Importance of Managing Personal Finances

Why Financial management is Important?

Why do we work? Why do we go daily to work and that too for years ?

Some people love their work and they enjoy what they do and that's a good thing. But as per my understanding , every one goes to work for there livelihood , because we want to earn and generate over long term.

People want to create wealth , want to buy home and car. they want to go for vacations , they want to accumulate millions in 10 or 20 years .

People give 100% time to there work , but not even 1% for the motive behind the hard work they put, which is generate long term wealth , for buying home , children education

I have seen people who earn well , but fail to invest it properly , in fact in a wrong way , and hence they loose on that. Whats the use of working so hard if you cant invest it properly to achieve you goals , Is there any use of your working for so many years, and after all we work for money , and if we cant manage that money or dont take some serious time to manage it , i personally consider it as waste.

Some personal Experiences

One of my friend has taken a ULIP policy to save tax without knowing what it is . The insurance he gets on that ULIP is 125000 with yearly premium of 25,000 with health insurance premium of 4500.

he didn't pay any attention to what he is buying , Does he really need it , how is it going to be beneficial to him.

One of my other friend took a Endowment policy with insurance of 10,00,000 for 15 years with premium of around 90,000 , when i asked her , how many financial dependents she had , she was clueless and when i cleared what i am asking she said , "No one" .

People dont take any interest in knowing/learning/asking about financial instruments from anyone and take idiotic decisions , loosing there hard earned money .

It takes only 1hr / week or 4 hrs/month or 1 day / year to take fair decision (if not best) regarding your finances.

If people start giving 1% time to there investments and finances and 99% to there work compared to 100% time to work , they can do much better .

A person earning 20,000 per month can generate more wealth than a person earning 50,000/month , with better investment technique.

"Money does not grow just by investing more , but disciplined and great investing technique."

I would be happy to read your comments or disagreement on any topic. Please leave a comment.