Personal Financial Management

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Rarely do we hear people asking us, "How is your relationship with money?" Do you spent your money wisely? This question is a little sensitive but honestly, if you 're asked this question, how would you answer? Are you guys still "talk" to each other, separated or worse, "divorced"? Understanding your relationship with money is important in helping you manage it wisely. What am I talking about?Do you have any idea? Ok now,I am talking about the personal financial management.What is meant by personal financial management?Personal Financial management is process of managing your money to achieve personal economic satisfaction.In other word,it mean every aspect of your life that deals with money. Your personal finances affect your…show more content…
Take out your checkbook or pull your latest bank statement to help you with this step. Jot down how much you spend on things like utilities, groceries, entertainment, subscriptions, and so on. This handy worksheet can help you with keeping track of expenses.In addition,you also can use a Row-by-Column ledger, spreadsheet or other software to keep track every month. If you exclusively use a debit card for your purchases, the bank will do this for you. Now that you can visually see how much you fall short, you can adjust your spending or saving in certain areas to improve the situation. Oftentimes you’ll realize that by just making a few small adjustments to your spending habits, you can significantly improve your situation. Maybe this means cutting back on one of your magazine subscriptions, eating out one time less a month, or even just hitting the matinee instead of the prime time movie. Typically, just saving a few dollars here and there can be enough to not only make sure you spend less than you earn, but also apply a few extra dollars to things like high-interest credit card debt or your retirement savings. Let me end by saying good money management is largely a matter of making good decisions and setting up good systems to manage your financial operation. If you can set up systems that work for your organization to handle your daily accounting, payroll,
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