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.

[gracreavix]

If there is one thing everyone should really know about financial management, is discipline.  like real discipline. Because tbh managing finance is way beyond just knowing what to do or having the knowledge. You can read books, take courses and even do other stuffs, but if you don’t have that discipline to actually practice it, nothing will change.

You will just be running your finances the same way you have, the only difference will just be that you have the knowledge, but you are not doing better financially.

Don’t get me wrong, the knowledge is good, as it is the first step. But what is way more important is been intentional with it. Like always consciously trying to apply the knowledge in your daily spending, saving, investing.

And tbh, another good decision is if your finances have grown to a point were you can afford to get a Pro financial manager, then you should.  Someone that can guide you and help you structure things properly. And it will even bring about accountability which will make discipline easier.

[Hewlet]

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. .

One thing I've known about knowledge is that it's always far better and helpful that remaining in ignorance. It's better to have the knowledge of financial management and struggle with implementation rather than walking in ignorance basically because you don't even know what going on with you.

Even those that studied economics, accounting and finance based courses in school still fumbles but yet, they are more advantaged than those with zero knowledge in such field. If at the early phase of growth you don't find the need to understand properly how to manage your finances, you will still need it in the long run because there's no way you can avoid it completely.

[Judith87403]

Indeed, it's tough as you need to practice whatever information and knowledge that you acquire, it's not something that after reading then just let it passed but instead, after reading or learning you need to strictly practice and observe if things have some influence in you, there are financial information that you can use to follow but it is very important to have that self-will to completely practice whatever you learned.

Certain financial management skills isn’t necessarily one that someone needs to formally go to an institution to acquire, and inasmuch as it’s crucial and even beneficial to read certain books, sometimes it’s not even mandatory before you master certain financial management skills and techniques that’ll help you. All you gotta do is learn how to balance your income level with your expenses, there are several materials that can help people master financial management.

[Z_MBFM]

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.

Yes, it is true and I agree with you that financial management is not as easy to calculate on paper as it is to follow in real life. Everyone should follow financial management and I think that everyone thinks about it and makes various plans but it is not always possible to formulate it in real life. Because there are many more hidden expenses than what we calculate which are not possible to maintain in any way. So financial management is not possible for everyone to follow accurately. But those who can keep their financial management in order can definitely live a good life and they never have to go through economic crisis and depression.

[Emitdama]

It's good if you have both an understanding of Financial management and Financial literacy because these concepts help you with your proper budgeting, learning from investment and earning and we know in this world it's hard if you dont understand these you can possible decieved with hte marketing strategy of the different companies such as taking loans, and having a bad debts. Again, we have a good debts and bad, the good one are the loans you take to create a cash flow, and the other one is the reason why you become poor and drain your money because of mishandling. Most of the people once they increase their source of income others increases their lifestyle too which is afterward not sustainable anymore reason for mishandling of money too.

I think that these two concepts are interrelated because there is no way you can be talking about financial management and financial literacy. There is no way that one can accurately run a business without these two concepts because everything about budgeting is linked to your understanding of financial management and financial literacy. So it's important that everyone should learn and understand what financial education is.

Financial education is definitely important, there are a lot of people who could make a lot more money, but instead end up not being able to do much, and that's not really that great, we are facing trouble as it is and that's not really a good situation to be in, we should not be seeing this as something that would make sense at all.

I understand that this may not be the best case scenario for everyone, but as long as we have this situation going on, we need to realize that people are almost always leaving money on the table. If you learn financial education at school, even the minimum required version, like just for one school year, for like 1-2 hours a week, that's it, even that would make a huge change in your future.

[RockBell]

Financial education is definitely important, there are a lot of people who could make a lot more money, but instead end up not being able to do much, and that's not really that great, we are facing trouble as it is and that's not really a good situation to be in, we should not be seeing this as something that would make sense at all.

People don't know it's benefits but the same time when they realize how important it is for them to know how they should manage there money because first of all financial management matters a lot when you learn then in the process you become disciplined and when you are when it comes to money they any other thing can be controlled because a lot of people are not even taking this thing seriously because when you want to invest then it comes a lot of challenges because you are not disciplined money wised and the thing is it as to just make sense.

I understand that this may not be the best case scenario for everyone, but as long as we have this situation going on, we need to realize that people are almost always leaving money on the table. If you learn financial education at school, even the minimum required version, like just for one school year, for like 1-2 hours a week, that's it, even that would make a huge change in your future.

And no one will teach you how to manage money especially when you are school it is important for you to do self discovery because that is the only way you will be able to manage money while you are in school, I remember does days that money won't be enough so the little you have just have to be properly managed because that is the only way you will survive because as a student life is always not just easy at all.

[Lida93]

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.

Where you fail to plan you've invariably planned to fail, and that's how it applies with management, if you can't learn to manage with what you have then you would definitely mismanage in how you spend your money.  Management shouldn't be a choice and it mustn't be with those that went to school to learn it as a professional course, because it's an inherent character which has to be practiced in everyday of our life in all things. For example, you don't have to go to a management school to know that if you live above your means you'll be in debts and definitely be financially brokedown, common sense teaches us this.

[yixichloro2xx]

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 very easy to know how money works but the difficult part is how to use or should I say manage them properly. People understand how to budget their money,but don't know how they overspend. One of the reason is because they are not tracking how their money is being spent.  Tracking gives you control on how your money will be moving. As a you are budgeting you must also track. Secondly they spend on things that are so irrelevant. Imagine someone who just made good money purchasing two SUVs for no reason, why can't you buy one and save or invest the other part of the money into something meaningful like Bitcoin. You are right as a person it is very  important to live below your means. One the biggest mistake someone can is overspending their money just draw the attention of people, never do that, no one cares about you or your money, the themselves have something going on in their lives.

[Bit-Mj1014]

We all know that knowledge without application is a waste, but sometimes financial intelligence comes naturally or from family upbringing, the family or environment you find your self in plays a very big role in your financial intelligence and success for example a child finds his or herself in a family of big business minded people, that child has a good chance of having a very high financial intelligence.

[Mr_Brilliant$]

It's good if you have both an understanding of Financial management and Financial literacy because these concepts help you with your proper budgeting, learning from investment and earning and we know in this world it's hard if you dont understand these you can possible decieved with hte marketing strategy of the different companies such as taking loans, and having a bad debts. Again, we have a good debts and bad, the good one are the loans you take to create a cash flow, and the other one is the reason why you become poor and drain your money because of mishandling. Most of the people once they increase their source of income others increases their lifestyle too which is afterward not sustainable anymore reason for mishandling of money too.

I think that these two concepts are interrelated because there is no way you can be talking about financial management and financial literacy. There is no way that one can accurately run a business without these two concepts because everything about budgeting is linked to your understanding of financial management and financial literacy. So it's important that everyone should learn and understand what financial education is.

Financial education is definitely important, there are a lot of people who could make a lot more money, but instead end up not being able to do much, and that's not really that great, we are facing trouble as it is and that's not really a good situation to be in, we should not be seeing this as something that would make sense at all.

I understand that this may not be the best case scenario for everyone, but as long as we have this situation going on, we need to realize that people are almost always leaving money on the table. If you learn financial education at school, even the minimum required version, like just for one school year, for like 1-2 hours a week, that's it, even that would make a huge change in your future.

It’s true, it is crazy how something really small like basic financial education can actually change someone whole life path…

Most people does not even lack money, it is just knowledge and discipline that they don’t have... Imagine learning simple things like budgeting, investing, or even how money works from school days… plenty people would have avoided unnecessary struggle by now..

Financial education is one of those things that sounds small oo, but has a really big longterm effect…

[Jody.Drummer]

It's good if you have both an understanding of Financial management and Financial literacy because these concepts help you with your proper budgeting, learning from investment and earning and we know in this world it's hard if you dont understand these you can possible decieved with hte marketing strategy of the different companies such as taking loans, and having a bad debts. Again, we have a good debts and bad, the good one are the loans you take to create a cash flow, and the other one is the reason why you become poor and drain your money because of mishandling. Most of the people once they increase their source of income others increases their lifestyle too which is afterward not sustainable anymore reason for mishandling of money too.

I think that these two concepts are interrelated because there is no way you can be talking about financial management and financial literacy. There is no way that one can accurately run a business without these two concepts because everything about budgeting is linked to your understanding of financial management and financial literacy. So it's important that everyone should learn and understand what financial education is.

Financial education is definitely important, there are a lot of people who could make a lot more money, but instead end up not being able to do much, and that's not really that great, we are facing trouble as it is and that's not really a good situation to be in, we should not be seeing this as something that would make sense at all.

I understand that this may not be the best case scenario for everyone, but as long as we have this situation going on, we need to realize that people are almost always leaving money on the table. If you learn financial education at school, even the minimum required version, like just for one school year, for like 1-2 hours a week, that's it, even that would make a huge change in your future.

It’s true, it is crazy how something really small like basic financial education can actually change someone whole life path…

Most people does not even lack money, it is just knowledge and discipline that they don’t have... Imagine learning simple things like budgeting, investing, or even how money works from school days… plenty people would have avoided unnecessary struggle by now..

Financial education is one of those things that sounds small oo, but has a really big longterm effect…

It also makes sense that they learn simple things like budgeting and other things that you said that will keep them out of trouble, but still the main problem is that income is still quite difficult to have, for some people who say that income is easy to get they say that because they already have a sure way to get income and their situation is already secure in terms of income because there are some people who already have income but admit that getting income is difficult whether because of the amount or the reality.

[justdimin]

One thing I've known about knowledge is that it's always far better and helpful that remaining in ignorance. It's better to have the knowledge of financial management and struggle with implementation rather than walking in ignorance basically because you don't even know what going on with you.

Even those that studied economics, accounting and finance based courses in school still fumbles but yet, they are more advantaged than those with zero knowledge in such field. If at the early phase of growth you don't find the need to understand properly how to manage your finances, you will still need it in the long run because there's no way you can avoid it completely.

I have seen ignorant people being happy too, but that's more about how they are happier with less and they are ignorant about what is possible and how it is possible and that's why they are happier. They are easier to convince themselves, because they lack the information which means that anything that blames the betters, is fine enough for them.

So information may make you sad, but it will open your eyes to real world in front of you and can show you what is possible and how it is possible. Obviously you may fail, you may stay smart but poor, not every smart person became rich, hard working and smart are not the same, plus luck plays a big role in this as well. But at least you would be seeing the real world, and not a fake one you created.