Is it enough to just understand financial management?

[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.

In order to truly understand anything you have to experience and engage with it, getting real practice instead of just doing everything in theory. You can talk to someone about riding a bike, you can show them videos and explain exactly how you do it - but only by getting on a bike, finding that balance point, learning how to pedal and brake will make you into a cyclist. It's the same with finances, you can read all about it but if you have no money or when you do have money, you don't put it to use including risking it for better returns, then you will forever be stuck in the slow lane or even in reverse. Most people build a fortune over decades which is definitely possible but the media tends to portray only fast and easy money which is an extremely rare occurrence.

[bangjoe]

Money management makes us aware of how to manage money, we will arrange funding allocations for many things that must be paid attention to and are important to have in life so that finances are neatly arranged which has an impact on financial balance, even if we have long-term projections it will be much better, that is the benefit of money management.
Money management also makes us know that the inflow must be greater than the outflow so that the actions chosen such as saving money and improving skills to get money coming in become a priority. People who have this level of financial awareness can usually live much better.

Financial management isn't enough to achieve financial freedom or even simply survive in old age. But with good management you can manage your finances effectively and allocate them to more productive activities rather than consumer spending. And financial management will be more effective in achieving your goals. You should increase your income ideally having multiple sources of income is better for saving and investing.

Essentially, we can compare financial management to the brakes on a car. It's crucial to avoid overspending. But the engine (income) must be strong first so you can travel long distances without fear of breaking down. Especially in this technological era, if you're willing to hone your skills and have strong determination anyone can create their own business in this technological era by utilizing the internet to earn extra money. One way to do this is by utilizing this forum. Besides being a place to share insights and knowledge, you can also earn additional income.

People who already understand how financial management he will look further in his financial scheme, they will see how the next 3 months, the next 6 months to the next 5 years because they must have thought about the preparation of several things that might happen and need to be prepared financially, such as getting married if they are still single, the cost of buying fertilizer, children's education to health and so on will trigger someone to think how they can cover it in the future, certainly if his income today is still very small then he will look for additional income, yes one of them is this forum, but many other things such as other digital products that can make money, I see many people who are ignorant of AI, if you provide tutorials on how to make videos that can provide economic value it will also be very good if you can sell.

So all these thoughts will be born when you already have money management, slowly you will also find that you have to have even more income.

[GiftedMAN]

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.

There are courses that are related to financial management but it doesn't have a separate department but under a particular course students will come across it if they are interested in putting their studies into practice they can learn how to manage their finances very well. Our parents are also a good way for children to learn about finances and how to manage it once they are born and raised by parents who are good rich but good financial managers the children will learn and it will become part of their life good management matters if you must grow in business.

[Fredomago]

The thing that really has to be considered is unnecessary spending, the problem that I think happens to the majority of people is usually the habit of spending on things that are not really important. This can be a bad habit, therefore it must be able to eliminate it and the way is to think that what is needed is more important than what is wanted, so prioritizing what is needed is the right thing.

That unnecessary spending is what the humanity does to go on, otherwise we would all go mad. There are not a lot of people who would be poor in the sense that they can't even afford pasta or rice or whatever, those are cheap stuff, and most of us would be able to live off that.

But you do not get to live a life where your home is basically a cabin and horrible and small so you pay very little for it, eat rice and bread and pasta and potato everyday, have no tech for yourself (maybe phone if job requires it) and just live like that and hope to save enough that way for 10 years to then become rich. That would not make you rich, that would make you mad and you are not going to see the end of your experiment because you will go mad.

Well, people need to realize what's really important for them and survive in this crisis. Because let us put it this way, no one will help us but ourself, right? So need to think of contingencies how to survive in these challenging times.

If there's help that may be provided for sure it's not permanent as there are things that also needs to consider from those who are providing it, so like what you said, better to help yourself in finding alternative ways and additional options to improve your chances to make additional income, as the economy is not doing good.

Finding additional sources or learning different kinds of skills may increase your chance getting other sources, so with investment and business that you may startup if you have some save money to use.