to live below your means, and on no account should you be spending more than what you earn, because that's the fastest way to get wreck financially.
Once you can control your spending harbit, by not consuming more than you earn, your financial state will always improve.

[Josefjix]

Financial management is perfect to practice when you do not experience any issues in your style of leaving, when you are leaving healthy in relationship, physically healthy and mentally proven to undergo that.

What do I mean, a user will be willing to practice every financial management around his income. Then, a sudden illness will come unto him taking up his income he might have saved somewhere for many years, these kind of life circumstances do not allow financial management to take place. I spent all my money when I suddenly suffered from mental as well as bipolar disorder in the hospital within 2 weeks, that disrupt me and made fell down.

[Pi-network314159]

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.

this last paragraph is very much important, because without discipline someone can not save. saving is like us putting water in a bowl that can sustain it for long, why not saving is like putting water in a basket that will diminish immediately after pouring it. the question is that what is the essence of making money when we cant save, cultivating a good habit of saving is very essential and its a necessity because if there are no savings when emergencies occurs, it will be difficult to solve, it will require you to borrow money from one focused man to sort yourself out. and guess what? the interest rate in the loan which you are going to take is the inability for you not saving.

[junder]

Financial management is perfect to practice when you do not experience any issues in your style of leaving, when you are leaving healthy in relationship, physically healthy and mentally proven to undergo that.

What do I mean, a user will be willing to practice every financial management around his income. Then, a sudden illness will come unto him taking up his income he might have saved somewhere for many years, these kind of life circumstances do not allow financial management to take place. I spent all my money when I suddenly suffered from mental as well as bipolar disorder in the hospital within 2 weeks, that disrupt me and made fell down.

When experiencing financial problems or when financial management is necessary, the challenge here is to manage money well, which can certainly be done when the financial situation is unstable. In fact, when the financial situation is more stable, financial management must be given more attention. because humans tend to be more wasteful when they are in a situation where their finances are stable. Only truly wise and disciplined people can continue to manage their finances well when their financial situation is stable, because that is one of the tests.

[liasbaa]

Some folk are living a very good life with the same salary but you cannot. There are many such examples. Have you ever thought about how they are managing their salary and meeting the daily needs of their family while maintaining their financial management? I have reviewed this issue and the solution is to focus on preventing waste.

A weekly budget should be set because this method will keep you free from spending excess money. Provide a balance of expenses from your total income. The methods should be such that the attitude of wasting can be kept away in setting the budget. Just as you consider the current financial management seriously, you should also give equal importance to financial management for the future. The amount you are earning at present will not continue to earn that amount in the future. Pay attention to this matter and formulate a financial management.

[ZAINmalik75]

My understanding, saving is our financial safety defence, earning is our attack tools and investing is our wealth multiplier machinae.  Working hard or working smart to get bigger income is part of earning strategy but its not guarantee we can accumulate wealth if there are cashflow leakage especially on this fast moving era, many people working hard but live poor because lifestyle increases with income, no budgeting plan, consumption debt and they don't ever think about productive investment. I thing the most importnat thing to be rich not working hard but capability to turning income to be productive asset consistently.

abhiseshakana, you are on the right path to lead in this. Hard work is one thing but if we will work hard and still don't get there, then their is definitely something wrong and it is true that people work all their life and still at the end they don't have enough funds to feed themselves or pay their bills.

The problem lies in the education, those who work hard and with financial education they also work smart so that's how they save something for their retirement, and defend it, now in their working age they must keep attacking and earning as much as they can, but wasting it on useless weapons, like buying new luxury items which are not even necassary can give hapines but it will be temporary but it can weaken the defence system. By the way abhiseshakana, the example of defence and attack you have used is really very relatable and with it, understand and teaching becomes easy.

[Ishicryptic]

Yes, but saving is not all that matters, earning by hard work also matters, because there is a saying which might be universal that there are two types of people who work hard before their 30s or 40s and the rest they enjoy and the other group spends enjoying and wasting their 30s and 40s and the rest is miserable.

Don't be like the second group, be like the first group because we should never take chances even if we are not sure when our expiry date is  We need to work, and relax but as our national founder said, work, work and work. That's the only way a nation can thrive.
Now how can we thrive if we won't work, or only work and not save that's not going to take us anywhere.

My understanding, saving is our financial safety defence, earning is our attack tools and investing is our wealth multiplier machinae.  Working hard or working smart to get bigger income is part of earning strategy but its not guarantee we can accumulate wealth if there are cashflow leakage especially on this fast moving era, many people working hard but live poor because lifestyle increases with income, no budgeting plan, consumption debt and they don't ever think about productive investment. I thing the most importnat thing to be rich not working hard but capability to turning income to be productive asset consistently.

Unfortunately many people are trapped in the cage of merely surviving with their income, they know the importance of savings and investment but what they are earning is never enough to take care of their essential needs. Such people will grow old and not have any wealth stored for their retirement, you cannot really blame such people in such trapped personal economy because they want to save but they never get enough money to survive with.

Our focus is on people that earns money and can actually afford to have discretionary funds but due to lifestyles they cannot put anything aside for savings and investment, many of them knows what to do but they lack discipline. Knowing the right thing to do but not doing it is no much different from who doesn't know the right thing to do. Let us be very disciplined with our finance and try as much as possible to keep something aside for old age, we cannot be forever young.

[FanEagle]

Some folk are living a very good life with the same salary but you cannot. There are many such examples. Have you ever thought about how they are managing their salary and meeting the daily needs of their family while maintaining their financial management? I have reviewed this issue and the solution is to focus on preventing waste.

This depends on where you live and how much you are getting paid and what happened in your life. Just as an example, I have a decent salary, not a bad one, in fact with 2026 I am getting paid more so it is a great feeling and I am very grateful about it. However, half of that goes to debt I made previously, and this wasn't some debt that I could avoid, it wasn't like getting a brand new phone or whatever, it was a debt that I had to make for reasons I do not want to talk about anymore but it wasn't my decision. So it is not easy for all, and sometimes life hits you.

If you are able to save something at the end of a month, it all means that you are managing everything correctly and moreover when you are earning enough then it all possible. Still, earning more alone may not get you a perfect finance management because if you spend more than your salary then there would be no room for any management.

Overall, earning more and managing that effectively in a way to save something indicates that you are good in finance management.

[Yorubek]

Some folk are living a very good life with the same salary but you cannot. There are many such examples. Have you ever thought about how they are managing their salary and meeting the daily needs of their family while maintaining their financial management? I have reviewed this issue and the solution is to focus on preventing waste.

This depends on where you live and how much you are getting paid and what happened in your life. Just as an example, I have a decent salary, not a bad one, in fact with 2026 I am getting paid more so it is a great feeling and I am very grateful about it. However, half of that goes to debt I made previously, and this wasn't some debt that I could avoid, it wasn't like getting a brand new phone or whatever, it was a debt that I had to make for reasons I do not want to talk about anymore but it wasn't my decision. So it is not easy for all, and sometimes life hits you.

If you are able to save something at the end of a month, it all means that you are managing everything correctly and moreover when you are earning enough then it all possible. Still, earning more alone may not get you a perfect finance management because if you spend more than your salary then there would be no room for any management.

Overall, earning more and managing that effectively in a way to save something indicates that you are good in finance management.

Yes, no matter how much we earn if we are not able to reduce our excess expenses no management will work for us. Many people earn more than their needs but at the end of the week or month, they do not save or are unable to do so. I think the reason behind our failure is entirely our own mistakes. Over time, expenses will increase, so we have to increase our income as well as reduce unnecessary expenses. If we cannot reduce unnecessary expenses, then no matter how much our income increases, we will not be able to save money properly, so it is very important to increase our income and reduce unnecessary expenses.

[Bitcoin Smith]

If you want to become rich from the scrath, then it involves more process than just anyone and yeah learning about financial management also comes under but not just learning they need to implement it in their life to see the changes.

I doubt any courses about finance is teaching about these to their students, it is something only we can learn from the experience of others not from books unless it explains about the wealth generation. But it is getting harder for every year passes, so start as soon as possible or you can never reach what you have planned for.

[Mr_Brilliant$]

Financial management is important basically in business but I don't see it as the ultimate because if you have it and failed to utilize it wisely and join with others tactics required, it will be difficult to succeed, it's just an edge in line to generate and sustainable financial stability but in business growth smartness and some tactics which involves consistency, or trending and demanding business, that can bring more customer attention. Management cut off certain expenditure but may not increase income if the person failed to invest wisely and be of more strategic, one can still bea good financial manager but runs into poverty.it required diversifying and gathering of experience before proper sustainable of financial is achieved.

Yes oo, very very important, because you fit know how to budget, cut expenses, avoid unnecessary spending and still not grow if you are not strategic with income side…  Managing money is one thing, multiplying it is another thing entirely.

But still, without proper management, even the smartest and best business strategy can collapse.. If money is leaking everywhere, no level of smartness will save it for long..
So I see it like this, You need both management and strategy.. One will keep you stable, the other will pushes you forward..

[Berry2d]

Financial management is important basically in business but I don't see it as the ultimate because if you have it and failed to utilize it wisely and join with others tactics required, it will be difficult to succeed, it's just an edge in line to generate and sustainable financial stability but in business growth smartness and some tactics which involves consistency, or trending and demanding business, that can bring more customer attention. Management cut off certain expenditure but may not increase income if the person failed to invest wisely and be of more strategic, one can still bea good financial manager but runs into poverty.it required diversifying and gathering of experience before proper sustainable of financial is achieved.

Yes oo, very very important, because you fit know how to budget, cut expenses, avoid unnecessary spending and still not grow if you are not strategic with income side…  Managing money is one thing, multiplying it is another thing entirely.

But still, without proper management, even the smartest and best business strategy can collapse.. If money is leaking everywhere, no level of smartness will save it for long..
So I see it like this, You need both management and strategy.. One will keep you stable, the other will pushes you forward..

Finance management is a very important skill all with vision of getting successful most never avoid to acquire due to its economic important to once self when it has to do with growth financially.  Talking about smartness, it can never work effectively if the person in question cannot manage the little that comes his or her way, and  smartness can only be measured if one has something to account of which can only be possible if he has management knowledge and practice it as at when needed. It's true some that are stable lacks management qualities but such cases are not common because finance management in very essential tool required to success.

[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.

I think it's best to put this into practice, to learn from mistakes and understand how things work in real life, because it can differ from theoretical knowledge. It so happened that I got all my knowledge from books I could find myself in bookstores, because when I was young, there was no internet in the modern sense, and everything I could find was only in bookstores. Now there's much more knowledge available to young people, but perhaps that's why it's not as valuable.